How I’d Invest $10,000 in Canadian Dividend Stocks

Here’s how much these three solid dividend stocks could bring in.

Key Points

So you have $10,000 and want to make more through dividend investing. It’s a great idea! Especially when you consider putting it into a tax-advantaged portfolio such as a Tax-Free Savings Account (TFSA) or Registered Retirement Savings Plan (RRSP). But, what about the dividend stocks themselves? Today, we’re going to look at three solid dividend stocks to choose and how much $10,000 could bring in on the TSX today.

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Source: Getty Images

CM

Canadian Imperial Bank of Commerce (TSX: CM) could be one of the best large-cap opportunities for investors looking to put $10,000 to work right now, particularly if you want a mix of reliable income and long-term growth. CIBC has long been one of Canada’s most shareholder-friendly banks, and with shares still trading at a discount compared to peers investors can lock in an attractive dividend yield at 3.3%.

The dividend stock has spent the past few years improving its balance sheet and refocusing its strategy after being hit harder than peers by the housing slowdown. Those efforts are now paying off. Its latest quarterly earnings showed strong results across key divisions, with revenue and net income both rising.

From a valuation standpoint, CIBC looks undervalued. It trades at just 14.5 times earnings, despite its strong capital base and consistent profitability. The market still seems to be pricing in too much pessimism about its exposure to Canadian real estate, overlooking how diversified its business has become. As economic conditions stabilize, the gap between CIBC’s valuation and those of its peers could narrow, offering long-term investors both income and capital appreciation potential.

NWC

The North West Company (TSX: NWC) operates grocery and general merchandise stores in some of the most remote communities where competition is virtually nonexistent. Because it provides essential goods like food and fuel, its revenues stay steady even when the broader economy slows down. For dividend investors, that kind of consistency is golden.

What makes NWC particularly attractive right now is that it’s trading at just 16.5 times earnings despite maintaining healthy fundamentals. The dividend stock’s latest results showed steady sales growth and resilient margins, with same-store sales increasing across both its Canadian and international markets. Inflation and freight costs pressured profits last year, but those headwinds are now easing. Investors can currently lock in a 3.5% dividend yield.

For a $10,000 investment, NWC offers something rare: balance. You get income, stability, and modest but consistent growth. The dividend is well-covered by cash flow, with a payout ratio that leaves room for regular increases. As the dividend stock continues to modernize its supply chain and logistics network, profitability should gradually improve, adding fuel to future dividend hikes.

SGR

Finally, Slate Grocery REIT (TSX: SGR.UN) could be an excellent dividend stock to invest in with $10,000 if your goal is to generate steady, high-yield income that pays you every single month. The real estate investment trust (REIT) owns and operates a portfolio of grocery-anchored shopping centres across the United States. These are grocery chains that see consistent foot traffic no matter what’s happening in the economy.

The biggest attraction for investors is the dividend yield of about 8%, paid monthly. It’s also backed by a steady stream of rental income rather than speculative earnings. The REIT’s latest financial results reinforce that reliability while occupancy remains strong at roughly 95%, same-property net operating income is growing, and funds from operations (FFO) comfortably cover its monthly distributions.

Yet what makes SGR.UN particularly compelling now is that it’s still undervalued relative to its fundamentals. The dividend stock trades at just 15 times earnings. Despite macro headwinds like higher interest rates, the REIT has maintained stable financial performance, thanks to its focus on grocery-anchored assets. All together, it’s a solid dividend stock, with a solid strategy.

Bottom line

For those looking to create passive income through dividend stocks, these three offer ample opportunities. In fact, here is what $10,000 invested in each of these three dividend stocks could bring in.

COMPANYRECENT PRICENUMBER OF SHARESDIVIDENDTOTAL PAYOUTFREQUENCYTOTAL INVESTMENT
CM$120.2983$3.88$322.04Quarterly$9,987.97
NWC$46.96212$1.64$347.68Quarterly$9,955.52
SGR.UN$14.85673$1.21$814.33Monthly$9,990.05

So if you’re an investor looking to create long-term income, these three certainly belong on your watchlist.

Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool recommends North West and Slate Grocery REIT. The Motley Fool has a disclosure policy.

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