Which Dividend Stocks in Canada Can Survive Rate Cuts

Here’s why these top Canadian dividend stocks could remain resilient in a falling-rate environment.

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Key Points

  • Despite rate cuts often favoring growth stocks, certain Canadian dividend stocks with strong fundamentals can thrive, balancing income with economic resilience.
  • Pembina Pipeline offers a stable 5.3% dividend yield, leveraging dependable cash flows and strategic expansions in high-margin assets.
  • goeasy, with a 4.9% yield, remains resilient with diversified lending services and merchant partnerships, making it strong in volatile interest environments.

As inflationary pressures continue to ease, the Bank of Canada is widely expected to continue easing interest rates in the coming quarters. And while falling rates often create a tailwind for growth stocks, dividend-paying companies don’t always get the same love. Some see them as less attractive when bond yields drop. But that’s not always the case.

In fact, some Canadian dividend stocks with strong balance sheets, consistent cash flows, and a focus on long-term growth could actually do well in a falling-rate environment – especially when their dividends remain stable or grow. Investors who want both income and resilience in changing economic conditions should know which dividend payers could do well even as rates decline.

In this article, I’ll highlight two such dividend stocks in Canada that not only offer solid yields but also have the strength to thrive through rate cuts.

Pembina Pipeline stock

The first stock you can depend on for its dividend income stability and operational strength is Pembina Pipeline (TSX:PPL). This Calgary-based company operates in the energy infrastructure industry, transporting and processing oil and natural gas across Canada and parts of the United States.

At the time of writing, PPL stock trades at $54.03 per share with a market cap of nearly $31.4 billion. At the current market price, it offers a quarterly dividend with an annualized yield of 5.3%, which is especially attractive in an environment where income is harder to come by.

One of the main reasons Pembina is a solid choice is its ability to generate dependable earnings and cash flows even during uncertain times. Its latest financial results for the third quarter of 2025 showed its adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) rising 1.5% YoY (year-over-year) to $1 billion.

What gives Pembina its edge now is its efforts to expand its high-margin assets, invest in infrastructure across Western Canada, and position itself for export opportunities through its marine terminals. These projects are not only likely to add revenue diversity to its business but also reduce its exposure to near-term market cycles.

Moreover, its focus on balance sheet strength and disciplined capital spending makes it a reliable option for investors looking for top Canadian dividend stocks to buy in a changing rate environment.

goeasy stock

Another top dividend-paying stock worth considering right now is goeasy (TSX:GSY). Unlike Pembina, goeasy operates in the financial services sector – specifically, non-prime consumer lending through its easyfinancial and LendCare platforms.

Right now, GSY stock trades at $119.91 per share and has a market cap of just under $2 billion. It pays a quarterly dividend with a current annualized yield of 4.9%.

But what really makes this company worth considering is how it has held up despite a volatile interest rate environment, as reflected in its financial performance for the third quarter of 2025. Its revenue for the quarter rose 11.4% YoY to $440.2 million. And while goeasy’s adjusted net profit fell 8.2% YoY to $68.9 million, its EBITDA rose slightly from a year ago to $178 million.

It’s important to note that goeasy has built a wide-reaching network across Canada, combining online tools and over 400 retail locations to serve non-prime borrowers. And it continues to innovate in underwriting, expand merchant partnerships through LendCare, and grow secured lending options. These growth efforts could help diversify its revenue and reduce credit risk further, all while allowing the company to grow responsibly, even as borrowing costs fall.

For investors looking for top Canadian dividend stocks to buy that not only survive but also remain competitive as interest rates drop, goeasy could be a great choice.

Fool contributor Jitendra Parashar has positions in Pembina Pipeline. The Motley Fool recommends Pembina Pipeline. The Motley Fool has a disclosure policy.

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