The quality of a dividend stock is not determined by high yield or high dividend growth, but by reliable payouts. The key objective of investing in a dividend stock is to secure a reliable passive-income source, even during economic downturns or interest rate cuts.
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Where can you find such reliable dividend stocks?
Canada has plenty of such stocks in the finance, energy infrastructure, oil and gas, and real estate sectors. Within these sectors, you should look for stocks with a rich dividend history, the management’s capital-allocation policy, and a strategy to manage balance sheet debt. Here are a few under-the-radar dividend stocks that are a reliable source of passive income.
goeasy stock
goeasy (TSX:GSY) stock is often known for its growth cycles that revolve around interest rates. The non-prime lender recently came under the limelight after short-seller Jehoshaphat Research accused goeasy’s lenient accounting practices that have delayed credit losses and not reported delinquencies.
This accusation has reduced the value of goeasy’s loan portfolio. The company’s share price is influenced by the loan portfolio value and the dividends from the interest earned from this portfolio.
After the accusation, the stock took a significant hit of 45%. The chief financial officer, Hal Khouri, left goeasy to join a new company after reporting strong third-quarter earnings. The management change and a short-seller report have hit the stock price for the short term, but its dividends remain intact.
Granite REIT
Canada has some popular retail and residential real estate investment trusts (REITs) that are known for their yield of over 6%. Among them is Granite REIT (TSX:GRT.UN), which has a portfolio of 134 e-commerce and distribution, warehouse, and special-purpose properties.
From 2012 to 2025, it has increased its property portfolio from US$1.7 billion to US$9.1 billion. It has also diversified its tenant base, reducing dependence on Magna International from 93% of leased space to 20%. Over these years, its unit price doubled from $36 to $75. It even grew its distribution per unit at an average annual growth rate of 4%. The REIT expects to grow the same property’s net operating income (SPNOI) by 5.4%-6.2% by upgrading it to meet e-commerce trends. This has helped the REIT grow its distributions annually for the last 15 years.
The real estate industry has a high debt because of its capital-intensive nature. Granite REIT has maintained a lower leverage than the industry average. Its debt-to-capital ratio is 35%, below the peer group average of 53%. Its earnings before interest, taxes, depreciation, and amortization (EBITDA) are five times its interest amount, higher than the industry’s three times. Such attractive leverage ratios highlight REIT’s financial flexibility.
Lower leverage and higher operating income from the same property increase its funds from operations (FFO). Granite has reduced its distribution payout ratio to 58% in 2025 from 79% in 2019. The conservative nature of the REIT makes it a reliable passive-income source.
Manulife Financial stock
Manulife Financial (TSX:MFC) share price has doubled in two years as the company saw strong demand in Asia, Europe, and North America across life, health, and wealth products. The company is expanding through acquisitions and partnerships. It has acquired U.S.-based Comvest Credit Partners and PT Schroder Investment Management Indonesia to expand its presence in these markets. Manulife is also entering the Indian insurance space in partnership with Mahindra & Mahindra.
Apart from the share price rally, Manulife is also a good dividend stock. The capital growth has taken the limelight off its growing dividends. Manulife paid dividends even during the 2008 Financial crisis when many insurers took a hit. However, it paused dividend growth between 2010 and 2013 while it stabilized its finances.
While capital growth is one reason to buy the stock even at its all-time high, the dividend payout will ensure returns come during a downturn.
