Putting any type of “elite” tag on any grouping of stocks is a difficult task, considering the variation in which factors are most important to investors at a given point in time. For most of recent history, a company’s growth rate is what mattered more than almost everything else. Profitability and other key factors didn’t matter as much as how fast a company was growing, taking market share, or otherwise seeing underlying improvements that could lead to profitability down the road.
I’d argue this view has shifted toward which companies are most profitable and have the most solid balance sheets. Thus, dividend stocks that have proven the ability to generate higher profits over time (and pass those profits off to investors in the form of dividends) is where I’m going to spend my time right now, in terms of finding the truly “elite” stocks out there.
So, let’s do just that and discuss three top dividend stocks I think could outperform in 2026 and beyond.
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Bank of Nova Scotia
In the Canadian banking sector, Bank of Nova Scotia (TSX:BNS) continues to be one of my top picks for those seeking meaningful dividend income today, and down the road.
With a dividend yield of 4.6% and trading at a price-earnings ratio of around 18 times, I think there’s plenty to like about the company’s long-term upside from here.
And that’s despite a stock chart above that looks like it’s about to go parabolic. Scotiabank has been one of the best-performing Canadian stocks this year, driven by a move that started right around April (and has led to around 50% upside over the past few months).
I think this trend may continue, if global investors seeking financial exposure look to the Canadian stock market as a place to invest.
Enbridge
In terms of high yield stocks that have benefited investors most over the course of the past five years, I’d argue Enbrdige (TSX:ENB) has to at least be included in the discussion.
Now with a dividend yield of 5.6% (down considerably thanks to this stock’s massive price appreciation in recent years), Enbridge’s status as a leading pipeline operator has led to strong and consistent share price performance, as investors look for ways to stabilize their returns over the long-haul.
The whole energy independence discussion in the North American energy complex really centers around producing more oil domestically. But getting that oil from where it’s produced to where it’s refined is the other half of the story, and Enbridge bridges that gap (pun intended).
I expect further dividend increases down the road (and more debt repayment), providing even greater upside for those betting on an even more rock-solid company with a balance sheet other peers in this space will envy.
Restaurant Brands
In terms of companies with defensive exposure and the ability to weather any sort of macro headwinds coming our way in 2026, Restaurant Brands (TSX:QSR) continues to be one of my top picks right now.
Shares of the fast food giant have been trending higher in recent weeks, buoyed by strong earnings from other competitors in this space.
I think the trade-down effects we’re starting to see – from consumers who still want to dine away from home, but want to do so in a more cost-effective manner – will continue. If that’s your base case as well, QSR stock is one worth taking a look at here.
With a current dividend yield right around 3.5% and solid cash flow growth over the long-term driven by both organic (same-store) sales growth as well as the company’s international expansion efforts, I think Restaurant Brands is a top dividend growth stock worth considering on dips. Trading right around all-time highs, I’d probably wait for a pullback before hitting the bid on this name, but it’s one stock I think could be worth adding to over the coming months if we do see volatility pick up.
