There are hundreds of dividend stocks trading on the TSX that I could probably include on this list. Given Canada’s plethora of energy, financials and real estate companies, this is a market that’s really dominated by yield-producing options. For those thinking long term, that’s a good reason to own some index fund exposure to this market, in my view.
However, for those who like to pick stocks (as I do), here are three of the top dividend stocks on my list right now, and why I think they could be set up for a solid 2026.
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Suncor
In the Canadian energy sector, Suncor (TSX:SU) is about as blue-chip a stock as there is.
The western Canadian provider of heavy crude to mostly U.S. refineries has seen its share price move nicely higher this year, as investors bank on continued investment in this sector. Impressively, this move comes as oil prices have remained stagnant, speaking to the shifting political priorities on both sides of the border today.
I think Suncor’s rock-solid balance sheet, lower production cost than major peers per barrel of oil, and dividend yield of nearly 4% (impressive, given this stock’s recent run) are worth considering here.
Those looking for a balanced portfolio may want to have some energy exposure in the mix. Among the top players I continue to pound the table on is Suncor for that kind of blue-chip dividend-producing upside.
Whitecap Resources
Sticking to the commodities sector for a minute, Whitecap Resources (TSX:WCP) is another top Canadian stock I continue to pound the table on right now.
The company’s dividend yield of 6.3% is much higher than that of Suncor, though both companies’ stock charts look eerily similar in recent years.
I’d argue that many of the same catalysts driving Suncor higher will likely impact Whitecap Resources as well. The key differentiator between the two companies in my mind is Whitecap’s relatively smaller size and outsized production growth in recent quarters.
For those who believe the price of oil is more likely to go up than down from here, this is certainly a higher-leverage and higher-growth way to play this trend. Personally, I’d consider splitting energy exposure between the two names, but I thought I would be prudent to include both on this list, particularly due to Whitecap’s higher yield and higher growth outlook.
SmartCentres REIT
In the real estate sector, one company I think hasn’t gotten the love it deserves in recent years is SmartCentres REIT (TSX:SRU.UN).
Much of this view probably has to do with the fact that SmartCentres owns and operates a portfolio of commercial real estate leased to retailers. Think of the malls and outlets that have gone out of business in recent years, and you get the picture. Many investors simply don’t want to touch this part of the market.
But with Walmart (NYSE:WMT) anchoring most of the company’s core locations, inviting tremendous foot traffic to businesses leasing other units offered by the company, it’s no surprise to see SmartCentres’ occupancy rates among the lowest in this sector.
With a dividend yield of 7.3%, it’s really hard to find an investment-grade option with this kind of yield today. This pick is aimed more at investors looking for higher upfront yield. But over the long term, I’d expect this company’s distributions to continue to rise as rent growth continues.
