Dividend investing never needs to be an either-or choice between safety and growth. Many quality Canadian stocks manage to offer both, thanks to their diversified operations, solid growth fundamentals, and disciplined financial strategies. When earnings rise and cash flows stay healthy, dividends become more sustainable, and share prices often follow. This approach suits investors who want income today without sacrificing future returns.
In this article, I’ll spotlight two top Canadian dividend stocks to buy that balance passive income with capital growth.
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Power Corporation stock
To generate reliable income paired with long-term upside, Power Corporation of Canada (TSX:POW) offers an interesting starting point. This Montréal-based holding company has major interests in insurance, wealth management, and alternative investments. Its core holdings include Great-West Lifeco and IGM Financial, which give it exposure to retirement, asset management, and advisory businesses.
After jumping by 63% over the last year, POW stock trades around $73 per share, giving it a market capitalization of roughly $43 billion. At the current market price, it also offers an annualized dividend yield of about 5.6%.
Power Corporation’s recent stock performance has been backed by improving earnings across its operating companies. In the third quarter, the group’s net profit from continuing operations rose to $703 million, nearly double the level reported a year earlier. Stronger contributions from its insurance and wealth platforms also drove its adjusted net earnings higher in the latest quarter.
Meanwhile, Power Corporation’s adjusted net asset value climbed 19.5% in the first nine months of 2025 to $72.24 per share with the help of gains in its publicly traded holdings.
Over the long term, the company’s diversified mix of insurance, asset management, and alternative investments positions it well to benefit from aging demographics in Canada and rising demand for wealth solutions. That combination makes it a solid dividend stock with room for capital growth in the long run.
Scotiabank stock
Bank of Nova Scotia (TSX:BNS), or Scotiabank, is another top Canadian dividend stock that can add a layer of income stability and growth potential to your portfolio. As one of Canada’s largest banks, its operations include Canadian banking, international markets, wealth management, and capital markets.
Following a 30% rally in the last 12 months, BNS shares currently trade near $100 apiece, giving it a market cap of about $124 billion. The bank pays a quarterly dividend with an annualized yield of roughly 5.6%, which remains attractive for income-focused investors.
In the fourth quarter of its fiscal year 2026 (ended in October), Scotiabank’s net income climbed nearly 31% YoY (year-over-year) to $2.2 billion. This strong profitability growth was mainly supported by higher net interest income and stronger non-interest revenue. Improved margins, helped by lower funding costs, also played a role in boosting its earnings.
Looking ahead, Scotiabank’s focus on balance sheet strength, disciplined expense management, and continued growth momentum in its wealth and capital markets segments supports its dividend sustainability and future capital growth potential. That’s why, for investors seeking income with long-term upside, it remains one of the top Canadian dividend stocks to buy now and hold for years to come.
