If you’ve been following the market, you’ve likely heard the term “double up.” In stock investing, this means buying more shares of a stock you already own, especially when the price has dropped, to lower your average cost and boost your position. This strategy is particularly effective with dividend stocks — especially those that have shown the ability to maintain or grow their payouts over time.
In this article, we’ll highlight five dividend stocks that are ripe for doubling down on, offering solid yields and potential for growth. These picks provide opportunities to increase your income, as their stock prices offer a discounted entry point.
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1. CN Rail – A blue-chip Dividend Knight
Canadian National Railway (TSX:CNR) is a staple in Canadian dividend investing, with a 30-year track record of annual dividend increases. Despite being a blue-chip stock, CNR has faced a slight dip, falling about 5% over the last year. Trading at around $139 per share, it’s currently undervalued by 12% compared to its long-term average valuation.
CNR offers a dividend yield of 2.5% and is poised for a dividend hike this month. If you’re holding this stock, now could be the perfect time to increase your position.
2. TELUS – High yield, high risk, high reward
TELUS (TSX:T), one of Canada’s largest telecom companies, offers a much higher yield than most other blue-chip stocks — currently hovering around 9%.
However, it comes with a caveat: TELUS has explicitly stated it won’t raise its dividend until its stock price better reflects its intrinsic value. This move may sound conservative, but it’s part of a broader strategy to improve the balance sheet, while it leverages technology like artificial intelligence (AI) over time for future growth.
For investors willing to take on more risk, TELUS represents a contrarian, multi-year turnaround opportunity. With a dividend yield this high, it’s an attractive candidate to “double up” on, especially if you believe in the company’s long-term recovery plan.
3. Tourmaline – A hidden gem in energy
Tourmaline Oil (TSX:TOU), a low-cost, natural gas-weighted oil and gas producer, may not grab the headlines like larger energy companies, but it offers solid returns for income-focused investors.
Its regular dividend yields around 3.4%, but what really sets it apart are the special dividends it has paid out every year from 2021 to 2025.
Tourmaline is in a strong operational position, generating surplus cash that could lead to higher payouts. If you’re looking for a hidden gem that offers both consistent income and the potential for extra special dividends, Tourmaline is a great candidate to “double up” on.
4. BAM – A global growth powerhouse
Brookfield Asset Management (TSX:BAM) is a global leader in real asset investing and management, with over US$1 trillion in assets under management. BAM offers a nice initial dividend yield of 3.3%, along with a history of double-digit dividend growth.
With a diversified portfolio that spans infrastructure, renewable power, private equity, real estate, and more, BAM stands to benefit from megatrends like digitalization, deglobalization, and decarbonization. If you’re looking for a growth stock with a solid dividend foundation, doubling up on BAM could be a wise decision for the long term.
5. goeasy – A risky but rewarding high-yield play
If you’re willing to take on higher risk for the potential of substantial rewards, goeasy (TSX:GSY) is an intriguing pick. The non-prime consumer lender is trading at a 30% discount from its long-term valuation, making it a compelling candidate for a multi-year turnaround. Currently priced around $129 per share, goeasy offers a dividend yield of 4.5%.
With strong earnings coverage for its dividend and a 10-year dividend growth rate of 30.7%, goeasy represents a high-risk, high-reward opportunity for investors looking for dividend growth in a volatile sector. For those with a long-term investment horizon, it’s an ideal stock to “double up” on.
Investor takeaway
Doubling down on dividend stocks can be a lucrative strategy, especially when you can buy solid companies at discounted prices. The five stocks listed — Canadian National Railway, TELUS, Tourmaline Oil, Brookfield Asset Management, and goeasy — offer strong dividend yields and potential for growth, making them ideal candidates for increasing your positions.
Whether you’re looking for stable blue-chips or higher-risk, high-reward opportunities, these stocks are well-positioned to provide steady income and capital appreciation over time.
