2 Delectable Dividend Stocks to Buy Immediately

These two TSX dividend stocks are off recent highs, giving income investors a better entry without relying on a perfect market call.

Amy Legate-Wolfe

Amy became interested in investing in 2018 after having her first daughter. After receiving a masters degree in journalism from Western University, she became frustrated that the finance industry remained a confusing place for Canadians like her: new parents, millennials, and other young people who needed to understand their finances. Now, Amy focuses on tech companies and renewable energy for growth opportunities, coupling that with long-term investing strategies and equities. She also provides investors with a daily newsletter, Canada Stock Digest, for daily market updates. Before joining Motley Fool Canada, she wrote for major news organizations including HuffPost, CTVNews.ca, and CBC. When she’s not researching investing strategies, Amy’s time is pretty much monopolized by her two wild daughters, but in what little spare time she has she loves to do yoga, go on walks with her dog, and travel with her husband. Follow Amy on LinkedIn and Canada Stock Digest. Favorite Investment Quote: “October: This is one of the particularly dangerous months to speculate in stocks. The others are July, January, September, April, November, May, March, June, December, August and February.” – Mark Twain

Published January 29, 8:00 pm EST

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Key Points

Birchcliff’s dividend is tied to natural gas cash flow, so payouts and the share price can swing with commodity prices.
Imperial Oil is more diversified across upstream and refining, supporting steadier cash generation and shareholder returns.
Both can work for income, but the key risk is energy-price volatility that can quickly change dividend coverage and sentiment.

If you crave dividends, a pullback can feel like the market put your snack on sale. Today, these two dividend stocks sit below recent highs, and both still run the kind of cash engines that matter for income investors. Let’s get into it.

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BIR

Birchcliff Energy (TSX:BIR) makes money by producing Canadian natural gas and liquids, then selling into more than one market so it does not rely on AECO alone. The dividend stock has climbed about 22% over the past year, yet it still trades roughly 10% below its 52-week high, with recent pricing around $7.25. That gap gives dividend hunters a better entry point without demanding perfect timing.

The latest quarter shows why Birchcliff looks down but not out. In Q3 2025, it reported petroleum and natural gas revenue of $149.6 million. The energy producer generated cash flow from operating activities of $78.5 million and adjusted funds flow of $87.1 million, or $0.32 per share. It also delivered free funds flow of $15.6 million. Net income came in at a loss of $14.1 million, or negative $0.05 per share, which highlights how earnings can swing even when cash holds up.

The near-term outlook looks constructive, with real numbers behind it. Birchcliff averaged 80,406 barrels of oil equivalent per day (boe/d) in Q3, up 7% year over year, and it lifted 2025 production guidance to 79,000 to 80,000 boe/d. For 2026, it outlined a $325 million to $375 million capital plan that targets 81,000 to 84,000 boe/d, and it declared a $0.03 quarterly dividend for Q4 2025. The valuation looks higher, trading at 27 times earnings, so you should assume commodity prices will drive the story.

IMO

Imperial Oil (TSX:IMO) offers a steadier kind of dividend appeal. It runs oil sands production, refining, and chemicals, and that mix can smooth results when one segment cools. The dividend stock has gained about 39% over the past year, and it recently traded around its all-time high. That is not a bargain-bin dip, but it still counts as a pullback for a name many investors treat as a core holding.

Its Q3 2025 results show strong operations even with some one-off noise. Imperial reported estimated net income of $539 million, while net income excluding identified items reached $1.1 billion. Kearl averaged record total gross bitumen production of 316,000 boe/d. Refinery throughput averaged 425,000 barrels per day with 98% utilization. It also generated $1.8 billion in cash flow from operating activities in the quarter and paid $0.72 per share in dividends during the period.

Looking into 2026, Imperial has pointed to higher spending and slightly higher upstream production, with a 2026 capital and exploration budget of $2 billion to $2.2 billion and upstream production guidance of 441,000 to 460,000 boe/d. That plan aims to lift cash flow and lower unit costs, which can support dividends and buybacks. The valuation still looks fair for a cash-heavy business, trailing at 18 times earnings, but oil prices can swing and maintenance can pinch downstream results.

Bottom line

Together, these two dividend stocks give you two different dividend flavours while prices sit off their peaks. Birchcliff offers more upside if gas markets co-operate, plus a forward valuation that can look kinder if cash flow stays strong. Imperial offers scale, operational muscle, and a shareholder-return habit that keeps showing up in the numbers. And right now, here’s what $7,000 can bring in from dividends alone.