Tariff headline chaos has returned because U.S. politicians keep reaching for tariffs as a negotiating tool, even when the target is a close ally like Canada. That kind of policy whiplash can jolt currencies, input costs, and business confidence overnight, which makes investors crave something steadier.
A dividend stock can sometimes be a “hold through anything” pick when it sells an essential service, signs long contracts, and keeps cash flow predictable even when headlines get loud. The trick is making sure the dividend comes from durable cash flow, not wishful thinking.
Source: Getty Images
CPX
Capital Power (TSX: CPX) is one of those Canadian names that rarely steals the spotlight, yet it keeps doing the work. The dividend stock owns and operates power generation across North America, with a mix that includes natural gas, renewables, and other assets, and it aims to generate steady cash flow while it grows. In a world where trade tension can rattle demand forecasts, electricity demand does not vanish. People still heat homes, factories still run, and grids still need reliability.
Over the last year, its news flow has leaned into exactly what income investors want to see. That includes contract visibility and deliberate growth. In early January 2026, it extended its Arlington Valley tolling agreement through 2038 and announced a 35 megawatt (MW) summer capacity up-rate, with 10 MW added in 2026 and another 25 MW in 2027. That kind of update stretches contracted cash flow further into the future and leans into peak-demand periods when pricing can be strongest.
The dividend stock also kept signalling that it plans to grow without getting reckless. At its December 2025 investor day, management laid out targets that include 8% to 10% annual adjusted funds from operations (AFFO) per-share growth and a 2% to 4% annual dividend growth target, alongside a bigger push into U.S. capacity through 2030. The direction is clear, to grow cash flow per share, then grow the dividend at a pace the balance sheet can handle.
Earnings support
In Capital Power’s third quarter of 2025, it generated adjusted funds from operations (AFFO) of $369 million versus $315 million a year earlier, and AFFO per share came in at $2.37 versus $2.42. It also posted adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) of $477 million and net income of $153 million. This is not a dividend stock but a cash-flow business that tries to keep the engine humming while it adds capacity and contracts.
The dividend story also looks disciplined. CPX stock declared dividends of $0.6910 per share in that quarter, and it had already raised the quarterly dividend to that level in 2025, which today works out to $2.69 for a 4.5% yield. It also frames its dividend policy within guardrails, including a targeted payout ratio range, which is exactly the kind of boring constraint that can keep a dividend safer when the world gets chaotic. For now, here’s what even $7,000 can bring in.
| COMPANY | RECENT PRICE | NUMBER OF SHARES | ANNUAL DIVIDEND | ANNUAL TOTAL PAYOUT | FREQUENCY | TOTAL INVESTMENT |
|---|---|---|---|---|---|---|
| CPX | $59.60 | 117 | $2.69 | $314.73 | Monthly | $6,973.20 |
Looking into 2026, the near-term catalyst is simple. Proof that the growth plan stays on schedule and the cash flow keeps covering the payout as new assets contribute. The dividend stock will release fourth-quarter and full-year 2025 results on Mar. 4, 2026, which will give investors a fresh view of full-year cash generation and updated priorities. If it keeps contracting well and avoiding cost blowouts on growth projects, it can stay in that “hold through anything” category for a lot of investors.
Bottom line
So could the dividend stock be a buy-through-anything investment? It could, if you want a Canadian dividend payer tied to essential infrastructure, with visible contracting and a plan to grow AFFO per share over time. It could also be the wrong choice if you want a pure regulated utility feel, or if you cannot stomach the occasional volatility that comes with power markets and expansion. The upside is that tariff headlines may come and go, but demand for reliable power rarely takes a day off.
