Canadian dividend investors don’t get many chances to buy wide-moat, defensive stocks at what look like fire‑sale valuations relative to their own history. When that window opens, locking in above‑average starting yields on proven compounders can set up years of growing income and solid total returns.
Here are three such opportunities I think are worth considering right now for long-term investors seeking value.
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Dream Industrial REIT
Dream Industrial REIT (TSX: DIR.UN) is among the leading real estate investment trusts (REITs) I continue to tout as a long-term pick.
Much of that has to do with the company’s price-earnings multiple in the low‑teens. That’s despite a business model which is backed by a portfolio of 300‑plus modern industrial properties spread across North America and Europe.
With total assets of roughly $8.4 billion, the REIT’s net rental income climbed to $385 million in 2025. And despite fair‑value write‑downs pressuring headline net income, underlying cash flow continues to comfortably support the trust’s high‑single‑digit yield. Management just executed a large joint‑venture sale, unlocking roughly $375 million in proceeds and boosting liquidity to more than $700 million, which should lower borrowing costs and de‑risk the balance sheet.
With industrial fundamentals still tight and the market fixated on non‑cash valuation hits, investors today can scoop up an above‑average payout from a REIT whose cash flows look stronger than the headline earnings suggest.
Toronto-Dominion Bank
Toronto-Dominion Bank’s (TSX: TD) dividend yield sits around 3.3%, which is below its long‑term median of roughly 3.8%. However, it should be noted that this top Canadian bank stock has delivered 7% to 8% average annual dividend growth over the past decade. Thus, there’s a dividend growth angle worth considering with this top financial institution.
That said, despite this surge in the company’s share price (and relatively low historical yield), this dividend is well covered. The bank’s payout ratio is in the low‑50% range on recent earnings, leaving plenty of room for further increases as earnings advance.
Over the past 13 years, TD’s yield has rarely spent much time north of 4%, typically coinciding with periods of macro fear rather than permanent impairment to its franchise. With a top‑tier capital position, diversified North American footprint, and a history of weathering cycles while growing its dividend, TD at a historically elevated yield looks like a bargain blue‑chip income play today.
Fortis
No list of top dividend stocks to buy right now would be complete without discussing Fortis (TSX: FTS).
Fortis is trading around 20 times trailing earnings, roughly in line with its 13‑year median multiple. That’s even as earnings have compounded at about 5% to 6% annually over the past decade and management continues to target 4% to 6% annual dividend growth.
With a payout ratio under 75%, investors are getting a regulated utility that comfortably covers its dividend with earnings while still reinvesting heavily in its rate base. The balance sheet supports that growth. Fortis continues to post mid‑single‑digit EPS growth and maintains stable returns on equity from its diversified North American electric and gas utilities. For a name that’s raised its dividend for more than 50 years, paying a market‑like multiple for this kind of visibility looks cheap on a risk‑adjusted basis today.
