5 TSX Dividend Stocks I’d Jump to Buy When the TSX Pulls Back

A pullback makes high yields more powerful — but only when businesses can fund them with durable cash generation.

Key Points
  • When the market pulls back, owning high‑yield dividend stocks can be strategic, but only if the dividends are backed by cash flow and resilient balance sheets.
  • These five stocks were chosen for their payout sustainability, cash‑flow coverage, and downside resilience.
  • A $7,000 position in each (total $35,000) yields roughly $1,300 annually (~3.8% blended).

When the TSX pulls back, investing in high-yield dividend stocks can feel like a superpower: You get paid to wait, and you can reinvest in the stocks at lower prices. It’s a major strategic advantage, but only if dividends are backed by real cash flow and resilient balance sheets — not yield for yield’s sake.

These five stocks were picked for sustainable payouts, strong cash‑flow coverage, and downside resilience. Now, as the market is broadly dropping in response to conflict in the Middle East, these five look like timely choices today.

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Infrastructure stocks

Emera (TSX: EMA) runs regulated electric and gas utilities that people use no matter what the TSX does. Over the last year, it leaned into its capital plan and rate base growth, and it capped it off with a strong 2025 update that highlighted record adjusted earnings per share of $3.49, up 19% year over year, and adjusted net income of $1.045 billion. It also signalled confidence by extending its growth target, all while trading at 21 times earnings with a 4.2% yield at writing.

Canadian Natural Resources (TSX: CNQ) built a reputation for funding dividends through the cycle, not just in the good times. It’s a heavyweight producer with long-life assets. In its latest reported quarter before year-end results, it posted adjusted net earnings of $1.8 billion, or $0.86 per share, and adjusted funds flow of $3.9 billion, or $1.88 per share, which shows why investors treat it like a cash machine when operations run smoothly. That helps support its 4% yield, while trading at a reasonable 18.8 times earnings.

NorthWest Healthcare Properties REIT (TSX:NWH.UN) is the higher-yield infrastructure-style pick here, because healthcare real estate tends to keep collecting rent through slowdowns, and the distribution shows up monthly. The most recent update showed real progress, with Q4 2025 adjusted funds from operations (FFO) of $0.12 per unit and an AFFO payout ratio of 75%, down meaningfully from earlier periods, alongside year-end occupancy around the mid-96% range. At writing, it offers investors a 6% yield while trading at 30 times earnings.

Finance stocks

On the finance side, a pullback can create rare moments where you can buy high-quality cash generators at less demanding valuations. The best setups usually combine dependable earnings power with capital strength and a clear habit of raising dividends.

Intact Financial (TSX: IFC) keeps translating underwriting discipline into real earnings. Its Q4 2025 results showed net operating income per share up 12% to $5.50, paired with a combined ratio of 85.9%. The dividend stock also reported book value per share of $107.35 and an operating return on equity (ROE) of 19.5%, then backed it up with another dividend increase, lifting the quarterly dividend to $1.47 per share. Right now, the dividend stock trades at 14.5 times earnings, while providing a 2.2% dividend yield.

Finally, National Bank (TSX: NA) blends a solid dividend with strong earnings power, and the last year gave it a major growth lever through its acquisition of Canadian Western Bank. In its first quarter of 2026, it reported an adjusted profit of $1.32 billion, or $3.25 per share, ahead of expectations, with a big lift in personal and commercial banking tied to the CWB deal. That matters in a pullback, as investors often rotate back toward banks that can still grow earnings without taking ridiculous risks. The dividend story stays sturdy, too, with the dividend stock trading at 19 times earnings with a 2.6% yield.

Bottom line

If the TSX pulls back, these five stocks offer a mix of “get paid to wait” income and durable growth potential. Investing $7,000 in each (a $35,000 total) would generate about $1,300 annually — a blended yield of roughly 3.8%.

COMPANYRECENT PRICENUMBER OF SHARES YOU COULD BUY WITH $7,000ANNUAL DIVIDEND PER SHARETOTAL ANNUAL PAYOUT OF $7,000 INVESTMENTFREQUENCY OF PAYOUT
NWH.UN$5.911,184$0.36$426.24Monthly
CNQ$59.57117$2.35$274.95Quarterly
IFC$266.1426$5.88$152.88Quarterly
EMA$71.0798$2.92$286.16Quarterly
NA$191.0236$4.96$178.56Quarterly

As always, we at Motley Fool Canada recommend holding stocks for at least five years, and these income producers should reward you well over the years, especially if you’re able to buy them on a dip.

Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool recommends Canadian Natural Resources, Emera, Intact Financial, and NorthWest Healthcare Properties Real Estate Investment Trust. The Motley Fool has a disclosure policy.

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