3 Canadian Stocks Yielding 4%+ That Still Have Growth Potential

North American natural gas demand is entering one of its strongest growth cycles in decades, driven by AI data centres, electrification, and coal-to-gas conversions, and Canadian pipeline operators sit directly in the path of that demand.

At the same time, royalty businesses and infrastructure companies that collect predictable fees can keep growing cash flow even when GDP growth slows.

For Canadian investors who want a yield above 4% without giving up the upside, the sweet spot sits in businesses with durable demand, sensible leverage, and a clear plan for funding both growth projects and the payout.

PPL

Pembina Pipeline (TSX: PPL) runs pipelines, facilities, and related infrastructure across Western Canada and into key demand corridors. Over the last year, the story has stayed practical: steady volume growth, selective acquisitions, and a focus on building out capacity where producers actually need it. In its latest update, it highlighted record annual Pipelines and Facilities volumes of 3.7 million barrels of oil equivalent per day (boe/d), up 3% year over year. Furthermore, new pipeline expansion projects totalling $425 million, including a Birch-to-Taylor expansion targeting 120,000 barrels per day of added capacity.

Pembina reported full-year 2025 earnings of $1.694 billion, adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) of $4.29 billion, and adjusted cash flow from operating activities of $2.85 billion, or $4.91 per share, with fourth-quarter adjusted EBITDA of $1.08 billion. And right now, it trades at 21.6 times earnings, with its dividend just under 5% at 4.7% at writing.

Pembina is a LNG and data-centre infrastructure play hiding in plain sight. Cedar LNG is under construction, the Greenlight Electricity Centre targets a 2026 final investment decision, and 5% fee-based EBITDA per share growth over three years backs up a 4.7% yield that actually has room to keep rising.

TRP

TC Energy (TSX: TRP) sits at the centre of North American gas and power demand that keeps getting louder. It operates major natural gas pipelines and related infrastructure, and the last year has leaned into two themes: more volume and more expansion opportunities tied to power demand, including data centres. The dividend stock also keeps doing what income investors love. It raised its dividend again, increasing the quarterly payout by 3.2% to $0.8775 per share, or $3.51 annualized, marking its 26th consecutive year of dividend increases and a 4% yield.

The numbers show why the market still treats it as a core holding. TC Energy reported fourth-quarter comparable earnings of $1 billion, or $0.98 per share, and comparable EBITDA of $3 billion, with full-year 2025 comparable EBITDA of $11 billion. It also guided to higher 2026 results, projecting comparable EBITDA of $11.6 billion to $11.8 billion and capital spending of $6.0 billion to $6.5 billion.

TC Energy is a 26-year dividend grower with a 12 bcf/d demand growth thesis underneath it. So if AI data centres and coal-to-gas conversions play out as management expects, the 4% yield should be the starting point, not the ceiling.

DIV

Diversified Royalty (TSX: DIV) is a different animal, and that is what makes it useful in a “yield with growth potential” list. It collects top-line royalties from a basket of consumer and service brands, which can keep the cash flow smoother than a single-company retailer. Over the last year, it kept adding diversification and inflation-style protection, including the Cheba Hut deal it closed in June 2025, which added another royalty stream to the portfolio. It also kept leaning on organic growth across key partners, with management highlighting strong same-store-sales growth at Mr. Lube + Tires and improving trends at Oxford.

The payout story has been moving in the right direction, which is the whole point when you buy a high yielder. In Q3 2025, DIV reported revenue of $18.3 million, up 13.4% year over year, and distributable cash of $13.1 million, up 18.8%, while its payout ratio improved to 89.3% despite a higher dividend level. It also approved a dividend-policy increase to lift the annualized dividend from $0.275 to $0.285 per share effective December 2025. On yield and valuation, it has recently traded with an annual dividend yield around 6.3%. Still, investors should stay alert to payout coverage and interest costs because royalty businesses often rely on credit facilities to fund acquisitions.

DIV is the high-yield wild card of the three investments shown here. It has a 6.3% yield, improving payout coverage, and a royalty model that collects from multiple brands rather than betting on one. The risk is leverage and acquisition execution, so size it as a complement to the pipeline businesses in your portfolio rather than a replacement.

Bottom line

The cleanest setup for 4%+ income with real growth potential is cash flow first, catalysts second. Pembina and TC Energy both have identifiable growth engines (Cedar LNG, Greenlight, and 12 bcf/d of anticipated North American gas demand) while DIV offers a smoother royalty income stream at a higher starting yield. Together, they give you pipeline infrastructure, power demand exposure, and brand royalties: three ways to collect above-average income without giving up on growth. Here’s what a $7,000 investment in each could look like.

None of these investments is risk-free, but each one pairs a yield above 4% with a clear reason why cash flow can keep growing, which is the whole point of owning income stocks in the first place!