Let me be direct: Bird Construction (TSX:BDT) is one of the best dividend stocks you can own in Canada right now. It pays a monthly dividend of $0.07 per share, which translates to a yield of almost 3%.
Valued at a market cap of $2 billion, the TSX dividend stock has returned 64% to shareholders in the past year and still trades at a reasonable valuation. With a record $11 billion backlog, Bird Construction remains a top investment in March 2026. Let’s see why.
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The bull case for the TSX dividend stock
Think of a backlog as a company’s order book. A bigger, higher-quality backlog indicates more predictable revenue ahead.
- Bird’s combined backlog now stands at more than $11 billion.
- That’s a 45% jump from 2024.
- Even better, the margins embedded in that backlog are higher today than at any point in the last decade, according to Chief Financial Officer Wayne Gingrich.
- Approximately 54% of that backlog is expected to be converted into revenue within the next 12 months. That alone should give investors serious confidence heading into 2026.
Bird Construction reported revenue of $3.4 billion in 2025, which was flat year over year. However, gross margins expanded to 10.5% from 9.7% over the last 12 months.
Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) rose to $222.1 million, indicating a margin of 6.5%, up 20 basis points year over year.
Bird is now just 150 basis points away from its 2027 margin target of 8%. And management expects to get there even as revenue accelerates.
High growth market opportunities
Defence is a standout sector for the Canadian mid-cap stock. The company’s defence backlog has surpassed $1.5 billion, while Canada’s Department of National Defence has outlined a $100 billion construction plan over 10 years, including $40 billion earmarked for the north over 20 years. Bird has deep Arctic experience and is actively tracking more than 200 defence-related projects.
Data centres are another massive opportunity. Bird is tracking more than $20 billion in Canadian data centre projects.
As President and CEO, Terrance McKibbon explained on the earnings call that the critical path in data centre construction is electrical work, and that Bird is Canada’s largest electrical employer.
The nuclear sector is heating up, too, and currently accounts for 10% of the top-line. New credentials recently obtained by the company allow broader participation in the sector, just as new-build activity at Bruce Power and other facilities is set to ramp up.
And then there’s the acquisition of FRPD, a 115-year-old marine construction and dredging firm. With Canadian port upgrades accelerating and trade infrastructure becoming a national priority, FRPD opens a range of new opportunities for Bird.
A growing dividend
Bird pays a monthly dividend, which is always a nice feature for income investors. In 2025, it reported free cash flow of $72 million, or $1.30 per share, indicating a payout ratio of 64%. The annual payout is projected to increase from $0.84 per share in 2025 to $1.05 per share in 2027.
Analysts forecast adjusted earnings to expand from $1.94 per share in 2025 to $3.38 per share in 2027. If the Canadian stock is priced at 15 times forward earnings, it could surge over 30% in the next 12 months.
Bird’s book-to-bill ratio was 1.4 times in 2025, meaning it won $1.40 of new work for every $1 of revenue it recognized. That ratio has consistently been above 1, a sign that the backlog keeps growing.
For long-term investors who want exposure to Canada’s infrastructure buildout, Bird Construction checks nearly every box. Strong dividend, record backlog, improving margins, and a management team with a clear plan. That’s a combination worth holding onto, possibly forever.
