3 Dividend Stocks Worth Doubling Down on Right Now

With a clear growth strategy and consistent execution, these three Canadian dividend stocks continue to build momentum.

Key Points
  • Open Text (TSX:OTEX) offers a 4.9% dividend yield, investing in AI and cloud for long-term growth.
  • Power Corporation of Canada (TSX:POW), with a 4.1% yield, shows strong financial growth, capital returns, and robust contributions from key holdings.
  • Premium Brands Holdings (TSX:PBH), with a 3.9% yield, continues to post strong revenue growth through acquisitions and organic expansion.

Irrespective of your ability to manage risks, market dips can feel unsettling — especially when headlines scream volatility, it’s easy to get caught up in short-term panic. But these moments aren’t something to fear — they can be opportunities.

Smart investors know building wealth isn’t about timing the market. It’s about time in the market. It’s about owning strong companies for the long term and collecting dividends along the way. When quality stocks pull back, it may be a good time to consider adding more.

Let me highlight three top Canadian dividend stocks that combine income with long-term potential.

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OpenText stock

OpenText (TSX: OTEX) is an information management firm that provides software and services to businesses worldwide. It helps organizations manage content, secure data, and streamline operations through its cloud-based platform.

OTEX stock currently trades at $30.53 per share with a market cap of $7.7 billion and is down about 32% so far in 2026, which may present an opportunity. It also offers a 4.9% dividend yield, paid quarterly.

In the second quarter of its fiscal 2026 (ended in December 2025), Open Text reported revenue of US$1.327 billion, down slightly by 0.6% YoY (year over year). However, its cloud revenue grew 3.4%, marking its 20th consecutive quarter of organic growth. Similarly, its annual recurring revenue rose 0.7% to US$1.060 billion.

Interestingly, the company is divesting non-core assets to focus on its core enterprise information management business, especially in artificial intelligence (AI). With strong cash flow and continued investment in AI and cloud, OpenText remains focused on long-term value creation.

Power Corporation of Canada stock

Power Corporation of Canada (TSX: POW) is a diversified financial services holding firm with operations across North America, Europe, and Asia. Its businesses span insurance, wealth management, and asset management.

After rallying by 32% over the last year, POW stock trades at $67.74 per share with a market cap of $39.3 billion. At this price, it also offers a 4.1% dividend yield.

In 2025, Power Corporation’s adjusted net profit rose to $3.4 billion, up from $2.971 billion a year earlier. This growth was mainly driven by strong contributions from its key holdings like Lifeco and IGM Financial.

Recently, the company also increased its dividend by 9% and continued share repurchases, reflecting its focus on returning capital to shareholders. With a strong balance sheet and consistent cash flow, it remains well-positioned for steady long-term returns.

Premium Brands Holdings stock

Premium Brands Holdings (TSX: PBH) is a specialty food producer and distributor serving thousands of customers across Canada, the United States, and Italy. Its portfolio includes brands like Harvest Meats, Hempler’s, and Freybe.

Following a 6% increase over the last year, PBH stock currently trades at $87.32 per share with a market cap of $4.6 billion. At the current market price, it offers a 3.9% dividend yield.

In the fourth quarter of 2025, Premium Brands’s revenue jumped 15.7% YoY to $1.9 billion. Its adjusted earnings before interest, taxes, depreciation, and amortization rose 20.7% from a year ago to $179.5 million, while the company’s adjusted earnings increased nearly 23% to $1.29 per share.

This growth was supported by both acquisitions and organic expansion. The recent acquisition of Stampede Culinary Partners is expected to further strengthen its position in the foodservice market, making it an attractive stock to buy now.

Fool contributor Jitendra Parashar has positions in Open Text. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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