In a market full of macroeconomic and geopolitical uncertainties, one thing Foolish investors should try to prioritize is stable income. Some TSX-listed high-yield dividend stocks could play an important role in such a scenario, offering regular payouts while also giving you the chance to benefit from long-term growth.
But while trying to choose high-yield stocks for your portfolio, you may want to focus on companies that could sustain their payouts even during challenging periods. In this article, I’ll take a closer look at one top Canadian dividend stock to buy that combines reliable income with a path toward recovery and growth.
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A seafood leader with a stable income profile
The dividend stock I want to highlight is High Liner Foods (TSX:HLF), a well-established player in North America’s frozen seafood market. It mainly focuses on producing a wide range of value-added products, from breaded fish to ready-to-cook meals, under several recognizable brands.
HLF stock currently trades at $14.09 per share with a market cap of about $398 million. Although it has slid nearly 16% over the last year, this drop has made its dividend yield look even more attractive. The annual yield stands at 5%, with quarterly payouts, making it a solid stock for income-focused investors.
What makes High Liner interesting is its ability to remain financially stable even in a volatile market environment, due mainly to consistent demand for its products.
Recent challenges, but steady demand remains intact
Like many food companies, High Liner has faced cost pressures of late. Higher tariffs on imported seafood, rising raw material costs, and increased promotional spending have all weighed on its margins.
Despite this, the company managed to deliver strong top-line growth. In the fourth quarter of 2025, its sales rose 15% YoY (year over year) with the help of a rise in volume and improvements in product mix. This shows that demand for its products remains healthy, even as profitability faces short-term pressure.
Mixed financials, but signs of resilience
High Liner posted fourth-quarter sales of US$270.2 million, reflecting solid growth. However, its gross profit slipped slightly to US$49.7 million due to higher costs. Its adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) declined 18.9% YoY to US$19.3 million, highlighting the impact of margin pressure. At the same time, net profit increased 35.6% YoY to US$8 million, backed by one-time gains and lower taxes.
For the full fiscal year, its sales climbed 7.1% YoY to US$1 billion, while adjusted EBITDA fell 11.2% to US$91.7 million. Net profit also declined, reflecting the impact of higher costs and non-recurring items.
The company’s net debt rose to US$322.4 million, with a net debt-to-EBITDA ratio of 3.5 times, slightly above its long-term target. While these numbers show some pressure, they also highlight that the business continues to generate meaningful revenue and cash flow.
Steps to improve profitability
High Liner recently launched new products, including its Sea Cuisine Skillet Meals, designed for quick and convenient home cooking. These offerings align with changing consumer preferences and could help drive future sales.
At the same time, the company is focusing on cost control and operational efficiency. Management has introduced organizational changes and cost-reduction initiatives aimed at improving margins. These efforts are expected to support a return to adjusted EBITDA growth starting in 2026.
Why this dividend stock still deserves a look
High Liner Foods may not be a high-growth stock right now, but it offers something many investors value — dependable income backed by a resilient business. Its dividend yield of nearly 5%, combined with steady demand for its products, makes it a solid option for income-focused portfolios. At the same time, its ongoing efforts to improve efficiency and launch new products could support a recovery in profitability. For long-term investors, this mix of income and turnaround potential can be quite appealing.
