3 Canadian Dividend Stocks to Own if Markets Stay Choppy

When the TSX is whipping around, these three dividend stocks offer steadier cash flow and everyday demand instead of headline-driven hype.

Amy Legate-Wolfe

Author Bio

Amy became interested in investing in 2018 after having her first daughter. After receiving a masters degree in journalism from Western University, she became frustrated that the finance industry remained a confusing place for Canadians like her: new parents, millennials, and other young people who needed to understand their finances. Now, Amy focuses on tech companies and renewable energy for growth opportunities, coupling that with long-term investing strategies and equities. She also provides investors with a daily newsletter, Canada Stock Digest, for daily market updates. Before joining Motley Fool Canada, she wrote for major news organizations including HuffPost, CTVNews.ca, and CBC. When she’s not researching investing strategies, Amy’s time is pretty much monopolized by her two wild daughters, but in what little spare time she has she loves to do yoga, go on walks with her dog, and travel with her husband.

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Favorite Investment Quote

“October: This is one of the particularly dangerous months to speculate in stocks. The others are July, January, September, April, November, May, March, June, December, August and February.” – Mark Twain

Published April 23, 4:40 pm EDT

| More on: FRUHMRU

Key Points

Choppy markets reward businesses people still need, because steady cash flow can matter more than short-term price moves.
Hydro One and Metro are defensive essentials with predictable demand, though both have relatively low yields.
Freehold adds much higher monthly income, but its payout and share price can still swing with oil and gas.

Markets haven’t picked a lane lately. The TSX dropped 4.6% in March, its worst month since May 2023, then bounced hard into April, hitting $33,879.24 on April 13. That kind of back-and-forth has come from the same old troublemakers: geopolitics, oil swings, and trade-policy nerves. In a market like this, dividend stocks with steady cash flow and businesses people still need can look a lot more comforting than the latest hot trade. So let’s consider a few.

top TSX stocks to buy — Source: Getty Images

H

Hydro One (TSX:H) runs one of Ontario’s biggest electricity transmission and distribution networks, which means demand tends to stay steady even when investors get moody. Over the last year, Hydro One expanded its transmission footprint by closing its roughly 48% East-West Tie acquisition for about $261 million and kept leaning into big grid projects tied to Ontario growth and electrification. That gives it a useful mix of stability and long runway.

In 2025, Hydro One reported revenue of $9 billion, net income of $1.3 billion, and basic earnings per share (EPS) of $2.23, up from $1.93 in 2024. Fourth-quarter EPS came in at $0.39, up from $0.33 a year earlier. The dividend stock trades at about 26 times trailing earnings and yields roughly 2.3%, so it’s not cheap. However, investors are paying for dependable growth.

Management also points to a combined 2026 transmission and distribution rate base of $30.5 billion, expected EPS growth of 6% to 8%, and average annual dividend growth of about 6%. That makes it a strong fit for a choppy market.

MRU

Metro (TSX:MRU) is one of Canada’s top food and pharmacy retailers, with banners across Quebec and Ontario. Over the last year, the biggest story was the temporary shutdown of its Toronto frozen food distribution centre after a refrigeration issue. This created a near-term headache but didn’t crack the underlying business. That kind of problem can sting for a quarter or two, but it usually doesn’t change the long game for a defensive retailer.

Even with that snag, Metro kept moving. In fiscal 2025, sales rose to $22 billion. In the first quarter of fiscal 2026, sales climbed another 3.3% to $5.3 billion, while adjusted EPS rose 5.5% to $1.16. Reported net earnings slipped to $226.3 million because of direct costs tied to the distribution centre issue, but the core business stayed firm.

The dividend stock trades at about 20.4 times trailing earnings and yields around 1.8%. That yield won’t make anyone faint, but Metro has a long history of dividend growth, and its defensive model looks useful when markets stay unsettled.

FRU

Freehold Royalties (TSX:FRU) brings a different kind of defence. Instead of operating wells, it collects royalty income from oil and gas production on its lands. That keeps costs lighter than a typical producer and helps support its juicy monthly dividend. Over the last year, it refined its business structure, kept its normal course issuer bid in place, and continued integrating U.S. assets acquired in late 2024. That matters right now as energy prices have remained jumpy, and Freehold gives investors exposure without taking on the full operating burden.

Its 2025 results were respectable in a tougher commodity backdrop. Revenue came in at $313.5 million, funds from operations (FFO) hit $234.6 million, and annual production rose 9% to a record 16,294 barrels of oil equivalent per day (boe/d). FRU stock paid $1.08 per share in dividends for the year and currently yields about 6.3%.

For 2026, Freehold expects production between 15,500 and 16,300 boe/d, with a second-half ramp. The catch is that it trades at roughly 30.5 times trailing earnings, and its cash flow can still move around with oil and gas prices. Still, for income investors who can handle commodity swings, that yield is hard to ignore.

Bottom line

If markets stay choppy, investors may want stocks that can keep paying them while the noise rolls on. And even with $7,000, investors can create immense income.