Dividend stocks provide investors with consistent income while helping stabilize their portfolios. Some of these companies also offer solid growth potential, delivering capital appreciation alongside regular payouts. Typically, they are well-established businesses with strong and predictable cash flows, making them reliable long-term holdings. With that in mind, let’s explore three Canadian dividend stocks with meaningful growth potential.
Source: Getty Images
Savaria
Savaria (TSX: SIS) designs, manufactures, and installs accessibility solutions for both residential and commercial markets. With a global manufacturing footprint and an extensive sales network, the company serves customers worldwide. Demand for its products continues to rise, driven by an aging population and the growing adoption of in-home accessibility solutions. At the same time, Savaria is investing in product innovation and pursuing strategic acquisitions to expand its capabilities and market reach.
Earlier this month, management outlined a strong five-year outlook. The company expects revenue to grow at a 12% annualized rate through 2030, reaching $1.6 billion. It also aims to maintain an adjusted EBITDA margin above 20%, with adjusted EBITDA per share projected to grow at an annualized rate of 10.4% to $4.25.
Given these solid growth prospects, Savaria appears well-positioned to sustain its upward momentum, even after delivering a 32% year-to-date return. Additionally, its monthly dividend of $0.0467 per share yields about 1.9%, adding an income component to its growth story.
Northland Power
Another dividend stock with solid growth potential is Northland Power (TSX: NPI), which develops, owns, and operates a diversified portfolio of energy infrastructure assets. The company has an economic interest in approximately 3.2 gigawatts of power-generating capacity. It derives about 95% of its revenue from long-term power purchase agreements (PPAs), providing stability and predictability to its financials.
The global transition toward clean energy continues to create strong long-term growth opportunities for Northland Power. To capitalize on this trend, the company plans to invest $5.8–$6.6 billion over the next five years, targeting a capacity expansion to 7 gigawatts by 2030. Alongside these initiatives, management expects free cash flow per share to range from $1.55 to $1.75, with the midpoint implying annualized growth of around 2.5%.
Given its solid growth outlook and reasonable valuation – trading at a forward price-to-earnings multiple of 15.9 – Northland Power appears well-positioned to extend its momentum after delivering a year-to-date return of over 30%. Additionally, its monthly payout of $0.06 per share yields 3.1%, making it an attractive option for both growth and income investors.
Canadian Natural Resources
My final pick is Canadian Natural Resources (TSX: CNQ), which has gained 34% year-to-date and boasts an impressive track record of dividend growth, increasing its payout for 26 consecutive years at an annualized rate of about 20%. The Calgary-based energy producer operates large, high-quality, and low-risk reserves that require relatively lower reinvestment.
Along with its quality asset base, its efficient operations have translated into strong margins and robust cash flows, enabling consistent dividend increases. Currently, CNQ pays a quarterly dividend of $0.625 per share, yielding about 4% at current prices.
Looking ahead, the company plans to invest $6.9 billion this year to enhance its production capabilities. It could also benefit from elevated oil and natural gas prices amid ongoing geopolitical tensions in the Middle East. Given these favourable conditions and its disciplined growth strategy, CNQ appears well-positioned to continue delivering both dividend growth and capital appreciation.
