When buying stocks, many investors think there’s always going to be a trade-off — you either go for high dividends or strong growth. But that’s not always true because some fundamentally strong companies manage to offer both. Such stocks not only generate steady income but also continue to expand their business over time.
Finding that balance could make a big difference, especially for long-term investors who want their portfolios to grow while still earning passive income along the way. In this article, I’ll highlight three Canadian dividend stocks that offer attractive yields without compromising on growth potential.
Source: Getty Images
A mortgage player quietly delivering strong returns
The first stock on my list is MCAN Mortgage (TSX:MKP), which may not be a household name yet, but it has been delivering impressive results. The company focuses on a diversified portfolio of Canadian mortgages, including residential and commercial loans, along with real estate investments.
MKP stock currently trades at $25.45 per share with a market cap of nearly $1 billion and has gained 34% over the past year. At this market price, it offers a solid 6.8% dividend yield, paid quarterly.
Behind the stock’s recent performance is the company’s steady operational growth. Notably, MCAN posted a 35% year-over-year (YoY) increase in assets under management in the first quarter of 2026 as demand remains strong. Uninsured residential mortgage originations rose 36% YoY, while insured originations jumped by a solid 136%.
Recently, MCAN also introduced a new securitization program to diversify its funding sources. Combined with a recent 5% increase in its dividend, this shows confidence in its long-term outlook — making it an attractive dividend plus growth stock to buy now.
A pipeline business built on stable cash flows
Shifting to the energy side, South Bow (TSX:SOBO) could add a layer of stability to your portfolio through its infrastructure-driven business model. The company owns and operates critical pipeline systems connecting Canadian oil production to key U.S. markets.
Its stock has climbed 36% over the last 12 months to currently trade at $46.50, with a market cap of $9.6 billion. It offers a 6% dividend yield.
In 2025, South Bow generated revenue of about US$2 billion and net profit of US$433 million. Its normalized EBITDA (earnings before interest, taxes, depreciation, and amortization) for the year reached the US$1 billion mark, slightly exceeding expectations.
What makes its business even more appealing is its predictable cash flow. Much of South Bow’s revenue comes from long-term contracts, which helps shield it from market volatility. This is one of the key reasons why it managed to return US$416 million to shareholders in 2025, despite macroeconomic challenges.
At the same time, projects like the Blackrod Connection are helping expand its capacity and support future growth, brightening its long-term growth outlook.
A telecom company balancing income and expansion
Rounding out the list, Cogeco Communications (TSX:CCA) could give you exposure to the telecom sector, where demand tends to remain relatively steady even during economic slowdowns. It provides internet, video, and phone services across Canada and the United States.
At the time of writing, CCA stock traded at $62.94 with a market cap of $2.6 billion and offered a 6.3% dividend yield. While its share price has dipped slightly in recent months, the company continues to focus on long-term growth.
In its latest results, Cogeco reported stable revenue and adjusted EBITDA growth in its Canadian operations. It also raised its quarterly dividend by 7% to $0.987 per share, highlighting its commitment to shareholder returns.
Moreover, the company is expanding its fibre-to-the-home network and investing in wireless services. Its new U.S. digital brand, welo, is another step toward capturing additional market share. Given these positive factors, this high-yield Canadian dividend stock could be worth considering right now.
