The #1 Canadian Dividend Stock I’d Hold Through Any Storm

This Canadian financial giant combines dependable dividends with strong earnings growth and long-term stability.

Key Points
  • Reliable dividend stocks can help investors generate steady income while navigating uncertain market conditions.
  • Great-West Lifeco (TSX:GWO) has climbed more than 54% in the last year alongside strong earnings growth.
  • The company’s diversified financial services business and strong capital position support its long-term stability.

The Canadian stock market continues to witness heightened volatility in 2026 as global trade tensions, geopolitical risks, and macroeconomic uncertainties continue to take a toll on investor sentiment. During periods of market volatility, even experienced investors get nervous. That’s why it could be the right time for you to add some quality dividend stocks to your portfolio, as they can provide steady income while also helping you preserve and grow wealth over the long term.

Among top Canadian dividend stocks, financial services companies tend to play a major role in building stable portfolios. This is because the strongest businesses in this sector usually combine reliable cash flow, disciplined capital management, and diversified operations that can weather changing market conditions.

One TSX stock that currently checks all those boxes is Great-West Lifeco (TSX: GWO). Let’s find out why this Canadian dividend giant could remain a dependable long-term investment through almost any market environment.

A red umbrella stands higher than a crowd of black umbrellas.

Source: Getty Images

Great-West Lifeco stock

Headquartered in Winnipeg, Great-West Lifeco is a holding company operating through major brands such as Canada Life, Empower, and Irish Life. The company provides insurance, retirement, wealth management, and workplace benefits solutions across Canada, the United States, and Europe.

GWO stock has rallied by 54% over the last 12 months with the help of its improving financial performance. With this, the stock now trades at $77.31 per share with a market cap of nearly $70 billion. More importantly for income-focused investors, Great-West also offers a quarterly dividend with a yield of 3.5%.

A closer look at its key strengths

One of the company’s biggest strengths is the consistency of its earnings growth. In the first quarter of 2026, Great-West’s base earnings rose 20% year-over-year (YoY) to $1.2 billion, while its net earnings also jumped 39% YoY to $1.2 billion. At the same time, its profitability metrics remained strong, with the company’s base return on equity (ROE) surging above 19% and base earnings reaching $1.37 per share.

Another important factor supporting investor confidence lately has been the company’s strong capital position and cash generation. Great-West Lifeco repurchased $567 million worth of common shares during the first quarter and bought back another $87 million after the quarter ended. Notably, continued share repurchases could help improve shareholder value over time by reducing the number of shares outstanding.

The company’s long-term strategy also appears to be delivering results as it continues to focus heavily on shifting the business toward higher-growth and more capital-efficient operations. That approach has helped Great-West drive strong growth in client assets. That’s one of the key reasons why its total client assets recently reached $3.3 trillion, with $1.1 trillion related to higher-margin assets under management or advisement.

A strong balance sheet could help it weather future market volatility

In the United States, Great-West Lifeco’s operations are also continuing to deliver strong results. The segment posted double-digit base earnings growth in the latest quarter, backed by favourable markets, positive client flows, improved credit experience, and operational efficiency improvements.

Meanwhile, the company’s life insurance capital adequacy test ratio stood at 129%, while the holding company’s cash totaled $2.1 billion. This strong balance sheet gives Great-West enough room to continue investing in growth opportunities, technology, and quality acquisitions.

Why Great-West Lifeco could remain a dependable dividend stock

Interestingly, Great-West also continues to invest in digital transformation, operational efficiency, and expanding higher-growth businesses. These efforts could help it strengthen profitability and support long-term shareholder returns.

That’s why GWO remains one of the strongest options on the Toronto Stock Exchange, especially for investors looking for a dependable Canadian dividend stock capable of generating reliable income through changing market conditions.

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

More on Bank Stocks

customer uses bank ATM
Stocks for Beginners

Your GIC Is Maturing as Rates Rise: I Wouldn’t Automatically Lock It Up Again

A maturing GIC may offer an attractive guaranteed rate, but long-term investors could sacrifice considerably more growth by renewing automatically.

Read more »

RRSP (Registered Retirement Savings Plan) on wooden blocks and Canadian one hundred dollar bills.
Stocks for Beginners

Your RRSP Could Be Too Large by 71: Here’s What I’d Do in My 60s

A large RRSP can eventually force substantial taxable withdrawals, making the years before 71 unusually valuable for tax planning.

Read more »

a person searches for information on the internet
Bank Stocks

Still Not Collecting Dividends? Here’s 1 Stock to Start With

This Canadian bank’s growing dividends, strong stock performance, and improving earnings could give new income investors an appealing place to…

Read more »

Group of people network together with connected devices
Bank Stocks

Everyone’s Snapping Up These Stocks: Should You?

These two popular Canadian financial stocks have already delivered strong gains, but their strong fundamentals suggest there is still plenty…

Read more »

coins jump into piggy bank
Bank Stocks

Thinking About Bank Stocks? Here’s What to Know in September

After a strong run so far this year, here’s what Canadian investors should know about the big bank stocks in…

Read more »

Fed Chairman Jerome Powell speaks with U.S. president Donald Trump
Stocks for Beginners

Bank Stocks Wilted After the Fed Raised Interest Rates: Is Now the Time to Buy the Big Six?

Why waiting before buying the Big Six may be a prudent move for Canadian investors.

Read more »

shopper carries paper bags with purchases
Stocks for Beginners

Are You Spending More Just to Use Your Credit Card Perks?

Credit-card rewards lose their appeal quickly when earning them pushes you to spend money you never planned to spend.

Read more »

young adult uses credit card to shop online
Stocks for Beginners

Credit-Card Rewards Keep Changing: What Does That Mean for Bank Stocks?

Changing credit card rewards show how hard Canadian banks are competing to attract spending and deepen customer relationships.

Read more »