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.

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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.

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