How to Keep Investing Wisely When the TSX Keeps Climbing

These TSX stocks show why quality businesses can still outperform in a rising market.

Key Points
  • RFA Financial (TSX:RFA) offers a 7.1% dividend yield while continuing to strengthen its financial services platform.
  • Propel Holdings (TSX:PRL) delivered record quarterly revenue as demand for its fintech lending solutions remained strong.
  • Both TSX companies are focused on long-term growth strategies that could help investors navigate a rising market confidently.

Despite geopolitical conflicts, trade tensions, and uncertainty about monetary policy, the S&P/TSX Composite Index is continuing to hit new highs in 2026. On one hand, there’s excitement about the rally continuing. On the other hand, there’s the fear of buying right before a pullback. The situation may cause investors to either rush into overheated stocks or sit on the sidelines waiting for a correction that may not come anytime soon.

In reality, the smartest approach during a rising market is usually the same strategy that works in every market environment: focus on quality businesses with strong fundamentals, healthy growth trends, and long-term potential. Companies with resilient operations and disciplined management can continue creating shareholder value even if market volatility remains high in the short term.

In this article, I’ll highlight two dividend-paying TSX stocks that you can consider buying today, even as the TSX trades near record levels.

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Source: Getty Images

RFA Financial stock

The first stock I want to talk about is RFA Financial (TSX: RFA), a company that has been quietly building momentum through its diversified financial services platform in Canada. If you don’t know it already, it operates a diversified financial services platform in Canada, offering mortgage lending, deposit products, and real estate services. Its operations are supported by RFA Bank of Canada, RFA Mortgage Corporation, and RFA Asset Management.

At the time of writing, RFA stock traded close to $23 with a market cap of roughly $1.1 billion. Over the last six months, RFA shares have gained more than 16%, while also offering an attractive dividend yield of 7.1%.

In the first quarter, RFA Financial completed dispositions of retail properties and development land totalling $60.5 million and entered agreements to sell additional properties expected to close later this year. The company’s latest financial results also highlighted solid operational growth as it generated net interest income of $10.8 million and pre-provision pre-tax income of $4 million.

RFA’s mortgage activity also remained healthy as its on-balance-sheet mortgage originations totalled $156.7 million last quarter, while off-balance-sheet originations reached $878.1 million.

Going forward, RFA Financial plans to continue unlocking value from its real estate portfolio while recycling capital into higher-return financial services businesses. That strategy could support stable long-term growth in RFA stock while helping it sustain an attractive dividend.

Propel Holdings stock

The second appealing stock I’d highlight is Propel Holdings (TSX: PRL), which is gaining traction as a fintech player focused on expanding access to credit through its digital lending platforms. Interestingly, this company mainly helps consumers who are underserved by traditional financial institutions gain access to credit through its digital lending platforms.

PRL stock hovers around $21 with a market cap of roughly $842 million. Its shares have climbed nearly 15% so far in the second quarter while offering a quarterly dividend yield of 4.4%.

In the March quarter, Propel delivered revenue of US$166.1 million, while its adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) reached US$42.0 million. As a result, the company’s adjusted net profit came in at US$23 million.

To evaluate borrowers more comprehensively than traditional credit scoring methods, Propel is using an artificial intelligence (AI)-powered underwriting platform. That technology allows it to expand access to credit while managing risk more effectively.

Meanwhile, Propel is also pursuing growth through expansion into additional U.S. states and new product launches. These positive factors brighten its long-term growth outlook, making it an attractive buy-and-hold stock even amid the ongoing market rally.

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

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