Many investors feel like they have to make a trade-off when building their portfolios. On one hand, there are tonnes of Canadian growth stocks that offer strong upside potential but little to no income. On the other hand, there are dividend stocks that provide steady cash flow but often come with more limited long-term growth.
However, while many stocks fall into one of those two categories, some of the best Canadian stocks are businesses that can continue growing their earnings over time while also returning considerable cash to shareholders through dividends. And when you find that combination, it can be a powerful way to build long-term wealth.
The key is focusing on companies with reliable business models, clear growth opportunities, and consistent cash flow generation that can support both reinvestment and consistent payouts.
So if you’re looking for high-quality Canadian stocks that pay a solid dividend while continuously expanding their operations, here are two top picks to consider today.
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A global asset manager built for long-term compounding
When it comes to buying dividend growth stocks on the TSX, Brookfield Asset Management (TSX: BAM) is undoubtedly one of the clearest examples of a top pick for Canadian investors.
At its core, Brookfield is a global alternative asset manager, investing across infrastructure, renewable energy, private credit, and other real assets. These are areas where demand continues to grow as institutional investors look for ways to diversify and generate long-term returns.
What makes Brookfield especially attractive, though, is its business model. Instead of needing to own and operate every asset directly, it earns fees by managing capital on behalf of clients, which is what makes the business highly scalable.
For example, as Brookfield raises more capital and expands its platform, its earnings can continue growing without the same level of capital needed as many traditional businesses. That’s why it has such strong long-term compounding potential.
At the same time, it also pays a dividend that has grown by over 50% just since 2023, and currently yields roughly 4.1%.
So, rather than choosing between a growth stock and a dividend stock, Brookfield has the qualities of both, which is why it continues to be one of the best Canadian stocks to buy and hold for the long haul.
A Canadian real estate stock combining stability and steady dividend growth
While Brookfield leans more toward growth, CT REIT (TSX: CRT.UN) is another dividend-growth stock Canadians can buy that offers a more income-focused approach, but still with long-term upside.
CT REIT owns a portfolio of retail and mixed-use properties, with a large portion tied to Canadian Tire. That relationship is a key reason why the business is so stable.
Because its properties are leased to a well-established tenant under long-term agreements, the real estate investment trust (REIT) generates highly predictable rental income. That kind of consistency is exactly what many investors are looking for when building a reliable income stream.
But it’s not just about stability. Since going public in 2014, CT REIT has consistently increased its distribution every year, showing that the business isn’t standing still.
So, even though the growth may be gradual, those steady increases can add up significantly over time, especially when you’re constantly reinvesting that cash.
Plus, it’s also a good reminder that growth doesn’t always have to come from rapid expansion. In many cases, consistent, dependable increases in income can be just as powerful over the long term.
So, with CT REIT’s combination of stable cash flow, its dependable tenant base, ongoing distribution growth, and current 5.3% yield, it’s the perfect pick to complement a higher-growth stock like Brookfield.
That’s why these are two of the best Canadian stocks to buy now and hold for years.
