A Reliable Dividend Stock Worth Putting $20,000 Behind Right Now

Savaria is a small-cap Canadian dividend stock that has delivered market-beating returns to shareholders in the past decade.

Key Points
  • Savaria posted revenue of $235.5 million in the first quarter of 2026, up 7% year over year, with EBITDA margin hitting 20.4%.
  • The company's debt load has shrunk dramatically. Its net debt-to-EBITDA ratio now stands at just 0.92 times, with $324 million available for acquisitions and capital allocation.
  • Management is targeting $1.6 billion in revenue and $320 million in EBITDA by 2030, powered by 12% annual growth through organic expansion and bolt-on deals.

If you are looking for a dividend stock that combines steady income with a credible growth story, Savaria (TSX: SIS) deserves a place in your watchlist.

I think this is one of the more compelling opportunities in the Canadian market for investors willing to put $20,000 to work in a business that rarely disappoints.

Valued at a market cap of $2.1 billion, Savaria stock has returned close to 400% to shareholders in the past decade, after adjusting for dividends.

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The bull case of investing in this TSX dividend stock

Savaria makes products for an aging population, which include home elevators, stairlifts, platform lifts, patient beds, ceiling lifts, and other accessibility equipment sold across Canada, the United States, and Europe.

Several developed economies in North America and Europe are expected to experience population aging over the next two decades. Moreover, demand for accessibility and patient care products is fairly recession-resistant.

The business has two main segments.

  • Accessibility covers elevators, stairlifts, and dumbwaiters for homes and commercial properties.
  • Patient Care handles beds, ceiling lifts, slings, and mobility aids used in hospitals and long-term care facilities.
  • Both segments grew in the first quarter of 2026, with Accessibility up 7.9% and Patient Care up 3.8% year over year.

In the first quarter of 2026, Savaria generated revenue of $235.5 million, an increase of $15.3 million from the year-ago period. Its organic growth stood at 5.7%.

The small-cap company improved gross margins from 37.8% to 38.9% over the last 12 months, while reporting an adjusted EBITDA (earnings before interest, tax, depreciation, and amortization) margin of 20.4%.

The company reported $22.7 million in net income, up from $12.5 million a year ago. That translates to earnings per share of $0.31, up 82% from $0.17 last year.

The net-debt-to-EBITDA ratio dropped to 0.92 times, and Savaria ended Q1 with $324 million available under its credit facility. That gives management the flexibility to pursue acquisitions without taking on additional debt.

Savaria One is key to margin improvement

Much of the margin improvement is tied to an internal efficiency program called Savaria One. Since the program launched, roughly 400 initiatives have been completed. In the first quarter, 40 new initiatives were implemented, contributing approximately $7 million in EBITDA improvement.

About 200 initiatives remain in flight, suggesting meaningful upside in operating leverage as those efforts come through.

Europe is another bright spot, where dealer wins, product launches, and a stronger value proposition continue to drive momentum. Savaria is expanding its stairlift lineup with the launch of a new straight stairlift, and platform lift sales outside Italy are picking up.

What next for the TSX dividend stock

Management laid out a clear five-year plan at its Investor Day in April 2026. The target is $1.6 billion in revenue and $320 million in EBITDA by 2030.

That works out to roughly 12% annual growth, split between organic expansion and acquisitions.

The company plans to spend approximately $200 million on acquisitions over that window, focusing on small to mid-sized targets that bolt onto existing distribution or product lines.

With nearly $325 million in available liquidity and a leverage ratio under one, those deals can be completed without stretching the balance sheet.

All of Savaria’s finished goods are currently exempt from Section 232 and Section 301 tariffs. The Greenville, South Carolina facility expansion, expected to wrap up in the fourth quarter of 2026, will further reduce dependence on cross-border manufacturing.

Analysts forecast free cash flow to expand from $116 million in 2025 to $149 million in 2028, which support consistent dividend hikes. Notably, the TSX dividend stock has increased its annual dividend per share from $0.08 in 2014 to $0.56 in 2026.

For investors who want a quality dividend stock with a real growth engine behind it, Savaria is the kind of name that earns a spot in a long-term portfolio.

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