Got $1,000? 2 Canadian Dividend Stocks I’d Buy Before the Next Market Dip

Got $1,000? Don’t wait for the market to get ugly. A market dip can make great dividend stocks cheaper, but it can also make investors freeze. That’s why buying a small starter position before the next pullback can make sense. You get exposure now, collect dividends, and stay ready to add more if shares fall.

Two Canadian dividend stocks I’d consider with $1,000 today are TMX Group (TSX: X) and Toromont Industries (TSX: TIH). They’re quality dividend-growth names with businesses that can hold up better than many cyclical or speculative stocks when markets get rough.

TMX

TMX Group owns and operates the financial infrastructure behind Canada’s capital markets. That includes the Toronto Stock Exchange, TSX Venture Exchange, Montréal Exchange, clearing services, market data, analytics, and other capital markets businesses. In simple terms, TMX helps markets function.

That’s a powerful place to sit. Whether investors feel bullish or nervous, markets still need trading, clearing, data, listings, and derivatives. Volatility can even support some trading and risk-management activity.

The latest numbers show the strength of the platform. In the first quarter of 2026, TMX reported record revenue of $488.2 million, up 16% from last year. Adjusted diluted earnings per share (EPS) rose 33% to $0.65. Revenue grew across capital formation, derivatives trading and clearing, equities and fixed income, and global insights.

The dividend is modest but improving. TMX raised its quarterly dividend by 9% earlier this year to $0.24 per share, or $0.96 annually. At recent prices, that gives the stock a yield of around 2%, owning a business with scale, pricing power, and growing cash flow.

The risk is valuation and market activity. TMX can be affected by lower trading volumes, weaker listings, acquisition integration, and technology costs. The dividend stock also isn’t bargain-basement cheap. But for investors who want a durable Canadian financial infrastructure stock, it deserves attention before the next dip.

TIH

Toromont is the industrial pick. The dividend stock sells, rents, and services Caterpillar equipment across large parts of Canada. It also owns CIMCO, which provides industrial refrigeration systems, and has been growing its power and energy businesses.

That power angle is especially interesting now. Data centres, utilities, miners, construction companies, and industrial customers all need heavy equipment, backup power, generators, engines, service, and maintenance. Toromont isn’t a pure data centre stock, but it fits into the physical infrastructure economy behind power demand.

The first quarter was strong. Revenue rose 13% to $1.23 billion. Operating income climbed 44% to $143 million. Net earnings rose 25% to $92.7 million. Equipment Group bookings jumped 45%, helped by healthy power system order activity, and backlog reached $1.4 billion, up 40% from last year.

That backlog is the number that makes Toromont feel real. It shows customers are still ordering equipment and power systems even as investors worry about the next market dip. Toromont’s dividend is smaller, with a yield of around 1%, paying $0.56 per share quarterly, or $2.24 annually.

The risk is that Toromont is cyclical. Construction, mining, rental demand, and equipment sales can slow when the economy weakens. The dividend stock has also climbed sharply, so investors should expect volatility if expectations cool.

Bottom line

Still, TMX and Toromont are exactly the kinds of dividend stocks I’d want on a watch list before a market dip. One owns critical market infrastructure. The other supports Canada’s industrial and power economy. Both can create even a small income to add to a portfolio and still see growth if shares rise by the same amount as they did in the last year.

With $1,000, investors can collect the small dividends and be ready to buy more if the market gives investors a better price.