2 TSX Stocks Built for Investors Who Want Income and Growth

Two less-obvious TSX picks can offer a blend of today’s cash returns and longer-term business growth.

Key Points
  • EQB is growing its customer base and raising its dividend, but earnings and credit losses are under pressure right now.
  • Enerflex has a stronger balance sheet and a large backlog tied to gas and power infrastructure, but its dividend is tiny.
  • Both are more “income plus growth” than pure income, so expect volatility and a longer time horizon.

Income and growth don’t have to live in separate portfolios. Some investors buy dividend stocks for cash flow. Others chase companies that can grow earnings for years. The better setup is often a mix of both. Stocks that can return cash today while still building a larger business for tomorrow.

Two TSX names that fit that idea in different ways are EQB (TSX: EQB) and Enerflex (TSX: EFX). Together, they show how Canadian investors can look beyond the usual banks, pipelines, and telecoms for income and growth.

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Source: Getty Images

EQB

EQB stock is the income-and-growth pick for investors who want exposure to Canadian banking without simply buying one of the Big Six. The company owns EQ Bank and focuses on digital banking, mortgages, commercial lending, deposits, and other financial products. Right now, EQB stock has a customer base of 3.3 million it expects to reach after closing its acquisition of PC Financial. The deal is also expected to add about $5.8 billion in assets and $800 million in direct retail deposits.

The latest quarter wasn’t perfect though. Adjusted diluted earnings per share (EPS) fell 12% from last year to $2.03, and provisions for credit losses rose. That shows the pressure from a tougher lending environment. But EQB stock still declared a common dividend of $0.61 per share, up 15% from last year, now yielding 1.8%.

That dividend growth is worth watching. EQB stock’s yield is not huge, but the company has been building a stronger shareholder-return profile while expanding its customer base. If the PC Financial acquisition works as planned, EQB stock could have more ways to deepen customer relationships through deposits, payments, cards, and loyalty-linked banking.

EFX

Enerflex is the industrial income pick. The company provides energy infrastructure, compression, processing, and power-generation equipment and services. Its work helps move and process natural gas, supports energy infrastructure, and connects to rising global demand for reliable power.

In the first quarter of 2026, Enerflex reported revenue of US$584 million and adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) of US$137 million. Its bank-adjusted net debt-to-EBITDA ratio stood at just 0.9 times, which gives the company more financial flexibility than it had in the past. The company also had combined Engineered Systems and Energy Infrastructure backlogs of US$1.3 billion.

The dividend is small but supported. Enerflex pays $0.04 per share quarterly, or $0.17 annually, yielding 0.5%. That won’t satisfy investors hunting for large income today, but the payout looks conservative, and the company has room to return more cash if free cash flow keeps improving.

Bottom line

For investors who want income and growth, the combination is the point. EQB stock brings dividend growth and banking scale. Enerflex offers energy infrastructure exposure and a conservative dividend. Combined, they create incredible growth and income even from a $7,000 investment, if we see shares grow by the same amount as last year.

COMPANYRECENT PRICENUMBER OF SHARESANNUAL DIVIDENDANNUAL TOTAL PAYOUTFREQUENCYTOTAL INVESTMENT
EFX$34.44203$0.17$34.51Quarterly$6,991.32
EQB$130.0053$2.32$122.96Quarterly$6,890.00

Neither is risk-free. But each offers a different way to participate in businesses that can grow beyond today’s payout. For investors willing to hold through volatility, these three TSX stocks look built for more than just income.

Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool recommends EQB and Enerflex. The Motley Fool has a disclosure policy.

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