1 Canadian Dividend Stock I’d Buy Before Inflation Heats Up Again

Rising inflation could put pressure on many investments, but this Canadian dividend stock has the business strength to keep rewarding investors over the long run.

Key Points
  • Inflation risks are rising again, and this dividend stock could help protect your portfolio.
  • Nutrien (TSX:NTR) is benefiting from stronger fertilizer demand, record potash sales, and improving earnings momentum.
  • A 3.4% dividend yield, solid financials, and long-term growth plans make this dividend payer worth a closer look on the TSX today.

A couple of quarters ago, inflation in Canada looked like it was finally settling down, but fresh risks are starting to emerge again. The Bank of Canada recently kept its policy rate at 2.25% while warning that higher energy prices, supply chain disruptions, and geopolitical tensions could keep inflation elevated in the near term.

These macroeconomic challenges and uncertain policy environment are continuing to put pressure on many businesses, but some reliable Canadian dividend stocks still seem better positioned to handle it than others. In short, businesses tied to essential industries could continue generating solid cash flow even when costs rise. And one top TSX-listed dividend stock that fits that description perfectly right now is Nutrien (TSX: NTR).

In this article, I’ll explain why this dividend-paying global agricultural giant could be a smart buy on the TSX today before inflation heats up again.

combine machine works the farm harvest

Source: Getty Images

A Canadian dividend stock built for changing market conditions

If you don’t know it already, Nutrien is one of the world’s largest providers of crop inputs and agricultural services. It mainly runs fertilizer production facilities along with an extensive retail network serving farmers across North America, South America, and Australia.

NTR stock currently trades at $91.50 per share with a $43.9 billion market cap and offers a 3.4% annualized dividend yield through quarterly payouts. The stock has climbed about 8% over the last year despite recent volatility. Interestingly, its investors have lately been encouraged by improving fertilizer market conditions, stronger crop input demand, and the company’s disciplined approach to strengthening its core operations.

Strong results support its investment appeal

In the first quarter of 2026, Nutrien’s revenue rose 19% year-over-year (YoY) to US$5.8 billion, while its adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) jumped by nearly 30% to US$1.1 billion.

At the same time, the company’s adjusted earnings climbed to US$0.51 per share from US$0.11 a year ago, while adjusted net profit improved to US$245 million. These stronger financial results were mainly driven by Nutrien’s record potash sales volumes, higher global fertilizer benchmark prices, better nitrogen performance, and improved earnings from the retail business.

Meanwhile, its crop nutrient sales also inched up as demand strengthened across key markets, while higher-margin proprietary products also supported profitability. At the same time, the company continued returning cash to investors by distributing US$409 million through dividends and share repurchases during the quarter.

Why I would buy it now

Another key factor that makes this Canadian dividend payer even more attractive to consider now is its consistent focus on further accelerating its growth. The company continues investing in mine automation, retail network expansion, proprietary products, and digital capabilities while keeping its capital spending plans intact.

Recently, its management also reaffirmed the full-year guidance, including expected Retail adjusted EBITDA of US$1.75 billion to US$1.95 billion and potash sales volumes of 14.1 million to 14.8 million tonnes.

Meanwhile, Nutrien is also reviewing strategic alternatives for its phosphate business, Trinidad nitrogen facility, and Brazilian retail business to improve earnings quality and generate stronger free cash flow over time.

If inflation remains stubborn because of rising energy prices and ongoing supply disruptions, global crop production will still require fertilizer and agricultural services. This important factor, combined with resilient demand, improving operations, and a healthy dividend, makes Nutrien one of the most reliable Canadian dividend stocks I’d be comfortable buying before inflation heats up again.

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

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