2 Canadian Dividend Stocks I’d Buy for Stability and Growth

TD Bank and Alimentation Couche-Tard are Canadian dividend stocks that offer investors a mix of dependable income and long-term growth.

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Key Points
  • Diversified Strategies: Combining income and growth strategies with Canadian dividend stocks can enhance portfolio stability and performance.
  • TD Bank for Income: Toronto-Dominion Bank offers a reliable dividend yield of 2.59% and long-term growth through a diversified business straddling Canada and the U.S.
  • Couche-Tard for Growth: Alimentation Couche-Tard presents a growth opportunity with its global convenience store presence and expanding dividend, despite a lower yield.

Income investors often struggle with determining whether earning income today or pursuing long-term growth is a better strategy. There are Canadian dividend stocks on the market that do cater to both options.

In reality, some of the best portfolios are built using both strategies. This allows investors to choose Canadian dividend stocks without chasing income or growth exclusively.

Fortunately, investors have plenty of options for building a portfolio around both long-term stability and growth.

Redwood forest shows growth potential with time

Source: Getty Images

TD’s income case

Toronto-Dominion Bank (TSX: TD) is the first of two Canadian dividend stocks that can help meet that goal. TD is the second-largest of the big bank stocks.

The bank has operations in both Canada and the U.S., across segments that span personal and commercial banking, wealth management, capital markets, and insurance.

The U.S. segment is intriguing for investors. The segment was built rapidly in the years following the Great Recession. Today, that network stretches from Maine to Florida along the east coast, with more branches than its Canadian counterpart.

That diversification helps provide the bank with a recurring stream of revenue across different parts of the economy in two countries.

For dividend investors, TD’s appeal is straightforward. The bank offers a respectable yield, a long uninterrupted streak of paying dividends that stretches over 160 years, and the financial strength of a large, established bank.

As of the time of writing, TD offers a yield of 2.6%. The bank has also provided investors with annual upticks to that dividend going back over a decade.

For those investors looking at Canadian dividend stocks that can provide income and growth prospects, TD is hard to ignore.

Couche-Tard has room to grow

Another option for investors looking at the field of Canadian dividend stocks to buy is Alimentation Couche-Tard (TSX: ATD). Couche-Tard is one of the largest convenience store and gas station operators on the planet. In total, the company operates nearly 17,300 stores in dozens of countries around the world.

And it keeps growing. During fiscal 2026, Couche-Tard opened 130 new-to-industry locations and added another 34 stores under construction at year-end.

Couche-Tard operates that massive network under a variety of banners, but it’s best known for its Circle K brand.

Convenience stores and gas stations may not sound all that exciting, but it is effective. People continue to stop for fuel, coffee, snacks, and other everyday purchases regardless of whether the economy is booming or slowing down.

Couche-Tard has also built a reputation for using acquisitions and store expansion to grow its footprint. The company continues to open new locations while looking for ways to improve the profitability of its existing network. In recent years, this has included different initiatives such as adding car washes and EV charging to its sites.

When thinking about Canadian dividend stocks to buy, Couche-Tard isn’t the first name that comes to mind. In fact, it’s more frequently regarded as a growth stock. As of the time of writing, the company offers a yield of just 0.95%.

Fortunately, Couche-Tard’s dividend growth is far more impressive. The company has aggressively raised that payout over the past several years, including a 10.5% increase for fiscal 2026.

That dividend growth, combined with Couche-Tard’s impressive results and expansion plans, makes the company a solid option to consider.

Canadian dividend stocks can offer more than a yield

Couche-Tard’s smaller payout isn’t going to turn heads. But its growth potential lines up perfectly for investors seeking long-term Canadian dividend stocks to own.

TD, meanwhile, offers a higher yield alongside growth potential from its expanding U.S. presence.

Together, these Canadian dividend stocks could make solid long-term core holdings in a well-diversified portfolio.

Fool contributor Demetris Afxentiou has positions in Toronto-Dominion Bank. The Motley Fool has positions in and recommends Alimentation Couche-Tard. The Motley Fool has a disclosure policy.

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