Market volatility can sometimes punish strong and weak companies at the same time, which is why a falling share price does not always say much about the quality of the underlying business. What matters even more is how the company responds when market conditions become less predictable. Businesses with multiple earnings streams, disciplined capital allocation, and healthy financial flexibility usually keep growing while their competitors struggle.
That resilience becomes even more attractive when it’s paired with a reliable dividend backed by rising earnings rather than pressured cash flow. Such stocks could give investors income while they wait for a recovery.
In this article, I’ll highlight one reliable Canadian dividend stock that combines the earnings strength, capital discipline, and income growth needed to handle market volatility.
Source: Getty Images
Great-West Lifeco stock
If you’re searching for a dividend stock that looks capable of holding up through market ups and downs, Great-West Lifeco (TSX: GWO) could be worth considering.
This Winnipeg-based financial services firm operates across Canada, the United States, and Europe through brands including Canada Life, Empower, and Irish Life. Its business spans retirement solutions, wealth management, and workplace benefits, giving it several sources for long-term growth.
Investors have rewarded that consistency as its shares have climbed 79% over the last year and 37% since the beginning of 2026. As a result, GWO stock currently trades at $92.94 per share with a market capitalization of $83.2 billion.
The stock also pays a quarterly dividend that currently offers a 2.9% annualized yield. On its own, that yield may not immediately grab attention, but it becomes much more attractive when paired with the company’s strong operating and financial performance.
Strong execution continues to drive growth
In the second quarter of 2026, Great-West Lifeco grew base earnings by 11% year over year (YoY) to $1.3 billion, while its net earnings rose 20% from a year ago to $1.16 per share.
Rather than relying on a single growth driver, the company benefited from continued strength in its retirement and wealth businesses, led by Empower in the United States. At the same time, its capital and risk solutions arm generated strong new business that added another meaningful source of earnings growth.
Great-West’s U.S. business growth remained impressive as base earnings jumped 34% YoY to $458 million. Higher fee income, positive retirement and wealth inflows, favourable markets, and lower credit-related impacts all worked in its favour.
Built for the long run
Great-West Lifeco finished the quarter with $2.5 billion in holding company cash while maintaining a Life Insurance Capital Adequacy Test ratio of 128%. Its financial leverage ratio also improved to 27% from 28% at the end of 2025, giving it considerable flexibility to keep investing while rewarding shareholders.
The Canadian financial services firm is also continuing to strengthen the business for future growth. Its subsidiary, Empower, plans to acquire Milliman’s retirement plan and benefits administration business for US$340 million. The acquisition is likely to add about US$130 billion in client assets and 1.5 million participants while contributing to base earnings in its first year. In addition, Great-West expects the deal to generate a mid-teens internal rate of return and about US$20 million in cost synergies within three years.
Taken together, Great-West Lifeco’s rising earnings, disciplined capital allocation, a growing payout, and expansion into higher-growth businesses make it look appealing for investors who want a business they could hold even when markets turn volatile.
