Top dividend stocks offer dependable passive income. However, investors seeking to maximize total returns should look beyond dividend yield alone. Companies that offer consistent dividend growth are often better positioned to create long-term shareholder value.
Several Canadian stocks have been rewarding investors through a combination of reliable dividend payments and above-average capital gains. These businesses provide a steady income stream and also offer the potential for meaningful wealth creation over time.
So, for investors looking for income and growth, here are the best TSX stocks to buy.
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Income and growth stock #1: Canadian Natural Resources
Investors seeking income and growth could consider Canadian Natural Resources (TSX: CNQ). The oil and gas company is known for rewarding shareholders with consistent dividend growth. Moreover, it has significantly outperformed the broader market, with gains in its share price.
Canadian Natural recently increased its annualized dividend to $2.50 per share, marking its 26th consecutive year of growth. Over this period, its dividend has expanded at a compound annual growth rate (CAGR) of 20%.
Beyond dividends, Canadian Natural has also generated strong capital gains. Its stock has surged approximately 52% over the past year. Further, it has grown at a 31.7% CAGR over the last five years, significantly outperforming the broader market.
Canadian Natural is set to benefit from a diversified portfolio of long-life, low-decline assets that generate stable production and robust free cash flow. In addition, its disciplined capital allocation strategy, debt reduction, and strategic acquisitions position it well to deliver solid total returns.
Importantly, the company holds substantial proved reserves and an extensive undeveloped land base, providing a long runway for future production and cash flow generation. Overall, CNQ is likely to reward shareholders with higher dividend payments and capital gains.
Income and growth stock #2: Brookfield Infrastructure Partners
Brookfield Infrastructure Partners (TSX: BIP.UN) deserves a spot in your portfolio if you are looking for top income and growth stocks. Brookfield owns a diversified portfolio of infrastructure assets spanning utilities, transportation networks, midstream energy, and data infrastructure. Because these businesses operate under long-term contracts or regulated frameworks, they generate predictable cash flows that support consistent growth in funds from operations (FFO) and dividends.
Brookfield Infrastructure has delivered double-digit annual FFO growth between 2009 and 2025. Meanwhile, approximately 85% of its earnings were backed by regulated or contracted assets. This business model provides a high degree of earnings visibility, limits exposure to economic cycles, and offers meaningful inflation protection, enabling the company to increase shareholder payouts steadily.
It has increased its distribution for 17 consecutive years. It maintains a disciplined payout ratio of 60%–70%, leaving sufficient capital to fund future investments. Management also targets annual distribution growth of 5%–9%, highlighting confidence in the business’s long-term cash flow outlook.
Beyond its defensive characteristics, Brookfield Infrastructure also offers compelling growth prospects. The accelerating buildout of AI-driven data centres is increasing demand for digital infrastructure and electricity, while continued investments in energy and transportation networks create additional opportunities for expansion. These structural growth drivers have contributed to more than a 35% gain in the stock over the past year and could support above-average returns over the long term.
With its resilient cash-generating business model, proven history of FFO growth, consistent increases in distributions, and exposure to long-term infrastructure trends, Brookfield Infrastructure Partners is well positioned to deliver attractive total returns.
