A $10,000 investment in one of Canada’s best one-year guaranteed investment certificate (GIC) could currently earn approximately $365. The principal is guaranteed, the return is known, and the investment won’t suddenly fall 15% because President Trump made a post.
That certainty is valuable, but it also ends when the GIC matures.
A dividend stock offers no principal guarantee. Its share price can fall, and its payment can change. Yet a solid company can increase earnings, raise its dividend, and become more valuable while a GIC continues returning precisely what it promised.
So, where would I put $10,000? For money I needed within three years, I’d choose the GIC. For income and growth over at least five years, I’d buy Rogers Communications (TSX: RCI.B).
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The deadline
A GIC is a contract. Investors agree to leave money deposited for a specified period, and the issuer promises to return the principal plus interest. Non-redeemable GICs generally offer better rates, although accessing the money early may be difficult or impossible.
That makes a GIC appropriate for a home down payment, tuition bill, or other expense with a firm deadline. Current one-year GIC rates range considerably by institution, with the strongest widely available offers near 3.65%. At that rate, $10,000 would become $10,365 after one year.
If that rate remained available and the investment renewed annually, $10,000 could grow to approximately $11,963 after five years. However, renewal rates aren’t guaranteed. The next GIC could pay more or considerably less. A dividend stock introduces risk, but it also provides two potential returns: income from distributions and capital growth from a rising share price.
Consider Rogers
Rogers stock owns one of Canada’s largest wireless and cable networks, along with media and sports assets that include the Toronto Blue Jays, Sportsnet, and an increasing interest in Maple Leaf Sports & Entertainment.
Its $2 annual dividend has remained unchanged since 2019. That isn’t exciting dividend growth, but the current share price creates an attractive starting income while management directs cash toward debt reduction. At a recent price of $46.58, the shares yield approximately 4.3%. A $10,000 investment would purchase 214 whole shares and generate $428 annually.
| COMPANY | RECENT PRICE | NUMBER OF SHARES | ANNUAL DIVIDEND | ANNUAL TOTAL PAYOUT | FREQUENCY | TOTAL INVESTMENT |
|---|---|---|---|---|---|---|
| RCI.B | $46.58 | 214 | $2.00 | $428.00 | Quarterly | $9,968.12 |
That’s already more annual income than the 3.65% GIC example. Unlike the guaranteed interest, however, neither the dividend nor the share price is a given.
Earnings support
Rogers stock generated $982 million in second-quarter free cash flow, up 6% year over year. It paid $270 million in dividends during the quarter, meaning free cash flow covered the distribution more than three times. The company also reaffirmed its 2026 outlook, including expected free cash flow of $4.1 billion to $4.3 billion. That provides room to maintain the dividend while reducing debt.
Growth remains modest in the core business. Wireless service revenue was flat, while cable service revenue increased 1%. Total revenue climbed 8%, largely because Rogers stock consolidated more revenue from MLSE.
Debt is where it gets uncomfortable. Rogers stock ended the quarter with a debt-leverage ratio of 3.8, down from 4.0 at the end of 2025. The planned purchase of the remaining 25% of MLSE will initially add financial pressure. Rogers stock then intends to sell a minority interest in its combined sports and entertainment assets, potentially unlocking value and helping reduce debt.
Bottom line
Investors comparing Canadian dividend stocks should monitor free cash flow, leverage, and whether dividend growth eventually resumes. Holding the shares inside a TFSA would also keep eligible dividends and future capital gains tax-free.
A GIC wins when protecting the $10,000 matters more than growing it. Rogers stock wins when an investor can tolerate volatility and wait for income, deleveraging, and a possible valuation recovery.
For a five-year-or-longer holding period, I’d choose Rogers stock. Its approximately 4.3% yield already exceeds the best one-year GIC example, while free cash flow provides coverage and the depressed valuation creates capital-growth potential.
