Motley Fool Premium
  1. Category
    2. /
  2. Investing
    3. /
  3. Dividend Stocks
    4. /

Dividend Stocks

What are dividend stocks?

Dividend stocks are stocks that send you a sum of money (usually quarterly, but sometimes annually) simply for owning shares in the company.

To be clear, this money isn’t a capital gain, which you earn when share prices go up or when you sell the stock for profit. A dividend is more like a “bonus” that comes to you in the form of cash or more shares in the company’s stock.

Which companies have dividend stocks?

It’s important to note that not all companies pay out dividends. Dividend-paying companies are usually older, more established corporations that have a long track history of positive growth and expansion.

Usually when a company earns more money than it can reinvest in itself, it creates a dividend paying policy for shareholders. For that reason, you’ll rarely see growth companies, small caps, or start-ups issue dividends.

In Canada, some top dividend stocks include:

More information about dividend stocks in Canada:

To learn more about Dividend Stocks, take a look at our Guide to Dividend Investing for all the details.

Check back here for the most up to date information about dividend stocks in Canada.

Top Articles

A plant grows from coins.
Dividend Stocks

3 TSX Dividend Stocks That Could Pay You Forever

| Jed Lloren

Are you interested in dividend stocks? These three picks could pay you forever!

Read more »

Dividend Stocks

Enbridge Is a High-Yielding Canadian Dividend Stock to Buy Now and Own Forever

| Demetris Afxentiou

Are you looking for a high-yielding Canadian dividend stock to buy? Enbridge (TSX:ENB) has plenty to offer investors.

Read more »

Dividend Stocks

TFSA Investors: Why You Should Invest Your Room ASAP With These 3 Stocks

| Adam Othman

Choosing the right TFSA stocks for your portfolio might take some time. But with the right choices, you can stick…

Read more »

Dividend Stocks

How to Generate $500 in Passive Income Each Month

| Puja Tayal

Instead of letting the stock market control your earnings, take control. Earn stable passive income with this strategy.

Read more »

Dividend Stocks

Need Passive Income? Turn $5,000 Into $23.85 Every Month

| Amy Legate-Wolfe

If you're looking for passive income that comes in like a paycheque, this dividend stock provides that to you along…

Read more »

Dividend Stocks

TFSA Investors: Park These 2 TSX Stocks Before They Soar

| Adam Othman

Consider investing in these two Canadian stocks if you’re looking for assets to buy, hold, and park in a self-directed…

Read more »

A worker uses a double monitor computer screen in an office.
Dividend Stocks

This TSX Stock Is Super Cheap and Pays a Monster Dividend

| Puja Tayal

The bear market has created an opportunity to make short-term gains and lock in high dividends by buying this TSX…

Read more »

Dividend Stocks

3 Growth Stocks You Can Buy Right Now with Less Than $100

| Christopher Liew, CFA

Capital of less than $100 is enough to buy one of these three promising growth stocks that don't belong to…

Read more »

Recent Dividend Stocks News

Dividend Stocks

TFSA Passive Income: Earn $313/Month

| Karen Thomas, MSc, CFA

With a 7.7% yield, Enbridge is one of two stocks that can help you generate significant passive income from your…

Read more »

Dividend Stocks

Earn $1,680/Year in Passive Income Tax Free

| Sneha Nahata

These Canadian Dividend Aristocrats will enable you to generate a tax-free passive income of $1,680/year.

Read more »

The sun sets behind a power source
Dividend Stocks

Should You Buy AQN Stock for its 6.9% Dividend Yield?

| Aditya Raghunath

Down over 50% from all-time highs, AQN is a TSX dividend stock that offers you a yield of almost 7%…

Read more »

Dividend Stocks

Better Buy for Dividends: Royal Bank or Enbridge?

| Andrew Walker

Royal Bank and Enbridge are moving higher after big declines this year. Is one still oversold?

Read more »

Dividend Stocks

My 2 Favourite TSX Stocks for Recession Planning

| Kay Ng

You should sleep well in a recession if you've parked your long-term investments in stocks driven by wonderful businesses.

Read more »

Dividend Stocks

How Much to Invest to Get $500 in Dividends Every Month

| Rajiv Nanjapla

These three monthly paying dividend stocks can help you earn $500 monthly.

Read more »

A bull and bear face off.
Dividend Stocks

Bear Market Ahead? Why it’s Still a Prime Time for Canadian Investors

| Amy Legate-Wolfe

The TSX today may be showing signs of recovery, but there is still a long road ahead. That being said,…

Read more »

A person builds a rock tower on a beach.
Dividend Stocks

Here’s Why 3/50 is the CPP’s Most Important Number

| Andrew Button

If you invest in bank stocks like Royal Bank of Canada (TSX:RY), you may not have to take CPP early.

Read more »

Dividend Stocks

Massive Dividends: Buy This Stock for Steady Yearly Income

| Christopher Liew, CFA

The top stock to buy now for steady yearly income is a bank with a wide moat and pays an…

Read more »

Dividend Stocks

1 Index Fund That Can Produce $2,800 a Year in Passive Income

| Andrew Button

You can get $2,800 per year in passive income by investing in a simple index fund like S&P/TSX Capped Composite…

Read more »

Retirees sip their morning coffee outside.
Dividend Stocks

Securing Retirement: How Canadian Dividend Stocks Can Play a Role

| Kay Ng

Dividend stocks can help secure Canadians' retirement by providing favourably taxed income. These stocks raise their dividends, too!

Read more »

Plant growing through of trunk of tree stump
Dividend Stocks

3 TSX Stocks With Massive Dividend Growth to Buy Right Now

| Rajiv Nanjapla

These three stocks could strengthen your portfolios, given their solid underlying businesses and an excellent record of consistent dividend growth.

Read more »

woman analyze data
Dividend Stocks

Chasing Yield: The Balance Between Dividend Rate and Stock Stability in Canada

| Amy Legate-Wolfe

Dividend stocks look great with those high yields, but don't forget to consider absolutely everything before buying.

Read more »

Dividend Stocks

New TFSA Investors: 2 Blue Chips to Start Your Investing Journey

| Joey Frenette

CN Rail (TSX:CNR) and another blue chip are worth stashing in a long-term TFSA fund if you seek steady growth.

Read more »

rail train
Dividend Stocks

Canadian National Railway Stock: Buy, Sell, or Hold?

| Andrew Walker

CN stock picked up a nice tailwind in recent weeks. Are more gains on the way?

Read more »

Dividend Stocks

These 2 Stocks Just Raised Their Dividends

| Andrew Walker

These top TSX dividend stocks still look undervalued.

Read more »

A plant grows from coins.
Dividend Stocks

2 Dividend Juggernauts Poised to Shine in the New Year

| Joey Frenette

TC Energy (TSX:TRP) and another steady dividend stock that's a great source of passive income and growth.

Read more »

Dividend Stocks

Passive Income: How to Earn $558 per Month in Your TFSA Portfolio

| Brian Paradza, CFA

An investment in First National Financial stock could boost TFSA income. This dividend ETF could offer better risk-adjusted income streams.

Read more »

A person looks at data on a screen
Dividend Stocks

Better Than GICs: First National Financial Stock Pays a Magnificent 6.35% Yield

| Andrew Button

First National Financial (TSX:FN) stock has a colossal 6.35% yield. Is it better than the much safer GICs?

Read more »

Dividend Stocks

The TFSA Mistake Costing Canadians Millions

| Christopher Liew, CFA

Holding cash instead of more income-producing assets like dividend stocks in a TFSA could cost Canadians millions.

Read more »

analyze data
Dividend Stocks

Passive Income: Earn $500 Monthly, Completely Tax-Free

| Christopher Liew, CFA

Canadians can earn $500 in tax-free passive income every month with only one efficient tax strategy.

Read more »

Dividend Stocks

With a 5% Dividend Yield, Is it Time to Buy Northland Power Stock?

| Aditya Raghunath

Down 48% from all-time highs, Northland Power stock trades at a significant discount to consensus price target estimates.

Read more »

Dividend Stocks

$7,000 in New TFSA Room for 2024: Here’s What I’ll Buy

| Andrew Button

With my $7,000 in new 2024 TFSA contribution room I'll be adding dividend stocks like Brookfield Corp (TSX:BN).

Read more »

calculate and analyze stock
Dividend Stocks

Is Magna Stock a Buy in December 2023?

| Jitendra Parashar

The expected improvement in the economic environment amid potential interest rate cuts next year could help Magna stock rally.

Read more »

Dividend Stocks

2 Cheap Dividend Stocks to Boost Your Passive Income

| Aditya Raghunath

Investing in cheap TSX dividend stocks, such as Newmont, can help you generate a passive-income stream for life.

Read more »

A worker uses a double monitor computer screen in an office.
Dividend Stocks

The Top Stocks to Buy With $400 Right Now

| Kay Ng

Here are a couple of top Canadian stock ideas for investors to explore. They pay good dividend income and have…

Read more »

Dividend Stocks

Is Telus Stock a Buy?

| Joey Frenette

Telus (TSX:T) stock is finally picking up traction, making it an intriguing dividend stock to hold into the new year.

Read more »

Dividend Stocks

4 Struggling Stocks to Buy at a Discount

| Amy Legate-Wolfe

These four struggling stocks should see a strong recovery in the next year, and with high dividends buying is a…

Read more »

Retirees sip their morning coffee outside.
Dividend Stocks

1 Top Healthcare Stock to Buy on the TSX Today

| Brian Paradza, CFA

Here's why Chartwell Retirement Residences could be your top Canadian healthcare stock to buy now.

Read more »

man touches brain to show a good idea
Dividend Stocks

Resilience and Returns: The Dual Appeal of Canadian Dividend Stocks

| Jed Lloren

Are you interested in Canadian dividend stocks? Here are two reasons why many Canadians flock towards them.

Read more »

clock time
Dividend Stocks

Recession-Proofing With Dividends: Canadian Picks That Stand the Test of Time

| Demetris Afxentiou

Some of the best Canadian picks for income-seeking investors are on sale right now. They're also defensive gems worthy of…

Read more »

Dividend Stocks

Retirees: 2 High-Yield Dividend Stocks to Buy for Passive Income

| Andrew Walker

These high-yield stocks still look cheap.

Read more »

Dividend Stocks

2 TSX Dividend Stocks That Could Create Income Forever

| Adam Othman

Out of hundreds of healthy dividend stocks trading on the TSX, a relatively small number can offer decades of sustainability.

Read more »

Dividend Stocks

Diversify and Thrive: Smart Investment Choices Beyond SPY Stock for Canadians

| Jed Lloren

Are you interested in American stocks? Here are great investment options outside of SPY stock!

Read more »

Dividend Stocks

TFSA Passive Income: 3 Amazing Stocks That Earn $1,830/Year Combined

| Sneha Nahata

These three amazing stocks can help you earn a tax-free income of $1,830/year.

Read more »

Dividend Stocks

Is Investing in Barrick Gold Stock a Good Way to Deal With Inflation?

| Adam Othman

Even though gold stocks are a good bet when the inflation is high, their performance during bull markets should be…

Read more »

Dividend Stocks

Buying This Stock Is 1 of the Smartest Things Investors Can Do About Inflation

| Adam Othman

One way to diversify your "inflation hedge" is to add a broader range of inflation-resistant stocks than merely gold stocks…

Read more »

Dividend Stocks

Should You Buy Chemtrade Stock for its 7% Yield?

| Amy Legate-Wolfe

Chemtrade (TSX:CHE.UN) stock has long been known as a dividend provider, but it could be a huge return provider as…

Read more »

Dividend Stocks

TFSA Investors: How to Earn $100 Each Month for Retirement

| Karen Thomas, MSc, CFA

Two stocks with dividend yields of up to 8% is all you need to generate monthly tax-free retirement income in…

Read more »

Dividend Stocks

My 2 Favourite TSX Retail Stocks for December 2023

| Demetris Afxentiou

What are your favourite TSX retail stocks to buy right now? Here are two stocks that can provide investors with…

Read more »