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

money goes up and down in balance
Dividend Stocks

3 Stocks Yielding Up to 8.5% to Buy and Hold

| Aditya Raghunath

Investing in high dividend TSX stocks such as MCAN can help you generate a steady stream of passive income in…

Read more »

Man holds Canadian dollars in differing amounts
Dividend Stocks

Here’s How I’m Boosting My Annual Passive Income to +$6,000 Next Year

| Andrew Button

Dividend stocks like Toronto-Dominion Bank (TSX:TD) will add to my passive income in 2026.

Read more »

ETF stands for Exchange Traded Fund
Dividend Stocks

I’d Put All My TFSA Room Into This ETF Paying 4.4% Every Month

| Andrew Button

The Vanguard FTSE Canadian High Dividend Yield Index ETF (TSX:VDY) is a high yield fund with a lot to offer.

Read more »

A meter measures energy use.
Dividend Stocks

1 Canadian Utility Stock That’s My Defensive Play

| Adam Othman

Here’s why I would always consider this TSX utility stock the best investment through thick and thin as a defensive…

Read more »

The sun sets behind a power source
Dividend Stocks

I’d Put $10,000 Into This TSX Utility Stock Before the Next Rate Announcement

| Amy Legate-Wolfe

Utility stocks are some of the safest options out there!

Read more »

Female raising hands enjoying vacation, standing on background of blue cloudless sky.
Dividend Stocks

This Stock Makes Me Sleep Like a Baby Every Night

| Joey Frenette

Shares of Fortis (TSX:FTS) could help income investors get a great night's sleep even as the market feels toppier.

Read more »

View of high rise corporate buildings in the financial district of Toronto, Canada
Dividend Stocks

I’d Invest $5,000 in This 7.5% Monthly Dividend Stock Before the Market Catches On

| Amy Legate-Wolfe

Need some extra cash coming in? Then this dividend stock is the first place investors will want to look.

Read more »

senior man smiles next to a light-filled window
Dividend Stocks

TFSA Passive Income: 2 High-Yield Canadian Stocks for Retirees

| Andrew Walker

These top TSX stocks have increased their dividends annually for decades.

Read more »

Investor reading the newspaper
Dividend Stocks

The 6% Monthly Dividend Stock That Never Disappoints Shareholders

| Daniel Da Costa

Here's why this reliable 6% monthly dividend stock is one of the best long-term investments you can buy on the…

Read more »

space ship model takes off
Dividend Stocks

3 Canadian Stocks Built to Thrive, Even With Higher Interest Rates

| Amy Legate-Wolfe

We all worry still about interest rates, but these three Canadian stocks can help keep you on top.

Read more »

Beware of bad investing advice.
Dividend Stocks

The Government Benefit Mistake That Costs Canadians Millions

| Andrew Button

If you hold iShares S&P/TSX 60 Index Fund (TSX:XIU) in a taxable account, you need to report the dividend income…

Read more »

people relax on mountain ledge
Dividend Stocks

How I’d Build a $1,000 Monthly Income Stream With Just These 2 Stocks

| Amy Legate-Wolfe

If you need some extra income, and don't we all, these are some of the best recommended stocks to buy…

Read more »

Piggy bank with word TFSA for tax-free savings accounts.
Dividend Stocks

The Single Stock I’d Buy to Protect My TFSA During U.S. Trade Tensions

| Amy Legate-Wolfe

Worried about trade tensions? Then get in on this company that will remain essential. No matter what.

Read more »

Muscles Drawn On Black board
Dividend Stocks

Playing Defence in Your Portfolio? Load Up on These 3 Magnificent Canadian Stocks

| Chris MacDonald

Here are three top defensive Canadian stocks all long-term investors should consider putting in their RRSPs before they continue to…

Read more »

cloud computing
Dividend Stocks

The CRA Checklist Every Retiree Needs to Pass

| Christopher Liew, CFA

Passing the CRA checklist will largely determine every retiree’s readiness to say goodbye to working life.

Read more »

monthly desk calendar
Dividend Stocks

A 7% Dividend Stock Paying Cash Every Single Month

| Sneha Nahata

Unlike quarterly dividends, monthly payouts provide a more frequent stream of income for reinvestment and meeting short-term financial needs.

Read more »

Muscles Drawn On Black board
Dividend Stocks

TFSA Income: 2 Dividend Stocks for Contrarian Investors

| Andrew Walker

These stocks might still be oversold and offer high dividend yields today.

Read more »

happy woman throws cash
Dividend Stocks

A 7.2 Percent Dividend Stock Paying Cash Every Single Month

| Rajiv Nanjapla

SmartCentres REIT is an excellent investment for those seeking a healthy and stable monthly income.

Read more »

A red umbrella stands higher than a crowd of black umbrellas.
Dividend Stocks

Manulife Financial: Buy, Sell, or Hold in July 2025?

| Joey Frenette

Manulife Financial (TSX:MFC) stock has been hot and it's still a great name to watch.

Read more »

A train passes Morant's curve in Banff National Park in the Canadian Rockies.
Dividend Stocks

RRSP Investors: 2 Dividend-Growth Stocks to Own for Decades

| Andrew Walker

These TSX giants deserve to be on your radar today.

Read more »

A shopper makes purchases from an online store.
Dividend Stocks

1 CRA-Friendly Stock Delivering Decades of Tax-Free Income

| Amy Legate-Wolfe

Not only is this dividend stock essential, it's growing! Making it a top choice on the TSX today.

Read more »

A close up color image of a small green plant sprouting out of a pile of Canadian dollar coins "loonies."
Dividend Stocks

6.3 Percent Dividend Yield! I’m Buying This Dividend Darling and Holding for Decades

| Jitendra Parashar

High yield, consistent growth, and a future-focused strategy – that’s why I’m holding this dependable dividend stock for the long…

Read more »

RRSP Canadian Registered Retirement Savings Plan concept
Dividend Stocks

RRSP Investors: 3 Canadian Dividend Stocks to Buy Hand Over Fist

| Chris MacDonald

Here are three top Canadian dividend stocks long-term investors can get behind to amplify their returns over a multi-decade time…

Read more »

Man holds Canadian dollars in differing amounts
Dividend Stocks

1 Top-Notch Canadian Stock Down 38% to Buy for Fast Dividends

| Kay Ng

This top Canadian stock could pay off handsomely in the long run for investors buying on dips.

Read more »

man shops in a drugstore
Dividend Stocks

1 Dividend Stock to Buy if the CRA Tightens TFSA Rules

| Amy Legate-Wolfe

If there's one thing we all need, it's food. And that's why this dividend stock is a perfect investment.

Read more »

space ship model takes off
Dividend Stocks

2 Canadian Stocks That Could Sky Rocket With a Rate Cut

| Amy Legate-Wolfe

Having trouble sleeping at night over your investments? Then consider these two for a passive income portfolio.

Read more »

Happy golf player walks the course
Dividend Stocks

This 7% Monthly Dividend Stock Could Be Your Secret to Early Retirement

| Amy Legate-Wolfe

Listen up, you could have an early retirement with this monthly dividend stock, and consistency!

Read more »

Blocks conceptualizing Canada's Tax Free Savings Account
Dividend Stocks

This 7.1% Monthly Payer Could Save Any TFSA During Market Chaos

| Amy Legate-Wolfe

With markets acting out of control, this dividend stock is in a prime position.

Read more »

A meter measures energy use.
Dividend Stocks

Buy the Dip: 1 Utility Stock That’s a Steal After Dropping 22%

| Amy Legate-Wolfe

This utility stock has had a wild ride, but now might be the time to consider it once again.

Read more »

shopper chooses vegetables at grocery store
Dividend Stocks

How Much to Invest in Slate Grocery REIT for $2,000 in Tax-Free Income?

| Amy Legate-Wolfe

Do you want income that lasts? Here's how much you would need to pay for that -- it's less than…

Read more »

a man relaxes with his feet on a pile of books
Dividend Stocks

2 TSX Dividend Stocks to Own for TFSA Passive Income

| Andrew Walker

These top TSX dividend stocks have increased their distributions annually for decades.

Read more »

senior man smiles next to a light-filled window
Dividend Stocks

The CRA Audit Triggers Every Pension Recipient Should Know

| Andrew Button

If you hold dividend stocks like Fortis Inc (TSX:FTS), you need to report the income.

Read more »

ETF stands for Exchange Traded Fund
Dividend Stocks

3 CRA Warning Signs for Early CPP Recipients

| Andrew Button

If you have lots of money in index funds like the iShares S&P/TSX 60 Index Fund (TSX:XIU), you might be…

Read more »

A close up color image of a small green plant sprouting out of a pile of Canadian dollar coins "loonies."
Dividend Stocks

1 Blue-Chip Stock Down 7% That’s Trading Like Junk

| Chris MacDonald

Let's dive into why Magna International (TSX:MG) has been on the decline of late, and where this stock could be…

Read more »

young people stare at smartphones
Dividend Stocks

7.6% Yield and Growing! This Dividend Champion Is Unstoppable

| Sneha Nahata

This TSX dividend champion offers a high yield of about 7.6% and could continue increasing its dividend in the coming…

Read more »

senior relaxes in hammock with e-book
Dividend Stocks

The Smartest Dividend Stocks to Buy With $1,000 Right Now

| Sneha Nahata

These smart dividend stocks are reliable investments that can help you generate steady passive income without stressing over market swings.

Read more »

investor looks at volatility chart
Dividend Stocks

This 4.4% Dividend Stock Is Built for Volatile Markets

| Amy Legate-Wolfe

This dividend stock may sound boring, but in a volatile market, boring is an excellent opportunity.

Read more »

hand stacks coins
Dividend Stocks

How to Turn $25,000 Into $250,000 From Monthly Dividends

| Amy Legate-Wolfe

Let's look at the magic that is compounding, and why monthly dividend stocks like these are a strong option.

Read more »

worker carries stack of pizza boxes for delivery
Dividend Stocks

2 Monthly Payers to Own During a Geopolitical Meltdown

| Amy Legate-Wolfe

If global markets come crashing down, here are two monthly dividend stocks to have on hand.

Read more »

The TFSA is a powerful savings vehicle for Canadians who are saving for retirement.
Dividend Stocks

How Much You Really Need to Invest in a TFSA to Make $800 a Month

| Jitendra Parashar

Here’s a realistic look at how much you’d need to invest in the right dividend stocks to pull $800 a…

Read more »