Canada has all kinds of dividend shares for buyers to select from. But not all dividend shares are created equal. There are many shares with elevated dividend yields however weak or declining companies. Consequently, buyers have to be notably picky.
One of the best dividend shares ship revenue and capital progress over time
One of the best dividend shares are these that may elevate their dividend in lockstep with their earnings and money move progress. As earnings develop, their shares usually tend to develop as effectively. Consequently, buyers get each capital appreciation and dividend appreciation.
Their whole returns are usually far superior to these shares that simply pay a big dividend. With these shares, you’ve got a method higher likelihood of accumulating an ideal revenue stream and beating the TSX Index.
Change Revenue is a cash-gushing dividend payer
One Canadian dividend inventory that has been notably spectacular as of late is Change Revenue Company (TSX:EIF). This inventory trades for $77.50 in the present day and has a market cap of $4.2 billion. Its inventory is up 40% in 2025, 142% prior to now 5 years, and 220% prior to now 10 years.
Change operates a various mixture of important companies companies. Its largest section is aerospace and aviation. Round 70% of gross sales and 81% of earnings earlier than curiosity, tax, depreciation, and amortization (EBITDA) come from this section.
It affords specialised airways and air companies to distant communities in northern Canada. It additionally has robust aviation defence choices and an plane leasing/gross sales enterprise. With Canada more and more targeted on defence and defending Arctic sovereignty, Change is well-positioned each in business and defence facets.
Its manufacturing section makes up about 30% of gross sales and 19% of EBITDA. These are very area of interest companies that embrace specialised manufacturing, window panels, and environmental mats. Its window enterprise is sluggish proper now, however its mats enterprise is working full steam forward, given all of the infrastructure spending throughout North America.
That’s the advantage of a diversified enterprise targeted on niches. When one section underperforms, the opposite is mostly performing very effectively.
Sturdy outcomes have propelled this dividend inventory in 2025
Change has been very acquisitive. It will probably develop by a mixture of completely different financial environments. This yr, Change added Canadian North Airways to its portfolio. Whereas it’s not instantly accretive, it’s anticipated to fulfill its hurdle return fee in a yr or two.
For the primary 9 months of 2025, Change’s gross sales are up 19% to $2.34 billion. Adjusted EBITDA and adjusted web earnings per share are each up 17% in that point. The corporate is already anticipating one other sturdy yr in 2026. It anticipates adjusted EBITDA will enhance by between 13.7% and 14.4%. That’s considering no further acquisitions or new contracts in 2026 both.
This firm has been an ideal dividend inventory. It has elevated its dividend 18 occasions prior to now 21 years. In its third quarter, it elevated its annual dividend by 5%. Its dividend is effectively supported by money flows. It solely has a payout ratio of 63% based mostly on free money move after upkeep capex.
Right now, Change inventory yields 3.6%. It pays its $0.23 per share dividend on a month-to-month foundation, so it’s a sexy inventory for these wanting month-to-month revenue.
The Silly takeaway
For buyers in search of revenue and progress, Change is an intriguing inventory in the present day. Whereas this dividend inventory is up significantly in 2025, its valuation of 18 occasions earnings is cheap, particularly if it may well obtain the excessive finish of its 2026 outlook assumptions.
