1 Canadian Dividend Stock Down 44% to Buy and Hold Forever

Colliers International Group (TSX:CIGI) is not a household name like a big Canadian bank or a high-dividend telecom stock. But for investors who want a dividend payer that is growing steadily, it deserves a much closer look right now.

Shares of this Toronto-based real estate and engineering giant have dropped about 44% from 52-week highs, allowing you to buy the dip in July 2026.

The bull case for the Canadian dividend stock

In Q1 2026, Colliers reported revenue of US$1.2 billion, an increase of 12% year over year, while adjusted EBITDA (earnings before interest, tax, depreciation, and amortization) rose 8% to US$125 million. Management held firm on its outlook for mid-teens growth in revenue, EBITDA, and earnings per share for 2026.

CEO Jay Hennick pointed to a simple reason for the guidance. More than 70% of Colliers’ earnings are tied to resilient businesses: engineering, project management, investment management, property management, and mortgage servicing.

These segments tend to hold up even when commercial real estate slows, giving Colliers a cushion that pure real estate brokers do not enjoy.

Colliers operates through three main platforms.

• Commercial Real Estate handles leasing and property sales.
• Engineering covers infrastructure, transportation, and environmental work.
• Investment Management, through its Harrison Street brand, invests in sectors like data centres, senior housing, and student housing for institutional clients.

In the first quarter, capital markets revenue jumped 47%, driven by stronger deal activity in the United States and parts of Europe. Leasing revenue rose 9%, with U.S. industrial properties leading the way. Engineering net revenue grew 13%, helped by both acquisitions and organic demand, particularly in infrastructure work.

Investment Management assets under management grew 9% year over year to nearly US$1.9 billion, and the company raised nearly US$1 billion in new capital commitments in Q1. Colliers is targeting US$6 billion to US$9 billion in total fundraising through 2026, which indicates that momentum is building.

Colliers is also closing its acquisition of Ayesa Engineering, a deal expected to open new markets in infrastructure-heavy regions and further strengthen the engineering segment.

Is the Canadian dividend stock undervalued?

Colliers is a dividend stock that pays a semi-annual dividend of US$0.15 per share, or US$0.30 annually, which indicates a yield of 0.2%. While the dividend is not attractive, the TSX stock has delivered a compounded annual growth rate of 17% over the last three decades.

Since July 2006, CIGI stock has returned more than 1,100% to shareholders, easily outpacing broader market returns. Based on consensus price targets, the Canadian stock trades at a 64% discount as of July 2026.

I believe the sell-off in Colliers stock has created a buying opportunity for patient investors. The stock’s price has moved lower, but the business fundamentals remain strong.

Moreover, the first-quarter results confirm that the company is executing well despite an uneven macro backdrop in parts of Europe and Asia.

For Canadian investors building a long-term portfolio, CIGI stock offers a rare blend: a growing dividend, a management team with skin in the game, and exposure to secular trends like data centre demand and infrastructure spending.

At current prices, well below its highs, this looks like a stock worth buying and holding for years.

The post 1 Canadian Dividend Stock Down 44% to Buy and Hold Forever appeared first on The Motley Fool Canada.

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Fool contributor Aditya Raghunath has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Colliers International Group. The Motley Fool has a disclosure policy.