Dividend-paying stocks that combine healthy balance sheets with hefty yields can provide investors with steady incomes, cushion against market downturns, and grow investments at a healthy clip.
In 2025, the top-performing dividend-payers included gold companies Lundin Gold LUG and Barrick Mining ABX, as well as asset management firm Sprott Natural Resource Investment Partners SII.
To find the year’s 10 best-performing income-focused stocks, we screened the Morningstar Canada Index—which measures the performance of Canada’s broad regional markets, targeting the top 97.0% of stocks by market capitalization—for companies with a forward dividend yield of at least 1.5%, excluding real estate investment trusts.
The Best-Performing Canadian Dividend Stocks of 2025
- Lundin Gold LUG
- Barrick Mining ABX
- Sprott Natural Resource Investment Partners SII
- Finning International FTT
- B2Gold BTO
- Toronto-Dominion Bank TD
- Tamarack Valley Energy TVE
- Quebecor QBR.B
- Saputo SAP
- Power Corporation of Canada POW
How Have Dividend Stocks Performed?
Over the past month, the Morningstar Canada Dividend Growth Index—which tracks Canadian stocks with a history of uninterrupted dividend growth and the capacity to sustain that growth—rose 2.32%. The Morningstar Canada Dividend Yield Focus Index—which tracks high-quality dividend-paying Canadian stocks—gained 0.79%. In the 12 months leading up to Dec. 31, the Canada Dividend Growth Index gained 20.62% and the Canada Dividend Yield Focus Index gained 28.80%.
The overall Canadian stock market, as measured by the Morningstar Canada Index, has gained 1.35% on the month and 32.26% on the year.
Yields and Metrics for 2025’s Best-Performing Dividend Stocks
Lundin Gold
Gold company Lundin rose 291.13% in 2025 and gained 108.09% over the past three years on an annualized basis. Trading at C$114.02, the stock has a forward dividend yield of 3.87%. Lundin pays investors an annual dividend of C$4.41 per share. It has a quantitative Morningstar Rating of 2 stars.
Barrick Mining
Gold company Barrick gained 173.81% in 2025 and 38.46% over the past three years on an annualized basis. The stock’s C$59.79 price gives it a forward dividend yield of 1.61%. Barrick pays investors an annual dividend of C$0.96 per share. With a fair value estimate of C$38 per share and no economic moat, the stock is 57% overvalued and has a Morningstar Rating of 1 star.
Sprott Natural Resource Investment Partners
Asset management firm Sprott climbed 126.82% in 2025 and 45.62% over the past three years on an annualized basis. At C$134.44, its stock has a forward dividend yield of 1.67% and an annual dividend of C$2.24 per share. It has a quantitative Morningstar Rating of 2 stars.
Finning International
Industrial distributor Finning rose 98.35% in 2025 and 32.11% over the past three years on an annualized basis. Trading at C$74.37, the stock has a forward dividend yield of 1.63%. Finning pays investors an annual dividend of C$1.21 per share. The stock has a quantitative Morningstar Rating of 2 stars.
B2Gold
Gold company B2Gold gained 78.74% in 2025 and 11.83% over the past three years on an annualized basis. The stock’s C$6.18 price gives it a forward dividend yield of 1.78%. B2Gold pays investors an annual dividend of C$0.11 per share. The stock has a quantitative Morningstar Rating of 1 star.
Toronto-Dominion Bank
Diversified bank TD Bank climbed 74.52% in 2025 and 17.30% over the past three years on an annualized basis. At C$129.36, its stock has a forward dividend yield of 3.34% and an annual dividend of C$4.32 per share. The stock, which has a wide economic moat, is trading at a 12% premium to its fair value estimate of C$115 per share. It has a Morningstar Rating of 2 stars.
Tamarack Valley Energy
Oil and gas exploration and production company Tamarack Valley rose 69.82% in 2025 and 23.66% over the past three years on an annualized basis. Trading at C$7.98, its stock has a forward dividend yield of 2.0%. Tamarack Valley pays investors an annual dividend of C$0.16 per share. The stock has a quantitative Morningstar Rating of 3 stars.
Quebecor
Telecom services firm Quebecor gained 68.57% in 2025 and 22.56% over the past three years on an annualized basis. The stock’s C$51.70 price gives it a forward dividend yield of 2.71%. Quebecor pays investors an annual dividend of C$1.40 per share. With a fair value estimate of C$47 per share and no economic moat, the stock is 10% overvalued and has a Morningstar Rating of 3 stars.
Saputo
Packaged foods company Saputo climbed 68.43% in 2025 and rose 9.13% over the past three years, on an annualized basis. At C$41.31, its stock has a forward dividend yield of 1.94% and an annual dividend of C$0.80 per share. The stock, which has no economic moat, is trading at a 56% premium to its fair value estimate of C$26.50 per share. It has a Morningstar Rating of 1 star.
Power Corporation of Canada
Life insurance company Power Corporation rose 68.15% in 2025 and gained 35.79% over the past three years, on an annualized basis. Trading at C$72.95, its stock has a forward dividend yield of 3.36%. Power Corporation pays investors an annual dividend of C$2.45 per share. The stock, which has no economic moat, is trading at a 33% premium to its fair value estimate of C$55 per share, leaving it with a Morningstar Rating of 2 stars.
The Best Dividend Stock Leaders: More Ideas to Consider
Investors who would like to find more top-performing or cheap dividend stocks can do the following:
- Use our Morningstar Stock Screener tool to find the best dividend stocks according to your specific criteria. You can search for stocks based on their dividend yields, valuation measures like price/earnings ratios, and more.
- Review the full list of dividend stocks included in the Morningstar Canada Dividend Yield Focus Index index. Those dividend stocks with Morningstar Ratings of 4 or 5 stars are undervalued, according to our metrics.
- When it comes to buying stocks, it’s more than just dividends. Read here how valuations and competitive advantages—known as economic moats—matter when it comes to a stock’s potential for outperformance.
- Read Morningstar’s Guide to Stock Investing to learn how our approach to investing can inform your stock-picking process.
Companies that are not formally covered by a Morningstar analyst are statistically matched to analyst-rated companies, allowing our models to calculate a quantitative star rating.
