Written by Amy Legate-Wolfe at The Motley Fool Canada
Financial peace of mind can feel like a far-off dream, especially when markets are choppy and headlines scream recession. But for long-term investors in Canada, there’s a way to build real security, and it doesn’t require guessing the next hot stock or gambling on crypto. Instead, a well-diversified dividend portfolio can help you sleep at night, even when the market gets turbulent.
If I were putting $75,000 to work today, I’d split it across three reliable TSX dividend stocks: Canadian Imperial Bank of Commerce (TSX:CM), Brookfield Renewable Partners (TSX:BEP.UN), and Canadian Pacific Kansas City (TSX:CP). Each brings something different to the table, from income and growth to long-term global potential.
Let’s start with Canadian Imperial Bank of Commerce, or CIBC. The dividend stock has struggled recently, largely due to worries about consumer debt and slower housing markets. But for dividend investors, that spells opportunity. The dividend stock trades at just over 12 times earnings and offers a dividend yield around 3.8%. In its second quarter 2025 earnings, CIBC reported net income of $2 billion, down slightly from last year, but still solid. The bank is focusing on improving credit quality and reducing exposure to riskier lending, which could make it more resilient over time.
More importantly, CIBC has paid dividends for more than 150 years. That kind of consistency matters when you’re planning for the long haul. At a 3.8% yield, investors would get solid income, before factoring in any reinvestment or future hikes. For an investor looking to build a stable foundation, CIBC delivers.
Next, Brookfield Renewable Partners offers a very different kind of opportunity: exposure to the clean energy transition. While its stock price has been pressured by rising interest rates, the underlying business keeps growing. In its first quarter 2025 results, Brookfield Renewable reported funds from operations (FFO) of $315 million, up from $296 million a year earlier. The company approached 45,000 megawatts in clean power production during the quarter and maintains a stellar development pipeline. All while holding $4.5 billion in available liquidity.
Brookfield Renewable yields about 5.5% at recent prices, which is unusually high for a growth-oriented utility. The dividend stock targets annual distribution growth of 5% to 9%, backed by long-term contracts and inflation-linked pricing. This isn’t just a utility; it’s a bet on the global shift toward wind, solar, hydro, and storage. And it’s managed by one of the savviest teams in the industry.
Last but not least, Canadian Pacific Kansas City offers the least obvious yield but the most exciting growth story. CP’s dividend is modest at about 0.86%, but don’t let that fool you. This railway is the only single-line operator connecting Canada, the U.S., and Mexico, thanks to its 2023 acquisition of Kansas City Southern. That opens up huge trade and supply chain opportunities, especially with North America re-shoring more manufacturing.
In Q1 2025 earnings, CP reported adjusted diluted earnings per share of $0.97, up 17% from a year earlier. Revenue rose to $3.8 billion, helped by gains in intermodal, automotive, and cross-border traffic. While the dividend yield isn’t impressive today, the long-term potential for dividend growth and capital appreciation is very real. Putting $25,000 into CP may not create a huge income stream now, but over a decade, that investment could double or more if the North American trade thesis plays out.
By splitting $75,000 evenly across these three dividend stocks, you’d get a nice blend of income, stability, and long-term upside. CIBC would provide steady cash flow today. Brookfield Renewable would offer growing income and exposure to a megatrend. And Canadian Pacific would deliver a potential growth kicker through trade and efficiency gains. All together, these three could bring in $2,551.14 each year in dividends alone!
COMPANY
RECENT PRICE
NUMBER OF SHARES
DIVIDEND
TOTAL PAYOUT
FREQUENCY
TOTAL INVESTMENT
CM
$101.00
247
$3.88
$957.56
Quarterly
$24,947.00
BEP.UN
$37.00
675
$2.04
$1,377.00
Quarterly
$24,975.00
CP
$105.00
238
$0.91
$216.58
Quarterly
$24,990.00
Together, these stocks offer diversification across financials, utilities, and industrials. More importantly, they each have strong competitive advantages, disciplined management, and the ability to weather economic storms. That’s the kind of portfolio that lets you stop checking the market every day and start enjoying life a little more.
The post How I’d Invest $75,000 in Canadian Dividend Stocks to Never Worry About Money Again appeared first on The Motley Fool Canada.
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Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool recommends Brookfield Renewable Partners and Canadian Pacific Kansas City. The Motley Fool has a disclosure policy.
