Written by Amy Legate-Wolfe at The Motley Fool Canada
Income or growth? The best dividend stocks can, and should, offer both. That’s the sweet spot for investors who don’t want to choose between getting paid today and building wealth over time. A strong dividend can support returns when markets wobble. A growing business can push the stock higher over years.
Three TSX dividend stocks I’d buy for income and growth are Exchange Income (TSX:EIF), EQB (TSX:EQB), and Restaurant Brands International (TSX:QSR). They operate in very different industries, but each offers cash flow, growth potential, and a reason to keep watching now.
EIF
Exchange Income gives investors one of the more useful dividend setups on the TSX: monthly income. The company pays $0.23 per share each month, or $2.76 annually yielding 2.2% at writing. For investors building passive income, that monthly payout can feel more practical than waiting for a quarterly cheque.
The business behind it is also more diversified than many investors realize. EIF owns aviation and aerospace businesses, plus manufacturing companies. Its operations include regional airlines, medevac services, surveillance and defence work, and specialty manufacturing. That mix helps reduce reliance on one single customer group or economic driver.
The company’s recent results showed strong momentum. First-quarter revenue hit a record $867 million, up 30% from last year. Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) rose 28% to $166 million. Net earnings climbed sharply to $28 million. Those numbers support the dividend story and give investors a growth angle beyond the monthly payout.
EQB
EQB stock offers a different kind of income-and-growth story. The company owns Equitable Bank and EQ Bank, making it one of Canada’s most interesting challenger banks. It doesn’t have the same branch network as the Big Six banks, but that can work in its favour. EQB stock built its business around digital banking, specialized lending, and deposit growth.
The big catalyst is the PC Financial acquisition. EQB stock expects the deal to close July 1, 2026. The acquisition should expand its customer base to about 3.3 million Canadians, add roughly $5.8 billion in assets, and bring in about $800 million in direct retail deposits. That’s a major scale boost for a bank still trying to take share from larger rivals.
EQB stock also pays a growing dividend, with its quarterly payout sitting at $0.61 per share, up 15% from the dividend paid in June 2025, yielding 1.9%. The yield won’t be the highest among financial stocks, but the growth profile looks better than that of many mature banks.
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