1 Dividend stock will excel in the long term, even with a 43% decline

A dividend stock can look like a gift when the stock price falls. You can buy the same stream of cash for less money. That lower price can increase returns and improve your long-term returns if the company continues to do its job. The best long-term purchases combine a temporary fluctuation with a sustainable cash engine. You want the resources people still need, contracts that generate revenue, and a management team that adapts without breaking trust.

NPI

Northland Power (TSX:NPI) fits that “real asset” profile. It owns and operates energy projects, with a strong emphasis on renewable energy sources such as offshore wind power, plus some natural gas generation and other forms of energy. It sells electricity on markets and over the long term, so it can generate more stable revenues than most investors expect from a name in renewable energy. It also continues to build a pipeline of new projects, which can drive growth as construction and commissioning reach milestones.

The market has tested investors’ patience, and the price tells the story. Shares are down 2% in the past year, but are down about 31% since the last earnings report, a big drop. Higher interest rates put more financing pressure on renewable energy developers, and offshore wind construction poses planning risks. The dividend reset has also hurt sentiment as income investors dislike surprises more than volatility. Still, such a decline could yield better returns in the long run as execution improves and interest rates eventually decline. You will get a higher return today and you can benefit if the stocks recover as the risks of projects decrease.

In income

Recent earnings results showed progress where dividend investors want to see it: cash and operating performance. In the third quarter of 2025, Northland reported energy sales revenues of $554 million, and adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) of $257 million. It also improved free cash flow per share to $0.17 and increased cash flow from operating activities to $325 million. Just as importantly, the crisis ended on September 30, 2025 with available operating liquidity of $1.047 billion, including $180 million in cash and $867 million in undrawn revolving credit capacity. That kind of liquidity is important when a dividend stock is building big projects and dealing with changing timelines.

The overall profit figure looked ugly, but the accounting caused the most damage. Northland posted a net loss of $456 million in the third quarter of 2025, mainly because it recorded a $527 million non-cash impairment charge related to the Nordsee One offshore wind facility. The forward story is more important and carries both benefits and risks. Management indicated that a slower-than-expected commissioning at Hai Long could reduce pre-completion revenues by approximately $150 million to $200 million on Northland’s stock in 2026. It also said Baltic Power remains on track for full commercial operations in the second half of 2026, which could boost confidence as the company moves from construction mode to cash mode.

In short

That’s why Northland Power can still qualify as an excellent TSX dividend stock to buy and hold, even if the stock falls by about 31%. It pays monthly and Northland’s dividend, while reduced, is still a reasonable $0.72 per year. In a tax-free savings account, those monthly payments can snowball, and any price recovery remains tax-free. Even now, this is what $7,000 could make.

COMPANY	RECENT PRICE	NUMBER OF SHARES	DIVIDEND	ANNUAL TOTAL PAYOUT	FREQUENCY	TOTAL INVESTMENT
NPI	$18.00	388	$0.72	$279.36	Monthly	$6,984.00

The risk is real, but the monthly income can keep you patient, which is half the battle in investing. Make a sensible decision and let time do the hard work in the coming years.