3 dividend stocks that make your money work harder so you don’t have to

3 dividend stocks that make your money work harder so you don’t have to

3 minutes, 22 seconds Read

We all invest for one thing only: making money. But that can sound much simpler when it comes to actual investing. Investors today have to sift through literally thousands of stocks on the TSX to find those golden opportunities. And then you Doing If they find them, investors should ensure returns continue to rise. But investing in dividend stocks will eliminate at least some of those concerns. Today, let’s take a look at three dividend stocks that will work hard for you so you can take the worry out of it.

KPT

KP fabric (TSX:KPT) is one of the overlooked dividend stocks that offers a business model built around everyday necessities, steady cash flow, and consistent dividends. KPT is essentially a holding company for the manufacturer behind well-known household brands like Cashmere, Purex, Scotties and SpongeTowels. These are products that Canadians buy regardless of what is happening in the market and provide stability.

The dividend stock’s latest results show how well this approach is holding up. In its second-quarter 2025 earnings, Kruger Products reported revenue of $536.1 million, up 5% year-over-year, and adjusted earnings before interest, taxes, depreciation and amortization (EBTIDA) of $72.5 million, up 11%.

From a valuation perspective, the dividend stock appears attractively priced. KPT trades at just 17 times forward earnings and 1.4 times book value. Moreover, it offers a dividend yield of 7.74%, supported for investors. So if you’re looking for value and stable income, KPT delivers.

DS

Dividend selection 15 (TSX:DS) was built for one purpose: to generate high, consistent monthly income from some of the strongest dividend-paying companies in Canada. DS is a split-share company managed by Quadravest Capital Management. It has a portfolio of 15 major, top-tier Canadian dividend stocks. Companies that have powered Canadian portfolios for decades, known for their reliable profits, long dividend history and leadership in the banking, energy and telecom sectors.

What really sets it apart is its income structure. The dividend stock uses an active covered call strategy, writing call options on some of its positions to generate additional income from option premiums. This adds an additional stream of cash flow on top of the dividends, allowing shareholders to pay an eye-catching 10.2% yield at the time of writing, paid out monthly. What’s more, these distributions are backed by some of the country’s most reliable dividend payers.

SIGHT

TransAlta (TSX:TA) is a dividend-paying powerhouse in the Canadian energy sector that combines stability, growth and cash flow. The dividend stock is one of Canada’s largest power generation companies, producing electricity from a diverse mix of assets including wind, hydro, natural gas and energy storage. It operates in Canada, the US and Australia, serving both industrial and utility customers. Furthermore, the dividend stock is built on the foundations of stable long-term contracts, but with strong exposure to renewable energy growth.

After years of restructuring and debt reduction, TransAlta is in its strongest financial position in more than a decade. Dividend stocks have been transitioning from coal-fired energy to cleaner energy sources in recent years. That transformation, although slow, is now paying off. In the second quarter of 2025, TA reported adjusted EBITDA of $349 million, up from $316 million the year before, driven by higher generation and stronger prices for renewables. Free cash flow was $157 million, more than enough to finance the generous dividend and reinvest in new projects.

The real reason TA makes your money work harder is recurring cash generation. Nearly 80% of electricity production is covered by long-term contracts, often with a term of ten to twenty years, with government agencies and large companies. Now it offers a solid yield of 1.11%, while the shares trade at just 6.6 times earnings.

In short

How much can you earn by investing in these three dividend stocks? Here’s what it might look like today on the TSX if $7,000 were spent on it.

COMPANYRECENT PRICENUMBER OF SHARESDIVIDENDTOTAL PAYOUTFREQUENCYTOTAL INVESTMENT
KPT$9.32751$0.72$540.72Annual$6,999.32
SIGHT$23.84293$0.26$76.18Annual$6,985.12
DS$7.16977$0.67$654.59Annual$6,992.32

These are superior investments that work hard and offer one thing: stability. From essential services to investments in leading companies, each offers a premium way to earn income for life.

#dividend #stocks #money #work #harder #dont

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