A top Canadian dividend stock to buy in December 2025

Canadian income investors interested in getting a good deal in the TSX bargain bin before the year ends may want to take a look at some of the underperforming dividend players. The TSX Index is undoubtedly about to have one of its best years (especially versus the S&P 500) in an incredibly long time.

With recent tech volatility holding back the US market indexes while the TSX Index continues to make progress, I think the Canadian market is worth holding as the tech-heavy US market looks to digest its richer valuations for a while longer. Whether 2026 will be another year in which the TSX Index beats the S&P 500 will be the big question. Ultimately, it depends on how well the tech trade does.

Personally, I wouldn’t bet against the TSX, especially as value and growth outside of the tech sector become more important to investors, many of whom may not want to be left in the explosion zone once some sort of major AI spillover (yes, maybe even a major AI bubble burst) finally happens.

Either way, cheap dividend payers seem a much safer bet as we close out a strong year. And while buying relative underperformers may not seem like a winning strategy, I think an exception can be made for the next name, which I don’t think is guaranteed to stay cheap for too long, especially if there’s a big rotation to value in the new year.

Restaurant brands International

Restaurant brands International (TSX:QSR) stands out as one of the leading names in the Canadian markets today. After enjoying a robust rally from September lows, shares are down nearly 5% after seemingly no big news. Undoubtedly, the fast-food giant showed some serious strength in the last quarter in an industry environment that isn’t exactly scorching hot.

When you consider all the major issues in the fast food world (how many fast food stocks are in a bear market right now?), I’d say Restaurant Brands’ latest quarterly results should be treated with a lot more respect. No doubt I thought the results were good enough to push QSR stock back to new highs.

Anyway, here we are at another checkpoint, with shares costing $96 and change. With a dividend yield of 3.58%, a low beta of 0.61 (which means less correlation to moves in the broad markets) and plenty of selling momentum to get behind, I think the latest dip (which amounts to half of a correction) is more than buyable.

Tim Hortons in particular is finally starting to get its act together, and with its other big banners (particularly Burger King and Popeyes Louisiana Kitchen) starting to gain traction in its expansion, I see the potential for further dividend growth in the new year. In short, Restaurant Brands is back and doing relatively well in a fast food world that is under heavy pressure. If you’re looking for resilience, defensiveness and relative outperformance, I wouldn’t look further than this premier name this holiday season!