Beat the TSX with these cash-gushing dividend stocks

These are uncertain times. Over the past five years, some dividend stocks have cut their dividends due to massive debt, while others have provided capital growth through business expansion. This raises questions about the safety of investing in dividend stocks. To know which stock to buy, track its cash flow.

Cash-gushing dividend stocks

Free cash flow (FCF) is the money left over after paying debts and reinvesting capital in the business. In the case of REITs, you should look for adjusted funds from operations (AFFO) because their trust structure makes it mandatory to pay out most of their income. I followed the cash trail and found some interesting dividend stocks that are brimming with cash.

Capital power stock

Capital power (TSX:CPX) is experiencing significant growth due to increasing demand for gas-fired power plants from artificial intelligence (AI) data centers. The company acquires, develops and maintains power plants. It is a major beneficiary of the conversion of coal to gas.

The company’s AFFO rose 10.6% year-over-year in the first period nine months of 2025. The dividend payout ratio was 36%, well within the stated range of 30-50%. It has increased its dividend by 6% for the period June 2025 to July 2026. However, management is targeting dividend growth of 2 to 4% through 2030 as it spends more capital on building natural gas power plants.

Now is a great time to buy the stock and lock in a 4.3% dividend yield, dividend growth between 2026 and 2027, and an AI-powered stock price rally.

CT REIT

Canada’s real estate sector saw a recovery in 2025 when the government released a budget for the construction of new homes. Most REITs saw a recovery, including CT REIT (TSX:CRT.UN). It is now trading near 2022 highs and is well positioned to grow its dividend by 3% in July.

As the real estate investment trust of Canadian bandacquires, develops and intensifies stores for its parent company. It brings new homes online and collects a 1.5% higher rent. Because the parent company is the largest tenant and covers more than 90% of the lettable area, occupancy is never a problem.

In 2025, the REIT’s AFFO rose 3.7% and distribution rose 2.8%. The REIT does not have a significant mortgage or construction loan. The majority of the debt consists of bonds. This entire arrangement makes CT REIT a stock to buy and continue to accumulate for a monthly passive income that beats inflation, under any economic conditions.

Lundin Gold

Lundin Gold (TSX:LUG) is a hot stock for all the right reasons. The gold miner has rallied due to rising gold prices. Gold prices are likely to remain high amid the global supply chain shift and increasing geopolitical uncertainties. Any major developments in world trade, war or supply shocks could drive the gold price to new highs.

Lundin Gold’s 2025 guidance assumed a gold price of $2,500 per ounce, but achieved an average gold price of $3,594 per ounce. The higher gold price helped Lundin achieve a record free cash flow of $926 million, thanks to a low all-in sustaining cost (AISC) of $1,015 per ounce.

The company shared its high cash flow with shareholders by paying a variable quarterly dividend of $0.85 per share. The gold price currently fluctuates between $5,230 and $5,250 per ounce. Given that gold prices will remain high, Lundin could continue to pay higher variable dividends.