While the maximum cumulative TFSA contribution room increased to $109,000 this year, here are two top dividend stocks you can own right now.
Is this restaurant stock a good buy?
Valued at a market capitalization of $22.3 billion, Restaurant brands International (TSX:QSR) owns and operates iconic global brands such as Burger King, Tim Hortons and Popeyes.
Restaurant Brands International is making a strategic simplification that should resonate with investors who have long liked the company’s asset-light franchise model.
- Tim Hortons Canada and the International segment have achieved 18 consecutive quarters of positive same-store sales, accounting for 70% of adjusted operating income. Yet investors continue to focus on the US operations, which account for only 17% of profits.
- Tim Hortons maintains the number one position in Canada for value, with a $2 medium cold brew and $3 breakfast sandwiches, contributing to impressive comp growth despite weaker consumer confidence.
- The Burger King China transaction is an example of the simplification strategy. Restaurant Brands acquired the company in February 2025, turned negative same-store sales in recent quarters into 10% growth, and then sold it to CPE, injecting $350 million in fresh capital.
- This represents the largest primary capital investment in a Restaurant Brands master franchise in the company’s history. The deal starts with around 3% royalties, increasing to the standard 5% as performance targets are met.
Management expects China to shift from negative net unit growth in 2025 to modestly positive growth in 2026, a key driver for accelerating overall development. The company targets net growth of 5% per unit in 2028, after a reset to around 3% in 2025.
Firehouse Subs has added 100 net new units over the past four quarters, which represents three to four times the pace when Restaurant Brands acquired the brand.
The refranchising of the Carrols restaurants acquired for $1 billion has been accelerated ahead of schedule. Originally planned for years three through seven, Restaurant Brands will re-franchise 50 to 100 locations in 2025, with activity expected to increase in 2026.
Tim Hortons plans modest positive unit growth in Canada after years of maintaining its base, while international markets such as France have grown into $2 billion revenue companies over the past decade.
Analysts who follow QSR’s stock predict its annual dividend per share will rise from $3.43 in 2025 to $4 in 2028. Today, it offers shareholders a 3.5% yield.
If the TSX stock is priced at 30 times forward earnings, it could rise more than 30% over the next two years, after taking dividends into account.
Is this energy stock a good buy?
Another Canadian dividend stock with a forward yield is Cenovus energy (TSX:CVE). Cenovus Energy delivered record upstream production of 833,000 barrels of oil equivalent per day in the third quarter, paying off years of strategic capital investments as multiple growth projects near completion.
The Canadian oil sands producer generated $2.5 billion in adjusted cash flows, while returning $1.3 billion to shareholders through dividends and share buybacks.
Oil sands assets reached a record high of 643,000 barrels per day, driven by excellent performance across the portfolio. The downstream activities delivered strong results with record production of 605,000 barrels per day in the US refinery at a utilization rate of 99%.
Operating costs in the US Refining segment fell to $9.67 per barrel, down $0.85 from the prior quarter and more than $3 per barrel compared to the same period last year. The sale of the Wood River and Borger refinery joint venture was completed at the end of the quarter for $1.8 billion in cash proceeds, giving Cenovus full operational control of the remaining downstream assets.
If the TSX energy stock is priced at 10 times forward earnings, it could rise 30% over the next three years. If we adjust the dividends, the total return could be closer to 40%.
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