If you’re looking to generate income while positioning your portfolio for meaningful upside, these TSX stocks deserve serious attention right now.
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Proven compounders with growing dividends
When it comes to combining income and growth, Brookfield Asset Management (TSX:BAM) is an excellent choice. After falling more than 16% from recent highs, the global alternative asset manager is looking increasingly attractive. The yield is currently almost 3.9%, after increasing the quarterly dividend by almost 15% – a strong signal of management’s confidence in future cash flow.
BAM’s fee-related revenues continue to grow as institutional capital flows into infrastructure, renewable energy, private equity and real estate strategies. Even assuming a conservative annual growth rate of 10%, combined with the dividend, investors could expect a total long-term return of around 14%. With shares trading 15% below consensus price targets, there is also room for valuation expansion.
Another good idea for dividend stocks to investigate is Financially intact (TSX:IFC). The property and casualty insurer has industry-leading returns on equity and has quietly built a two-decade track record of dividend growth. The latest 10.5% dividend increase signals management’s confidence in the company, despite a 15% decline in the share price from 2025 highs.
With a yield of around 2.2%, Intact may not be a top income stock. But the long-term earnings growth, on top of that dividend, can deliver a long-term total return of about 12% per year. It trades at a 17% discount to analysts’ consensus target and offers both growth potential and the bonus of growing dividend income.
A growth story that you still pay for
Holdings of premium brands (TSX:PBH) offers a more entrepreneurial income and growth profile. The specialty food manufacturer and distributor has aggressively expanded in the US, integrating the acquisition of Stampede Culinary and expects to unlock operational synergies.
If management successfully implements revenue growth, margin expansion and deleveraging, the stock could see significant upside in the coming years.
Meanwhile, investors are earning a dividend yield of almost 3.3%, supported by improving cash flows. It’s a compelling combination of revenue and operational turnaround potential.
A turnaround idea with a high return
Then there is TELUS (TSX:T) — perhaps the most intriguing prospect of the group. With a dividend yield hovering around 9%, the stock reflects significant market skepticism.
The leadership transition adds another layer of uncertainty. Victor Dodig, former CEO of CIBCwill take the top role on July 1. His track record illustrates that he could help turn around TELUS’ situation.
From the Globe and mail article, “How Telus’ Unexpected CEO Change Happened”: “Over a decade at the helm of CIBC, Mr. Dodig engineered the largest acquisition in the bank’s history and rebuilt its balance sheet and culture, taking the bank from worst to first in customer satisfaction.”
Some analysts believe that under new leadership, TELUS could continue asset sales or even cut its dividend to accelerate debt reduction. While a dividend cut may initially disappoint investors, it can ultimately strengthen the company’s financial position and restore confidence in the long term.
For patient investors willing to hold for three years or more, total returns could come from a mix of reset dividends and capital appreciation.
Takeaway for investors
If you want both revenue and growth, focus on companies with sustainable competitive advantages, disciplined management and visible long-term expansion.
Brookfield Asset Management and Intact Financial offer proven dividend growth with compounding potential. In addition to income, Premium Brands also offers operational benefits. TELUS offers a higher risk, higher reward turnaround anchored by higher interest rates.
Together, these TSX stocks show you don’t have to choose between income and growth; you can build a portfolio designed to provide both.
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