Consider TFII
TFI International (TSX:TFII) fits into the boring but important segment that often works for patient investors. It moves freight across North America through less-than-truckload, truckload and logistics operations, and has built scale through years of acquisitions. Freight never wins popularity contests, yet the economy runs on it. When retailers restock, factories ship, and e-commerce booms, TFII sits in the middle and takes a cut. It also has a shareholder-friendly bent, with regular dividends and share buybacks when conditions allow.
Even with these strengths, the dividend stock has looked bruised over the past year. At the time of writing, recent performance data shows TFII down about 32% from a year ago. Shares have also risen at times, indicating that investors still see quality under the hood. For a buyer, that shift in mood can create value, especially if the underlying network and customer base still look sustainable. And right now could be an interesting time, as shares are up 21% in the last month alone.
In income
The latest earnings figures explain why investors have been trading cautiously, and also why they may be back on track. In its Q3 2025 report, TFI posted revenue of $2 billion, down 10% year over year, and adjusted diluted earnings per share (EPS) of $1.20, also below the prior year quarter. Freight demand has cooled and softer volumes are rapidly appearing in this sector, especially where pricing power declines first. This creates a messy process in which strong operators still look weak on paper.
But the same report also shows why income-conscious Canadians continue to keep TFII on the list. The board approved a 4% dividend increase, raising the quarterly dividend to US$0.47 per share. Dividend growth rarely survives if cash flow cannot support it. In terms of valuation, key market data shows that dividend stocks are still trading at 27 times earnings, which may seem reasonable for a quality company in a weak part of the cycle.
Looking ahead
So why can TFII look like a buy even as the price falls? First, freight cycles are changing. When demand stabilizes, a well-managed airline can rebuild margins and cash generation faster than the headlines change. Second, TFII does not need a perfect economy. It will take normal performance, plus steady execution in the parts of the business that investors are looking at most. Meanwhile, the dividend gives you tangible progress while you wait.
The catalysts don’t need fireworks. You just need the freight cycle to go from worse to better, plus stable execution in the US LTL business that investors are watching closely. If that happens, the market could start to appreciate TFII again as a sustainable operator, and not as a story that has lost its edge. The dividend then becomes a bonus on top of a recovery, rather than the sole reason you own it. Of course, the risk remains real. Freight can stay weak for longer than you want, wages and fuel can squeeze margins, and integration missteps can hurt.
In short
If you want a dividend stock that still offers real upside, TFII makes a good case as a patient buy. Right now, this is what a small $7,000 bet could get you.
| COMPANY | RECENT PRICE | NUMBER OF SHARES | DIVIDEND | TOTAL ANNUAL PAYOUT | FREQUENCY | TOTAL INVESTMENT |
|---|---|---|---|---|---|---|
| TFII | $150.57 | 46 | $2.62 | $120.52 | Quarterly | $6,926.22 |
It may not feel comfortable right now, and that’s the point. A TFSA wealth plan rewards time, not timing, and TFII still operates a vital network, still generates real money, and still increases its dividend. If you can hold on for years instead of months, buying while the market pouts can become the move you feel smartest about later.
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