In today’s market, savvy investors are hunting for stocks that deliver reliable dividends while packing real growth potential. These picks stand out amid economic shifts, offering stability and upside through strong fundamentals.
Here are three dividend stocks I’d consider top growth plays to buy right now.
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Bank of Montreal
Bank of Montreal (TSX:BMO) is a leading Canadian bank, and for that reason alone, it’s worth considering as a top total return play in the market.
With a dividend yield of 3.3% and an impressive recent growth rate (net income surging 16% year over year), this is a blue-chip company I’d argue is providing the right mix of income and capital appreciation for those thinking long term.
The question, of course, is whether this growth can continue. I think the answer is yes. With a recent repurchase of six million shares (signalling robust capital returns due to a solid common equity tier-one ratio), there’s plenty of upside potential for those looking to take advantage of declining interest rates and surging net interest margins. With 14% earnings growth projected for this year, I think more upside is likely ahead.
Restaurant Brands
For investors looking for defensive dividend stocks with a growth tilt, I think Restaurant Brands (TSX:QSR) is an excellent pick.
The fast-food giant has delivered solid mid-3% dividend yields to investors for some time, and that’s part of the investing story in this gem. However, I tend to focus on Restaurant Brands’s world-class banners (including Tim Hortons and Burger King) as key drivers of a long-term growth strategy worth considering. With plenty of international expansion underway, and a trade-down tailwind as consumers look for lower-cost dining options, Restaurant Brands is well-positioned to take market share in its competitive sector.
The company’s fundamentals have also been robust. Despite 2025 comparative sales missing targets at 2.4%, management calls it a “low point.” As such, the company reaffirmed its target of 8%+ organic operating income growth into 2028, with earnings per share (EPS) potentially jumping 73% next year on international Burger King and Tim Hortons momentum.
At a price-to-earnings ratio in the high-teens, this is a stock that’s undervalued relative to its peers. I like that in this current environment.
Hydro One
Let’s close out this list of dividend and growth plays with a unique entrant on this list, utility company Hydro One (TSX:H).
Hydro One is a leading Eastern Canadian utility company, focusing mostly on the Ontario market (with a relative monopoly). Serving around 1.5 million customers who need to pay their bills every month, the company delivers a very steady cash flow, which it returns to investors in the form of robust dividend yields.
Currently yielding around 2.3% at the time of writing (much of that lower yield a result of capital appreciation), Hydro One has shown its ability to provide not only dividend growth, but growth on the capital appreciation side as well.
Hydro One is also reasonably valued, with a solid balance sheet and plenty of upside as population growth continues in the province of Ontario. I like how Hydro One is positioned here.