Dividend prosperity meets new leadership: 7 turnaround picks

TSI’s Scott Clayton has identified seven dividend-paying companies where fresh leadership could mark the beginning of a sustained turnaround. As featured in our Globe and Mail exclusive, we combined our proven 12-point Dividend Sustainability Rating System with a key catalyst many investors overlook: newly appointed CEOs with a mandate to improve performance and restore momentum.

These companies span multiple industries ranging from telecom and consumer brands to industrial tools, software, and financial data. However, all share a common thread: leadership transitions that have raised expectations for operational improvement and long-term value creation. Whether it’s a Canadian telecom giant entering a new era, a global consumer brand resetting its strategy, or a software firm bringing in seasoned enterprise leadership, each company offers a blend of income stability and turnaround potential.

Our process began with a broad universe of dividend-paying stocks with solid long-term prospects. From there, we narrowed the list to companies undergoing meaningful executive change, such as situations where incoming CEOs bring a track record of execution and a clear opportunity to strengthen fundamentals. These shifts can act as catalysts for both earnings recovery and improved dividend durability.

TSI’s Dividend Sustainability Rating System evaluates each company using key indicators: length and consistency of dividend payments, recent increases, management’s commitment to shareholder returns, business stability, exposure to external risks, balance sheet strength, and the ability to generate reliable earnings and cash flow. We also factor in industry leadership, which can provide resilience during transitional periods.

Excerpt from theglobeandmail.com, June 11, 2026

Sustainable dividends from beaten-down stocks set for a rebound under new leadership.

Former CIBC head Victor Dodig is poised to take the helm at Telus Corp. on June 30, 2026, succeeding current chief executive officer Darren Entwistle.

Dodig brings considerable executive skills to struggling Telus after 11 years as CEO at the Big Five bank. Still, the appointment is just one of several recent C-suite moves, across various industries, that have lifted investor expectations for a turnaround.

Our analysts at The Successful Investor point out that new CEOs often spur long-term gains while deepening dividend sustainability.

We started this search with an extensive list of dividend-paying stocks with sound long-term prospects, before singling out those with recent top executive changes we expect to spur improved performance and stock-price gains. We then applied our Dividend Sustainability rating system, which awards points to a stock based on key factors:

One point for five years of continuous dividend payments
Two points for more than five
Two points if it has raised the payment in the past five years
One point for management’s commitment to dividends
One point for operating in non-cyclical industries
One point for limited exposure to foreign currency rates and freedom from political interference
Two points for a strong balance sheet, including manageable debt and adequate cash
Two points for a long-term record of positive earnings and cash flow sufficient to cover dividend payments
One point for an industry leader

Companies with 10 to 12 points have the most secure dividends, or the highest sustainability. Those with seven to nine points have above average sustainability; average sustainability, four to six points; and below average sustainability, one to three points.

7 dividend payers primed for a leadership-driven rebound

Our TSI Dividend Sustainability Rating System generated seven stocks.

Toronto-based Telus Corp. (with a 9.8% yield) – now with an heir for veteran Darren Entwistle – is Canada’s largest wireless carrier. It also sells landline phones, Internet and TV services in B.C., Alberta and eastern Quebec.

Harley-Davidson Inc. (3.1%), headquartered in Milwaukee, Wisconsin, is a maker of heavyweight custom and touring motorcycles and related products. On October 1, 2025, Artie Starrs – formerly the CEO of Topgolf International Inc. and Global CEO of Pizza Hut – became its new chief executive.

Connecticut-based Stanley Black & Decker Inc. (4.3%) is one of the world’s largest makers of hand and power tools. In addition to brands Stanley and Black & Decker, it offers top-selling brands DeWalt, Lenox, Irwin and Craftsman. Christopher Nelson took over the role of CEO on October 1, 2025. He previously headed Stanley’s tools and outdoor division.

Chicago-based Conagra Brands Inc. (10.7%) makes a variety of popular foods, including Chef Boyardee canned pasta, Hunt’s tomato sauce, Orville Redenbacher popcorn and Reddi-wip whipped cream. New chief executive John Brase assumed the role on June 1, 2026. He succeeded Sean Connolly, who stepped down after more than a decade.

Open Text Corp. (5.0%), headquartered in Waterloo, Ontario, develops, markets, licenses and supports collaboration and enterprise-information-management software for corporate clients. Ayman Antoun, a former IBM executive, became CEO on April 20, 2026.

Rochester, New York-based Constellation Brands Inc. (2.9%) makes and sells beer, wine and spirits worldwide. Nicholas Fink is the new CEO, having succeeded Bill Newlands in the role on April 13, 2026.

FactSet Research Systems Inc. (1.9%), headquartered in Norwalk, Connecticut, is a leading provider of financial data and portfolio analytics to investment firms worldwide. The company appointed Sanoke Vishwanathan as CEO on September 1, 2025.
Scott Clayton, MBA, is senior analyst for TSI Network and associate editor of TSI Dividend Advisor.

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Scott Clayton

Scott is an associate editor at TSI Network. He is the lead reporter and analyst for Dividend Advisor, Power Growth Investor and Canadian Wealth Advisor and a member of the Investment Planning Committee. Scott began his investment and financial career working with Pat McKeough at The Investment Reporter in the 1980s. Subsequently, he worked at the Financial Post Corporation Service for 10 years. He joined TSI Network in 1998. He is a Bachelor of Economics graduate of York University, and he also has an M.B.A. from the Schulich School of Business.

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