Dividends for the Long Run: Our Top Canadian Infrastructure Picks

TSI’s Scott Clayton has identified six Canadian companies poised to benefit from the federal government’s landmark infrastructure funding program. As detailed in our special Globe and Mail column, we applied our 12-point Dividend Sustainability Rating System to highlight “groundwork” stocks combining dependable income with structural growth opportunities.

That means consistent and rising payouts supported by record public investment, domestic demand, and financial strength. These companies anchor Canada’s engineering, construction, and equipment sectors. In fact, each one is a direct beneficiary of renewed government commitment to long-term nation-building. From transportation networks and urban housing to power and healthcare facilities, these firms are positioned to thrive as billions flow into development programs nationwide.

Our screening process began with Canada’s major dividend-paying infrastructure and construction stocks, then narrowed to those most likely to sustain and grow payouts as stimulus spending accelerates. Prime Minister Mark Carney’s proposed 2025–2026 budget earmarks $115 billion in infrastructure funding, including a $50-billion Build Communities Strong Fund for local projects, $1 billion in northern transportation development, and a $5-billion Trade Diversification Corridors Fund for ports, rail, and airports.

TSI’s Dividend Sustainability Rating System evaluates each stock on critical factors: steady dividend history, management’s commitment to payouts, resilience in non-cyclical sectors, minimal political or currency risks, sound balance sheets with prudent debt levels, strong cash flow coverage, and long-term earnings consistency. Companies earn additional points for industry leadership and competitive advantage—additional qualities that deliver durable shareholder value even through economic cycles.

Excerpt from theglobeandmail.com, November 6, 2025

Sustainable dividends from Canadian infrastructure stocks – already spurred by the proposed federal budget.

Prime Minister Mark Carney’s 2025/2026 budget must still win parliamentary support but aims to spend $115 billion on infrastructure projects to drive national and regional growth.
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Highlights include a $50-billion Build Communities Strong Fund for local infrastructure projects in housing, transportation and health. Transport Canada would also oversee a $1 billion fund over four years for major transportation projects in the North, including airports, seaports, all-season roads, and highways. In addition, the proposed Trade Diversification Corridors Fund would provide $5 billion over seven years for the construction of port, railway and airport infrastructure.

Given the mandate to support Canadian business, that stimulus spending would be a boon for this country’s engineering, construction and heavy equipment firms. It would also bolster the future dividends of their shareholders.

Our search started with a list of dividend-paying Canadian infrastructure/construction stocks. We then applied our TSI Dividend Sustainability Rating System to find those with strong growth prospects. Our system 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.

6 dividend builders powering Canada’s future

Edmonton-based Stantec Inc. (with a 0.6% yield) and Montreal-headquartered WSP Global Inc. (0.6%) provide engineering and consulting services integral to planning and building infrastructure.

Montreal-based AtkinsRealis (0.1%) (formerly SNC-Lavalin Group Inc.) has two main business: Engineering Services, and Nuclear.

(All three stocks above have seen sharp price climbs over the last couple years or so, explaining their low yields.)

Bird Construction Inc. (2.9%), based in Mississauga, Ontario, acquired rival Stuart Olson in 2020 to create a Canadian construction leader with top infrastructure experience.

Headquartered just north of Toronto, Toromont Industries Ltd. (1.3%) is a Canadian dealer for Caterpillar heavy construction equipment.

Toronto’s Aecon Group Inc. (2.6%) is one of the country’s largest construction companies, with the Vancouver Skytrain and Terminal 3 at Lester B. Pearson International Airport among its successes.

We advise investors to do additional research on investments we identify here.

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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