TSI’s Scott Clayton has pinpointed seven standout Canadian companies now rewarding shareholders with a “double gift”: active share buyback programs on top of strong, sustainable, and rising dividends. As highlighted in our Globe and Mail exclusive, we started with Canadian corporations showing solid revenue and earnings outlooks, then used our 12-point Dividend Sustainability Rating System to spotlight names combining resilient income with disciplined capital returns. The goal: finding the best companies where ongoing repurchases help lift per-share earnings and long-term share value, while dependable dividends keep cash flowing into your portfolio.
These high-potential names range from transportation and energy to resources, banks, and insurance, but they all share one core feature: managements using both dividends and buybacks to build shareholder wealth. Whether it’s a major railway taking advantage of price weakness to retire shares, a Calgary energy producer pairing rising dividends with aggressive repurchases, or a leading Canadian insurer planning billions in buybacks alongside a dividend hike, each reflects industry stature plus a long record of rewarding investors.
Our screening process began with Canadian firms committing serious capital to share repurchases while maintaining or growing their dividends. From there, we focused on businesses with strong balance sheets, positive cash flow, and earnings power sufficient to comfortably fund both programs, even as markets contend with tariffs, economic uncertainty, or shifting interest rates. The result is a list of “double gift” candidates that can dial back buybacks if conditions worsen—yet are motivated to preserve their dividends to support investor confidence and share prices.
Excerpt from theglobeandmail.com, February 19, 2026
Canadian companies rewarding investors with share buybacks—on top of offering them sustainable dividends.
Montreal-based Canadian National Railway Co. is taking advantage of recent share price declines to buy back more of its shares. That’s a boost to shareholder value, on top of the recent 3.1-per-cent hike to its dividend.
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While dividend hikes are easily appreciated by most shareholders, the impact of share buybacks often goes unnoticed. That’s a shame given that a company’s repurchase of common shares – and then the cancellation of those shares—leaves fewer shares outstanding. That, in turn, lifts earnings per share, which can spur market interest and, ultimately, the share price.
Better still, any resulting capital gains tax associated with the rise in share price gets put off until an investor sells their shares. That’s distinctly different from dividend income, which is taxed the same year in which it’s received.
Especially relevant today, firms can easily halt buyback plans in the face of tariff and other disruptions to cash flow. That’s unlike dividends, which are hard to cut without hurting investor confidence and the share price.
Our search started with a list of Canadian corporations with strong revenue and earnings outlooks and now rewarding shareholders with a double gift—hefty buybacks as well as strong, sustainable dividends. In most cases, those income payments are also rising. We then applied our TSI Dividend Sustainability Rating System. It 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 Canadian double gift payout champions
Calgary-based Imperial Oil Ltd. (2.2%) keeps raising its dividends – and continues to purchase shares under its current authorization. Barrick Mining Corp. (3.6%), headquartered in Toronto, just announced a dividend increase while it keeps buying back its stock under its own ongoing repurchase program.
Nutrien Ltd. (3.2%), headquartered in Saskatoon, plans to continue its substantial stock repurchases – plus it keeps hiking its dividend. Canadian Imperial Bank of Commerce (3.2%) and Toronto-Dominion Bank (3.3%), both based in Toronto, are in the midst of their own share buyback plans. What’s more, each increased its dividend payout late last year.
And finally, leading Canadian insurer Manulife Financial Corp. (3.7%), headquartered in Toronto, expects to repurchase as much as $2.0 billion of its stock this year. It also just raised its dividend.
Scott Clayton, MBA, is senior analyst for TSI Network and associate editor of TSI Dividend Advisor.
