Rising costs continue to challenge consumer budgets and corporate profit margins on both sides of the border. With consumer price indexes staying elevated and global supply pressures re-emerging, maintaining purchasing power has become an urgent priority for conservative wealth builders.
In our latest Globe and Mail investment feature, TSI senior analyst Scott Clayton reviews six resilient North American dividend stocks positioned to thrive in inflationary environments. Ranging from global consumer staples and grocery retail to agricultural processors, crop nutrients, and gold mining, these businesses hold either dominant pricing leverage or tangible real assets that serve as reliable hedges.
For income investors, high yield alone cannot protect against eroding purchasing power. An inflation-resilient payout requires durable operational backing: dependable free cash flow, flexible pricing capabilities, disciplined debt management, and a demonstrable corporate commitment to regular shareholder distributions. That’s why our analysis emphasizes payout safety over headline yields.
We evaluated leading Canadian and U.S. candidates using our proprietary 12-point TSI Dividend Sustainability Rating System. This framework grades companies across multi-year distribution histories, recent payment hikes, balance-sheet liquidity, non-cyclical operations, and overall competitive dominance. Companies scoring in the highest tiers reflect the greatest likelihood of sustaining - and growing - their income streams regardless of broader macroeconomic turbulence.
Our six selections deliver more than temporary shelter from volatile economic data. They represent high-quality market leaders capable of defending shareholder capital, preserving purchasing power, and providing dependable dividend income well into the future.
Excerpt from theglobeandmail.com, October 15, 2026
Stocks with sustainable dividends and primed for growth even if inflation continues its rise.
Inflation in the U.S. accelerated to 3.7% in September, driven by higher energy prices. (Canada’s 3.0% inflation rate for August is expected to hold steady for September.) It’s uncertain when, or if, relief for U.S. businesses and consumers will arrive given expanding conflict in the Middle East, now threatening to block another key shipping route for oil.
Our analysts at The Successful Investor think the best strategy to minimize inflation’s impact is to buy dividend stocks likely to do just fine if price escalation continues or if inflation starts to move down. That kind of resilience often comes from being able to pass along higher costs to customers or holding hard assets that traditionally act as a hedge against inflation.
From a list of Canadian and U.S. stocks we identified leaders that do well during periods of inflation while paying sustainable dividends. We then applied our TSI Dividend Sustainability Rating System. It awards points to a stock based on key factors:
Our system awards points to a stock based on key factors:
- 2 points for five years of continuous dividend payment
- 2 points if it has raised the payment in the past five years
- 1 point for management’s commitment to dividends
- 1 point for operating in non-cyclical industries
- 1 point for limited exposure to foreign currency rates and freedom from political interference
- 2 points for a strong balance sheet, including manageable debt and adequate cash
- 2 points for a long-term record of positive earnings and cash flow sufficient to cover dividend payments
- 1 point for an industry leader
Companies with 10 to 12 points have the most secure dividends, or the highest sustainability.
Those with 7 to 9 points have above average sustainability; average sustainability, 4 to 6 points; and below average sustainability, 1 to 3 points.
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6 inflation-proof winners worth buying
Toronto-headquartered Barrick Gold Corp. (with a 1.7% yield) will keep generating strong cash flow even if bullion prices fall. Meanwhile, the stock is a great hedge against inflation if investors look to the “safe harbour” of gold.
Gladstone Land Corp. (5.8%), based in Virginia, will gain from land value appreciation as it’s one of the largest owners of farmland and farm-related properties in the U.S.
Somers, New York-based PepsiCo Inc.’s (4.7%) popular brands, which include Pepsi-Cola, Gatorade, Doritos, and Lay’s, all have very strong pricing power to pass on rising input costs.
Chicago’s Archer Daniels Midland Co. (2.5%), which processes oilseed, corn and wheat, has a proven knack for offsetting rising costs with operational efficiencies to protect profit margins.
Nutrien Ltd. (3.2%), headquartered in Saskatoon, will profit from strong pricing power going forward – its potash sales volumes hit a record in the first half of this year.
And finally, Brampton, Ontario’s Loblaw Cos. Ltd. (1.0%) will continue to see steady demand for its grocery and pharmacy essentials, and the company keeps capturing consumers trading down to its discount banners (such as Maxi and No Frills) as inflation hurts affordability.
Note – the modest dividend yield in large part reflects the stock’s impressive price growth over the last three years.
Scott Clayton, MBA, is senior analyst for TSI Network and associate editor of TSI Dividend Advisor.
