1 Canadian Dividend Stock Down 33% Every Investor Should Own

A dividend stock that’s down in share price can be a great opportunity. You’re essentially buying the same business at a discount while locking in a higher yield. If the dividend stock’s fundamentals are still solid, a lower share price doesn’t mean the business is broken. In fact, it often means the market is reacting emotionally to short-term noise.

For long-term investors, that disconnect can be a gift! You get paid more to wait, and when sentiment recovers, you collect both income and potential upside as the stock rebounds. So, let’s look at one to consider on the TSX today.

TFII

TFI International (TSX:TFII) is one of North America’s strongest transportation and logistics companies, operating a mix of truckload, less-than-truckload, package and courier, and specialized freight businesses. The dividend stock has grown through a disciplined acquisition strategy, buying underperforming carriers and improving them with TFI’s efficiency playbook. Over the years, this approach has made TFII a compounding machine, consistently expanding margins, diversifying revenue streams, and building scale across Canada and the United States. It’s also known for strong capital allocation. When markets are soft, TFI buys assets on the cheap. When markets are tight, it harvests cash and strengthens the balance sheet.

Part of what sets TFII apart is its CEO Alain Bédard’s long-standing focus on operating discipline. The dividend stock isn’t shy about restructuring divisions that underperform or exiting unproductive segments altogether. That willingness to adapt keeps profitability resilient even when freight cycles turn down. TFII also returns capital to shareholders through buybacks and a steadily growing dividend, reflecting confidence in long-term free cash flow. It’s a rare mix of growth, efficiency, and income in a cyclical industry.

Into earnings

In its most recent earnings, TFI International reported softer revenue and profit as freight volumes continued to reflect a sluggish North American shipping environment. Truckload and LTL demand remained pressured, and pricing was competitive, which weighed on margins. Still, the dividend stock maintained strong cash generation and reiterated its long-term operating targets. Management noted that freight conditions were bottoming, and early indicators pointed to improving demand heading into next year. The balance sheet remained healthy, giving TFI flexibility to pursue acquisitions when valuations across the industry are unusually attractive.

Despite the tough freight backdrop, TFI’s earnings showed that its core strength of operational flexibility remains intact. Management continued taking cost actions, optimizing networks, and adjusting capacity to protect profitability. They also emphasized that several deals under review could drive meaningful earnings growth once freight markets normalize. Although near-term results were softer, the dividend stock’s long-term story didn’t change. TFII still expects to emerge from this cycle stronger, more streamlined, and positioned to gain share as weaker competitors struggle.

Looking ahead

TFII’s share price is now down about 33% in the last year. Yet the share price decline has opened the door for long-term dividend investors who understand how cyclical stocks behave. The downturn isn’t due to structural problems; it’s tied to a temporary freight recession affecting the entire industry.

That’s historically when TFII creates the most value by acquiring distressed assets, improving them, and riding the next upswing. The dividend remains safe, supported by strong cash flow, and management has a long track record of raising it as earnings recover. For investors, buying TFII after a significant pullback means capturing a quality business at a rare discount while getting paid to wait.

Bottom line

In short, TFII isn’t down because it’s weak; it’s down because the cycle is. And cycles turn. When they do, TFI International tends to rebound faster and stronger than most of its peers. And even now, here’s what that dividend could bring in with a $7,000 investment.

COMPANYRECENT PRICENUMBER OF SHARESDIVIDENDANNUAL TOTAL PAYOUTFREQUENCYTOTAL INVESTMENTTFII$137.1251$2.62$133.62Quarterly$6,993.12

While it might look like a red flag, this dip is a genuine long-term opportunity for dividend-focused investors.

The post 1 Canadian Dividend Stock Down 33% Every Investor Should Own appeared first on The Motley Fool Canada.

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More reading

• The Best TSX Stocks for Canadians to Buy With $1,000 on Hand
• Lazy Investor: This Dividend Growth Stock Deserves a Permanent Place in Your TFSA
• 2 Top Canadian Stocks I’d Happily Buy and Hold Forever (and Ever)
• 5 Reasons to Buy and Hold This Canadian Stock Forever

Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool recommends TFI International. The Motley Fool has a disclosure policy.