1 Magnificent Canadian Dividend Stock Down 4% to Hold for Decades
Alex Smith
1 hour ago
Market volatility creates opportunities for patient investors. This is especially true after the volatile year 2025 was, and how that volatility has extended into 2026. As a result, some dividend stocks have surged, while a select few still trade at a discount. For investors seeking a reliable Canadian dividend stock, one stock stands out as a rare value opportunity.
That discount represents a unique moment for long-term investors to capitalize on those out-of-favour stocks over the shorter term to realize long-term gains.
One such stock that stands out right now is Restaurant Brands International (TSX:QSR). Not only has the company provided years of dividend growth, but it also boasts growth and defensive appeal for long-term investors.
Hereâs why Restaurant Brands International is the stock your portfolio may need right now.
Meet Restaurant Brands International
Restaurant Brands International is the name behind some of the largest and most well-known fast-food brands. Specifically, the company owns Burger King, Tim Hortons, Popeyes, and Firehouse Subs. This gives the company a unique mix of different offerings in different markets that provide a steady stream of revenue from over 100 markets around the world.
The big driver for Restaurant Brands is its franchising model. Franchisees oversee the construction, operations, and staffing, while QSR sits back and collects fees and royalties. This gives the business a predictable cash flow, strong margins, and the ability to continue scaling without added risk.
Why is Restaurant Brands International down?
As of the time of writing, the stock is down approximately 4% over the past year. That pullback can be attributed to a variety of factors, such as slower consumer spending, margin pressure from inflation and higher interest rates weighing on valuations.
Despite the pressure those factors have had on the stock price, it doesnât change the long-term trajectory of the business. In fact, Restaurant Brands continues to invest in growth areas such as digital ordering, brand modernization, and delivery services. All of those areas support long-term growth.
For long-term investors evaluating Restaurant Brands stock, the recent pullback may represent a compelling entry point.
What does this mean for dividend investors?
Restaurant Brands offers investors a robust quarterly dividend with a payment history going back a decade. As of the time of writing, that dividend yields 3.91%.
One important point for prospective investors to note is the strength of that dividend. Restaurant Brands reliably pays out that dividend irrespective of whether the market is performing well or is in a pullback. Big purchases often get cut during downturns, but quick-service operations like Restaurant Brands remain consistent throughout.
With shares of the company trading down 4%, this presents a unique opportunity for investors. Not only can they buy into a reliable, global business model, but they can do so at an attractive valuation with a higher yield.
Additionally, investors can benefit from the long-term growth that Restaurant Brands offers through its expansion and modernization efforts. In short, Restaurant Brands offers a defensive revenue stream and attractive dividend that persists in even weak economic cycles.
Buy this Canadian dividend stock today
Restaurant Brands is an attractive dividend stock built for longâterm investors. With shares down 4% over the past year, the current pullback offers a rare opportunity to buy a global compounder at a discount. For those seeking a dependable dividend stock to hold for decades, the stock stands out as a compelling choice.
The post 1 Magnificent Canadian Dividend Stock Down 4% to Hold for Decades appeared first on The Motley Fool Canada.
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Fool contributor Demetris Afxentiou has no position in any of the stocks mentioned. The Motley Fool recommends Restaurant Brands International. The Motley Fool has a disclosure policy.
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