2 Canadian Dividend Giants I’d Buy With Rates on Hold

When rates sit on hold, dividend “giants” can shine, but you still need to stay picky. The Bank of Canada held its policy rate at 2.25% on Jan. 28, 2026, which takes some immediate pressure off borrowers and keeps income investors from constantly second-guessing the next move. Still, rates on hold do not erase risk. You want dividends backed by real earnings, conservative payout ratios, and balance sheets that can handle a surprise slowdown.

MFC

Manulife Financial (TSX:MFC) fits the moment as it operates across insurance, wealth, and asset management segments, with a big footprint in Asia and a strong Canadian base. It benefits when long-term rates stabilize because it can price products more confidently and invest its float with less whiplash. It also tends to look better when investors want income but still want some growth. Over the last year, it kept its dividend steady at $0.44 per quarter, which matters for anyone who wants reliability instead of a roller-coaster payout.

The latest earnings numbers show why the dividend stock has had more life. In the third quarter (Q3) of 2025, Manulife delivered core earnings of $2.0 billion and core earnings per share (EPS) of $1.16, up 16% from a year earlier. It also reported net income attributed to shareholders of $1.8 billion and EPS of $1.02. That mix supports the dividend and leaves room for capital returns, even if a few quarters get messy.

Looking ahead, the case for Manulife in a “rates on hold” world is pretty simple. Stable rates help reduce valuation drama, and the business can still grow through wealth and Asian demand. The valuation also looks reasonable, trading at 16.6 times earnings with a 3.43% yield. This dividend stock rarely blows up, but it can disappoint if markets turn.

NTR

Nutrien (TSX:NTR) is a different kind of dividend giant. It sells the inputs that keep global crop yields high, including potash, nitrogen, and retail agricultural services. Farmers do not buy fertilizer for fun, but they do buy it when the soil needs nutrients and food demand stays stubborn. That gives Nutrien a long runway, even if any single year gets choppy. In a rate-hold environment, investors often rotate back toward real-economy cash generators, and Nutrien tends to fit that bill when the cycle cooperates.

The last year also brought very real headlines. Nutrien initiated a controlled shutdown of its Trinidad nitrogen operations in October 2025 due to uncertainty around port access and challenges around reliable, economic gas supply. That story highlights a risk investors often ignore: operational and geopolitical friction can punch holes in “steady” cash flow. Around the same time, Nutrien launched a strategic review of its phosphate business, which signals management wants a simpler, higher free-cash-flow portfolio.

The earnings print backed up the idea that the fertilizer cycle still has legs. In Q3 2025, Nutrien reported net earnings of $500 million, or $0.96 per diluted share. It posted adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of $1.4 billion and adjusted net EPS of $0.97. It reported total sales of $6.01 billion in the quarter, up from $5.35 billion a year earlier, with potash sales rising 27% to $1.12 billion. For outlook and valuation, the appeal comes from income plus a potential tailwind if potash demand stays healthy in 2026. In fact, it reported that Nutrien expects higher global potash demand in 2026 and that it is evaluating options for the phosphate business.

Bottom line

So, could these dividend stocks be buys with rates on hold? They could, if you want dependable dividend payers with different drivers. Manulife offers a smoother compounding profile tied to markets and long-term savings behaviour, but it can sag if markets wobble or credit cracks. Nutrien offers a tangible, global cash-flow story and a decent yield, but it lives and dies by fertilizer pricing and operational execution. Yet you can still earn income from even $7,000 invested in each.

COMPANYRECENT PRICENUMBER OF SHARESANNUAL DIVIDENDANNUAL TOTAL PAYOUTFREQUENCYTOTAL INVESTMENTMFC$51.74135$1.76$237.60Quarterly$6,994.90NTR$93.0375$3.03$227.25Quarterly$6,977.25

If you can handle those trade-offs, both can earn a spot in a portfolio built to pay you while you wait.

The post 2 Canadian Dividend Giants I’d Buy With Rates on Hold appeared first on The Motley Fool Canada.

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More reading

• 3 Blue-Chip Dividend Stocks for Canadian Investors
• Outlook for Manulife Stock in 2026
• 3 Portfolio Protectors to Own in 2026
• CRA: How to Use Your TFSA Contribution Limit in 2026
• Got $7,000? 5 Blue Chip-Stocks to Buy and Hold Forever

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