Trading

3 TSX Stocks Built to Earn, Pay, and Endure

Alex Smith

Alex Smith

1 hour ago

5 min read 👁 1 views
3 TSX Stocks Built to Earn, Pay, and Endure

Not all income investors are yield-chasers. For those who are more risk-averse, dividend safety and reliability take precedence over “juicy” offers. This group seeks companies with a proven ability to earn consistently, a commitment to keeping shareholders whole on payouts, and businesses that can endure regardless of the economic climate.

Rogers Communications (TSX:RCI.B), Finning International (TSX:FTT), and Exchange Income Corporation (TSX:EIF) are among the TSX stocks that are built to earn, pay, and endure.  

Cash flow machine

Rogers Communications is one of three dominant players in Canada’s telecommunications industry. The $27.4 billion telco is slowly transforming into a cash flow machine following its 2023 acquisition of rival Shaw Communications. If you invest today, RCI.B trades at $49.39 per share and pays a 4% dividend. The payout ratio is only 15.3%.

In Q1 2026, free cash flow (FCF) increased 32% to $776 million versus Q1 2025, while net income climbed 72% year-over-year to $482 million. Management has confirmed a 30% reduction in 2026 and future annual capital expenditures between $2.5 billion and $2.7 billion.

Its President and CEO, Tony Staffieri, said the value of Rogers’ world-class sports assets has long been unrecognized. The telco will monetize these assets moving forward while accelerating FCF generation and advancing its deleveraging plan in 2026.    

Ever-growing business

Finning International is the world’s largest dealer of Caterpillar industrial equipment, including parts and service. The $12.8 billion Surrey-based company has been around for more than 90 years. It operates in Western Canada, Argentina, Bolivia, Chile, Ireland, and the United Kingdom.

At $104.97 per share, FTT investors enjoy a 41.6% year-to-date gain and partake in the modest 1.3% dividend. The Board-approved 7.4% dividend hike recently marked 25 consecutive years of dividend increases. Kevin Parkes, President and CEO of Finning, said, “Our business continues to grow entering 2026.”

At the end of Q1 2026, equipment backlog rose 20% from year-end 2025 to a record $3.8 billion. Product support revenue increased 6% to $1.5 billion compared to Q1 2025. Finning has recorded eight straight quarters of year-over-year product support growth.

According to Parkes, the near-term plan is to maximize product support and strengthen full-cycle resilience. Finning also expects its used, rental, and power and energy businesses to grow.       

Unique business model

The 2.6% yield of Exchange Income Corporation may appear too low, but it remains a compelling proposition. In a press release dated May 11, 2026, its CEO, Mike Pyle, said, “When conditions become more volatile, our diversified portfolio and essential-service businesses provide stability.”

At $105.19 per share, the industrial stock outperforms the broader market year-to-date, up 29.5% versus plus-7.3% year-to-date. The impressive earnings growth and robust FCF reported for Q1 2026 serve as strong buy signals. EIF also has a long-standing history of consistent monthly payouts.

The $5.5 billion diversified acquisition-oriented company derives revenue from two core segments: Aerospace & Aviation and Manufacturing. In the three months ending March 31, 2026, revenue, adjusted net earnings, and FCF rose 30%, 139%, and 48% year-over-year, respectively, to $867 million, $34 million, and $120 million. These figures are all new records for EIC.

Superior level of safety  

Keep tickers RCI.B, FTT, and EIF on your buy list. They may not offer the highest yields, but the superior level of safety makes their dividends far more valuable than other TSX stocks.

The post 3 TSX Stocks Built to Earn, Pay, and Endure appeared first on The Motley Fool Canada.

Should you invest $1,000 in Exchange Income right now?

Before you buy stock in Exchange Income, consider this:

The Motley Fool Canada team has identified what they believe are the top 10 TSX stocks for 2026… and Exchange Income wasn’t one of them. The 10 stocks that made the cut could potentially produce monster returns in the coming years.

Consider MercadoLibre, which we first recommended on January 8, 2014 … if you invested $1,000 in the “eBay of Latin America” at the time of our recommendation, you’d have over $18,000!*

Now, it’s worth noting Stock Advisor Canada’s total average return is 94%* – a market-crushing outperformance compared to 85%* for the S&P/TSX Composite Index. Don’t miss out on our top 10 stocks, available when you join our mailing list!

Get the 10 stocks instantly #start_btn6 { background: #0e6d04 none repeat scroll 0 0; color: #fff; font-size: 1.2em; font-family: 'Montserrat', sans-serif; font-weight: 600; height: auto; line-height: 1.2em; margin: 30px 0; max-width: 350px; text-align: center; width: auto; box-shadow: 0 1px 0 rgba(0, 0, 0, 0.5), 0 1px 0 #fff inset, 0 0 2px rgba(0, 0, 0, 0.2); border-radius: 5px; } #start_btn6 a { color: #fff; display: block; padding: 20px; padding-right:1em; padding-left:1em; } #start_btn6 a:hover { background: #FFE300 none repeat scroll 0 0; color: #000; } @media (max-width: 480px) { div#start_btn6 { font-size:1.1em; max-width: 320px;} } margin_bottom_5 { margin-bottom:5px; } margin_top_10 { margin-top:10px; }

* Returns as of April 20th, 2026

More reading

Fool contributor Christopher Liew has no position in any of the stocks mentioned. The Motley Fool recommends Rogers Communications. The Motley Fool has a disclosure policy.

Related Articles