Goodbye, GICs: These Dividend Stocks Are a Far Better Buy

Guaranteed Investment Certificates (GIC) feel incredibly safe. That is, until you price in what you give up. When rates cool, the GIC offers cool too, and your cash stays locked in until maturity. Inflation does not wait for your renewal date. Dividend stocks do not promise certainty, but can pay you along the way and still leave room for price gains. Many companies raise payouts, so your income can climb instead of resetting lower. You swap a fixed ceiling for a higher potential one. Today, we’ll look at three offering high payouts, with no fixed ceiling to be found.

WCP

Whitecap Resources (TSX:WCP) fits the “dividend with upside” idea as it runs a cash-generating oil and gas business. The shares are now up almost 30% in the last year alone. That range looks wild, but it can reward patience when cash flow holds up. It currently offers a dividend yield at about 5.8% while trading near 11 times earnings, so the market does not price it like a growth darling.

In its third quarter of 2025, Whitecap reported petroleum and natural gas revenues of $1.7 billion and funds flow of $896.6 million, or $0.73 per share. Net income came in at $204.2 million, and free funds flow reached $350.3 million after $546.3 million of capital spending. Management put net debt at about $3.3 billion and set a 2026 capital budget of $2 to $2.1 billion, targeting 370,000 to 375,000 barrels of oil equivalent per day (boe/d). The catalyst sits in execution and synergies, but oil prices can swing hard, so expect bumps.

CRT

CT REIT (TSX:CRT.UN) brings a steadier rhythm. It owns a Canadian retail property portfolio and collects rent, with Canadian Tire as the anchor tenant. The unit price is now near its 52-week high, with shares up 15% in the last year. It also pays a monthly distribution that many investors treat like a paycheque. Based on quarterly adjusted funds from operations (AFFO), the units trade at roughly 13 times annualized AFFO, which looks reasonable for a high-occupancy landlord.

In the third quarter of 2025, CT REIT reported property revenue of $151.2 million and net operating income of $119.9 million. AFFO came in at $75.4 million, or $0.317 per unit, and occupancy sat at 99.4%. The AFFO payout ratio landed near 74.8%, which leaves a cushion for the distribution. The outlook hinges on rates and tenant health. If refinancing costs stay high or Canadian Tire hits a rough patch, growth slows, even if cash flow stays solid.

CCA

Finally, Cogeco Communications (TSX:CCA) offers dependability through recurring internet and cable bills. Shares have been a bit all over the place, though still up 10% in the last year. The dividend stock has come down since earnings. Today investors can grab it with a dividend yield of 5.9% while trading at 9 times earnings. Cogeco also keeps working on network upgrades and customer retention, which can support margins in a competitive market.

In its first quarter of fiscal 2026, Cogeco reported revenue of $707.2 million and adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) of $353.8 million, for a 50% margin. Free cash flow came in at $125.5 million and adjusted diluted earnings per share landed at $2.11. It also raised the quarterly dividend to $0.987 per share, up 7% year over year, and it reaffirmed fiscal 2026 guidance. Competition, especially in the U.S., stays the main risk, and heavy network spending can pinch free cash flow in weaker years.

Bottom line

These three dividend stocks share one edge over a GIC: the payout can grow, and the investment can grow with it. Whitecap gives you torque when energy stays firm. CT REIT gives you rent-backed stability with monthly cash. Cogeco gives you recurring revenue and a history of dividend hikes. And today, here’s what $7,000 in each dividend stock can bring in.

COMPANYRECENT PRICENUMBER OF SHARESANNUAL DIVIDENDANNUAL TOTAL PAYOUTFREQUENCYTOTAL INVESTMENTCCA$66.66105$3.95$414.75Quarterly$6,999.30WCP$12.67552$0.73$402.96Monthly$6,993.84CRT.UN$16.53423$0.95$401.85Monthly$6,992.19

None of this comes with a guarantee, but over years, rising income plus some price upside can beat a fixed rate that fades at renewal.

The post Goodbye, GICs: These Dividend Stocks Are a Far Better Buy appeared first on The Motley Fool Canada.

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More reading

• 5 Stocks for Canadian Dividend Investors
• Monthly Dividend Leaders: 3 TSX Stocks Paying Dividends Every 30 Days
• 2 Passive-Income Stocks to Watch in January
• Why Whitecap Resources Stock Below $15 Is My Top Pick for 2026
• This 6% Dividend Stock Pays Cash Every Single Month

Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool recommends Cogeco Communications and Whitecap Resources. The Motley Fool has a disclosure policy.