This Canadian Dividend Stock Is Up 94% — and Still 1 of the Best on the TSX

Long-term investing is about owning resilient businesses that can compound wealth through all market cycles. The best stocks aren’t just those that surge temporarily, but those that investors feel confident adding to during downturns. This TSX stock is a good fit for this description — it has delivered solid gains for the long haul.

For example, over the past five years, Alimentation Couche-Tard (TSX:ATD) has climbed roughly 94%, outpacing the broader Canadian market’s rise of about 73%. Including dividends, its total return reaches approximately 103%, slightly ahead of the market’s 101%. Those are solid returns — but what’s more important is that the company still looks well-positioned for future growth.

A global leader built for stability

Couche-Tard is a dominant force in convenience and fuel retail, operating nearly 17,300 stores across 29 countries. Its core markets in Canada and the United States generate steady cash flow, while its strong presence in Europe provides additional diversification.

This is a business designed to endure economic uncertainty. Consumers continue to buy fuel, snacks, and everyday essentials regardless of the economic backdrop. That consistency translates into reliable earnings and robust free cash flow — key ingredients for long-term investors seeking stability.

Strong dividend growth backed by earnings

While Couche-Tard’s dividend yield sits at a modest 1.1%, focusing solely on yield misses the bigger picture. The company has delivered exceptional dividend growth, with a 15-year growth rate exceeding 25%. Its latest increase in November 2025 was over 10%, reinforcing management’s commitment to returning capital to shareholders.

This dividend growth is backed by solid fundamentals. The company’s disciplined operations and strong free cash flow allow it to reinvest in the business while steadily increasing payouts. For investors, that means a growing income stream over time rather than a high but stagnant yield.

Expansion opportunities fuel future upside

Couche-Tard’s growth story is far from over. In Scandinavia, the company is already capitalizing on the electric vehicle transition by offering integrated charging, food, and service experiences. This model is now being expanded into other European markets.

At the same time, management continues to identify acquisition opportunities in the fragmented U.S. market, alongside expansion prospects in Europe, Latin America, and Southeast Asia. This combination of organic growth and strategic acquisitions should support continued success.

Looking ahead, the company expects adjusted earnings per share to grow by more than 10% annually through fiscal 2030. That level of growth should

Why it still looks like a buy

At around $81 per share, Couche-Tard trades at an estimated 11% discount to analyst consensus price targets, implying near-term upside of roughly 12%. More importantly, its long-term growth prospects remain intact, supported by a proven business model and disciplined management team.

For investors building diversified portfolios, this stock offers a rare combination of stability, growth, and rising income. It may not deliver the highest yield today, but its ability to compound returns over time makes it one of the most attractive dividend stocks on the TSX.

Investor takeaway

Alimentation Couche-Tard has already delivered a 94% gain over five years, yet it still offers meaningful upside. With resilient operations, strong dividend growth, and expansion opportunities, it remains one of the best Canadian dividend stocks to buy and hold for the long term — especially during market pullbacks.

The post This Canadian Dividend Stock Is Up 94% — and Still 1 of the Best on the TSX appeared first on The Motley Fool Canada.

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* Returns as of April 20th, 2026

More reading

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• 4 Canadian Stocks Worth Holding When Market Anxiety Starts to Rise
• How Do Most Canadians’ TFSA Balances Look at Age 30?
• Canadians Are Spending More Carefully. This Retail Stock Is Built for It.
• 1 Dividend-Growth Giant That Looks Attractive After a Recent Pullback

Fool contributor Kay Ng has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alimentation Couche-Tard. The Motley Fool has a disclosure policy.