Want Growth and Dividends From the Same Portfolio? These 2 Canadian Stocks Deliver Both

If you’ve ever been frustrated by finding a stock that doesn’t force you into an either/or trade-off between growth and income, you’re not alone. These stocks are harder to find than you’d think.

The best mix usually shows up when a company can grow cash flow per share, pay a dividend that it can actually afford, and still keep enough capital to reinvest. You also want a business that can handle a few ugly quarters without cutting the payout or diluting shareholders. A reasonable valuation helps, but consistency matters more, because you’re trying to build a habit of compounding, not win a one-quarter beauty contest. So let’s look at two to consider on the TSX today.

Polaris Renewable Energy

Polaris Renewable Energy (TSX:PIF) looks like an interesting blend of growth and income as it sells renewable power under long-term contracts. It operates a portfolio across the Americas, and the key attraction is that its revenue does not rely on day-to-day electricity prices the way a merchant power producer might. Over the last year, it pushed further into Puerto Rico, adding the Punta Lima wind farm and setting up a new angle to pair generation with grid-support services.

In 2025, it reported revenue of $80.5 million and adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) of $56.5 million, while energy production reached 810,731 MWh. It also produced operating cash flow of $35.2 million and ended the year with $93.2 million in cash, which matters a lot for a smaller dividend payer. It still posted a net loss of $2.7 million, which helps explain why the Canadian stock can screen with a negative price-to-earnings (P/E), roughly around negative 16. Even so, if you’re in for a dividend, it offers a 6.8% yield at writing.

If you’re comfortable looking past that net loss to the underlying operating cash flow, Polaris is an interesting opportunity today.

Atrium Mortgage Investment

Atrium Mortgage Investment (TSX:AI) takes a completely different path to the same goal. It’s a Mortgage Investment Corporation that lends against Canadian real estate, and it aims to pay shareholders a stable monthly dividend from the interest it earns. Over the last year, the conversation has stayed focused on credit quality and funding access, because those are the two levers that decide whether a mortgage lender can keep paying steadily through a choppy economy.

In the third quarter of 2025, it reported revenue of $21.0 million and net income of $11.9 million, or $0.25 per share. It also reported a mortgage portfolio of $917.3 million and emphasized conservative underwriting, with 96% of the portfolio in first mortgages and an average loan-to-value of 60.8%. It even expanded its line of credit from $340 million to $380 million after the quarter, which signals lender confidence and helps support ongoing originations. Meanwhile, it trades at just 11.5 times earnings, with a hefty 7.8% yield.

Bottom line

If you want long-term growth and dividends in the same portfolio, these two give you complementary engines. Polaris offers contracted renewable power with a meaningful yield and a growth path tied to Puerto Rico expansion and storage, but it can look lumpy on earnings. Atrium offers monthly income supported by conservative lending metrics and steady profitability, but it carries real estate credit risk that you cannot ignore. And here is what even $7,000 could bring in from an investment in both stocks.

COMPANYRECENT PRICENUMBER OF SHARES YOU COULD BUY WITH $7,000ANNUAL DIVIDENDTOTAL ANNUAL PAYOUT ON A $7,000 INVESTMENTPAYOUT FREQUENCYPIF$12.18574$0.82$470.68MonthlyAI$12.00583$0.93$542.19Quarterly

Together, these stocks deliver income now and growth potential over time, as long as you stay focused on the business fundamentals and not just the yield. That framing is a constant theme in Stock Advisor Canada, where the analysts find income stocks that have the chops to back up their yields. If you want to learn more, it is worth checking out.

The post Want Growth and Dividends From the Same Portfolio? These 2 Canadian Stocks Deliver Both appeared first on The Motley Fool Canada.

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More reading

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• Retirement Planning: How to Generate $2,000 in Monthly Income

Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Polaris Renewable Energy. The Motley Fool has a disclosure policy.