For investors who are focused on long-term growth but still want income, the search often leads to companies that can deliver both capital appreciation and dividend increases over time. Many dividend stocks are prized for income and stability, but only a subset combines that with above-average growth potential. One Canadian company stands out in this category because it has shown a solid track record of earnings expansion, dividend growth, and market positioning — making it a compelling candidate for investors seeking growth and income in the same name.

What Makes a Growth-Oriented Dividend Stock Attractive

A dividend stock that is positioned for growth typically has several key traits:

Consistent Earnings Expansion: Sustainable growth in earnings per share provides the foundation for both dividend increases and rising share prices.
Dividend Growth History: A proven ability to raise dividends signals management confidence in future cash flows.
Competitive Advantage: Firms with strong market positions can generate above-normal returns over time, helping them outpace peers.
Balance Sheet Strength: Financial flexibility allows the company to invest in growth opportunities while maintaining shareholder returns.

This combination can produce a compounding effect for investors: dividends provide cash flow now, and rising earnings fuel greater market value and future dividend increases. Over long periods, this blend often outperforms a static income play or a pure growth stock alone.

Also Read: Best long term Canadian stocks

A Canadian Example With Growth Potential

The stock in question operates in a sector that continues to experience underlying demand growth, giving it favorable conditions for expanding revenue and profits. It combines stable cash flow with strategic investments in new markets and services, enabling both organic growth and enhanced shareholder returns. This dual-track model — steady base business plus growth initiatives — is exactly what long-term, growth-focused dividend investors seek.

Importantly, this company has demonstrated a disciplined approach to capital allocation, using excess cash to support both share buybacks and dividend increases without overleveraging. That makes its payout more resilient in economic downturns, even as underlying business trends push earnings upward.

Also Read: Dividend paying stocks Canada

Why This Matters for Investors

For TFSA and RRSP holders, owning a stock that can grow earnings and dividends simultaneously is especially valuable because both capital gains and distributions are tax-advantaged inside these accounts. That means you keep more of the return, accelerating the effective compounding over time.

Whether markets are volatile or stable, a business that combines growth and income can serve as a core holding in a diversified portfolio. It offers both revenue generation today and *expansion potential for tomorrow — with less reliance on short-term price movements and more focus on fundamental performance over the long haul.