Posted by The Canada Pension Plan Investment Board (CPPIB) recently reported strong financial performance for the fiscal year ending March 31, 2025, achieving an impressive 9.3% annual return.
This result pushed the fund’s total assets to a substantial $714.4 billion, even in the face of recent market turbulence.
Let’s explore how reliable dividend-paying stocks contributed to this growth, and which ones were selected using a tested sustainability rating model.
How the CPP Builds a Dividend-Focused Portfolio
CPP’s Strategic Investment Approach
Although many investors aim to track the CPP’s holdings, doing so is complex. The fund’s asset base is diversified, extending beyond just public equities to include private equity, real estate, credit investments, and more. Still, focusing on the dividend-paying public stocks provides valuable insight into sustainable investment choices.
To identify top contenders, analysts from The Successful Investor (TSI) Network filtered dividend-paying stocks that the CPP had either recently acquired or increased its stake in. They further refined the selection using the TSI Dividend Sustainability Rating System.
The TSI Dividend Sustainability Rating System Explained
This rating system assesses a company’s ability to maintain and grow dividend payments, using the following point-based criteria:
| Criteria | Points |
|---|---|
| At least 5 years of uninterrupted dividend payments | 1 |
| Over 5 years of uninterrupted dividend payments | 2 |
| Dividend increased in the last 5 years | 2 |
| Strong management commitment to dividend payments | 1 |
| Operations in non-cyclical sectors | 1 |
| Minimal foreign exchange risk and political interference | 1 |
| Solid balance sheet with controlled debt and good cash flow | 2 |
| Consistent long-term earnings and cash flow coverage for dividends | 2 |
| Industry leadership status | 1 |
Interpretation of Ratings
- 10–12 points: Very high dividend sustainability
- 7–9 points: Above-average sustainability
- 4–6 points: Average sustainability
- 1–3 points: Below-average sustainability
Top CPP Dividend Stocks for 2025
The table below showcases five companies that stood out based on TSI’s system. These are either new additions to the CPP’s portfolio or companies where the fund boosted its investment.
| Rank | Company | Ticker | Sustainability | Points | Dividend Yield (%) | Market Cap ($B) |
|---|---|---|---|---|---|---|
| 1 | WSP Global Inc. | WSP-T | Above Average | 9 | 0.5 | 36.0 |
| 2 | Quebecor Inc. | QBR-B-T | Above Average | 8 | 3.7 | 8.8 |
| 3 | Sabesp (ADR) | SBS-N | Above Average | 8 | 2.7 | 14.4 |
| 4 | Asahi Group Holdings Ltd. | ASBRF | Above Average | 8 | 2.5 | 20.2 |
| 5 | Teck Resources Ltd. | TECK-B-T | Average | 5 | 1.0 | 24.9 |
Company Highlights and CPP Activity
WSP Global Inc.
- Industry: Engineering & Consulting
- Headquarters: Montreal
- CPP Position: Increased stake
- Notes: Although the dividend yield is only 0.5%, the stock has seen a 32.5% price surge over the past year.
Quebecor Inc.
- Industry: Media & Telecommunications
- Headquarters: Montreal
- CPP Activity: New holding in 2025
- Highlight: Diversified services and strong dividend track record
Sabesp (ADR)
- Industry: Utilities (Sanitation)
- Country: Brazil
- CPP Activity: New addition in 2025
- Fact: Serves São Paulo and ranks among the largest sanitation firms globally
Asahi Group Holdings Ltd.
- Industry: Beverage
- Country: Japan
- CPP Activity: Recently acquired
- Highlight: Stable operations and international brand recognition
Teck Resources Ltd.
- Industry: Mining (Copper & Zinc)
- Headquarters: Vancouver
- CPP Activity: Newly added to portfolio
- Note: Moderate sustainability score with long-term growth potential in metals
Who is Behind the Analysis?
TSI Network represents the digital presence of The Successful Investor Inc., publishers of top Canadian investment newsletters.
Spearheaded by Pat McKeough, TSI’s team specializes in dividend-focused research and is affiliated with Successful Investor Wealth Management.
The Canada Pension Plan Investment Board’s 2025 success in achieving a 9.3% return highlights the strength of its diversified and dividend-conscious strategy.
By analyzing the TSI-rated dividend-paying stocks within CPP’s portfolio, investors can gain valuable insights into companies offering both growth potential and dependable income.
These selections emphasize the importance of dividend sustainability, strong management, and strategic sector positioning in long-term wealth building.
FAQs
Why does the CPP invest in dividend-paying stocks?
The Canada Pension Plan uses reliable dividend-paying stocks to ensure steady income, long-term growth, and to help stabilize its large investment portfolio amid market volatility.
What is the TSI Dividend Sustainability Rating System?
This system evaluates the reliability and sustainability of dividend payments based on multiple financial and operational factors, awarding points accordingly.
How can investors use this information?
Individual investors can review CPP’s dividend stock selections and consider similar highly rated stocks for building a sustainable and income-focused portfolio.