I’d Bet $7,000 on This Unstoppable Dividend Stock Right Now

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Although the

TSX Composite Index

is surging to unprecedented levels in May 2025; this does not imply that investors should withdraw support.

fundamentals

in preference to pursuing momentum.

Growth stocks

While may be driving the current upswing, the cornerstone of a robust investment portfolio remains consistent income generation. If I were to allocate $7,000 today, I would direct it towards a reliable asset.

dividend payer

That has shown it can withstand

volatility

,reward perseverance, and succeed in the long term.

In this piece, I’ll discuss why this particular TSX dividend stock appears particularly appealing at present and explain how it can serve as a cornerstone for your portfolio by providing income and stability.

Table of Contents

A unstoppable dividend provider to purchase now

The dividend stock that catches my attention at the moment is

IGM Financial

(

TSX:IGM

— a reliable dividend provider with a strong history of financial growth and increasing momentum. Recently, it has been on an upward trend, with IGM stock rising by more than 20% over the last year.

Currently, the shares are priced at $44.38 each, and the company has a market value of

market cap

Of $10.5 billion. Investors seeking income will value its substantial dividend yield of slightly above 5%, distributed quarterly — positioning it as one of the leading dividend options on the Toronto Stock Exchange currently.

Impressive figures driving the upward movement

If you’re not familiar with this yet, IGM functions via IG Wealth Management and Mackenzie Investments, which are prominent players in Canada’s wealth and asset management sector.

In early 2025, the firm saw a year-over-year rise of 9% in assets under management and advisory services, reaching an all-time high of $275 billion. If we factor in strategic alliances such as its holdings in entities including Rockefeller Capital, Wealthsimple, and ChinaAMC, this brings their aggregate asset figure above $503 billion, marking a robust yearly growth rate of 19%.

Looking beyond asset growth

However, it’s not only about asset growth. The firm experienced net inflows of $4.2 billion in the initial quarter, which represents a significant shift compared to the net outflows recorded for the corresponding period the prior year. This indicates that their clientele isn’t merely staying loyal but also contributing additional funds.

Consequently, IGM’s adjusted quarterly net profit increased by 5.9% year over year to $237.8 million. Likewise, its adjusted earnings per share grew by 6.4% to $1, marking their strongest first-quarter performance ever.

From a profitability standpoint, the company’s margins remain robust with their adjusted net profit margin for the previous quarter staying close to 27%.

Designed for durability over time

Alongside these robust financial figures, IGM is dedicated to establishing foundations for sustained future expansion. The firm is significantly investing in digital advancements, broadening advisor networks, and aiming to become a frontrunner in the high-net-worth sector. By forming alliances with companies such as Rockefeller and Northleaf, the organization is increasing its presence in private equity and global markets—areas poised for substantial growth within an evolving investment landscape.

For those seeking an investment option that offers reliable returns through consistent dividends along with strong future growth prospects, IGM Financial ticks every necessary box. Despite seeing a rise of over 20% within the past year, the stock remains almost 8% below its peak for this period—thus appearing particularly appealing as a purchase now.

The post

I Would Put $7,000 Into This Indestructible Dividend Stock Right Now

appeared first on

The Motley Fool Canada

.

Is it wise to put $1,000 into IGM Financial at this moment?

Before purchasing shares in IGM Financial, keep this in mind:

The Motley Fool

Stock Advisor Canada

The analyst team has recently pinpointed what they consider to be the

Leading Stocks for 2025 and Further Ahead

For investors looking to purchase now—and IG Wealth Management was not among them—the top stocks selected have the potential to generate substantial gains over the next few years.

Consider

MercadoLibre

, which was initially suggested on January 8, 2014… if you had invested $1,000 in the “Latin American eBay” back then, you would have

$21,345.77

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See the Top Stocks

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Fool contributor

Jitendra Parashar

The Motley Fool does not hold any shares in the stocks discussed. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a

disclosure policy

.

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