The Bank of Canada has already implemented three early rate cuts of 25 basis points each, yet pressures on Canadian households continue to mount, prompting forecasts for even more aggressive rate reductions in the near future. According to the latest stock market news today, CIBC anticipates a notable 50-basis point cut by October 2024. 

These initial rate cuts have sparked a significant rally in the real estate and telecommunications sectors, indicating further potential for growth that savvy investors can take advantage of. Additionally, the increase in the Canadian household savings rate, which rose to 7.2% last quarter from 2.9%, suggests a greater capacity for consumer spending, further bolstered by the anticipated rate cuts.

This environment creates compelling opportunities for investment in some of the best stocks listed on the Toronto Stock Exchange (TSX). We have meticulously compiled a selection of attractive stocks that not only offer favorable valuations and long-term growth potential but also provide substantial and consistent dividend payments. This combination presents investors with the chance for both immediate income generation and long-term capital appreciation. 

Explore our curated list of the best dividend stocks listed on the TSX poised for significant long-term growth.

Olympia Financial Group Inc. (TSX: OLY)

Olympia has established a formidable presence in the Canadian market by offering a diverse array of financial services, including Investment Account Services, Corporate and Shareholder Services, and Currency and Global Payments. 

This robust positioning has been instrumental in driving the company’s financial success, evidenced by impressive revenue and earnings growth. As a result, dividends have seen remarkable increases, soaring from $2.70 in 2019 to $5.80 in 2023. Furthermore, projections indicate a potential dividend of $7.20 in 2024, which would yield an attractive 7.2% for shareholders, complemented by compounding from consistent monthly payments. The recent capital influx from rate cuts is anticipated to bolster Olympia’s operational growth while simultaneously providing substantial income opportunities for investors at the current yield.

Open Text Corp (TSX: OTEX)

Open Text Corp is a key player in Canada’s enterprise information management (EIM) sector, specializing in enterprise content management (ECM), business process management (BPM), and customer experience management (CEM). The company also offers cloud services, enabling it to carve out a niche across various industry verticals. 

With strategic investments in acquisitions, Open Text is well-positioned to benefit from interest rate cuts, bolstering its growth trajectory. Its robust financial performance not only supports a consistent increase in dividend payments—currently yielding nearly 4%—but also signals promising prospects for both short-term and long-term expansion.

Alliance Resource Partners, L.P. (NASDAQ: ARLP)

Alliance Resource Partners, known for its robust natural gas production, is poised to enhance its exploration initiatives thanks to anticipated boosts in investments and favorable financing arrangements stemming from recent rate cuts. This strategic shift aims to support its goals for exploration and resource expansion. 

The company has a track record of providing a remarkable dividend yield nearing 12%, and with the prospect of increased production and growth, it is likely to maintain its dividend payments while also benefiting from rising earnings and revenue.