In case you’re sitting on $7,000 and wish to put it to work in at the moment’s unsure market, dividend shares can provide a robust mixture of revenue and long-term wealth creation. Listed here are two high Canadian names for potential capital deployment at the moment — particularly for traders who worth robust money circulation, regular dividends, and the potential for double-digit complete returns.

Let’s discover why splitting $7,000 evenly between these two blue-chip dividend growers might be a sensible wealth-building transfer.

1. Canadian Pure Sources

Canadian Pure Sources (TSX:CNQ) is a long-time favorite amongst dividend traders — and for good purpose. With a present dividend yield of 5.2%, CNQ gives one of many juiciest payouts on the TSX.

Some traders hesitate on the subject of vitality shares because of commodity worth volatility. However CNQ has confirmed it might climate cycles exceptionally effectively. Since initiating its dividend in 2001, the corporate has elevated it each single 12 months — that’s over twenty years of dividend development.

Much more spectacular is the 20-year dividend development price of 20.7%, displaying a constant dedication to returning capital to shareholders. And whereas its most up-to-date quarterly enhance was 4.4%, the trailing 12-month dividend development sits round 12%, nonetheless firmly in double-digit territory.

Dividend development apart, CNQ has additionally delivered on capital appreciation. Over the previous decade, the inventory has returned a median of 12% per 12 months, with the full return (together with dividends) reaching a powerful 17% yearly. To place that into perspective, a $10,000 funding 10 years in the past could be value about $48,240 at the moment.

At present buying and selling close to $45 per share, CNQ appears moderately valued. Analysts see roughly 16% upside from right here, and its free money circulation payout ratio is a sustainable 58%. Furthermore, the corporate has constructed up substantial retained earnings — sufficient to cowl about six years’ value of dividends if wanted.

2. Canadian Nationwide Railway

Canadian Nationwide Railway (TSX:CNR) isn’t simply one other industrial inventory — it’s a Canadian dividend aristocrat with a 29-year streak of dividend will increase. Whereas latest headwinds like labour disruptions, wildfires, and U.S. tariff shifts have weighed on the inventory, these challenges seem like momentary.

The end result? A chance.

CNR is down about 22% from its 2024 excessive, buying and selling at $134.78 per share at writing, and yielding 2.6%. That’s about 25% greater than its three-year common dividend yield, suggesting the inventory could also be undervalued. Traditionally, dividend yield spikes like this have usually signalled shopping for alternatives in high quality names.

Whereas CNR’s most up-to-date dividend hike was a modest 5%, its five-year dividend development price nonetheless stands at a strong 9.5% — an indication of long-term energy.

With a price-to-earnings (P/E) ratio of about 18.2, CNR trades at a 14% low cost to its historic common valuation. If the corporate navigates its turnaround efficiently, traders may see annual complete returns of 12% or extra over the subsequent few years.

Investor takeaway: Passive revenue + long-term development

By dividing a $7,000 funding between CNQ and CNR, traders can faucet into two totally different sectors — vitality and industrials — whereas benefiting from each excessive dividend revenue and the potential for capital positive factors.

These shares aren’t simply defensive performs; they’re long-term wealth builders. And in at the moment’s market, that’s a uncommon mixture value proudly owning.