Finding a top Canadian stock which provides not only strong dividends, but excellent growth prospects at a valuation that makes sense isn't easy. That's partly because the set of such companies out there isn't infinite, but it's also limited with the options the TSX has to offer.

That said, I've been a long-time proponent of Restaurant Brands (TSX:QSR) as a top option for investors seeking relative balance in their portfolios. The company's mix of dividend income and long-term capital appreciation alongside a defensive business model makes this a stock worth considering.

Here's why I think this fast food giant is a top option to consider for those looking to kickstart their portfolio with $1,000 or more.

Defensiveness matters

We are certainly in increasingly turbulent times. The volatility index has picked up, as geopolitical risks remain heightened globally and inflation still isn't yet beaten in markets like the U.S., meaning interest rate risk has materialized in a way many didn't expect.

Accordingly, some are calling for a recession around the corner, as a reflection on the various risks to the economy, but also some finance-related risks with the inverted yield curve and the recent triggering of the Sahm rule.

In such an environment, I think investing in companies with durable and sustainable business models that will be around in a decade or two for sure are companies worth considering. Restaurant Brands portfolio of world-class quick service restaurant banners (which include Canada's favourite Tim Horton's, as well as Burger King, Popeye's and other restaurants) provides consistent and durable cash flow in any economic environment.

I think such companies will demand a premium, if and when the stuff really hits the fan. That's been the core of my thesis for a long time, and that's partly why QSR stock has been so stable for so long, in my view.

Fundamentals also matter a great deal

Investing in a company like Restaurant Brands for its defensive profile is one thing. But if the company isn't performing on a quarterly basis and delivering value to shareholders, this isn't a stock that should be considered.

Fortunately for investors, that's not the case.

The company continues to provide strong growth, driven in part by footprint expansion, particularly in higher-growth global markets. This has led to 5% year-over-year system-wide sales growth this past quarter, with the company bringing in strong margins and solid net income growth.

Those are the kinds of fundamentals I think are important to consider, particularly for a company that pays out a significant portion of its earnings in dividends. Restaurant Brands' 3.1% yield is one I believe is sustainable long term, as I expect cash flows to continue to grow at a relatively moderate pace over the long haul.