3 Top TSX Dividend Stocks To Consider
The Canadian market has climbed 2.7% over the last week and 16% over the past year, with earnings forecast to grow by 15% annually. In this favorable environment, identifying top dividend stocks that offer reliable income and potential for growth can be a prudent strategy for investors.
Top 10 Dividend Stocks In Canada
Name | Dividend Yield | Dividend Rating |
Whitecap Resources (TSX:WCP) | 7.07% | ★★★★★★ |
Secure Energy Services (TSX:SES) | 3.35% | ★★★★★☆ |
Labrador Iron Ore Royalty (TSX:LIF) | 8.44% | ★★★★★☆ |
Enghouse Systems (TSX:ENGH) | 3.32% | ★★★★★☆ |
Canadian Natural Resources (TSX:CNQ) | 4.70% | ★★★★★☆ |
iA Financial (TSX:IAG) | 3.07% | ★★★★★☆ |
Firm Capital Mortgage Investment (TSX:FC) | 8.52% | ★★★★★☆ |
Russel Metals (TSX:RUS) | 4.32% | ★★★★★☆ |
Sun Life Financial (TSX:SLF) | 4.22% | ★★★★★☆ |
Royal Bank of Canada (TSX:RY) | 3.40% | ★★★★★☆ |
Click here to see the full list of 32 stocks from our Top TSX Dividend Stocks screener.
Underneath we present a selection of stocks filtered out by our screen.
Aecon Group
Simply Wall St Dividend Rating: ★★★★☆☆
Overview: Aecon Group Inc. provides construction and infrastructure development services to private and public sector clients in Canada, the United States, and internationally, with a market cap of CA$1.23 billion.
Operations: Aecon Group Inc. generates revenue primarily from its Construction segment, which accounts for CA$4.04 billion, and its Concessions segment, contributing CA$34.47 million.
Dividend Yield: 3.8%
Aecon Group has a history of reliable and growing dividend payments over the past decade, but its current dividend yield of 3.82% is lower than the top 25% of Canadian dividend payers. The company’s dividends are well covered by cash flows due to a low cash payout ratio (30.2%), though not by earnings, which have been impacted by large one-off items and recent financial losses.
High Liner Foods
Simply Wall St Dividend Rating: ★★★★☆☆
Overview: High Liner Foods Incorporated processes and markets frozen seafood products in North America, with a market cap of CA$391.94 million.
Operations: High Liner Foods generates $992.12 million from the manufacturing and marketing of prepared and packaged frozen seafood.
Dividend Yield: 4.5%
High Liner Foods has shown an increase in earnings, with Q2 net income rising to $19.29 million from $5.89 million a year ago. The company declared a quarterly dividend of C$0.15 per share, payable on September 15, 2024. Despite a volatile dividend history and high debt levels, its dividends are well covered by both earnings (payout ratio: 30.2%) and cash flows (cash payout ratio: 8.3%). Recent refinancing is expected to save approximately $1.4 million annually in interest expenses.
Royal Bank of Canada
Simply Wall St Dividend Rating: ★★★★★☆
Overview: Royal Bank of Canada operates as a diversified financial service company worldwide with a market cap of CA$237.03 billion.
Operations: Royal Bank of Canada's revenue segments include Personal & Commercial Banking (CA$21.78 billion), Wealth Management (CA$17.92 billion), Capital Markets (CA$11.19 billion), and Insurance (CA$5.86 billion).
Dividend Yield: 3.4%
Royal Bank of Canada offers a reliable dividend, with payments growing steadily over the past decade and a current yield of 3.4%. The dividend is well-covered by earnings (49% payout ratio) and projected to remain sustainable in three years (47.1%). Recent earnings growth of 11.2% supports this stability. However, it trades at 32.5% below its estimated fair value, presenting potential for capital appreciation alongside income generation from dividends.
Where To Now?
Click this link to deep-dive into the 32 companies within our Top TSX Dividend Stocks screener.
Are these companies part of your investment strategy? Use Simply Wall St to consolidate your holdings into a portfolio and gain insights with our comprehensive analysis tools.
Enhance your investing ability with the Simply Wall St app and enjoy free access to essential market intelligence spanning every continent.
Interested In Other Possibilities?
Explore high-performing small cap companies that haven't yet garnered significant analyst attention.
Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management.
Find companies with promising cash flow potential yet trading below their fair value.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include TSX:ARE TSX:HLF and TSX:RY.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com