As the Canadian market navigates through uncertainties such as potential tariffs and political shifts, investors are increasingly adopting a defensive stance. In this climate, dividend stocks can offer a measure of stability and income, making them an attractive option for those seeking to weather market volatility.
Overview: National Bank of Canada offers a range of financial services to individuals, businesses, institutional clients, and governments both in Canada and internationally, with a market cap of CA$45.73 billion.
Operations: National Bank of Canada's revenue is primarily derived from its Personal and Commercial segment at CA$4.30 billion, Wealth Management at CA$2.90 billion, Financial Markets (Excluding USSF&I) at CA$3.22 billion, and U.S. Specialty Finance and International (USSF&I) contributing CA$1.30 billion.
Dividend Yield: 3.9%
National Bank of Canada offers a reliable dividend with consistent growth over the past decade, supported by a low payout ratio of 40.1%, ensuring dividends are well-covered by earnings. Despite trading below its estimated fair value, its 3.93% yield is lower than top Canadian dividend payers. Recent shareholder activism highlights environmental and governance concerns but doesn't directly impact dividend stability or coverage forecasts, which remain robust at 43.9% in three years.
Overview: Rogers Sugar Inc. is involved in refining, packaging, marketing, and distributing sugar and maple products across Canada, the United States, Europe, and internationally with a market capitalization of CA$692.84 million.
Operations: Rogers Sugar Inc.'s revenue is primarily derived from its sugar segment, which generated CA$1.03 billion, and its maple products segment, contributing CA$241.22 million.
Dividend Yield: 6.7%
Rogers Sugar Inc. maintains a stable dividend yield of 6.7%, ranking in the top 25% of Canadian dividend payers, but lacks growth over the past decade. Recent earnings showed improvement with CAD 15.81 million net income for Q1 2025, yet dividends are not covered by free cash flow or operating cash flow, posing sustainability concerns despite coverage by earnings at an 80.1% payout ratio. The company recently completed CAD 100 million in fixed-income offerings to bolster financial stability amidst these challenges.
Overview: Wajax Corporation offers equipment, parts, and services across various sectors including construction, forestry, mining, and oil and gas with a market capitalization of CA$398.43 million.
Operations: Wajax Corporation's revenue segments in millions of CA$ include equipment, parts, and services for the construction, forestry, mining, industrial and commercial sectors as well as oil sands, transportation, metal processing, government entities, utilities and oil and gas industries.
Dividend Yield: 7.7%
Wajax's dividend yield of 7.72% places it among the top Canadian dividend payers, yet its unstable track record and declining dividends over the past decade raise concerns. Despite a reasonable payout ratio (71.1%) supported by earnings and cash flows, recent earnings show decreased net income (C$42.79 million), impacting financial health. The company affirmed a quarterly dividend of C$0.35 per share, but interest payments are not well-covered by earnings, highlighting potential risks for investors seeking stability.
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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:NA TSX:RSI and TSX:WJX.
