Exploring TSX Dividend Stocks In June 2024
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As the Canadian market navigates through a phase of economic stabilization and rate cuts by the Bank of Canada, investors are closely monitoring shifts in market dynamics and opportunities. In this context, dividend stocks on the TSX emerge as a focal point for those seeking potential resilience and steady returns amidst evolving economic conditions.
Top 10 Dividend Stocks In Canada
| Name | Dividend Yield | Dividend Rating |
| Bank of Nova Scotia (TSX:BNS) | 6.56% | ★★★★★★ |
| Whitecap Resources (TSX:WCP) | 7.46% | ★★★★★★ |
| Enghouse Systems (TSX:ENGH) | 3.34% | ★★★★★☆ |
| Boston Pizza Royalties Income Fund (TSX:BPF.UN) | 8.40% | ★★★★★☆ |
| Secure Energy Services (TSX:SES) | 3.48% | ★★★★★☆ |
| Royal Bank of Canada (TSX:RY) | 3.96% | ★★★★★☆ |
| Canadian Natural Resources (TSX:CNQ) | 4.48% | ★★★★★☆ |
| Russel Metals (TSX:RUS) | 4.45% | ★★★★★☆ |
| Canadian Western Bank (TSX:CWB) | 3.40% | ★★★★★☆ |
| Firm Capital Mortgage Investment (TSX:FC) | 9.24% | ★★★★★☆ |
Click here to see the full list of 33 stocks from our Top TSX Dividend Stocks screener.
Here we highlight a subset of our preferred stocks from the screener.
Bank of Montreal
Simply Wall St Dividend Rating: ★★★★★☆
Overview: Bank of Montreal offers a range of financial services mainly in North America, with a market capitalization of CA$84.62 billion.
Operations: Bank of Montreal generates its revenue from several key segments, including BMO Capital Markets with CA$6.38 billion, BMO Wealth Management at CA$7.68 billion, U.S. Personal and Commercial Banking contributing CA$9.04 billion, and Canadian Personal and Commercial Banking leading with CA$10.14 billion.
Dividend Yield: 5.3%
Bank of Montreal has demonstrated a stable dividend track record, with consistent growth over the past decade. As of recent updates, the dividends are well-covered by earnings with a payout ratio of 71.6%, expected to improve to 52.8% in three years, indicating sustainability. While its dividend yield stands at 5.34%, slightly lower than the top quartile in the Canadian market, it offers reliability and is underpinned by a solid financial performance including an anticipated earnings growth rate of 12.2% per year. The bank's strategic expansions and fixed income offerings further support its financial stability, although shareholder dilution has occurred within the last year which could concern investors focused on equity value retention.
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Dive into the specifics of Bank of Montreal here with our thorough dividend report.
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Our valuation report here indicates Bank of Montreal may be overvalued.
Enghouse Systems
Simply Wall St Dividend Rating: ★★★★★☆
Overview: Enghouse Systems Limited operates globally, specializing in the development of enterprise software solutions with a market capitalization of approximately CA$1.73 billion.