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The market has stayed flat over the past 7 days, but it has risen 12% in the past 12 months with earnings forecast to grow by 15% annually. In this environment, dividend stocks can offer a reliable income stream and potential for capital appreciation, making them an attractive option for investors.
Top 10 Dividend Stocks In Canada
| Name | Dividend Yield | Dividend Rating |
| Bank of Nova Scotia (TSX:BNS) | 6.64% | ★★★★★★ |
| Whitecap Resources (TSX:WCP) | 7.08% | ★★★★★★ |
| Secure Energy Services (TSX:SES) | 3.29% | ★★★★★☆ |
| Boston Pizza Royalties Income Fund (TSX:BPF.UN) | 8.19% | ★★★★★☆ |
| Power Corporation of Canada (TSX:POW) | 5.69% | ★★★★★☆ |
| Enghouse Systems (TSX:ENGH) | 3.42% | ★★★★★☆ |
| Royal Bank of Canada (TSX:RY) | 3.73% | ★★★★★☆ |
| Firm Capital Mortgage Investment (TSX:FC) | 8.78% | ★★★★★☆ |
| Russel Metals (TSX:RUS) | 4.27% | ★★★★★☆ |
| Canadian Natural Resources (TSX:CNQ) | 4.33% | ★★★★★☆ |
Click here to see the full list of 33 stocks from our Top TSX Dividend Stocks screener.
We'll examine a selection from our screener results.
Enghouse Systems
Simply Wall St Dividend Rating: ★★★★★☆
Overview: Enghouse Systems Limited, with a market cap of CA$1.70 billion, develops enterprise software solutions worldwide through its subsidiaries.
Operations: Enghouse Systems Limited generates revenue from its Asset Management Group (CA$180.88 million) and Interactive Management Group (CA$299.55 million).
Dividend Yield: 3.4%
Enghouse Systems offers a stable and growing dividend, with payments reliably increasing over the past decade. The current dividend yield is 3.42%, which is modest compared to top Canadian dividend payers. However, the payout ratios are sustainable, with earnings coverage at 65.7% and cash flow coverage at 45.7%. Recent earnings showed significant growth, with Q2 revenue at C$125.81 million and net income rising to C$19.97 million from C$12.54 million year-over-year.
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Take a closer look at Enghouse Systems' potential here in our dividend report.
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Our valuation report here indicates Enghouse Systems may be undervalued.
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$396.06 million.
Operations: High Liner Foods generates $1.03 billion from the manufacturing and marketing of prepared and packaged frozen seafood.
Dividend Yield: 4.5%
High Liner Foods recently refinanced its $240 million senior secured term loan, reducing interest rates and extending maturity to 2031, which is expected to save $1.4 million annually. The company also initiated a share repurchase program for up to 700,000 shares. Despite the dividend's volatility over the past decade, it remains well-covered by earnings (41.5% payout ratio) and cash flows (7.8% cash payout ratio). The current dividend yield stands at 4.53%.