In This Article:
As the TSX reaches new all-time highs, buoyed by optimism from recent U.S. Fed rate cuts and a robust economic outlook, investors are increasingly looking at dividend stocks as a reliable source of income amid market uncertainties. In this favorable environment, selecting well-established companies with strong earnings growth and consistent dividend payouts becomes crucial for building a resilient investment portfolio.
Top 10 Dividend Stocks In Canada
| Name | Dividend Yield | Dividend Rating |
| Whitecap Resources (TSX:WCP) | 7.00% | ★★★★★★ |
| Secure Energy Services (TSX:SES) | 3.31% | ★★★★★☆ |
| Labrador Iron Ore Royalty (TSX:LIF) | 7.81% | ★★★★★☆ |
| Power Corporation of Canada (TSX:POW) | 5.29% | ★★★★★☆ |
| Enghouse Systems (TSX:ENGH) | 3.11% | ★★★★★☆ |
| Firm Capital Mortgage Investment (TSX:FC) | 8.57% | ★★★★★☆ |
| Sun Life Financial (TSX:SLF) | 4.14% | ★★★★★☆ |
| Russel Metals (TSX:RUS) | 4.13% | ★★★★★☆ |
| Royal Bank of Canada (TSX:RY) | 3.40% | ★★★★★☆ |
| Canadian Natural Resources (TSX:CNQ) | 4.48% | ★★★★★☆ |
Click here to see the full list of 31 stocks from our Top TSX Dividend Stocks screener.
Let's take a closer look at a couple of our picks from the screened companies.
Aecon Group
Simply Wall St Dividend Rating: ★★★★☆☆
Overview: Aecon Group Inc., with a market cap of CA$1.31 billion, provides construction and infrastructure development services to private and public sector clients in Canada, the United States, and internationally.
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: 3.6%
Aecon Group's recent financial performance shows a net loss, with earnings not covering its dividend payments. Despite this, dividends have been stable and growing over the past decade. The company’s share repurchase program and significant contract wins, such as the $928 million Surrey Langley SkyTrain project and a $700 million Bruce Power contract, bolster its construction segment backlog. However, with a high payout ratio of 355.1%, dividend sustainability remains questionable despite low cash payout ratios suggesting coverage by cash flows.
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Take a closer look at Aecon Group's potential here in our dividend report.
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Our valuation report here indicates Aecon Group may be undervalued.
Bank of Montreal
Simply Wall St Dividend Rating: ★★★★★☆
Overview: Bank of Montreal provides diversified financial services primarily in North America and has a market cap of CA$89.02 billion.
Operations: Bank of Montreal's revenue segments include Canadian Personal and Commercial Banking (CA$10.20 billion), U.S. Personal and Commercial Banking (CA$8.89 billion), BMO Wealth Management (CA$7.61 billion), and BMO Capital Markets (CA$6.47 billion).