As Canada’s economy experiences an upswing in labour productivity and positive real wage gains, the market is showing resilience despite global economic challenges. This environment underscores the importance of dividend stocks, which can offer a reliable income stream and potential capital appreciation even as interest rates fluctuate.
|
Name |
Dividend Yield |
Dividend Rating |
|
Sun Life Financial (TSX:SLF) |
4.52% |
★★★★★☆ |
|
Russel Metals (TSX:RUS) |
4.30% |
★★★★★☆ |
|
Royal Bank of Canada (TSX:RY) |
3.38% |
★★★★★☆ |
|
Power Corporation of Canada (TSX:POW) |
4.25% |
★★★★★☆ |
|
North West (TSX:NWC) |
3.33% |
★★★★★☆ |
|
National Bank of Canada (TSX:NA) |
3.22% |
★★★★★☆ |
|
Magna International (TSX:MG) |
4.56% |
★★★★★☆ |
|
Canadian Natural Resources (TSX:CNQ) |
5.63% |
★★★★★☆ |
|
Canadian Imperial Bank of Commerce (TSX:CM) |
3.88% |
★★★★★☆ |
|
Bank of Montreal (TSX:BMO) |
4.20% |
★★★★★☆ |
Click here to see the full list of 23 stocks from our Top TSX Dividend Stocks screener.
Here we highlight a subset of our preferred stocks from the screener.
Simply Wall St Dividend Rating: ★★★★★☆
Overview: Canadian Natural Resources Limited is involved in the acquisition, exploration, development, production, marketing, and sale of crude oil, natural gas, and natural gas liquids across Western Canada, the United Kingdom’s North Sea sector, and Offshore Africa with a market cap of approximately CA$87.12 billion.
Operations: Canadian Natural Resources Limited generates revenue from several segments, including Oil Sands Mining and Upgrading (CA$17.45 billion), Exploration and Production – North America (CA$18.34 billion), Midstream and Refining (CA$827 million), Exploration and Production – North Sea (CA$416 million), and Exploration and Production – Offshore Africa (CA$403 million).
Dividend Yield: 5.6%
Canadian Natural Resources offers a reliable dividend, evidenced by stable and growing payments over the past decade. Despite a lower yield of 5.63% compared to top Canadian payers, dividends are well-covered by earnings and cash flows with payout ratios of 70.5% and 61.6%, respectively. Recent earnings growth supports this stability, though future revenue is expected to decline slightly. The stock trades at good value relative to peers, enhancing its appeal for dividend-focused investors.
Simply Wall St Dividend Rating: ★★★★☆☆
Overview: Hemisphere Energy Corporation is involved in acquiring, exploring, developing, and producing petroleum and natural gas properties in Canada with a market cap of CA$184.26 million.
Operations: Hemisphere Energy Corporation generates revenue from its petroleum and natural gas interests, amounting to CA$84.99 million.
Dividend Yield: 8.3%
Hemisphere Energy’s dividend appeal is bolstered by a low payout ratio of 27.7%, ensuring coverage by earnings, and a cash payout ratio of 35.8%, indicating strong cash flow support. Despite only three years of dividend history, payments have been stable and growing, with the recent special dividend reflecting financial strength. The stock trades at good value compared to peers, though anticipated earnings decline may impact future dividends despite its current high yield in the Canadian market.
Simply Wall St Dividend Rating: ★★★★☆☆
Overview: Whitecap Resources Inc. is involved in the acquisition, development, and production of petroleum and natural gas properties in Western Canada, with a market cap of CA$12.30 billion.
Operations: Whitecap Resources Inc. generates revenue primarily from its oil and gas exploration and production segment, amounting to CA$3.78 billion.
Dividend Yield: 7.2%
Whitecap Resources offers a high dividend yield of 7.22%, placing it in the top quartile among Canadian dividend payers. However, the dividend is not well covered by cash flows, with a cash payout ratio of 147.9%. Recent earnings growth and revenue increases to C$1.47 billion in Q2 2025 indicate strong operational performance, but past shareholder dilution and unstable dividends over the decade may concern some investors seeking reliable income streams.
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Dive into all 23 of the Top TSX Dividend Stocks we have identified here.
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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:CNQ TSXV:HME and TSX:WCP.
This article was originally published by Simply Wall St.
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