As the Canadian market navigates a period of economic contraction and potential monetary easing by the Bank of Canada, investors are closely watching for opportunities in dividend stocks that can offer stability and income. In this environment, selecting stocks with strong fundamentals and consistent dividend payouts becomes crucial, as these qualities may provide resilience amid shifting market dynamics.
|
Name |
Dividend Yield |
Dividend Rating |
|
Sun Life Financial (TSX:SLF) |
4.39% |
★★★★★☆ |
|
Russel Metals (TSX:RUS) |
4.13% |
★★★★★☆ |
|
Royal Bank of Canada (TSX:RY) |
3.09% |
★★★★★☆ |
|
Rogers Sugar (TSX:RSI) |
5.68% |
★★★★☆☆ |
|
Power Corporation of Canada (TSX:POW) |
4.21% |
★★★★★☆ |
|
North West (TSX:NWC) |
3.17% |
★★★★★☆ |
|
National Bank of Canada (TSX:NA) |
3.27% |
★★★★★☆ |
|
Magna International (TSX:MG) |
4.23% |
★★★★★☆ |
|
Canadian Imperial Bank of Commerce (TSX:CM) |
3.66% |
★★★★★☆ |
|
Bank of Montreal (TSX:BMO) |
3.92% |
★★★★★☆ |
Click here to see the full list of 22 stocks from our Top TSX Dividend Stocks screener.
We’ll examine a selection from our screener results.
Simply Wall St Dividend Rating: ★★★★☆☆
Overview: Bird Construction Inc. offers construction services across Canada and has a market capitalization of CA$1.25 billion.
Operations: Bird Construction Inc. generates revenue from its General Contracting Sector in the construction industry, amounting to CA$3.40 billion.
Dividend Yield: 3.7%
Bird Construction’s dividend payments are well-covered by earnings, with a payout ratio of 41.9%, and cash flows at an 84.6% cash payout ratio, suggesting sustainability despite an unstable track record over the past decade. The stock trades at a significant discount to its estimated fair value and is expected to rise by analysts. Recent affirmations of monthly dividends (CAD 0.07 per share) highlight ongoing commitment, though the yield remains below top-tier Canadian payers.
Simply Wall St Dividend Rating: ★★★★☆☆
Overview: Parex Resources Inc. is involved in the exploration, development, production, and marketing of oil and natural gas in Colombia with a market cap of CA$1.68 billion.
Operations: Parex Resources Inc. generates revenue primarily through its oil and gas exploration and production segment, amounting to $939.30 million.
Dividend Yield: 8.7%
Parex Resources offers a compelling dividend profile with its payments covered by earnings and cash flows at payout ratios of 83.9% and 69.5%, respectively, despite being a relatively new payer with four years of history. The company trades significantly below its fair value estimate, suggesting potential upside. Recent earnings showed improved net income despite lower revenue, supporting the sustainability of dividends. Its yield ranks among the top Canadian dividend payers, enhancing its appeal to income-focused investors.
Simply Wall St Dividend Rating: ★★★★★☆
Overview: Russel Metals Inc. is involved in the distribution of steel and other metal products across Canada and the United States, with a market cap of CA$2.33 billion.
Operations: Russel Metals Inc.’s revenue is primarily derived from its Metals Service Centers at CA$3.13 billion, followed by Energy Field Stores at CA$981 million and Steel Distributors at CA$381.20 million.
Dividend Yield: 4.1%
Russel Metals’ dividend payments are well-supported by earnings and cash flows, with payout ratios of 58.7% and 44.4%, respectively, demonstrating sustainability. The company has maintained stable and growing dividends over the past decade, though its 4.13% yield is below the top Canadian payers. Trading at a favorable value with a P/E of 14.1x versus the market’s 16x, Russel Metals recently announced a share repurchase program to enhance shareholder value further.
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Explore the 22 names from our Top TSX Dividend Stocks screener 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:BDT TSX:PXT and TSX:RUS.
This article was originally published by Simply Wall St.
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