As investors navigate the Canadian market, attention is focused on inflation trends and potential rate cuts by the Bank of Canada, which could influence economic conditions and investment strategies. In this environment, dividend stocks can offer a reliable income stream, making them an attractive option for those looking to balance portfolio volatility with steady returns.
|
Name |
Dividend Yield |
Dividend Rating |
|
Sun Life Financial (TSX:SLF) |
4.34% |
★★★★★☆ |
|
Russel Metals (TSX:RUS) |
4.14% |
★★★★★☆ |
|
Royal Bank of Canada (TSX:RY) |
3.08% |
★★★★★☆ |
|
Rogers Sugar (TSX:RSI) |
5.68% |
★★★★☆☆ |
|
Power Corporation of Canada (TSX:POW) |
4.20% |
★★★★★☆ |
|
National Bank of Canada (TSX:NA) |
3.20% |
★★★★★☆ |
|
Magna International (TSX:MG) |
4.21% |
★★★★★☆ |
|
Hemisphere Energy (TSXV:HME) |
8.16% |
★★★★☆☆ |
|
Canadian Imperial Bank of Commerce (TSX:CM) |
3.59% |
★★★★★☆ |
|
Bank of Montreal (TSX:BMO) |
3.72% |
★★★★★☆ |
Click here to see the full list of 22 stocks from our Top TSX Dividend Stocks screener.
Here’s a peek at a few of the choices from the screener.
Simply Wall St Dividend Rating: ★★★★★☆
Overview: Bank of Montreal offers diversified financial services mainly in North America, with a market cap of CA$125.57 billion.
Operations: Bank of Montreal’s revenue is primarily generated from Canadian Personal and Commercial Banking (CA$9.78 billion), U.S. Personal and Commercial Banking (CA$8.60 billion), BMO Capital Markets (CA$6.81 billion), and BMO Wealth Management (CA$6.19 billion).
Dividend Yield: 3.7%
Bank of Montreal maintains a stable dividend history, with a current payout ratio of 55.6%, indicating dividends are well-covered by earnings. The bank’s dividend has shown consistent growth over the past decade and is forecasted to remain sustainable, with future coverage predicted at 48.5%. However, its yield of 3.72% is relatively low compared to top-tier Canadian dividend payers. Recent fixed-income offerings and strategic initiatives suggest ongoing efforts to strengthen financial stability and expand market presence.
Simply Wall St Dividend Rating: ★★★★☆☆
Overview: Hemisphere Energy Corporation is involved in the acquisition, exploration, development, and production of petroleum and natural gas properties in Canada, with a market cap of CA$186.53 million.
Operations: Hemisphere Energy Corporation generates revenue of CA$82.14 million from its petroleum and natural gas interests in Canada.
Dividend Yield: 8.2%
Hemisphere Energy offers an attractive dividend yield of 8.16%, ranking in the top 25% of Canadian dividend payers. Its dividends are well-covered, with a payout ratio of 30.5% and cash payout ratio of 37.6%. Despite only three years of dividend history, payments have increased steadily and remain stable. Recent financials show a decline in quarterly revenue to C$19.45 million, but overall earnings coverage supports ongoing dividend sustainability amidst share buybacks enhancing shareholder value.
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$12.46 billion.
Operations: Whitecap Resources Inc.’s revenue is primarily derived from its oil and gas exploration and production segment, which generated CA$3.78 billion.
Dividend Yield: 7.1%
Whitecap Resources offers a 7.1% dividend yield, ranking in the top 25% of Canadian payers, but its sustainability is questionable due to a high cash payout ratio (147.6%) and recent shareholder dilution. Despite stable dividends over the past decade, they have been unreliable with no growth. Recent earnings show significant revenue and net income increases, yet dividends are not fully covered by free cash flows or earnings, raising concerns for long-term reliability.
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Click here to access our complete index of 22 Top TSX Dividend Stocks.
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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:BMO TSXV:HME and TSX:WCP.
This article was originally published by Simply Wall St.
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