As the Canadian market navigates a landscape marked by elevated inflation and a softening labour market, investors are keenly watching upcoming CPI releases and central bank meetings for clues on future economic directions. Amidst this backdrop of potential volatility, dividend stocks remain an attractive option for those seeking steady income streams, offering stability even as markets fluctuate.
|
Name |
Dividend Yield |
Dividend Rating |
|
Total Energy Services (TSX:TOT) |
3.09% |
★★★★☆☆ |
|
Sun Life Financial (TSX:SLF) |
4.33% |
★★★★★☆ |
|
Russel Metals (TSX:RUS) |
4.13% |
★★★★★☆ |
|
Royal Bank of Canada (TSX:RY) |
3.08% |
★★★★★☆ |
|
Power Corporation of Canada (TSX:POW) |
4.18% |
★★★★★☆ |
|
Pizza Pizza Royalty (TSX:PZA) |
5.92% |
★★★★☆☆ |
|
National Bank of Canada (TSX:NA) |
3.18% |
★★★★★☆ |
|
Magna International (TSX:MG) |
4.24% |
★★★★★☆ |
|
Canadian Imperial Bank of Commerce (TSX:CM) |
3.55% |
★★★★★☆ |
|
Bank of Montreal (TSX:BMO) |
3.72% |
★★★★★☆ |
Click here to see the full list of 23 stocks from our Top TSX Dividend Stocks screener.
Let’s review some notable picks from our screened stocks.
Simply Wall St Dividend Rating: ★★★★☆☆
Overview: IGM Financial Inc. is a Canadian company involved in asset management, with a market cap of CA$11.74 billion.
Operations: IGM Financial Inc.’s revenue is primarily derived from two segments: Asset Management, contributing CA$1.30 billion, and Wealth Management, which brings in CA$2.57 billion.
Dividend Yield: 4.5%
IGM Financial’s dividend reliability is mixed, with stable yet non-growing payments over the past decade. The dividends are well-covered by earnings and cash flows, with payout ratios of 54.7% and 56.5%, respectively. Despite trading below estimated fair value, its yield of 4.51% is lower than top Canadian payers. Recent financials show revenue growth to C$892.72 million in Q2 2025, but significant insider selling raises caution for potential investors.
Simply Wall St Dividend Rating: ★★★★★☆
Overview: Royal Bank of Canada operates as a diversified financial services company worldwide, with a market cap of CA$280.58 billion.
Operations: Royal Bank of Canada generates revenue through several segments, including Insurance (CA$1.39 billion), Capital Markets (CA$13.17 billion), Personal Banking (CA$17.27 billion), Wealth Management (CA$21.57 billion), and Commercial Banking (CA$6.94 billion).
Dividend Yield: 3.1%
Royal Bank of Canada maintains a reliable dividend with stable growth over the past decade, supported by a low payout ratio of 44.7%. Although its yield of 3.08% is below the top Canadian payers, earnings coverage remains strong. Recent financials show robust net income growth to C$5.42 billion in Q3 2025, enhancing dividend sustainability. The bank’s strategic buybacks and preferred stock redemptions reflect solid capital management, reinforcing its commitment to shareholder returns amidst evolving market conditions.
Simply Wall St Dividend Rating: ★★★★☆☆
Overview: Total Energy Services Inc. is an energy services company operating primarily in Canada, the United States, Australia, and internationally with a market cap of CA$483.42 million.
Operations: Total Energy Services Inc. generates its revenue from four main segments: Well Servicing (CA$114.23 million), Contract Drilling Services (CA$332.82 million), Compression and Process Services (CA$466.41 million), and Rentals and Transportation Services (CA$77.62 million).
Dividend Yield: 3.1%
Total Energy Services’ dividend is well-covered by earnings and cash flows, with payout ratios of 21.9% and 18.8%, respectively, despite a history of volatility over the past decade. While its dividend yield of 3.09% is below the top Canadian payers, recent financial results show improved earnings and sales growth, supporting future payouts. The company declared a quarterly dividend of C$0.10 per share for Q3 2025 amidst ongoing share buybacks, indicating strong capital management practices.
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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:IGM TSX:RY and TSX:TOT.
This article was originally published by Simply Wall St.
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