In Canada, recent economic indicators suggest a stabilization in the labor market and inflation rates that align with expectations, providing a relatively stable backdrop for investors. As the TSX has experienced significant gains since April, dividend stocks can offer an appealing option for those seeking steady income amidst potential market volatility.
|
Name |
Dividend Yield |
Dividend Rating |
|
Sun Life Financial (TSX:SLF) |
4.29% |
★★★★★☆ |
|
Russel Metals (TSX:RUS) |
4.30% |
★★★★★☆ |
|
Royal Bank of Canada (TSX:RY) |
3.03% |
★★★★★☆ |
|
Pulse Seismic (TSX:PSD) |
13.02% |
★★★★★☆ |
|
Power Corporation of Canada (TSX:POW) |
4.19% |
★★★★★☆ |
|
Pizza Pizza Royalty (TSX:PZA) |
6.03% |
★★★★☆☆ |
|
National Bank of Canada (TSX:NA) |
3.13% |
★★★★★☆ |
|
Magna International (TSX:MG) |
4.16% |
★★★★★☆ |
|
Canadian Imperial Bank of Commerce (TSX:CM) |
3.45% |
★★★★★☆ |
|
Bank of Montreal (TSX:BMO) |
3.58% |
★★★★★☆ |
Click here to see the full list of 23 stocks from our Top TSX Dividend Stocks screener.
Let’s explore several standout options from the results in the screener.
Simply Wall St Dividend Rating: ★★★★★☆
Overview: Canadian Imperial Bank of Commerce is a diversified financial institution offering a range of financial products and services to personal, business, public sector, and institutional clients across Canada, the United States, and internationally, with a market cap of approximately CA$104.51 billion.
Operations: Canadian Imperial Bank of Commerce generates revenue through its Canadian Personal and Business Banking segment (CA$9.47 billion), Capital Markets and Direct Financial Services (CA$6.59 billion), U.S. Commercial Banking and Wealth Management (CA$2.83 billion), and Canadian Commercial Banking and Wealth Management (CA$6.24 billion).
Dividend Yield: 3.5%
Canadian Imperial Bank of Commerce maintains stable and reliable dividend payments, with a current payout ratio of 45.8%, indicating dividends are well covered by earnings. Although its dividend yield of 3.45% is lower than the top Canadian market payers, it has shown consistent growth over the past decade. Recent fixed-income offerings and a $26 million class action settlement highlight ongoing financial activities and legal resolutions that may impact future cash flows but do not currently threaten dividend sustainability.
Simply Wall St Dividend Rating: ★★★★★☆
Overview: Pulse Seismic Inc. acquires, markets, and licenses 2D and 3D seismic data for the energy sector in Canada with a market cap of CA$183.23 million.
Operations: Pulse Seismic Inc. generates revenue of CA$49.38 million from licensing seismic data for the oil well equipment and services sector in Canada.
Dividend Yield: 13%
Pulse Seismic’s dividends are well-covered by earnings, with a low payout ratio of 14.3%, and cash flows, despite a higher cash payout ratio of 69.9%. Although its dividend yield is in the top 25% of Canadian payers at 13.02%, the company’s dividend history has been volatile over the past decade. Recent announcements include a regular quarterly dividend and a special dividend, totaling approximately C$11 million, reflecting strong recent earnings growth.
Simply Wall St Dividend Rating: ★★★★☆☆
Overview: PetroTal Corp. is involved in the exploration, appraisal, and development of oil and natural gas in Peru, South America, with a market cap of CA$557.20 million.
Operations: PetroTal Corp.’s revenue is primarily derived from its oil and gas exploration and production segment, which generated $318.36 million.
Dividend Yield: 14.8%
PetroTal’s dividend yield ranks in the top 25% of Canadian payers, yet its six-year history reveals volatility and unreliability. The payout ratio of 71.5% indicates coverage by earnings, while a cash payout ratio of 54.5% suggests sustainability from cash flows. However, declining profit margins and insider selling raise concerns about future stability. Recent production challenges have impacted operations, but inclusion in the S&P Global BMI Index may enhance visibility among investors.
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Gain an insight into the universe of 23 Top TSX Dividend Stocks by clicking 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:CM TSX:PSD and TSX:TAL.
This article was originally published by Simply Wall St.
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