As the Canadian market navigates through potential volatility, driven by uncertainties like trade issues and emerging credit concerns, there remains a sense of optimism with expectations of favorable economic factors such as interest rate cuts and positive corporate earnings growth. In this climate, dividend stocks can offer investors a reliable source of income and stability, making them an attractive option to consider amidst fluctuating market conditions.
|
Name |
Dividend Yield |
Dividend Rating |
|
Sun Life Financial (TSX:SLF) |
4.11% |
★★★★★☆ |
|
Russel Metals (TSX:RUS) |
4.16% |
★★★★★☆ |
|
Pulse Seismic (TSX:PSD) |
13.91% |
★★★★★☆ |
|
Power Corporation of Canada (TSX:POW) |
3.96% |
★★★★★☆ |
|
Olympia Financial Group (TSX:OLY) |
6.51% |
★★★★★☆ |
|
National Bank of Canada (TSX:NA) |
3.09% |
★★★★★☆ |
|
Magna International (TSX:MG) |
4.20% |
★★★★★☆ |
|
Hemisphere Energy (TSXV:HME) |
7.84% |
★★★★☆☆ |
|
Canadian Imperial Bank of Commerce (TSX:CM) |
3.43% |
★★★★★☆ |
|
Bank of Montreal (TSX:BMO) |
3.71% |
★★★★★☆ |
Click here to see the full list of 22 stocks from our Top TSX Dividend Stocks screener.
Let’s take a closer look at a couple of our picks from the screened companies.
Simply Wall St Dividend Rating: ★★★★★☆
Overview: Olympia Financial Group Inc., with a market cap of CA$264.10 million, operates in Canada as a non-deposit taking trust company through its subsidiary, Olympia Trust Company.
Operations: Olympia Financial Group Inc.’s revenue segments include Investment Account Services (IAS) at CA$79.05 million, Health at CA$10.21 million, Currency and Global Payments (CGP) at CA$6.25 million, Corporate and Shareholder Services (CSS) at CA$5.10 million, Raisr at CA$1.54 million, and Corporate at CA$0.04 million.
Dividend Yield: 6.5%
Olympia Financial Group offers a dividend yield of 6.51%, placing it in the top 25% of Canadian dividend payers. Despite this attractive yield, its dividend history is marked by volatility, with significant drops over the past decade. The dividends are reasonably covered by earnings and cash flows, with payout ratios around 75%. Recent affirmations confirm consistent monthly dividends of C$0.60 per share, though declining earnings may impact future sustainability.
Simply Wall St Dividend Rating: ★★★★★☆
Overview: Power Corporation of Canada is an international management and holding company offering financial services across North America, Europe, and Asia with a market cap of CA$39.06 billion.
Operations: Power Corporation of Canada’s revenue is primarily derived from Lifeco at CA$36.14 billion, followed by IGM at CA$3.63 billion, and Alternative Asset Investment Platforms at CA$2.64 billion.
Dividend Yield: 4%
Power Corporation of Canada offers a reliable dividend yield of 3.97%, though it falls short compared to the top Canadian payers. The dividends are well-covered, with a payout ratio of 53.6% and a cash payout ratio of 34.3%. Recent inclusion in the S&P/TSX Preferred Share Index and completion of a C$150 million fixed-income offering highlight its financial strategies. Despite insider selling, its dividend history remains stable over the past decade with consistent growth.
Simply Wall St Dividend Rating: ★★★★☆☆
Overview: Rogers Sugar Inc. is involved in the refining, packaging, marketing, and distribution of sugar and maple products across Canada, the United States, Europe, and internationally with a market cap of CA$811.39 million.
Operations: Rogers Sugar Inc.’s revenue is derived from two main segments: Sugar, contributing CA$1.04 billion, and Maple Products, generating CA$259.71 million.
Dividend Yield: 5.7%
Rogers Sugar offers a dividend yield of 5.71%, slightly below the top Canadian payers, but its dividends are well-supported by earnings and cash flows, with payout ratios of 66.5% and 44%, respectively. Despite stable dividends over the past decade, growth has been absent. Recent financials show improved earnings, with Q3 net income rising to C$14.43 million from C$7.38 million year-over-year, yet significant insider selling raises concerns about future stability.
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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:OLY TSX:POW and TSX:RSI.
This article was originally published by Simply Wall St.
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