As the Canadian market continues to navigate its third year of a robust bull run, with the TSX gaining 67% since October 2022, investors are closely monitoring economic indicators such as inflation and interest rates that could influence future growth. In this environment, dividend stocks stand out for their potential to provide steady income and resilience amid market fluctuations, making them an attractive option for those seeking stability in uncertain times.
|
Name |
Dividend Yield |
Dividend Rating |
|
Sun Life Financial (TSX:SLF) |
4.05% |
★★★★★☆ |
|
Russel Metals (TSX:RUS) |
4.06% |
★★★★★☆ |
|
Pulse Seismic (TSX:PSD) |
15.31% |
★★★★★☆ |
|
Power Corporation of Canada (TSX:POW) |
3.80% |
★★★★★☆ |
|
Pizza Pizza Royalty (TSX:PZA) |
5.94% |
★★★★☆☆ |
|
Olympia Financial Group (TSX:OLY) |
6.31% |
★★★★★☆ |
|
National Bank of Canada (TSX:NA) |
3.01% |
★★★★★☆ |
|
Magna International (TSX:MG) |
4.27% |
★★★★★☆ |
|
Canadian Imperial Bank of Commerce (TSX:CM) |
3.32% |
★★★★★☆ |
|
Bank of Montreal (TSX:BMO) |
3.67% |
★★★★★☆ |
Click here to see the full list of 21 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: 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 CA$107.91 billion.
Operations: Canadian Imperial Bank of Commerce generates revenue from Canadian Personal and Business Banking (CA$9.47 billion), Capital Markets and Direct Financial Services (CA$6.59 billion), Canadian Commercial Banking and Wealth Management (CA$6.24 billion), and U.S. Commercial Banking and Wealth Management (CA$2.83 billion).
Dividend Yield: 3.3%
Canadian Imperial Bank of Commerce offers a reliable dividend, with stable payments over the past decade and a current yield of 3.32%. The dividend is well-covered by earnings, maintaining a payout ratio around 45.8%, and is projected to remain sustainable in the next three years. Despite trading below its estimated fair value, its yield is lower than top-tier Canadian dividend payers. Recent fixed-income offerings indicate active capital management alongside strategic initiatives like CIBC Real-Time Experience for enhanced client engagement.
Simply Wall St Dividend Rating: ★★★★★☆
Overview: Russel Metals Inc. is a company that distributes steel and other metal products across Canada and the United States, with a market cap of CA$2.34 billion.
Operations: Russel Metals Inc. generates revenue through its key segments: Metals Service Centers (CA$3.13 billion), Energy Field Stores (CA$981 million), and Steel Distributors (CA$381.20 million).
Dividend Yield: 4.1%
Russel Metals Inc. maintains a stable dividend history, with payments growing over the past decade and currently yielding 4.06%. The dividend is well-covered by earnings and cash flows, with payout ratios of 58.7% and 44.1%, respectively, indicating sustainability. Despite its yield being lower than top-tier Canadian dividend stocks, Russel Metals trades at a favorable price-to-earnings ratio of 14.3x compared to the market average of 16.5x, suggesting good relative value amidst strategic expansions like recent service center acquisitions from Kloeckner Metals Corporation.
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$593.49 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: 14.2%
PetroTal’s dividend yield ranks in the top 25% of Canadian dividend payers, supported by a reasonable payout ratio of 71.5% and cash flow coverage at 54.5%. However, dividends have been volatile over its six-year history, reflecting an unstable track record. Despite recent production increases and inclusion in the S&P Global BMI Index, profit margins have declined year-over-year. The stock trades significantly below estimated fair value but has experienced substantial insider selling recently.
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Unlock more gems! Our Top TSX Dividend Stocks screener has unearthed 18 more companies for you to explore.Click here to unveil our expertly curated list of 21 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:CM TSX:RUS and TSX:TAL.
This article was originally published by Simply Wall St.
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