Canadian Natural Resources And 2 Other Top Dividend Stocks On The TSX

Amidst a shifting economic landscape marked by the Bank of Canada's recent rate cuts and anticipated further easing, investors are navigating through evolving market conditions. In this context, dividend stocks such as Canadian Natural Resources emerge as potentially attractive options for those seeking income in addition to possible capital appreciation in a more cautious economic environment.

Top 10 Dividend Stocks In Canada

Name	Dividend Yield	Dividend Rating
Bank of Nova Scotia (TSX:BNS)	6.80%	★★★★★★
Whitecap Resources (TSX:WCP)	7.31%	★★★★★★
Secure Energy Services (TSX:SES)	3.35%	★★★★★☆
Boston Pizza Royalties Income Fund (TSX:BPF.UN)	8.42%	★★★★★☆
Enghouse Systems (TSX:ENGH)	3.38%	★★★★★☆
Royal Bank of Canada (TSX:RY)	3.80%	★★★★★☆
Firm Capital Mortgage Investment (TSX:FC)	9.02%	★★★★★☆
Russel Metals (TSX:RUS)	4.77%	★★★★★☆
Canadian Western Bank (TSX:CWB)	3.14%	★★★★★☆
Canadian Natural Resources (TSX:CNQ)	4.35%	★★★★★☆

Click here to see the full list of 33 stocks from our Top TSX Dividend Stocks screener.

Let's dive into some prime choices out of from the screener.

Canadian Natural Resources

Simply Wall St Dividend Rating: ★★★★★☆

Overview: Canadian Natural Resources Limited is a company involved in the acquisition, exploration, development, production, marketing, and sale of crude oil, natural gas, and natural gas liquids (NGLs), with a market capitalization of approximately CA$104.42 billion.

Operations: Canadian Natural Resources Limited generates revenue primarily through its segments: Oil Sands Mining and Upgrading at CA$15.80 billion, Exploration and Production - North America at CA$17.43 billion, Midstream and Refining at CA$0.97 billion, Exploration and Production - North Sea at CA$0.58 billion, and Exploration and Production - Offshore Africa at CA$0.57 billion.

Dividend Yield: 4.3%

Canadian Natural Resources Limited (CNQ) offers a dividend yield of 4.35%, which is lower than the top quartile of Canadian dividend stocks. Despite this, CNQ's dividends are sustainable with a payout ratio of 56.2% and a cash payout ratio of 48.8%. The company has maintained stable and reliable dividends for the past decade, consistently increasing payouts. Recently, CNQ announced a quarterly dividend post-stock split and continued its share repurchase program, highlighting its commitment to returning value to shareholders.

• Get an in-depth perspective on Canadian Natural Resources' performance by reading our dividend report here.

• Our comprehensive valuation report raises the possibility that Canadian Natural Resources is priced lower than what may be justified by its financials.

TSX:CNQ Dividend History as at Jul 2024

Secure Energy Services

Simply Wall St Dividend Rating: ★★★★★☆

Overview: Secure Energy Services Inc. operates in waste management and energy infrastructure primarily in Canada and the United States, with a market capitalization of approximately CA$3.15 billion.

Operations: Secure Energy Services Inc. generates revenue primarily through two segments: Energy Infrastructure, which brought in CA$7.81 billion, and Environmental Waste Management (EWM), which contributed CA$1.09 billion.

Dividend Yield: 3.4%

Secure Energy Services maintains a conservative dividend profile with a yield of 3.35%, underpinned by a stable 10-year history and recent affirmations, including a C$0.10 quarterly payout set for mid-July 2024. Despite its dividends being well-covered by earnings (20.6% payout ratio) and cash flows (63.8% cash payout ratio), it trails the upper quartile of Canadian dividend stocks in yield attractiveness. The company's strategic financial maneuvers, including significant share buybacks totaling C$250 million and securing an extended C$800 million credit facility, underscore its operational flexibility and commitment to shareholder returns amidst forecasts of declining earnings over the next three years.

• Delve into the full analysis dividend report here for a deeper understanding of Secure Energy Services.

• Our expertly prepared valuation report Secure Energy Services implies its share price may be lower than expected.

TSX:SES Dividend History as at Jul 2024

Whitecap Resources

Simply Wall St Dividend Rating: ★★★★★★

Overview: Whitecap Resources Inc. is an oil and gas company that specializes in acquiring, developing, and producing petroleum and natural gas assets in Western Canada, with a market capitalization of approximately CA$6.08 billion.

Operations: Whitecap Resources Inc. generates CA$3.23 billion from its core operations in oil and gas exploration and production.

Dividend Yield: 7.3%

Whitecap Resources Inc. has consistently paid dividends, with a recent declaration of CAD 0.0608 per share, maintaining stability over the past decade. Despite a notable decrease in net income from CAD 262.6 million to CAD 59.8 million year-over-year and a drop in revenue, the company supports its dividend through adequate earnings and cash flow coverage ratios (56.1% and 82%, respectively). Strategically, Whitecap is pursuing acquisitions to enhance shareholder value, alongside executing share buybacks as demonstrated by their recent repurchase program aimed at canceling nearly 10% of issued shares to boost shareholder returns.

• Click here and access our complete dividend analysis report to understand the dynamics of Whitecap Resources.

• Our valuation report here indicates Whitecap Resources may be undervalued.

TSX:WCP Dividend History as at Jul 2024

Seize The Opportunity

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Ready For A Different Approach?

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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:CNQ TSX:SES and TSX:WCP.

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