Yahoo Finance Exploring TSX Dividend Stocks In May 2024
As of May 2024, the Canadian market continues to navigate through a landscape shaped by fluctuating economic indicators and shifting investor sentiments. This environment underscores the importance of focusing on fundamentally strong dividend stocks, which can offer potential stability and consistent returns amidst market variability.
Top 10 Dividend Stocks In Canada
Name | Dividend Yield | Dividend Rating |
Bank of Nova Scotia (TSX:BNS) | 6.45% | ★★★★★★ |
Whitecap Resources (TSX:WCP) | 7.04% | ★★★★★★ |
Secure Energy Services (TSX:SES) | 3.56% | ★★★★★☆ |
Power Corporation of Canada (TSX:POW) | 5.75% | ★★★★★☆ |
Enghouse Systems (TSX:ENGH) | 3.51% | ★★★★★☆ |
Boston Pizza Royalties Income Fund (TSX:BPF.UN) | 8.50% | ★★★★★☆ |
Russel Metals (TSX:RUS) | 4.25% | ★★★★★☆ |
Canadian Natural Resources (TSX:CNQ) | 4.07% | ★★★★★☆ |
Royal Bank of Canada (TSX:RY) | 3.82% | ★★★★★☆ |
Sun Life Financial (TSX:SLF) | 4.45% | ★★★★★☆ |
Click here to see the full list of 30 stocks from our Top TSX Dividend Stocks screener.
Let's dive into some prime choices out of from the screener.
Canadian Western Bank
Simply Wall St Dividend Rating: ★★★★☆☆
Overview: Canadian Western Bank offers personal and business banking products and services primarily in Western Canada, with a market capitalization of approximately CA$2.63 billion.
Operations: Canadian Western Bank generates CA$1.08 billion in revenue primarily through its banking segment.
Dividend Yield: 5%
Canadian Western Bank (CWB) maintains a stable dividend history, recently affirming a quarterly cash dividend of CA$0.34 per common share, reflecting a modest year-over-year increase. The bank's dividends are well-covered with a payout ratio of 40%, indicating financial prudence. Despite trading significantly below estimated fair value and facing earnings challenges with a slight decline in net income to CA$93.93 million from CA$100.38 million last quarter, CWB manages robust capital ratios post-debt redemption and consistently meets regulatory requirements, ensuring ongoing operational stability and shareholder returns.
Peyto Exploration & Development
Simply Wall St Dividend Rating: ★★★★☆☆
Overview: Peyto Exploration & Development Corp. is an energy company focused on the exploration, development, and production of natural gas, oil, and natural gas liquids in Alberta's Deep Basin, with a market capitalization of approximately CA$2.94 billion.
Operations: Peyto Exploration & Development Corp. primarily generates its revenue from the exploration, development, and production of natural gas, oil, and natural gas liquids in Alberta's Deep Basin.
Dividend Yield: 8.4%
Peyto Exploration & Development Corp. has consistently affirmed monthly dividends, recently setting the May 2024 dividend at CA$0.11 per share. However, with a cash payout ratio of 102.5%, these dividends are not fully covered by free cash flow, suggesting potential sustainability issues despite a high yield of 8.37%. The company's dividend history shows growth over the past decade but also reveals volatility and undercoverage by earnings, coupled with high debt levels, posing risks to future payouts.
Richards Packaging Income Fund
Simply Wall St Dividend Rating: ★★★★★☆
Overview: Richards Packaging Income Fund, operating in North America, specializes in the design, manufacture, and distribution of packaging containers and healthcare supplies, with a market capitalization of approximately CA$338.07 million.
Operations: Richards Packaging Income Fund generates CA$416.97 million in revenue through its wholesale of miscellaneous packaging containers and healthcare products.
Dividend Yield: 5.4%
Richards Packaging Income Fund maintains a stable dividend, recently affirming a monthly distribution of CAD 0.11 per unit. The payouts are well-supported by both earnings and cash flows, with payout ratios of 38.5% and 24.7% respectively, indicating sustainability. Despite a reliable history over the past decade, its yield of 5.43% is modest compared to top Canadian dividend payers. Recent financials show a slight decline in net income and sales from the previous year, suggesting potential challenges ahead in maintaining growth.
Key Takeaways
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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:CWBTSX:PEY and TSX:RPI.UN.
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