Yahoo Finance Top 3 TSX Dividend Stocks To Consider
The Canadian market experienced significant volatility in August, with stocks rebounding impressively from an early month correction, supported by a resilient economy and positive earnings growth. As the focus shifts to growth amid easing inflation and potential rate cuts, dividend stocks offer a compelling investment opportunity for those seeking stable income and long-term value.
Top 10 Dividend Stocks In Canada
Name | Dividend Yield | Dividend Rating |
Whitecap Resources (TSX:WCP) | 7.46% | ★★★★★★ |
Secure Energy Services (TSX:SES) | 3.45% | ★★★★★☆ |
Labrador Iron Ore Royalty (TSX:LIF) | 8.67% | ★★★★★☆ |
Power Corporation of Canada (TSX:POW) | 5.46% | ★★★★★☆ |
Enghouse Systems (TSX:ENGH) | 3.59% | ★★★★★☆ |
Canadian Natural Resources (TSX:CNQ) | 4.60% | ★★★★★☆ |
Russel Metals (TSX:RUS) | 4.58% | ★★★★★☆ |
iA Financial (TSX:IAG) | 3.14% | ★★★★★☆ |
Firm Capital Mortgage Investment (TSX:FC) | 8.62% | ★★★★★☆ |
Royal Bank of Canada (TSX:RY) | 3.46% | ★★★★★☆ |
Click here to see the full list of 33 stocks from our Top TSX Dividend Stocks screener.
Here's a peek at a few of the choices from the screener.
Enghouse Systems
Simply Wall St Dividend Rating: ★★★★★☆
Overview: Enghouse Systems Limited, with a market cap of CA$1.60 billion, develops enterprise software solutions worldwide through its subsidiaries.
Operations: Enghouse Systems Limited generates revenue through two primary segments: Asset Management Group (CA$180.88 million) and Interactive Management Group (CA$299.55 million).
Dividend Yield: 3.6%
Enghouse Systems has a stable and growing dividend history over the past 10 years, with dividends well-covered by earnings (65.7% payout ratio) and cash flows (45.8% cash payout ratio). Despite offering a lower yield of 3.59% compared to top Canadian dividend payers, it trades at good value relative to peers. Recent Q3 earnings showed revenue growth to C$130.5 million and net income increase to C$20.58 million, indicating solid financial performance supporting its dividends.
Click here to discover the nuances of Enghouse Systems with our detailed analytical dividend report.
North West
Simply Wall St Dividend Rating: ★★★★★☆
Overview: The North West Company Inc. (TSX:NWC) operates retail stores offering food and everyday products in rural and urban markets across northern Canada, rural Alaska, the South Pacific, and the Caribbean, with a market cap of CA$2.18 billion.
Operations: The North West Company Inc. generates CA$2.52 billion in revenue from its retail operations focused on food and everyday products and services across various regions including northern Canada, rural Alaska, the South Pacific, and the Caribbean.
Dividend Yield: 3.2%
North West Company Inc. recently reported Q2 earnings with sales increasing to C$646.49 million and net income slightly declining to C$35.3 million. The company announced a quarterly dividend increase to C$0.40 per share, reflecting its commitment to shareholder returns. With dividends well-covered by earnings (56.2% payout ratio) and cash flows (70.1% cash payout ratio), North West offers a reliable 3.19% yield, though lower than the top Canadian dividend payers, and has consistently grown dividends over the past decade.
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 cap of CA$2.74 billion.
Operations: Peyto Exploration & Development Corp. generated CA$901.99 million from its oil and gas exploration and production activities.
Dividend Yield: 9.4%
Peyto Exploration & Development confirmed its monthly dividend of C$0.11 per share, maintaining a yield in the top 25% of Canadian dividend payers. However, its high payout ratio (84.1%) and cash payout ratio (113.4%) indicate dividends are not well covered by earnings or free cash flows, raising sustainability concerns. Despite increased production and revenue growth to C$256.55 million in Q2 2024, net income declined year-over-year, reflecting potential volatility for investors seeking stable returns.
Where To Now?
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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:ENGH TSX:NWC and TSX:PEY.
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