As the Canadian market navigates a period of economic contraction and potential monetary easing by the Bank of Canada, investors are closely watching for opportunities in dividend stocks that can offer stability and income. In this environment, selecting stocks with strong fundamentals and consistent dividend payouts becomes crucial, as these qualities may provide resilience amid shifting market dynamics.
|
Name |
Dividend Yield |
Dividend Rating |
|
Sun Life Financial (TSX:SLF) |
4.39% |
★★★★★☆ |
|
Russel Metals (TSX:RUS) |
4.13% |
★★★★★☆ |
|
Royal Bank of Canada (TSX:RY) |
3.09% |
★★★★★☆ |
|
Rogers Sugar (TSX:RSI) |
5.68% |
★★★★☆☆ |
|
Power Corporation of Canada (TSX:POW) |
4.21% |
★★★★★☆ |
|
North West (TSX:NWC) |
3.17% |
★★★★★☆ |
|
National Bank of Canada (TSX:NA) |
3.27% |
★★★★★☆ |
|
Magna International (TSX:MG) |
4.23% |
★★★★★☆ |
|
Canadian Imperial Bank of Commerce (TSX:CM) |
3.66% |
★★★★★☆ |
|
Bank of Montreal (TSX:BMO) |
3.92% |
★★★★★☆ |
Click here to see the full list of 22 stocks from our Top TSX Dividend Stocks screener.
We’ll examine a selection from our screener results.
Simply Wall St Dividend Rating: ★★★★☆☆
Overview: Bird Construction Inc. offers construction services across Canada and has a market capitalization of CA$1.25 billion.
Operations: Bird Construction Inc. generates revenue from its General Contracting Sector in the construction industry, amounting to CA$3.40 billion.
Dividend Yield: 3.7%
Bird Construction’s dividend payments are well-covered by earnings, with a payout ratio of 41.9%, and cash flows at an 84.6% cash payout ratio, suggesting sustainability despite an unstable track record over the past decade. The stock trades at a significant discount to its estimated fair value and is expected to rise by analysts. Recent affirmations of monthly dividends (CAD 0.07 per share) highlight ongoing commitment, though the yield remains below top-tier Canadian payers.
Simply Wall St Dividend Rating: ★★★★☆☆
Overview: Parex Resources Inc. is involved in the exploration, development, production, and marketing of oil and natural gas in Colombia with a market cap of CA$1.68 billion.
Operations: Parex Resources Inc. generates revenue primarily through its oil and gas exploration and production segment, amounting to $939.30 million.
Dividend Yield: 8.7%
Parex Resources offers a compelling dividend profile with its payments covered by earnings and cash flows at payout ratios of 83.9% and 69.5%, respectively, despite being a relatively new payer with four years of history. The company trades significantly below its fair value estimate, suggesting potential upside. Recent earnings showed improved net income despite lower revenue, supporting the sustainability of dividends. Its yield ranks among the top Canadian dividend payers, enhancing its appeal to income-focused investors.