Yahoo Finance Exploring Three TSX Dividend Stocks For Your Portfolio
As global markets navigate through periods of volatility and shifting leadership, particularly with the advent of AI influencing various sectors, the Canadian market remains a viable arena for investors seeking stability and growth. Dividend stocks, known for their potential to provide steady income and resilience in diverse market conditions, become particularly attractive in an environment where diversification is becoming increasingly important.
Top 10 Dividend Stocks In Canada
Name | Dividend Yield | Dividend Rating |
Bank of Nova Scotia (TSX:BNS) | 6.46% | ★★★★★★ |
Whitecap Resources (TSX:WCP) | 7.02% | ★★★★★★ |
Power Corporation of Canada (TSX:POW) | 5.58% | ★★★★★☆ |
Enghouse Systems (TSX:ENGH) | 3.61% | ★★★★★☆ |
Boston Pizza Royalties Income Fund (TSX:BPF.UN) | 8.60% | ★★★★★☆ |
Secure Energy Services (TSX:SES) | 3.50% | ★★★★★☆ |
Russel Metals (TSX:RUS) | 4.32% | ★★★★★☆ |
Canadian Natural Resources (TSX:CNQ) | 4.01% | ★★★★★☆ |
Royal Bank of Canada (TSX:RY) | 3.83% | ★★★★★☆ |
Sun Life Financial (TSX:SLF) | 4.62% | ★★★★★☆ |
Click here to see the full list of 32 stocks from our Top TSX Dividend Stocks screener.
Here we highlight a subset of our preferred stocks from the screener.
Alaris Equity Partners Income Trust
Simply Wall St Dividend Rating: ★★★★☆☆
Overview: Alaris Equity Partners Income Trust, a private equity firm, focuses on management buyouts, growth capital, and investments in lower to middle market stages with a market capitalization of CA$736.16 million.
Operations: Alaris Equity Partners Income Trust generates revenue primarily through unclassified services, totaling CA$234.06 million.
Dividend Yield: 8.4%
Alaris Equity Partners Income Trust has shown a mixed performance in its dividend history, with payments being volatile and generally declining over the past decade. Despite this instability, the dividends are well-covered by both earnings and cash flows, with a payout ratio of 29.9% and a cash payout ratio of 77.8%. Recent financials indicate substantial growth in net income from CAD 5.55 million to CAD 73.77 million year-over-year for Q1 2024, alongside significant revenue fluctuations in recent years. The trust also benefits from recent strategic debt financing activities, enhancing its investment capacity.
PetroTal
Simply Wall St Dividend Rating: ★★★★☆☆
Overview: PetroTal Corp. is a company focused on the development and exploration of oil and natural gas in Peru, South America, with a market capitalization of approximately CA$750.45 million.
Operations: PetroTal Corp. generates revenue primarily from its oil and gas exploration and production activities, totaling $315.09 million.
Dividend Yield: 10%
PetroTal offers a high dividend yield at 9.98%, ranking in the top quartile of Canadian dividend stocks, although its history of dividend payments is marked by inconsistency and volatility over its short four-year span. Despite trading at 42.7% below estimated fair value, concerns arise from an unstable earnings forecast projecting a 12.2% annual decline over the next three years, alongside recent executive changes and a new share repurchase program aimed at enhancing shareholder returns, which may impact future dividend sustainability.
Toronto-Dominion Bank
Simply Wall St Dividend Rating: ★★★★★☆
Overview: Toronto-Dominion Bank, along with its subsidiaries, offers a range of financial products and services across Canada, the U.S., and other international markets, with a market capitalization of approximately CA$135.44 billion.
Operations: Toronto-Dominion Bank generates revenue through several key segments: Canadian Personal and Commercial Banking (CA$17.39 billion), U.S. Retail (CA$12.81 billion), Wealth Management and Insurance (CA$11.81 billion), and Wholesale Banking (CA$6.63 billion).
Dividend Yield: 5.3%
Toronto-Dominion Bank (TD) maintains a solid dividend profile with a 5.3% yield and a payout ratio of 66.1%, suggesting dividends are well covered by earnings. Despite trading at 41.7% below its estimated fair value, TD's dividend reliability is underscored by consistent growth over the past decade. However, its dividend yield ranks lower compared to the top quartile of Canadian payers at 6.39%. Recent financials show a dip in quarterly net income from CAD 3.31 billion to CAD 2.56 billion year-over-year, but overall half-year earnings have increased from CAD 4.89 billion to CAD 5.39 billion, supporting future dividend sustainability amidst market fluctuations and recent legal settlements related to price fixing allegations in the SSA Bond market.
Seize The Opportunity
Explore the 32 names from our Top TSX Dividend Stocks screener here.
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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:AD.UN TSX:TAL and TSX:TD
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