Exploring Three TSX Dividend Stocks With Yields Ranging From 5% To 8.3%

As the Canadian market navigates through a landscape marked by potential softening economic growth and anticipated shifts in interest rates, investors might find reassurance in dividend stocks, which are often considered stable income-generating investments. With yields ranging from 5% to 8.3%, certain TSX-listed dividend stocks could offer a compelling blend of income potential and relative safety amid broader market volatility and evolving economic conditions. In this context, understanding the characteristics that define a robust dividend stock becomes crucial for those looking to enhance portfolio diversification during uncertain times.

Top 10 Dividend Stocks In Canada

Name	Dividend Yield	Dividend Rating
Bank of Nova Scotia (TSX:BNS)	6.69%	★★★★★★
Whitecap Resources (TSX:WCP)	6.96%	★★★★★★
Secure Energy Services (TSX:SES)	3.40%	★★★★★☆
Boston Pizza Royalties Income Fund (TSX:BPF.UN)	8.12%	★★★★★☆
Power Corporation of Canada (TSX:POW)	5.64%	★★★★★☆
Enghouse Systems (TSX:ENGH)	3.44%	★★★★★☆
Royal Bank of Canada (TSX:RY)	3.71%	★★★★★☆
Firm Capital Mortgage Investment (TSX:FC)	8.35%	★★★★★☆
Russel Metals (TSX:RUS)	4.19%	★★★★★☆
Canadian Natural Resources (TSX:CNQ)	4.41%	★★★★★☆

Click here to see the full list of 31 stocks from our Top TSX Dividend Stocks screener.

We're going to check out a few of the best picks from our screener tool.

Alaris Equity Partners Income Trust

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

Overview: Alaris Equity Partners Income Trust is a private equity firm that focuses on various investment types including management buyouts and growth capital, primarily targeting lower and middle market companies, with a market capitalization of approximately CA$742.53 million.

Operations: Alaris Equity Partners Income Trust generates its revenue from unclassified services, totaling CA$234.06 million.

Dividend Yield: 8.3%

Alaris Equity Partners Income Trust offers a high dividend yield at 8.33%, ranking in the top 25% of Canadian dividend payers. Despite this, its dividend history has been marked by volatility and a declining trend over the past decade. However, its dividends are well-supported by earnings and cash flows, with payout ratios at 29.9% and 77.8%, respectively. Recent financials show significant year-over-year earnings growth, but future forecasts predict a substantial decline in earnings over the next three years.

• Navigate through the intricacies of Alaris Equity Partners Income Trust with our comprehensive dividend report here.

• In light of our recent valuation report, it seems possible that Alaris Equity Partners Income Trust is trading behind its estimated value.

TSX:AD.UN Dividend History as at Jul 2024

Olympia Financial Group

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

Overview: Olympia Financial Group Inc., operating through its subsidiary Olympia Trust Company, functions as a non-deposit taking trust company in Canada with a market capitalization of approximately CA$222.32 million.

Operations: Olympia Financial Group Inc. generates revenue through various segments, including Health (CA$10.04 million), Corporate (CA$0.18 million), Exempt Edge (CA$1.37 million), Investment Account Services (CA$78.05 million), Currency and Global Payments (CA$8.63 million), and Corporate and Shareholder Services (CA$3.78 million).

Dividend Yield: 7.8%

Olympia Financial Group maintains a high dividend yield of 7.79%, placing it among the top 25% of Canadian dividend payers. Despite this, its dividend history is marked by inconsistency and volatility, with significant fluctuations over the past decade. The company's dividends are currently supported by both earnings and cash flows, with payout ratios at 63.4% and 76%, respectively. Recent affirmations of monthly dividends suggest ongoing commitment to shareholder returns despite forecasts indicating potential earnings declines in the coming years.

• Delve into the full analysis dividend report here for a deeper understanding of Olympia Financial Group.

• According our valuation report, there's an indication that Olympia Financial Group's share price might be on the cheaper side.

TSX:OLY Dividend History as at Jul 2024

Toronto-Dominion Bank

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

Overview: The Toronto-Dominion Bank, along with its subsidiaries, offers a wide range of financial products and services across Canada, the United States, and other international markets, with a market capitalization of approximately CA$140.58 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: 5.1%

Toronto-Dominion Bank's recent flurry of fixed-income offerings, including multiple senior unsecured notes with varying terms and discounts, reflects a strategic bolstering of its capital structure. Despite a dividend yield (5.07%) below the top quartile in the Canadian market, TD has demonstrated consistent dividend reliability over the past decade. The bank maintains a healthy payout ratio at 66.1%, suggesting that its dividends are well-covered by earnings. However, it's important to note that while TD’s profit margins have dipped year-over-year from 31.1% to 20.9%, its earnings are still expected to grow annually by 8.03%. This positions TD as a potentially stable option for dividend investors looking for reliable payouts supported by solid financial strategies and growth prospects.

• Click here to discover the nuances of Toronto-Dominion Bank with our detailed analytical dividend report.

• Our valuation report here indicates Toronto-Dominion Bank may be overvalued.

TSX:TD Dividend History as at Jul 2024

Where To Now?

• Get an in-depth perspective on all 31 Top TSX Dividend Stocks by using our screener here.

• Are these companies part of your investment strategy? Use Simply Wall St to consolidate your holdings into a portfolio and gain insights with our comprehensive analysis tools.

• Elevate your portfolio with Simply Wall St, the ultimate app for investors seeking global market coverage.

Want To Explore Some Alternatives?

• Explore high-performing small cap companies that haven't yet garnered significant analyst attention.

• Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management.

• Find companies with promising cash flow potential yet trading below their fair value.

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:OLY and TSX:TD.

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