Yahoo Finance Three TSX Dividend Stocks Offering Yields From 3.5% To 8.8%
As global markets navigate through fluctuating economic conditions, the Canadian market remains a focal point for investors seeking stability and yield. In this environment, dividend stocks are particularly appealing, offering both income and potential for capital appreciation in response to current market dynamics.
Top 10 Dividend Stocks In Canada
Name | Dividend Yield | Dividend Rating |
Bank of Nova Scotia (TSX:BNS) | 6.52% | ★★★★★★ |
Whitecap Resources (TSX:WCP) | 7.26% | ★★★★★★ |
Enghouse Systems (TSX:ENGH) | 3.59% | ★★★★★☆ |
Boston Pizza Royalties Income Fund (TSX:BPF.UN) | 8.52% | ★★★★★☆ |
Secure Energy Services (TSX:SES) | 3.48% | ★★★★★☆ |
Canadian Western Bank (TSX:CWB) | 5.34% | ★★★★★☆ |
Royal Bank of Canada (TSX:RY) | 3.87% | ★★★★★☆ |
Russel Metals (TSX:RUS) | 4.39% | ★★★★★☆ |
Canadian Natural Resources (TSX:CNQ) | 4.28% | ★★★★★☆ |
Firm Capital Mortgage Investment (TSX:FC) | 9.27% | ★★★★★☆ |
Click here to see the full list of 32 stocks from our Top TSX Dividend Stocks screener.
We'll examine a selection from our screener results.
Enghouse Systems
Simply Wall St Dividend Rating: ★★★★★☆
Overview: Enghouse Systems Limited, a global enterprise software solutions provider, has a market capitalization of approximately CA$1.60 billion.
Operations: Enghouse Systems Limited generates revenue through two primary segments: the Asset Management Group, which brought in CA$184.48 million, and the Interactive Management Group, with revenues of CA$283.60 million.
Dividend Yield: 3.6%
Enghouse Systems has recently demonstrated a commitment to returning value to shareholders through share buybacks, having repurchased shares worth CAD 1.63 million. Despite a dividend yield of 3.59%, which is below the top tier in the Canadian market, its dividends have shown stability and growth over the past decade. The company's financial health is underscored by earnings growth of 9.16% per year and dividends well-covered by earnings (69.3% payout ratio) and cash flows (55% cash payout ratio), suggesting sustainability in its dividend payments amidst a trading price deemed significantly below fair value estimates.
Click here to discover the nuances of Enghouse Systems with our detailed analytical dividend report.
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$2.88 billion.
Operations: Peyto Exploration & Development generates its revenue primarily from the exploration and production of oil and gas, totaling CA$876.26 million.
Dividend Yield: 8.8%
Peyto Exploration & Development has maintained a consistent monthly dividend of CA$0.11 per share throughout 2024, signaling a commitment to regular shareholder payouts despite its high cash payout ratio of 102.5%, indicating dividends are not well-covered by cash flows. The company's recent financial performance shows an increase in revenue and net income in Q1 2024 compared to the previous year, with significant growth in natural gas and NGLs production. However, the firm faces challenges with high debt levels and dividend reliability due to past volatility.
Royal Bank of Canada
Simply Wall St Dividend Rating: ★★★★★☆
Overview: Royal Bank of Canada, a diversified financial service company with global operations, has a market capitalization of approximately CA$207.81 billion.
Operations: Royal Bank of Canada generates revenue through segments including Personal & Commercial Banking (CA$20.92 billion), Wealth Management (CA$17.47 billion), Capital Markets (CA$10.70 billion), and Insurance (CA$5.91 billion).
Dividend Yield: 3.9%
Royal Bank of Canada is trading 31% below its estimated fair value, offering a potentially attractive entry point for dividend investors. The bank has a stable dividend history over the past decade, with recent increases including a 3% rise to CA$1.42 per share payable in August 2024. Its dividends are well-covered by earnings, with a current payout ratio of 50%, and forecasted to remain sustainable at 47.6% in three years. Despite this reliability and growth, RY's dividend yield of 3.87% is low compared to the top quartile of Canadian dividend stocks at 6.32%.
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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:PEY and TSX:RY.
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