Top Canadian (TSX) Materials Dividend Stocks

Top Canadian (TSX) Materials Dividend Stocks

UPDATED Jul 03, 2022

What are the best Canadian (TSX) Materials Dividend Stocks?

According to our Simply Wall St analysis these are the best Canadian Materials dividend companies. We look for companies with high quality dividends and healthy balance sheets to find the top Dividend Stocks.

Our criteria to find Top Dividend Companies

High Yield

  • Companies with a high dividend yield are more attractive due to the higher expected income for each dollar invested.
  • Yields vary between markets, so we focus on the top dividend payers in each market.

What do we look for?

  • Is the yield in the top 25% of the market's dividend payers.

Consistent Dividends

  • Companies with a strong track record of paying a consistent and growing dividend are the most attractive.
  • If the dividend has been cut substantially in the past, then it's difficult to be confident about future payments.

What do we look for?

  • Has the dividend been stable over the last 10 years.
  • Has the dividend grown over the last 10 years.

Dividend Cover

  • Ideally the company doesn't pay out all of its earnings, neglecting future growth.
  • If a company is unable to afford its dividend, then it will probably lead to a dividend cut and share price erosion.

What do we look for?

  • Are dividends covered by earnings.
  • Are dividends forecast to be covered by earnings in the future.

Healthy Balance Sheet

  • Investors want to make sure the company is positioned to cover its debts. Repayments on debt typically take priority over shareholder return initiatives.

What do we look for?

  • Does the company have a manageable level of debt.
  • Is the company able to cover its interest repayments.

3 companies meet this criteria in the Canadian market

Pan American Silver Corp., together with its subsidiaries, engages in the exploration, mine development, extraction, processing, refining, and reclamation of silver, gold, zinc, lead, and copper mines in Canada, Mexico, Peru, Argentina, and Bolivia.

Dividend Criteria

  • Earnings Coverage

  • Growing Dividend

  • Notable Dividend

  • High Dividend: PAAS's dividend (2.45%) is low compared to the top 25% of dividend payers in the Canadian market (5.4%).

  • Future Dividend Coverage

  • Stable Dividend

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Rewards

  • Trading at 6.5% below our estimate of its fair value

  • Earnings are forecast to grow 25.21% per year

Risks

  • Profit margins (10.7%) are lower than last year (18.3%)

View all Risks and Rewards

AirBoss of America Corp., together with its subsidiaries, develops, manufactures, and markets rubber-based products for automotive, heavy commercial, construction and infrastructure, oil and gas, and defense industries in Canada, the United States, and internationally.

Dividend Criteria

  • Stable Dividend

  • Earnings Coverage

  • Growing Dividend

  • Future Dividend Coverage

  • Notable Dividend

  • High Dividend: BOS's dividend (2.55%) is low compared to the top 25% of dividend payers in the Canadian market (5.4%).

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Rewards

  • Trading at 57.6% below our estimate of its fair value

  • Earnings are forecast to grow 15.53% per year

  • Earnings have grown 39.8% per year over the past 5 years

Risks

  • High level of non-cash earnings

  • Significant insider selling over the past 3 months

View all Risks and Rewards

Aura Minerals Inc., a gold and copper production company, focuses on the development and operation of gold and base metal projects in the Americas.

Dividend Criteria

  • Earnings Coverage

  • High Dividend: ORA's dividend (5.41%) is in the top 25% of dividend payers in the Canadian market (5.4%)

  • Notable Dividend

  • Future Dividend Coverage

  • Growing Dividend

  • Stable Dividend

See Full Stock Report

Rewards

  • Trading at 94.9% below our estimate of its fair value

  • Earnings are forecast to grow 1.69% per year

Risks

  • Profit margins (15.6%) are lower than last year (27.3%)

View all Risks and Rewards
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