As global economic dynamics shift, Canadian markets face challenges such as increased tariffs, which could impact trade and investment sentiment. In this environment, dividend stocks on the TSX offer a potential opportunity for investors seeking steady income streams amid market uncertainties.
Top 10 Dividend Stocks In Canada
| Name | Dividend Yield | Dividend Rating |
| Sun Life Financial (TSX:SLF) | 4.14% | ★★★★★☆ |
| Russel Metals (TSX:RUS) | 3.89% | ★★★★★☆ |
| Royal Bank of Canada (TSX:RY) | 3.42% | ★★★★★☆ |
| Pulse Seismic (TSX:PSD) | 7.67% | ★★★★★☆ |
| Power Corporation of Canada (TSX:POW) | 4.59% | ★★★★★☆ |
| National Bank of Canada (TSX:NA) | 3.35% | ★★★★★☆ |
| IGM Financial (TSX:IGM) | 5.31% | ★★★★★☆ |
| Canadian Imperial Bank of Commerce (TSX:CM) | 3.88% | ★★★★★☆ |
| Atrium Mortgage Investment (TSX:AI) | 9.48% | ★★★★★☆ |
| Acadian Timber (TSX:ADN) | 6.46% | ★★★★★☆ |
Click here to see the full list of 27 stocks from our Top TSX Dividend Stocks screener.
Let's dive into some prime choices out of the screener.
Bank of Montreal (TSX:BMO)
Simply Wall St Dividend Rating: ★★★★★☆
Overview: Bank of Montreal offers diversified financial services primarily in North America, with a market capitalization of CA$112.40 billion.
Operations: Bank of Montreal generates revenue through several key segments: BMO Capital Markets (CA$6.63 billion), BMO Wealth Management (CA$6.01 billion), U.S. Personal and Commercial Banking (U.S. P&C) (CA$8.29 billion), and Canadian Personal and Commercial Banking (Canadian P&C) (CA$9.77 billion).
Dividend Yield: 4.2%
Bank of Montreal's dividend stock has shown consistent growth over the past decade, with dividends per share remaining stable. The bank's current payout ratio of 58.3% indicates that dividends are well-covered by earnings, and this is expected to improve to 51.3% in three years. Despite trading below estimated fair value, BMO's dividend yield of 4.19% is lower than the Canadian market's top quartile but remains reliable for investors seeking steady income streams. Recent initiatives like My Financial Progress enhance client engagement but do not directly impact dividend attractiveness.
- Delve into the full analysis dividend report here for a deeper understanding of Bank of Montreal.
- The analysis detailed in our Bank of Montreal valuation report hints at an inflated share price compared to its estimated value.
North West (TSX:NWC)
Simply Wall St Dividend Rating: ★★★★★☆
Overview: The North West Company Inc. operates as a retailer of food and everyday products and services in northern Canada, rural Alaska, the South Pacific, and the Caribbean with a market cap of CA$2.28 billion.
Operations: The North West Company Inc. generates revenue of CA$2.60 billion from its operations as a retailer of food and everyday products and services across northern Canada, rural Alaska, the South Pacific, and the Caribbean.
Dividend Yield: 3.4%
North West Company Inc. maintains a stable dividend history, with payments consistently increasing over the past decade. The company's payout ratio of 55.3% suggests dividends are well-supported by earnings, while a cash payout ratio of 64.8% confirms coverage by cash flows. Despite trading significantly below estimated fair value, its dividend yield of 3.36% is modest compared to Canada's top quartile but remains reliable for income-focused investors seeking stability amidst moderate profit growth.
- Take a closer look at North West's potential here in our dividend report.
- According our valuation report, there's an indication that North West's share price might be on the cheaper side.
Quebecor (TSX:QBR.A)
Simply Wall St Dividend Rating: ★★★★★☆
Overview: Quebecor Inc., along with its subsidiaries, operates in the telecommunications, media, and sports and entertainment sectors in Canada with a market cap of CA$9.50 billion.
Operations: Quebecor Inc.'s revenue is primarily derived from its telecommunications segment at CA$4.82 billion, followed by media at CA$698.80 million, and sports and entertainment at CA$228.30 million.
Dividend Yield: 3.3%
Quebecor Inc. offers a reliable dividend with stable payments over the past decade, supported by a low payout ratio of 40.1% and cash payout ratio of 35.9%, indicating dividends are well-covered by earnings and cash flows. Despite trading at 65.9% below estimated fair value, its dividend yield of 3.3% is modest compared to Canada's top payers but remains attractive for income investors seeking consistency amid recent earnings growth and strategic share buybacks totaling CAD 106.7 million.
- Get an in-depth perspective on Quebecor's performance by reading our dividend report here.
- Insights from our recent valuation report point to the potential undervaluation of Quebecor shares in the market.
Next Steps
- Get an in-depth perspective on all 27 Top TSX Dividend Stocks by using our screener here.
- Have a stake in these businesses? Integrate your holdings into Simply Wall St's portfolio for notifications and detailed stock reports.
- Simply Wall St is your key to unlocking global market trends, a free user-friendly app for forward-thinking investors.
Interested In Other Possibilities?
- 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.
Valuation is complex, but we're here to simplify it.
Discover if Bank of Montreal might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.
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