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 (TSX:AD.UN)

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.

• Click here to discover the nuances of Alaris Equity Partners Income Trust with our detailed analytical dividend report.
• The analysis detailed in our Alaris Equity Partners Income Trust valuation report hints at an deflated share price compared to its estimated value.

PetroTal (TSX:TAL)

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.

• Dive into the specifics of PetroTal here with our thorough dividend report.
• Our comprehensive valuation report raises the possibility that PetroTal is priced lower than what may be justified by its financials.

Toronto-Dominion Bank (TSX:TD)

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.

• Delve into the full analysis dividend report here for a deeper understanding of Toronto-Dominion Bank.
• In light of our recent valuation report, it seems possible that Toronto-Dominion Bank is trading behind its estimated value.

Seize The Opportunity

• Explore the 32 names from our Top TSX Dividend Stocks screener here.
• Have you diversified into these companies? Leverage the power of Simply Wall St's portfolio to keep a close eye on market movements affecting your investments.
• Join a community of smart investors by using Simply Wall St. It's free and delivers expert-level analysis on worldwide markets.

Seeking Other Investments?

• 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.

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