3 Top TSX Dividend Stocks To Consider

The Canadian market has climbed 2.7% over the last week and 16% over the past year, with earnings forecast to grow by 15% annually. In this favorable environment, identifying top dividend stocks that offer reliable income and potential for growth can be a prudent strategy for investors.

Top 10 Dividend Stocks In Canada

Name	Dividend Yield	Dividend Rating
Whitecap Resources (TSX:WCP)	7.07%	★★★★★★
Secure Energy Services (TSX:SES)	3.35%	★★★★★☆
Labrador Iron Ore Royalty (TSX:LIF)	8.44%	★★★★★☆
Enghouse Systems (TSX:ENGH)	3.32%	★★★★★☆
Canadian Natural Resources (TSX:CNQ)	4.70%	★★★★★☆
iA Financial (TSX:IAG)	3.07%	★★★★★☆
Firm Capital Mortgage Investment (TSX:FC)	8.52%	★★★★★☆
Russel Metals (TSX:RUS)	4.32%	★★★★★☆
Sun Life Financial (TSX:SLF)	4.22%	★★★★★☆
Royal Bank of Canada (TSX:RY)	3.40%	★★★★★☆

Click here to see the full list of 32 stocks from our Top TSX Dividend Stocks screener.

Underneath we present a selection of stocks filtered out by our screen.

Aecon Group (TSX:ARE)

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

Overview: Aecon Group Inc. provides construction and infrastructure development services to private and public sector clients in Canada, the United States, and internationally, with a market cap of CA$1.23 billion.

Operations: Aecon Group Inc. generates revenue primarily from its Construction segment, which accounts for CA$4.04 billion, and its Concessions segment, contributing CA$34.47 million.

Dividend Yield: 3.8%

Aecon Group has a history of reliable and growing dividend payments over the past decade, but its current dividend yield of 3.82% is lower than the top 25% of Canadian dividend payers. The company’s dividends are well covered by cash flows due to a low cash payout ratio (30.2%), though not by earnings, which have been impacted by large one-off items and recent financial losses.

• Click here and access our complete dividend analysis report to understand the dynamics of Aecon Group.
• Our valuation report here indicates Aecon Group may be overvalued.

High Liner Foods (TSX:HLF)

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

Overview: High Liner Foods Incorporated processes and markets frozen seafood products in North America, with a market cap of CA$391.94 million.

Operations: High Liner Foods generates $992.12 million from the manufacturing and marketing of prepared and packaged frozen seafood.

Dividend Yield: 4.5%

High Liner Foods has shown an increase in earnings, with Q2 net income rising to $19.29 million from $5.89 million a year ago. The company declared a quarterly dividend of C$0.15 per share, payable on September 15, 2024. Despite a volatile dividend history and high debt levels, its dividends are well covered by both earnings (payout ratio: 30.2%) and cash flows (cash payout ratio: 8.3%). Recent refinancing is expected to save approximately $1.4 million annually in interest expenses.

• Unlock comprehensive insights into our analysis of High Liner Foods stock in this dividend report.
• The valuation report we've compiled suggests that High Liner Foods' current price could be quite moderate.

Royal Bank of Canada (TSX:RY)

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

Overview: Royal Bank of Canada operates as a diversified financial service company worldwide with a market cap of CA$237.03 billion.

Operations: Royal Bank of Canada's revenue segments include Personal & Commercial Banking (CA$21.78 billion), Wealth Management (CA$17.92 billion), Capital Markets (CA$11.19 billion), and Insurance (CA$5.86 billion).

Dividend Yield: 3.4%

Royal Bank of Canada offers a reliable dividend, with payments growing steadily over the past decade and a current yield of 3.4%. The dividend is well-covered by earnings (49% payout ratio) and projected to remain sustainable in three years (47.1%). Recent earnings growth of 11.2% supports this stability. However, it trades at 32.5% below its estimated fair value, presenting potential for capital appreciation alongside income generation from dividends.

• Click to explore a detailed breakdown of our findings in Royal Bank of Canada's dividend report.
• Our comprehensive valuation report raises the possibility that Royal Bank of Canada is priced higher than what may be justified by its financials.

Where To Now?

• Click this link to deep-dive into the 32 companies within our Top TSX Dividend Stocks screener.
• 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.
• Enhance your investing ability with the Simply Wall St app and enjoy free access to essential market intelligence spanning every continent.

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.

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