Top TSX Dividend Stocks Including Aecon Group

In the last week, the Canadian market has been flat, yet it is up 10% over the past year with earnings expected to grow by 15% per annum over the next few years. In this context, identifying strong dividend stocks like Aecon Group can provide stability and potential growth for investors looking to capitalize on these favorable conditions.

Top 10 Dividend Stocks In Canada

Name	Dividend Yield	Dividend Rating
Bank of Nova Scotia (TSX:BNS)	6.66%	★★★★★★
Whitecap Resources (TSX:WCP)	6.96%	★★★★★★
Secure Energy Services (TSX:SES)	3.49%	★★★★★☆
Boston Pizza Royalties Income Fund (TSX:BPF.UN)	8.14%	★★★★★☆
Power Corporation of Canada (TSX:POW)	5.62%	★★★★★☆
Enghouse Systems (TSX:ENGH)	3.45%	★★★★★☆
Royal Bank of Canada (TSX:RY)	3.72%	★★★★★☆
Firm Capital Mortgage Investment (TSX:FC)	8.28%	★★★★★☆
Canadian Natural Resources (TSX:CNQ)	4.45%	★★★★★☆
Russel Metals (TSX:RUS)	4.18%	★★★★★☆

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.

Aecon Group (TSX:ARE)

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

Overview: Aecon Group Inc., with a market cap of CA$976.07 million, offers construction and infrastructure development services to private and public sector clients in Canada, the United States, and internationally.

Operations: Aecon Group Inc.'s revenue segments include CA$34.47 million from Concessions and CA$4.04 billion from Construction.

Dividend Yield: 4.7%

Aecon Group Inc. recently reported a significant net loss of C$123.89 million for Q2 2024, compared to a net income of C$28.21 million last year, primarily due to large one-off charges related to legacy projects. Despite this, the company affirmed its quarterly dividend of 19 cents per share and initiated a share repurchase program for up to 3.1 million shares. While the dividend has been stable and growing over the past decade, its high payout ratio raises concerns about sustainability given current earnings pressures.

• Take a closer look at Aecon Group's potential here in our dividend report.
• Our valuation report here indicates Aecon Group may be overvalued.

Bank of Nova Scotia (TSX:BNS)

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

Overview: The Bank of Nova Scotia offers a range of banking products and services across Canada, the United States, Mexico, Peru, Chile, Colombia, the Caribbean and Central America with a market cap of CA$77.96 billion.

Operations: The Bank of Nova Scotia's revenue segments include Canadian Banking (CA$11.46 billion), International Banking (CA$9.60 billion), Global Wealth Management (CA$5.43 billion), and Global Banking and Markets (CA$5.35 billion).

Dividend Yield: 6.7%

The Bank of Nova Scotia offers a high and reliable dividend yield of 6.66%, currently covered by earnings with a payout ratio of 69.7%. Dividends have been stable and growing over the past decade, with future coverage forecasted at 61.1%. Recent fixed-income offerings, including CAD 998.12 million in floating rate debentures, indicate robust capital management. However, shareholders faced dilution last year, which may impact long-term value considerations for dividend investors.

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

Power Corporation of Canada (TSX:POW)

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

Overview: Power Corporation of Canada, an international management and holding company with a market cap of CA$25.66 billion, provides financial services across North America, Europe, and Asia.

Operations: Power Corporation of Canada generates revenue primarily from Lifeco (CA$23.51 billion), Power Financial - IGM (CA$3.67 billion), and its Holding Company (CA$69 million).

Dividend Yield: 5.6%

Power Corporation of Canada offers a reliable dividend yield of 5.62%, with payments well covered by earnings (payout ratio: 49.9%) and cash flows (cash payout ratio: 28.3%). Dividends have been stable and growing over the past decade, though they lag behind the top Canadian dividend payers. Recent earnings showed significant growth, with net income reaching CAD 722 million for Q1-2024, up from CAD 326 million a year ago, supporting continued dividend sustainability.

• Dive into the specifics of Power Corporation of Canada here with our thorough dividend report.
• In light of our recent valuation report, it seems possible that Power Corporation of Canada is trading behind its estimated value.

Turning Ideas Into Actions

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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.

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