Top TSX Dividend Stocks To Consider In October 2024

As the TSX reaches new all-time highs, buoyed by optimism from recent U.S. Fed rate cuts and a surge in AI enthusiasm, investors are keenly observing how markets will navigate the upcoming U.S. presidential election. Despite potential volatility ahead of election day, the broader economic trends and rising corporate earnings suggest a resilient market environment. In this context, dividend stocks offer a compelling investment opportunity due to their potential for steady income and long-term growth, making them particularly attractive during periods of market uncertainty.

Top 10 Dividend Stocks In Canada

Name	Dividend Yield	Dividend Rating
Whitecap Resources (TSX:WCP)	7.22%	★★★★★★
Secure Energy Services (TSX:SES)	3.27%	★★★★★☆
Labrador Iron Ore Royalty (TSX:LIF)	7.93%	★★★★★☆
Power Corporation of Canada (TSX:POW)	5.27%	★★★★★☆
Enghouse Systems (TSX:ENGH)	3.09%	★★★★★☆
Firm Capital Mortgage Investment (TSX:FC)	8.55%	★★★★★☆
Canadian Natural Resources (TSX:CNQ)	4.68%	★★★★★☆
Russel Metals (TSX:RUS)	4.09%	★★★★★☆
Royal Bank of Canada (TSX:RY)	3.36%	★★★★★☆
Sun Life Financial (TSX:SLF)	4.13%	★★★★★☆

Click here to see the full list of 31 stocks from our Top TSX Dividend Stocks screener.

We're going to check out a few of the best picks from our screener tool.

Aecon Group (TSX:ARE)

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

Overview: Aecon Group Inc. and its subsidiaries offer construction and infrastructure development services to private and public sector clients in Canada, the United States, and internationally, with a market cap of CA$1.30 billion.

Operations: Aecon Group Inc. generates revenue primarily from its Construction segment (CA$4.04 billion) and Concessions segment (CA$34.47 million).

Dividend Yield: 3.6%

Aecon Group's dividends have been stable and growing over the past decade, but its dividend yield of 3.63% is lower than the top 25% of Canadian dividend payers. Recent financial results show a significant net loss, impacting earnings quality and profit margins. Despite high payout ratios indicating dividends are not well covered by earnings, they are adequately covered by cash flows. The company recently secured major contracts and announced a share repurchase program.

• Unlock comprehensive insights into our analysis of Aecon Group stock in this dividend report.
• Upon reviewing our latest valuation report, Aecon Group's share price might be too optimistic.

Peyto Exploration & Development (TSX:PEY)

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

Overview: Peyto Exploration & Development Corp. is an energy company focused on the exploration, development, and production of natural gas, oil, and natural gas liquids in Alberta's Deep Basin with a market cap of CA$2.95 billion.

Operations: Peyto Exploration & Development Corp. generated CA$901.99 million in revenue from its oil and gas exploration and production activities.

Dividend Yield: 8.6%

Peyto Exploration & Development offers a high dividend yield of 8.57%, placing it in the top 25% of Canadian dividend payers. However, the sustainability of its dividends is questionable due to a high cash payout ratio (113.6%) and significant debt levels. Recent earnings reports showed mixed results, with increased revenue but decreased net income compared to last year. Dividend payments have been unreliable and volatile over the past decade despite recent affirmations of monthly payouts.

• Take a closer look at Peyto Exploration & Development's potential here in our dividend report.
• The valuation report we've compiled suggests that Peyto Exploration & Development's current price could be quite moderate.

Quebecor (TSX:QBR.A)

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

Overview: Quebecor Inc., with a market cap of CA$8.18 billion, operates in the telecommunications, media, and sports and entertainment sectors in Canada through its subsidiaries.

Operations: Quebecor Inc.'s revenue segments include CA$4.89 billion from telecommunications, CA$724 million from media, and CA$208.20 million from sports and entertainment.

Dividend Yield: 3.7%

Quebecor Inc. has demonstrated stable and growing dividends over the past decade, with a current yield of 3.66%. Recent earnings reports show solid performance, with net income for Q2 2024 at CAD 207.6 million, up from CAD 174.1 million a year ago. The company maintains a sustainable payout ratio of 39.2%, ensuring dividends are well-covered by earnings and free cash flows (44.5%). A recent share repurchase program further underscores its commitment to returning value to shareholders.

• Click here and access our complete dividend analysis report to understand the dynamics of Quebecor.
• Our expertly prepared valuation report Quebecor implies its share price may be lower than expected.

Seize The Opportunity

• Unlock more gems! Our Top TSX Dividend Stocks screener has unearthed 28 more companies for you to explore.Click here to unveil our expertly curated list of 31 Top TSX Dividend Stocks.
• Are any of these part of your asset mix? Tap into the analytical power of Simply Wall St's portfolio to get a 360-degree view on how they're shaping up.
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Contemplating Other Strategies?

• 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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