Stock Analysis

3 TSX Dividend Stocks With Up To 6.5% Yield

Published October 08, 2024

As we enter the fourth quarter, the Canadian market has experienced a strong year with the TSX up over 14%, despite recent volatility driven by uncertainties in global geopolitics and upcoming elections. In this climate, dividend stocks can offer stability and income potential, making them an attractive option for investors seeking to navigate these uncertain times.

Top 10 Dividend Stocks In Canada

Name	Dividend Yield	Dividend Rating
Whitecap Resources (TSX:WCP)	6.53%	★★★★★★
Secure Energy Services (TSX:SES)	3.03%	★★★★★☆
Labrador Iron Ore Royalty (TSX:LIF)	7.85%	★★★★★☆
Power Corporation of Canada (TSX:POW)	5.20%	★★★★★☆
Enghouse Systems (TSX:ENGH)	3.28%	★★★★★☆
Firm Capital Mortgage Investment (TSX:FC)	8.64%	★★★★★☆
Russel Metals (TSX:RUS)	4.13%	★★★★★☆
Sun Life Financial (TSX:SLF)	4.13%	★★★★★☆
Royal Bank of Canada (TSX:RY)	3.42%	★★★★★☆
Canadian Natural Resources (TSX:CNQ)	4.22%	★★★★★☆

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.

Canadian Natural Resources (TSX:CNQ)

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

Overview: Canadian Natural Resources Limited is engaged in the acquisition, exploration, development, production, marketing, and sale of crude oil, natural gas, and natural gas liquids (NGLs), with a market capitalization of approximately CA$102.11 billion.

Operations: Canadian Natural Resources Limited's revenue segments include Oil Sands Mining and Upgrading (CA$16.47 billion), Exploration and Production - North America (CA$18.15 billion), Midstream and Refining (CA$983 million), Exploration and Production - North Sea (CA$522 million), and Exploration and Production - Offshore Africa (CA$492 million).

Dividend Yield: 4.2%

Canadian Natural Resources offers a stable dividend yield of 4.22%, with dividends well-covered by earnings and cash flow, reflecting payout ratios of 56.1% and 42.6%, respectively. The company has consistently increased its dividend over the past decade, recently announcing a 7% increase to C$0.5625 per share payable in January 2025. Although trading below estimated fair value, CNQ's yield is lower than Canada's top-tier dividend payers at 5.93%.

Richards Packaging Income Fund (TSX:RPI.UN)

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

Overview: Richards Packaging Income Fund, along with its subsidiaries, is involved in the design, manufacture, and distribution of packaging containers and healthcare supplies across North America, with a market cap of CA$348.37 million.

Operations: Richards Packaging Income Fund generates revenue primarily from its wholesale miscellaneous segment, amounting to CA$415.52 million.

Dividend Yield: 5.3%

Richards Packaging Income Fund provides a stable dividend yield of 5.29%, with dividends well-covered by earnings and cash flow, as indicated by payout ratios of 56.4% and 26.2%, respectively. The company has consistently issued monthly distributions of CAD 0.11 per unit, demonstrating reliability over the past decade despite a slight dip in recent sales figures to CAD 107.41 million for Q2 2024 from CAD 108.87 million a year ago.

TSX:RPI.UN Dividend History as at Oct 2024

Whitecap Resources (TSX:WCP)

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

Overview: Whitecap Resources Inc. is an oil and gas company that specializes in acquiring, developing, and producing petroleum and natural gas assets in Western Canada, with a market cap of CA$6.42 billion.

Operations: Whitecap Resources Inc. generates its revenue primarily from the exploration and production of oil and gas, amounting to CA$3.37 billion.

Dividend Yield: 6.5%

Whitecap Resources offers a high dividend yield of 6.53%, ranking in the top 25% among Canadian dividend payers. The company has consistently increased dividends over the past decade, maintaining stability and reliability with minimal volatility. Recent affirmations confirm ongoing monthly payments of CAD $0.0608 per share, supported by a payout ratio of 54.2% and cash flow coverage at 67.5%. Trading below its estimated fair value enhances its appeal as a good relative value investment in its sector.

Taking Advantage

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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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