Top TSX Dividend Stocks To Watch: Canadian Natural Resources And Two More

Over the last 7 days, the Canadian market has dropped 1.3%, but it is up 13% over the past year with earnings forecast to grow by 15% annually. In this dynamic environment, dividend stocks can offer stability and income potential; here are three top TSX dividend stocks to watch, starting with Canadian Natural Resources.

Top 10 Dividend Stocks In Canada

Name	Dividend Yield	Dividend Rating
Whitecap Resources (TSX:WCP)	7.53%	★★★★★★
Secure Energy Services (TSX:SES)	3.56%	★★★★★☆
Labrador Iron Ore Royalty (TSX:LIF)	8.89%	★★★★★☆
Enghouse Systems (TSX:ENGH)	3.40%	★★★★★☆
Canadian Natural Resources (TSX:CNQ)	4.66%	★★★★★☆
Russel Metals (TSX:RUS)	4.63%	★★★★★☆
Sun Life Financial (TSX:SLF)	4.37%	★★★★★☆
iA Financial (TSX:IAG)	3.16%	★★★★★☆
Firm Capital Mortgage Investment (TSX:FC)	8.65%	★★★★★☆
Royal Bank of Canada (TSX:RY)	3.46%	★★★★★☆

Click here to see the full list of 33 stocks from our Top TSX Dividend Stocks screener.

We'll examine a selection from our screener results.

Canadian Natural Resources (TSX:CNQ)

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

Overview: Canadian Natural Resources Limited acquires, explores for, develops, produces, markets, and sells crude oil, natural gas, and natural gas liquids (NGLs), with a market cap of CA$95.67 billion.

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

Dividend Yield: 4.7%

Canadian Natural Resources offers a stable and growing dividend, with payments consistently increasing over the past decade. The current dividend yield of 4.66% is lower than the top quartile of Canadian dividend payers but remains attractive due to its reliability and coverage by both earnings (56.1%) and free cash flow (42.7%). Recent affirmations include a quarterly cash dividend of C$0.525 per share, payable on October 4, 2024, reflecting ongoing commitment to shareholder returns amidst robust financial performance.

• Get an in-depth perspective on Canadian Natural Resources' performance by reading our dividend report here.
• Insights from our recent valuation report point to the potential undervaluation of Canadian Natural Resources shares in the market.

IGM Financial (TSX:IGM)

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

Overview: IGM Financial Inc. is a Canadian wealth and asset management company with a market cap of CA$9.14 billion.

Operations: IGM Financial Inc. generates revenue primarily from its Wealth Management segment (CA$2.30 billion) and Asset Management segment (CA$1.21 billion).

Dividend Yield: 5.8%

IGM Financial has demonstrated stable and growing dividend payments over the past decade. The company recently declared a dividend of C$0.5625 per share, payable on October 31, 2024. Despite a lower yield (5.82%) compared to top Canadian payers, its dividends are covered by earnings (62.9%) and cash flows (70.7%). Recent earnings saw Q2 revenue rise to C$816.31 million with net income at C$216.19 million, indicating solid financial health supporting its dividend strategy.

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

Whitecap Resources (TSX:WCP)

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

Overview: Whitecap Resources Inc. is an oil and gas company that focuses on the acquisition, development, and production of petroleum and natural gas assets in Western Canada, with a market cap of CA$5.78 billion.

Operations: Whitecap Resources Inc. generates CA$3.37 billion in revenue from its oil and gas exploration and production activities in Western Canada.

Dividend Yield: 7.5%

Whitecap Resources offers a high dividend yield of 7.53%, placing it in the top 25% of Canadian payers. Its dividends are well-covered by earnings (54.2%) and cash flows (68.4%), ensuring sustainability. Recent affirmations include a CAD 0.0608 per share dividend for August, payable on September 16, 2024. Despite forecasted earnings decline, the company’s stable and growing dividends over the past decade reinforce its reliability for income-focused investors.

• Navigate through the intricacies of Whitecap Resources with our comprehensive dividend report here.
• Upon reviewing our latest valuation report, Whitecap Resources' share price might be too pessimistic.

Summing It All Up

• Embark on your investment journey to our 33 Top TSX Dividend Stocks selection here.
• Shareholder in one or more of these companies? Ensure you're never caught off-guard by adding your portfolio in Simply Wall St for timely alerts on significant stock developments.
• Enhance your investing ability with the Simply Wall St app and enjoy free access to essential market intelligence spanning every continent.

Looking For Alternative Opportunities?

• 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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