Top 3 TSX Dividend Stocks To Watch In August 2024

With the Canadian market experiencing a rebound, buoyed by easing inflation and positive economic data, investors are closely watching how central banks' decisions on interest rates will shape the landscape. As the TSX has shown a promising uptick, it's an opportune moment to consider dividend stocks that can provide steady income and potential growth amidst these evolving conditions.

Top 10 Dividend Stocks In Canada

Name	Dividend Yield	Dividend Rating
Bank of Nova Scotia (TSX:BNS)	6.55%	★★★★★★
Whitecap Resources (TSX:WCP)	7.18%	★★★★★★
Secure Energy Services (TSX:SES)	3.38%	★★★★★☆
Labrador Iron Ore Royalty (TSX:LIF)	8.53%	★★★★★☆
Enghouse Systems (TSX:ENGH)	3.47%	★★★★★☆
Russel Metals (TSX:RUS)	4.36%	★★★★★☆
iA Financial (TSX:IAG)	3.22%	★★★★★☆
Firm Capital Mortgage Investment (TSX:FC)	8.69%	★★★★★☆
Canadian Natural Resources (TSX:CNQ)	4.33%	★★★★★☆
Royal Bank of Canada (TSX:RY)	3.70%	★★★★★☆

Click here to see the full list of 34 stocks from our Top TSX Dividend Stocks screener.

Here's a peek at a few of the choices from the screener.

Enghouse Systems (TSX:ENGH)

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

Overview: Enghouse Systems Limited, with a market cap of CA$1.65 billion, develops enterprise software solutions globally through its subsidiaries.

Operations: Enghouse Systems Limited generates revenue from two primary segments: Asset Management Group (CA$180.88 million) and Interactive Management Group (CA$299.55 million).

Dividend Yield: 3.5%

Enghouse Systems offers a reliable dividend yield of 3.47% with stable and growing payouts over the past decade. The company's dividends are well-covered by earnings (payout ratio: 65.7%) and cash flows (cash payout ratio: 45.8%). Recent earnings reports show strong financial performance, with Q2 revenue at C$125.81 million and net income at C$19.97 million, supporting continued dividend sustainability despite being below top-tier Canadian dividend payers.

• Delve into the full analysis dividend report here for a deeper understanding of Enghouse Systems.
• The valuation report we've compiled suggests that Enghouse Systems' current price could be quite moderate.

Olympia Financial Group (TSX:OLY)

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

Overview: Olympia Financial Group Inc., with a market cap of CA$262.17 million, operates as a non-deposit taking trust company in Canada through its subsidiary, Olympia Trust Company.

Operations: Olympia Financial Group Inc. generates revenue through its subsidiary, Olympia Trust Company, which operates as a non-deposit taking trust company in Canada.

Dividend Yield: 6.4%

Olympia Financial Group's recent earnings report shows steady financials, with Q2 revenue at C$26.25 million and net income at C$5.89 million. The company declared a monthly dividend of C$0.60 per share, indicating a robust yield in the top 25% of Canadian dividend payers. Despite past volatility in dividends, current payments are well-covered by earnings (payout ratio: 32.6%) and cash flows (cash payout ratio: 72.7%), suggesting sustainability for now.

• Click here and access our complete dividend analysis report to understand the dynamics of Olympia Financial Group.
• Our valuation report unveils the possibility Olympia Financial Group's shares may be trading at a discount.

Peyto Exploration & Development (TSX:PEY)

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

Overview: Peyto Exploration & Development Corp. is an energy company involved in the exploration, development, and production of natural gas, oil, and natural gas liquids in Alberta's Deep Basin with a market cap of CA$2.85 billion.

Operations: Peyto Exploration & Development Corp. generates CA$901.99 million from its Oil & Gas - Exploration & Production segment.

Dividend Yield: 9%

Peyto Exploration & Development confirmed a monthly dividend of C$0.11 per share for August 2024, continuing its recent trend. However, despite increased production and revenue growth to C$256.55 million in Q2 2024, net income decreased to C$51.44 million from the previous year. The high payout ratio (84.1%) suggests dividends are covered by earnings but not free cash flows, raising sustainability concerns given the company's significant debt load and past dividend volatility.

• Click here to discover the nuances of Peyto Exploration & Development with our detailed analytical dividend report.
• Our valuation report here indicates Peyto Exploration & Development may be undervalued.

Key Takeaways

• Reveal the 34 hidden gems among our Top TSX Dividend Stocks screener with a single click here.
• Hold shares in these firms? Setup your portfolio in Simply Wall St to seamlessly track your investments and receive personalized updates on your portfolio's performance.
• Streamline your investment strategy with Simply Wall St's app for free and benefit from extensive research on stocks across all corners of the world.

Want To Explore Some Alternatives?

• 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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