Top TSX Dividend Stocks To Consider In October 2024

As the Canadian market enjoys a robust year with the TSX up over 17%, investors are keenly observing how this performance aligns with global trends and what it might mean for dividend-focused strategies. In such an environment, selecting dividend stocks that align with a growing economy and favorable interest-rate policies can offer potential stability and income, making them an attractive consideration for those looking to capitalize on current market dynamics.

Top 10 Dividend Stocks In Canada

Name	Dividend Yield	Dividend Rating
Whitecap Resources (TSX:WCP)	6.92%	★★★★★★
Labrador Iron Ore Royalty (TSX:LIF)	8.22%	★★★★★☆
Power Corporation of Canada (TSX:POW)	5.08%	★★★★★☆
Enghouse Systems (TSX:ENGH)	3.33%	★★★★★☆
Firm Capital Mortgage Investment (TSX:FC)	8.59%	★★★★★☆
Russel Metals (TSX:RUS)	4.25%	★★★★★☆
Sun Life Financial (TSX:SLF)	4.12%	★★★★★☆
National Bank of Canada (TSX:NA)	3.34%	★★★★★☆
Royal Bank of Canada (TSX:RY)	3.32%	★★★★★☆
Canadian Natural Resources (TSX:CNQ)	4.32%	★★★★★☆

Click here to see the full list of 29 stocks from our Top TSX Dividend Stocks screener.

Let's take a closer look at a couple of our picks from the screened companies.

High Liner Foods (TSX:HLF)

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

Overview: High Liner Foods Incorporated processes and markets frozen seafood products in North America, with a market cap of CA$395.17 million.

Operations: High Liner Foods generates revenue of $992.12 million from the manufacturing and marketing of prepared and packaged frozen seafood.

Dividend Yield: 4.6%

High Liner Foods' dividend is well-covered by earnings and cash flows, with a payout ratio of 30.2% and a cash payout ratio of 8.2%. Despite its volatile dividend history, recent payments have increased over the past decade. The company approved a quarterly CAD 0.15 per share dividend, reflecting stable current coverage but not top-tier yield compared to Canadian peers. Recent debt refinancing extends maturity to July 2031, potentially improving financial stability despite high leverage levels.

• Dive into the specifics of High Liner Foods here with our thorough dividend report.
• The valuation report we've compiled suggests that High Liner Foods' current price could be quite moderate.

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 approximately CA$9.89 billion.

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

Dividend Yield: 5.4%

IGM Financial's dividends are well-covered by earnings and cash flows, with payout ratios of 62.9% and 70.8%, respectively. Over the past decade, its dividends have been stable and growing, though its current yield of 5.39% is below the top Canadian dividend payers' average of 6.08%. Recent financials show improved quarterly net income at CAD 216.19 million, supporting continued dividend reliability amidst a completed share buyback worth CAD 49.1 million.

• Click here to discover the nuances of IGM Financial with our detailed analytical dividend report.
• Our expertly prepared valuation report IGM Financial implies its share price may be lower than expected.

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$2.98 billion.

Operations: Peyto Exploration & Development Corp. generates its revenue primarily from the exploration and production of oil and gas, amounting to CA$901.99 million.

Dividend Yield: 8.6%

Peyto Exploration & Development's dividend yield of 8.57% ranks in the top 25% among Canadian payers, yet its sustainability is questionable due to high payout ratios—84.1% of earnings and 113.9% of cash flows—indicating coverage issues. Despite recent affirmations of CAD 0.11 monthly dividends, historical volatility and unreliable growth over the past decade raise concerns about long-term stability, even as revenues have increased to CAD 256.55 million in Q2 2024 from CAD 210.59 million a year ago.

• Delve into the full analysis dividend report here for a deeper understanding of Peyto Exploration & Development.
• Insights from our recent valuation report point to the potential undervaluation of Peyto Exploration & Development shares in the market.

Seize The Opportunity

• Unlock more gems! Our Top TSX Dividend Stocks screener has unearthed 26 more companies for you to explore.Click here to unveil our expertly curated list of 29 Top TSX Dividend Stocks.
• Have you diversified into these companies? Leverage the power of Simply Wall St's portfolio to keep a close eye on market movements affecting your investments.
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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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