3 Canadian Dividend Stocks On The TSX With Up To 7.6% Yield

With the recent rate cuts by both the Federal Reserve and the Bank of Canada, investors are eyeing opportunities in high-quality dividend-paying stocks as potential beneficiaries of a more accommodative monetary policy. In this environment, selecting dividend stocks with strong fundamentals and attractive yields can be a prudent strategy for those looking to generate consistent income while navigating market fluctuations.

Top 10 Dividend Stocks In Canada

Name	Dividend Yield	Dividend Rating
Whitecap Resources (TSX:WCP)	7.35%	★★★★★★
Secure Energy Services (TSX:SES)	3.22%	★★★★★☆
Labrador Iron Ore Royalty (TSX:LIF)	7.63%	★★★★★☆
Power Corporation of Canada (TSX:POW)	5.20%	★★★★★☆
Enghouse Systems (TSX:ENGH)	3.05%	★★★★★☆
Canadian Natural Resources (TSX:CNQ)	4.78%	★★★★★☆
Firm Capital Mortgage Investment (TSX:FC)	8.45%	★★★★★☆
Russel Metals (TSX:RUS)	4.08%	★★★★★☆
Royal Bank of Canada (TSX:RY)	3.39%	★★★★★☆
Sun Life Financial (TSX:SLF)	4.14%	★★★★★☆

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.

Alaris Equity Partners Income Trust (TSX:AD.UN)

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

Overview: Alaris Equity Partners Income Trust is a private equity firm that focuses on management buyouts, growth capital, and investments in lower and middle market companies, with a market cap of CA$807.59 million.

Operations: Alaris Equity Partners Income Trust generates revenue from unclassified services amounting to CA$215.71 million.

Dividend Yield: 7.6%

Alaris Equity Partners Income Trust offers a high dividend yield of 7.62%, placing it in the top 25% of Canadian dividend payers. With a payout ratio of 29.5%, its dividends are well-covered by earnings, and cash flows also support the payouts with a cash payout ratio of 72.6%. However, its dividend history has been volatile and unreliable over the past decade, with payments declining during this period. Recent earnings showed mixed results: Q2 revenue dropped to C$28.5 million from C$46.84 million year-over-year, but net income increased to C$31.68 million from C$28.39 million.

• Click here and access our complete dividend analysis report to understand the dynamics of Alaris Equity Partners Income Trust.
• According our valuation report, there's an indication that Alaris Equity Partners Income Trust's share price might be on the cheaper side.

Toronto-Dominion Bank (TSX:TD)

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

Overview: The Toronto-Dominion Bank, along with its subsidiaries, offers a range of financial products and services in Canada, the United States, and internationally, with a market cap of CA$148.29 billion.

Operations: Toronto-Dominion Bank's revenue segments include CA$17.77 billion from Canadian Personal and Commercial Banking, CA$12.75 billion from U.S. Retail, CA$12.20 billion from Wealth Management and Insurance, CA$6.76 billion from Wholesale Banking, and CA$1.19 billion from Corporate operations.

Dividend Yield: 4.8%

Toronto-Dominion Bank's dividends have been stable and growing over the past decade, but its high payout ratio of 92.7% raises concerns about sustainability. Recent earnings showed a net loss of C$181 million for Q3 2024, compared to a net income of C$2.88 billion last year, affecting dividend coverage. The bank's recent fixed-income offerings and executive changes could impact future financial stability and dividend reliability.

• Unlock comprehensive insights into our analysis of Toronto-Dominion Bank stock in this dividend report.
• Our valuation report here indicates Toronto-Dominion Bank may be overvalued.

Total Energy Services (TSX:TOT)

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

Overview: Total Energy Services Inc. operates as an energy services company primarily in Canada, the United States, and Australia with a market cap of CA$365.19 million.

Operations: Total Energy Services Inc. generates revenue through four primary segments: Well Servicing (CA$89.94 million), Contract Drilling Services (CA$299.62 million), Compression and Process Services (CA$393.38 million), and Rentals and Transportation Services (CA$80.86 million).

Dividend Yield: 3.9%

Total Energy Services has a volatile dividend history, with payments increasing over the past decade but remaining unreliable. Despite a low payout ratio of 32% and cash payout ratio of 25%, indicating dividends are well-covered by earnings and cash flows, its current yield of 3.88% is below the top quartile in Canada. Recent news includes a declared quarterly dividend of C$0.09 per share and strong Q2 earnings growth, with net income rising to C$15.47 million from C$6.2 million last year.

• Click here to discover the nuances of Total Energy Services with our detailed analytical dividend report.
• Insights from our recent valuation report point to the potential undervaluation of Total Energy Services shares in the market.

Make It Happen

• Unlock our comprehensive list of 31 Top TSX Dividend Stocks by clicking here.
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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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