3 High-Yielding TSX Dividend Stocks With Yields Up To 7.6%

The Canadian market has shown robust performance, with a 4.0% increase over the last week and a 12-month gain of 12%, alongside expectations for earnings to grow by 15% annually in the coming years. In this context, high-yielding dividend stocks can be particularly appealing for investors looking for potential income in addition to capital appreciation.

Top 10 Dividend Stocks In Canada

Name	Dividend Yield	Dividend Rating
Bank of Nova Scotia (TSX:BNS)	6.47%	★★★★★★
Whitecap Resources (TSX:WCP)	7.10%	★★★★★★
Secure Energy Services (TSX:SES)	3.40%	★★★★★☆
Boston Pizza Royalties Income Fund (TSX:BPF.UN)	8.13%	★★★★★☆
Enghouse Systems (TSX:ENGH)	3.30%	★★★★★☆
Royal Bank of Canada (TSX:RY)	3.76%	★★★★★☆
Firm Capital Mortgage Investment (TSX:FC)	8.59%	★★★★★☆
Russel Metals (TSX:RUS)	4.33%	★★★★★☆
Canadian Natural Resources (TSX:CNQ)	4.27%	★★★★★☆
Canadian Western Bank (TSX:CWB)	3.07%	★★★★★☆

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

Let's explore several standout options from the results in the screener.

Leon's Furniture (TSX:LNF)

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

Overview: Leon's Furniture Limited, a Canadian retailer specializing in home furnishings, mattresses, appliances, and electronics, has a market capitalization of approximately CA$1.57 billion.

Operations: Leon's Furniture Limited generates CA$2.50 billion in revenue primarily from the sale of home furnishings, mattresses, appliances, and electronics.

Dividend Yield: 3.1%

Leon's Furniture Limited, with a dividend of CA$0.18 per share as of June 2024, demonstrates moderate financial health in its recent earnings report. The company posted a revenue increase to CA$562.25 million and net income growth to CA$18.82 million in Q1 2024 compared to the previous year. Despite this positive trend, the dividend yield remains low at 3.09%, underperforming when compared to top Canadian dividend payers. Furthermore, recent executive changes, including new appointments for CFO and a board director position, signal potential shifts in corporate strategy which could impact future performance and stability of dividends that have shown volatility over the past decade.

• Click to explore a detailed breakdown of our findings in Leon's Furniture's dividend report.
• Insights from our recent valuation report point to the potential undervaluation of Leon's Furniture shares in the market.

PHX Energy Services (TSX:PHX)

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

Overview: PHX Energy Services Corp. offers horizontal and directional drilling services, rents out performance drilling motors, and sells equipment and parts to oil and natural gas companies across Canada, the U.S., Albania, the Middle East, and other global regions, with a market cap of approximately CA$463.78 million.

Operations: PHX Energy Services Corp. generates CA$656.44 million from its horizontal oil and natural gas well drilling services.

Dividend Yield: 7.7%

PHX Energy Services offers a 7.69% dividend yield, ranking well above the Canadian market average of 6.54%. Despite this, its dividends are not sustainably covered by earnings or free cash flow, with a high cash payout ratio of 138.2%. The company's dividend history shows volatility and unreliability over the past decade, although dividends have increased within that period. Recent affirmations include a quarterly cash dividend of CA$0.20 per share payable in July 2024, despite earnings declines noted in Q1 2024 reports with net income dropping to CA$17.45 million from CA$22.42 million year-over-year.

• Click here to discover the nuances of PHX Energy Services with our detailed analytical dividend report.
• Our valuation report unveils the possibility PHX Energy Services' shares may be trading at a discount.

Total Energy Services (TSX:TOT)

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

Overview: Total Energy Services Inc. is an energy services company with operations mainly in Canada, the United States, and Australia, boasting a market capitalization of approximately CA$369.82 million.

Operations: Total Energy Services Inc. generates revenue through four primary segments: Well Servicing (CA$93.37 million), Contract Drilling Services (CA$286.01 million), Compression and Process Services (CA$397.05 million), and Rentals and Transportation Services (CA$82.87 million).

Dividend Yield: 3.7%

Total Energy Services' recent dividend declaration of CA$0.09 per share, payable on July 15, 2024, reflects a stable quarterly commitment despite a drop in Q1 earnings from CA$24.04 million to CA$15.48 million year-over-year. With a payout ratio of 40% and cash payout ratio of 17.8%, dividends are well-covered by both earnings and cash flow, though the company's dividend yield at 3.73% trails the top Canadian payers at 6.54%. Historically, dividend reliability has been inconsistent over the past decade.

• Get an in-depth perspective on Total Energy Services' performance by reading our dividend report here.
• Our valuation report here indicates Total Energy Services may be undervalued.

Seize The Opportunity

• Click this link to deep-dive into the 34 companies within our Top TSX Dividend Stocks screener.
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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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