Top TSX Dividend Stocks To Watch In February 2025

February 18, 2025

As we move into February 2025, the Canadian market is navigating a complex landscape marked by persistent inflation and solid corporate earnings, while European markets quietly outperform expectations. In this environment of crosscurrents, dividend stocks stand out as attractive options for investors seeking stability and income, offering potential resilience amid shifting economic conditions.

Top 10 Dividend Stocks In Canada

Name	Dividend Yield	Dividend Rating
Whitecap Resources (TSX:WCP)	7.51%	★★★★★★
Russel Metals (TSX:RUS)	3.92%	★★★★★☆
Canadian Imperial Bank of Commerce (TSX:CM)	4.41%	★★★★★☆
Savaria (TSX:SIS)	3.01%	★★★★★☆
Royal Bank of Canada (TSX:RY)	3.51%	★★★★★☆
IGM Financial (TSX:IGM)	5.01%	★★★★★☆
Canadian Natural Resources (TSX:CNQ)	4.92%	★★★★★☆
Power Corporation of Canada (TSX:POW)	4.72%	★★★★★☆
Firm Capital Mortgage Investment (TSX:FC)	8.26%	★★★★★☆
Acadian Timber (TSX:ADN)	6.65%	★★★★★☆

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

Here we highlight a subset of our preferred stocks from the screener.

Amerigo Resources (TSX:ARG)

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

Overview: Amerigo Resources Ltd., operating through its subsidiary Minera Valle Central S.A., focuses on producing and selling copper and molybdenum concentrates from Codelco’s El Teniente underground mine in Chile, with a market cap of CA$301.10 million.

Operations: Amerigo Resources Ltd. generates revenue primarily from the production of copper concentrates under a tolling agreement with DET, amounting to $184.41 million.

Dividend Yield: 6.4%

Amerigo Resources offers a dividend yield of 6.38%, placing it among the top 25% of Canadian dividend payers. The company has a reasonable payout ratio of 72.7%, indicating dividends are covered by earnings, and a cash payout ratio of 35.3%, ensuring coverage by cash flows. However, its dividend history is brief and volatile, having been paid for only three years with periods of significant drops in payments, raising concerns about reliability despite recent production growth and share buyback initiatives.

Savaria (TSX:SIS)

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

Overview: Savaria Corporation offers accessibility solutions for the elderly and physically challenged across Canada, the United States, Europe, and internationally, with a market cap of CA$1.28 billion.

Operations: Savaria Corporation's revenue segments include Patient Care, generating CA$184.01 million, with a Segment Adjustment of CA$677.25 million.

Dividend Yield: 3%

Savaria Corporation maintains a stable dividend policy, consistently declaring monthly dividends of 4.5 cents (C$0.045) per share. The company ensures dividend sustainability with an earnings payout ratio of 80.2% and a cash payout ratio of 37.3%, indicating coverage by both profits and cash flows. While its yield is modest at 3.01%, below the top Canadian payers, Savaria's dividends have been reliable over the past decade, supported by consistent earnings growth and low volatility in payments.

Total Energy Services (TSX:TOT)

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

Overview: Total Energy Services Inc. is an energy services company operating in Canada, the United States, and Australia with a market cap of CA$428.93 million.

Operations: Total Energy Services Inc. generates its revenue from four main segments: Well Servicing (CA$91.14 million), Contract Drilling Services (CA$310.43 million), Compression and Process Services (CA$392.99 million), and Rentals and Transportation Services (CA$79.16 million).

Dividend Yield: 3.2%

Total Energy Services' dividend payments have been volatile over the past decade, with recent affirmations of a quarterly CAD 0.09 per share dividend. Despite this instability, dividends are well-covered by earnings and cash flows, with payout ratios at 32.3% and 14.2%, respectively. Trading significantly below its estimated fair value enhances its appeal for value investors; however, its current yield of 3.21% is lower than Canada's top dividend payers at 6.37%.

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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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