Top 3 TSX Dividend Stocks For Your Portfolio

The Canadian economy has shown resilience, with strong consumer spending bolstered by positive wage growth and stable market conditions, despite challenges like elevated inflation and higher interest rates. In this environment, dividend stocks can be an attractive option for investors seeking steady income streams, as they often represent companies with solid financial health and the ability to navigate economic fluctuations.

Top 10 Dividend Stocks In Canada

Name	Dividend Yield	Dividend Rating
Whitecap Resources (TSX:WCP)	7.39%	★★★★★★
Acadian Timber (TSX:ADN)	6.41%	★★★★★★
Olympia Financial Group (TSX:OLY)	6.77%	★★★★★☆
Canadian Natural Resources (TSX:CNQ)	4.66%	★★★★★☆
Royal Bank of Canada (TSX:RY)	3.34%	★★★★★☆
Power Corporation of Canada (TSX:POW)	4.84%	★★★★★☆
Russel Metals (TSX:RUS)	3.74%	★★★★★☆
Enghouse Systems (TSX:ENGH)	3.31%	★★★★★☆
Firm Capital Mortgage Investment (TSX:FC)	8.24%	★★★★★☆
Sun Life Financial (TSX:SLF)	3.91%	★★★★★☆

Click here to see the full list of 30 stocks from our Top TSX Dividend Stocks screener.

Let's review some notable picks from our screened stocks.

Centerra Gold (TSX:CG)

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

Overview: Centerra Gold Inc. is a gold mining company involved in acquiring, exploring, developing, and operating gold and copper properties in North America, Turkey, and internationally with a market cap of CA$1.82 billion.

Operations: Centerra Gold Inc.'s revenue segments include Öksüt at $559.44 million, Molybdenum at $232.42 million, and Mount Milligan at $460.21 million.

Dividend Yield: 3.3%

Centerra Gold offers a mixed dividend profile with its quarterly CAD 0.07 per share payout covered by earnings and cash flows, reflected in a payout ratio of 43.7% and cash payout ratio of 20.5%. However, the dividend yield of 3.34% falls below top Canadian payers, and its track record is volatile over the past decade. Recent buybacks signal shareholder returns focus, yet insider selling raises caution for long-term stability.

• Delve into the full analysis dividend report here for a deeper understanding of Centerra Gold.
• Upon reviewing our latest valuation report, Centerra Gold's share price might be too pessimistic.

National Bank of Canada (TSX:NA)

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

Overview: National Bank of Canada offers financial services to individuals, businesses, institutional clients, and governments both domestically and internationally, with a market cap of CA$46.92 billion.

Operations: National Bank of Canada's revenue is primarily derived from its Personal and Commercial segment at CA$4.34 billion, followed by Financial Markets at CA$2.98 billion, Wealth Management at CA$2.79 billion, and U.S. Specialty Finance and International at CA$1.23 billion.

Dividend Yield: 3.4%

National Bank of Canada maintains a reliable dividend profile, increasing its quarterly dividend by 4 cents to CAD 1.14 per share, payable February 2025. With a payout ratio of 40.1%, dividends are well-covered by earnings and expected to remain sustainable over the next three years. Despite being below top-tier yields in Canada, the bank's dividends have shown stability and growth over the past decade, supported by recent strong earnings performance with CAD 955 million net income in Q4 2024.

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

Hemisphere Energy (TSXV:HME)

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

Overview: Hemisphere Energy Corporation is involved in the acquisition, exploration, development, and production of petroleum and natural gas interests in Canada, with a market cap of CA$185.31 million.

Operations: Hemisphere Energy's revenue primarily comes from its petroleum and natural gas interests, totaling CA$78.57 million.

Dividend Yield: 8.6%

Hemisphere Energy offers a compelling dividend yield at 8.56%, ranking in the top 25% of Canadian dividend payers. Its dividends are well-covered by earnings (33.2% payout ratio) and cash flows (57.6% cash payout ratio), though it has a shorter dividend history, having paid dividends for only three years. Recent financial results show increased revenue to C$60.09 million for the first nine months of 2024, supporting its ability to maintain stable payouts amidst declining forecasted earnings growth.

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

Key Takeaways

• Unlock our comprehensive list of 30 Top TSX Dividend Stocks by clicking here.
• Are any of these part of your asset mix? Tap into the analytical power of Simply Wall St's portfolio to get a 360-degree view on how they're shaping up.
• Simply Wall St is a revolutionary app designed for long-term stock investors, it's free and covers every market in the world.

Curious About Other Options?

• 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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