Stock Analysis

Top TSX Dividend Stocks For June 2024

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Over the past week, the Canadian market has experienced a 2.6% decline, yet it maintains an upward trajectory with an 8.0% increase over the past year and earnings expected to grow by 15% annually. In this context, selecting dividend stocks that offer stability and potential for steady income can be particularly appealing to investors navigating these fluctuating conditions.

Top 10 Dividend Stocks In Canada

NameDividend YieldDividend Rating
Bank of Nova Scotia (TSX:BNS)6.66%★★★★★★
Whitecap Resources (TSX:WCP)7.46%★★★★★★
Enghouse Systems (TSX:ENGH)3.43%★★★★★☆
Boston Pizza Royalties Income Fund (TSX:BPF.UN)8.51%★★★★★☆
Secure Energy Services (TSX:SES)3.36%★★★★★☆
Canadian Natural Resources (TSX:CNQ)4.54%★★★★★☆
Royal Bank of Canada (TSX:RY)3.99%★★★★★☆
Russel Metals (TSX:RUS)4.49%★★★★★☆
Canadian Western Bank (TSX:CWB)3.35%★★★★★☆
Firm Capital Mortgage Investment (TSX:FC)9.34%★★★★★☆

Click here to see the full list of 32 stocks from our Top TSX Dividend Stocks screener.

We're going to check out a few of the best picks from our screener tool.

Enghouse Systems (TSX:ENGH)

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

Overview: Enghouse Systems Limited operates globally, developing enterprise software solutions with a market capitalization of approximately CA$1.69 billion.

Operations: Enghouse Systems Limited generates revenue through two primary segments: the Asset Management Group, which brought in CA$180.88 million, and the Interactive Management Group, with revenues of CA$299.55 million.

Dividend Yield: 3.4%

Enghouse Systems Limited, a Canadian software company, has demonstrated solid financial performance with a significant increase in both quarterly and half-yearly revenues and net incomes as of April 2024. The firm continues to pay a stable quarterly dividend of CA$0.26 per share, affirming its commitment on June 10, 2024. Additionally, Enghouse supports shareholder value through an active share repurchase program, buying back shares worth CA$1.63 million recently. Despite its dividends being lower than the top quartile in the market at 3.43%, they are well-covered by earnings and cash flows with payout ratios of 65.7% and 45.8% respectively, indicating sustainability.

TSX:ENGH Dividend History as at Jun 2024
TSX:ENGH Dividend History as at Jun 2024

High Liner Foods (TSX:HLF)

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

Overview: High Liner Foods Incorporated, with a market capitalization of CA$397.70 million, is engaged in processing and marketing frozen seafood products across North America.

Operations: High Liner Foods generates CA$1.03 billion from the manufacturing and marketing of prepared and packaged frozen seafood.

Dividend Yield: 4.5%

High Liner Foods, trading significantly below its estimated fair value, offers a modest dividend yield of 4.51% with a secure payout ratio of 41.5%. Despite lower profit margins year-over-year and insufficient earnings to cover interest payments, dividends are well-supported by cash flows (cash payout ratio: 8%). Recent strategic moves include appointing a new CFO with extensive growth-oriented experience and initiating a share buyback program to repurchase up to 700,000 shares by June 2025.

TSX:HLF Dividend History as at Jun 2024
TSX:HLF Dividend History as at Jun 2024

Richards Packaging Income Fund (TSX:RPI.UN)

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

Overview: Richards Packaging Income Fund, operating in North America, specializes in the design, manufacture, and distribution of packaging containers and healthcare supplies with a market capitalization of approximately CA$326.68 million.

Operations: Richards Packaging Income Fund generates its revenue primarily through its wholesale segment, which accounted for CA$416.97 million.

Dividend Yield: 5.7%

Richards Packaging Income Fund, with a dividend yield of 5.69%, demonstrates consistent financial commitment to its unitholders through regular monthly distributions of CAD 0.11 per unit, as reaffirmed in recent announcements. Despite a slight decline in quarterly sales and net income, the fund's dividends are sustainably covered by earnings (payout ratio: 38.5%) and cash flows (cash payout ratio: 24.7%). However, its dividend yield remains below the top quartile of Canadian dividend payers at 6.39%.

TSX:RPI.UN Dividend History as at Jun 2024
TSX:RPI.UN Dividend History as at Jun 2024

Where To Now?

  • Reveal the 32 hidden gems among our Top TSX Dividend Stocks screener with a single click here.
  • Got skin in the game with these stocks? Elevate how you manage them by using Simply Wall St's portfolio, where intuitive tools await to help optimize your investment outcomes.
  • Elevate your portfolio with Simply Wall St, the ultimate app for investors seeking global market coverage.

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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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