Top TSX Dividend Stocks Including High Liner Foods

As the Canadian TSX has experienced a robust 14% increase over the first three quarters of the year, recent market volatility has been influenced by uncertainties surrounding the U.S. labor market, geopolitical tensions in the Middle East, and upcoming political events. In such an environment, dividend stocks can offer a measure of stability and income potential for investors seeking to navigate these uncertain times.

Top 10 Dividend Stocks In Canada

Name	Dividend Yield	Dividend Rating
Whitecap Resources (TSX:WCP)	6.81%	★★★★★★
Labrador Iron Ore Royalty (TSX:LIF)	7.85%	★★★★★☆
Power Corporation of Canada (TSX:POW)	5.16%	★★★★★☆
Russel Metals (TSX:RUS)	4.17%	★★★★★☆
Enghouse Systems (TSX:ENGH)	3.28%	★★★★★☆
Firm Capital Mortgage Investment (TSX:FC)	8.62%	★★★★★☆
Canadian Natural Resources (TSX:CNQ)	4.19%	★★★★★☆
Sun Life Financial (TSX:SLF)	4.14%	★★★★★☆
Royal Bank of Canada (TSX:RY)	3.39%	★★★★★☆
IGM Financial (TSX:IGM)	5.43%	★★★★★☆

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

Here's a peek at a few of the choices from the screener.

High Liner Foods (TSX:HLF)

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

Overview: High Liner Foods Incorporated processes and markets frozen seafood products in North America, with a market cap of CA$402.64 million.

Operations: High Liner Foods generates revenue primarily through its manufacturing and marketing of prepared and packaged frozen seafood, amounting to $992.12 million.

Dividend Yield: 4.5%

High Liner Foods offers a dividend of CAD 0.15 per share, with strong coverage from both earnings and cash flows, reflected in payout ratios of 30.2% and 8.3%, respectively. Despite recent earnings growth and a history of increasing dividends over the past decade, its dividend yield is lower than top Canadian payers at 4.47%. The company's financial position is impacted by high debt levels, although recent refinancing may alleviate some pressure on interest expenses.

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

IGM Financial (TSX:IGM)

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

Overview: IGM Financial Inc. is a Canadian wealth and asset management company with a market cap of CA$9.72 billion.

Operations: IGM Financial Inc.'s revenue is primarily derived from its Asset Management segment, contributing CA$1.21 billion, and its Wealth Management segment, which adds CA$2.30 billion.

Dividend Yield: 5.4%

IGM Financial maintains a stable dividend history, with consistent growth over the past decade. Its current dividend yield of 5.43% is below the top Canadian payers but remains attractive for income-focused investors. The payout ratios of 62.9% from earnings and 70.8% from cash flows indicate dividends are well-covered, suggesting sustainability. Recent buybacks and improved quarterly earnings further support this stability, although revenue for the first half of 2024 showed a slight decline year-over-year.

• Take a closer look at IGM Financial's potential here in our dividend report.
• In light of our recent valuation report, it seems possible that IGM Financial is trading behind its estimated value.

PHX Energy Services (TSX:PHX)

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

Overview: PHX Energy Services Corp. offers horizontal and directional drilling services, rents performance drilling motors, and sells motor equipment and parts to oil and natural gas companies in Canada, the United States, Albania, the Middle East regions, and internationally with a market cap of CA$449.03 million.

Operations: PHX Energy Services Corp. generates revenue primarily through its horizontal oil and natural gas well drilling services, which amounted to CA$655.05 million.

Dividend Yield: 8.1%

PHX Energy Services offers a high dividend yield of 8.12%, placing it in the top 25% of Canadian payers, but its dividends have been volatile and not well covered by cash flows, with a high cash payout ratio of 124.6%. Recent buyback initiatives aim to enhance shareholder value despite declining earnings and sales for the first half of 2024. The company declared a quarterly dividend of C$0.20 per share, payable on October 15, 2024.

• Navigate through the intricacies of PHX Energy Services with our comprehensive dividend report here.
• Our comprehensive valuation report raises the possibility that PHX Energy Services is priced lower than what may be justified by its financials.

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Seeking Other Investments?

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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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