Amidst a backdrop of economic uncertainty, highlighted by the Bank of Canada's recent rate cut due to potential U.S. tariffs and a contraction in Canada's GDP for November, investors are increasingly seeking stable income sources. In such volatile times, dividend stocks can offer attractive yields and serve as a buffer against market fluctuations; here we explore three TSX-listed companies yielding up to 8.4%.
Top 10 Dividend Stocks In Canada
| Name | Dividend Yield | Dividend Rating |
| Whitecap Resources (TSX:WCP) | 7.54% | ★★★★★★ |
| Acadian Timber (TSX:ADN) | 6.50% | ★★★★★★ |
| Olympia Financial Group (TSX:OLY) | 6.66% | ★★★★★☆ |
| Great-West Lifeco (TSX:GWO) | 4.24% | ★★★★★☆ |
| Russel Metals (TSX:RUS) | 4.12% | ★★★★★☆ |
| Power Corporation of Canada (TSX:POW) | 4.81% | ★★★★★☆ |
| Royal Bank of Canada (TSX:RY) | 3.46% | ★★★★★☆ |
| Canadian Natural Resources (TSX:CNQ) | 4.78% | ★★★★★☆ |
| Firm Capital Mortgage Investment (TSX:FC) | 8.35% | ★★★★★☆ |
| Sun Life Financial (TSX:SLF) | 3.99% | ★★★★★☆ |
Click here to see the full list of 29 stocks from our Top TSX Dividend Stocks screener.
Let's take a closer look at a couple of our picks from the screened companies.
Great-West Lifeco (TSX:GWO)
Simply Wall St Dividend Rating: ★★★★★☆
Overview: Great-West Lifeco Inc. operates in life and health insurance, retirement and investment services, asset management, and reinsurance across Canada, the United States, and Europe with a market cap of CA$44.23 billion.
Operations: Great-West Lifeco Inc.'s revenue segments include life and health insurance, retirement and investment services, asset management, and reinsurance operations across its key markets.
Dividend Yield: 4.2%
Great-West Lifeco recently reported a significant increase in net income to C$4.07 billion, supporting its dividend strategy. The company approved a quarterly dividend increase to C$0.61 per share, reflecting its commitment to returning value to shareholders. With a payout ratio of 56% and cash payout ratio of 43.5%, dividends are well-covered by earnings and cash flows, respectively. Despite trading below fair value estimates, its 4.24% yield is lower than top-tier Canadian dividend payers.
- Click to explore a detailed breakdown of our findings in Great-West Lifeco's dividend report.
- The analysis detailed in our Great-West Lifeco valuation report hints at an deflated share price compared to its estimated value.
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$464.49 million.
Operations: High Liner Foods generates its revenue primarily from the manufacturing and marketing of prepared and packaged frozen seafood, amounting to $961.30 million.
Dividend Yield: 4.2%
High Liner Foods' dividend payments are well covered by both earnings and cash flows, with payout ratios of 24.3% and 12.2%, respectively, despite a history of volatility. The recent increase in quarterly dividends to C$0.17 reflects management's confidence in operations, although the dividend yield of 4.17% remains below top-tier Canadian stocks. Recent earnings reports show improved net income amidst declining sales, while an expanded share buyback plan indicates strategic capital allocation efforts.
- Click here and access our complete dividend analysis report to understand the dynamics of High Liner Foods.
- Our comprehensive valuation report raises the possibility that High Liner Foods is priced lower than what may be justified by its financials.
Peyto Exploration & Development (TSX:PEY)
Simply Wall St Dividend Rating: ★★★★☆☆
Overview: Peyto Exploration & Development Corp. is an energy company focused on the exploration, development, and production of natural gas, oil, and natural gas liquids in Alberta's Deep Basin with a market cap of CA$3.13 billion.
Operations: Peyto Exploration & Development Corp.'s revenue primarily comes from its oil and gas exploration and production segment, totaling CA$900.94 million.
Dividend Yield: 8.5%
Peyto Exploration & Development's dividend, recently affirmed at C$0.11 per share, remains in the top 25% of Canadian dividend payers but is not well covered by cash flows, with a high payout ratio of 125.5%. Despite a history of volatility and significant insider selling, the company reported increased natural gas and NGL production for Q3 2024. However, its financial position is strained by high debt levels, affecting dividend sustainability.
- Navigate through the intricacies of Peyto Exploration & Development with our comprehensive dividend report here.
- Our valuation report unveils the possibility Peyto Exploration & Development's shares may be trading at a discount.
Taking Advantage
- Get an in-depth perspective on all 29 Top TSX Dividend Stocks by using our screener here.
- Already own these companies? Bring clarity to your investment decisions by linking up your portfolio with Simply Wall St, where you can monitor all the vital signs of your stocks effortlessly.
- Join a community of smart investors by using Simply Wall St. It's free and delivers expert-level analysis on worldwide markets.
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.
Valuation is complex, but we're here to simplify it.
Discover if High Liner Foods might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.
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