Top TSX Dividend Stocks To Consider In October 2024

In recent months, the Canadian market has been navigating a complex landscape shaped by shifting expectations around U.S. Federal Reserve policies and global economic trends, including concerns over inflation and productivity gains in the U.S. economy. As investors seek stability amidst these uncertainties, dividend stocks on the Toronto Stock Exchange (TSX) offer an attractive option for those looking to balance potential growth with steady income streams.

Top 10 Dividend Stocks In Canada

Name	Dividend Yield	Dividend Rating
Whitecap Resources (TSX:WCP)	6.98%	★★★★★★
Labrador Iron Ore Royalty (TSX:LIF)	8.11%	★★★★★☆
Power Corporation of Canada (TSX:POW)	5.02%	★★★★★☆
Russel Metals (TSX:RUS)	4.23%	★★★★★☆
Enghouse Systems (TSX:ENGH)	3.37%	★★★★★☆
Firm Capital Mortgage Investment (TSX:FC)	8.60%	★★★★★☆
Richards Packaging Income Fund (TSX:RPI.UN)	5.45%	★★★★★☆
Sun Life Financial (TSX:SLF)	4.10%	★★★★★☆
Royal Bank of Canada (TSX:RY)	3.30%	★★★★★☆
Canadian Natural Resources (TSX:CNQ)	4.38%	★★★★★☆

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

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

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$45.28 billion.

Operations: National Bank of Canada's revenue segments include Wealth Management at CA$2.70 billion, Personal and Commercial at CA$4.41 billion, Financial Markets (Excluding USSF&I) at CA$2.96 billion, and U.S. Specialty Finance and International (USSF&I) at CA$1.21 billion.

Dividend Yield: 3.3%

National Bank of Canada offers a stable and reliable dividend, with payments well-covered by earnings, reflected in a current payout ratio of 41%. The bank's dividends have been consistent over the past decade and are projected to remain sustainable. Recent financial results show an increase in net income to C$1.03 billion for Q3 2024, supporting its dividend strategy. However, its yield of 3.3% is below the top quartile of Canadian dividend payers.

• Unlock comprehensive insights into our analysis of National Bank of Canada stock in this dividend report.
• The analysis detailed in our National Bank of Canada valuation report hints at an deflated share price compared to its estimated value.

Power Corporation of Canada (TSX:POW)

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

Overview: Power Corporation of Canada is an international management and holding company providing financial services across North America, Europe, and Asia, with a market cap of CA$28.76 billion.

Operations: Power Corporation of Canada's revenue segments include Lifeco generating CA$26.23 billion, Power Financial - IGM contributing CA$3.65 billion, and their Holding Company segment adding CA$83 million, with an Effect of Consolidation adjustment of -CA$374 million.

Dividend Yield: 5%

Power Corporation of Canada maintains a reliable dividend history with stable payments over the past decade, supported by a low cash payout ratio of 33.4%, ensuring dividends are well-covered by cash flows. Despite its dividend yield of 5.02% being below the top quartile in Canada, recent earnings growth to C$743 million for Q2 2024 underscores financial strength. The stock is trading at a discount relative to its estimated fair value and peers, enhancing its appeal as a value investment.

• Take a closer look at Power Corporation of Canada's potential here in our dividend report.
• Upon reviewing our latest valuation report, Power Corporation of Canada's share price might be too pessimistic.

Hemisphere Energy (TSXV:HME)

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

Overview: Hemisphere Energy Corporation is involved in acquiring, exploring, developing, and producing petroleum and natural gas interests in Canada with a market cap of CA$181.86 million.

Operations: Hemisphere Energy Corporation generates revenue of CA$77.01 million from its petroleum and natural gas interests in Canada.

Dividend Yield: 8.6%

Hemisphere Energy's dividend yield is among the top 25% in Canada, supported by a low payout ratio of 33.6%, indicating strong earnings coverage. Recent financials show robust growth, with Q2 net income rising to C$10.39 million from C$5.79 million year-over-year. Despite only two years of dividend history, payments have been stable and recently enhanced by a special dividend announcement, reflecting shareholder-friendly policies amidst ongoing share buybacks totaling C$5.66 million since mid-2023.

• Delve into the full analysis dividend report here for a deeper understanding of Hemisphere Energy.
• According our valuation report, there's an indication that Hemisphere Energy's share price might be on the expensive side.

Next Steps

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Ready To Venture Into Other Investment Styles?

• 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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