Top TSX Dividend Stocks To Watch In August 2024

As the Canadian market navigates a period of economic recalibration, characterized by easing inflation and cautious central bank policies, investors are increasingly looking toward dividend stocks for stability and income. In this environment, selecting strong dividend-paying stocks can be a prudent strategy to balance growth potential with reliable returns.

Top 10 Dividend Stocks In Canada

Name	Dividend Yield	Dividend Rating
Bank of Nova Scotia (TSX:BNS)	6.70%	★★★★★★
Whitecap Resources (TSX:WCP)	7.38%	★★★★★★
Secure Energy Services (TSX:SES)	3.38%	★★★★★☆
Enghouse Systems (TSX:ENGH)	3.45%	★★★★★☆
Russel Metals (TSX:RUS)	4.35%	★★★★★☆
Canadian Natural Resources (TSX:CNQ)	4.54%	★★★★★☆
Royal Bank of Canada (TSX:RY)	3.81%	★★★★★☆
Firm Capital Mortgage Investment (TSX:FC)	8.85%	★★★★★☆
Sun Life Financial (TSX:SLF)	4.87%	★★★★★☆
Canadian Western Bank (TSX:CWB)	3.01%	★★★★★☆

Click here to see the full list of 34 stocks from our Top TSX Dividend Stocks screener.

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

Centerra Gold (TSX:CG)

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

Overview: Centerra Gold Inc. is a gold mining company involved in the acquisition, exploration, development, and operation of gold and copper properties in North America, Turkey, and internationally with a market cap of CA$1.98 billion.

Operations: Centerra Gold Inc. generates revenue through its gold and copper mining operations across various international locations, including North America and Turkey.

Dividend Yield: 3%

Centerra Gold Inc. reported strong earnings for Q2 2024, with net income of US$37.67 million compared to a net loss a year ago, and announced a quarterly dividend of CAD 0.07 per share. Despite an unstable dividend history, the company's dividends are well-covered by earnings and cash flows with low payout ratios (39% and 13.9%, respectively). However, its dividend yield (3.02%) is lower than the top Canadian payers' average (6.29%).

• Click to explore a detailed breakdown of our findings in Centerra Gold's dividend report.
• Our expertly prepared valuation report Centerra Gold implies its share price may be lower than expected.

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 exploration companies across Canada, the United States, Albania, the Middle East regions, and internationally with a market cap of CA$467.55 million.

Operations: PHX Energy Services Corp. generates CA$656.44 million from horizontal oil and natural gas well drilling services.

Dividend Yield: 8.1%

PHX Energy Services Corp. declared a quarterly dividend of C$0.20 per share, payable on July 15, 2024. Despite a high dividend yield of 8.07%, the payout is not well covered by free cash flows (cash payout ratio: 138.2%) and has been volatile over the past decade with instances of significant annual drops. The company’s earnings for Q1 2024 showed a slight increase in sales but a decrease in net income compared to the previous year, reflecting potential challenges in sustaining future dividends at current levels.

• Unlock comprehensive insights into our analysis of PHX Energy Services stock in this dividend report.
• Insights from our recent valuation report point to the potential undervaluation of PHX Energy Services shares in the market.

Russel Metals (TSX:RUS)

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

Overview: Russel Metals Inc. operates as a metal distribution and processing company in Canada and the United States with a market cap of CA$2.26 billion.

Operations: Russel Metals Inc. generates revenue primarily from its Metals Service Centers (CA$2.84 billion), Energy Field Stores (CA$984 million), and Steel Distributors (CA$413.80 million) segments.

Dividend Yield: 4.4%

Russel Metals Inc. declared a dividend of C$0.42 per share, payable on September 16, 2024. Despite a decline in Q2 sales to C$1.07 billion and net income to C$49.9 million compared to the previous year, the company maintains a reliable dividend history with stable payments over the past decade. The dividend is well-covered by earnings (47.2% payout ratio) and cash flows (40.4% cash payout ratio), making it sustainable despite recent financial performance fluctuations.

• Navigate through the intricacies of Russel Metals with our comprehensive dividend report here.
• The valuation report we've compiled suggests that Russel Metals' current price could be quite moderate.

Seize The Opportunity

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Searching for a Fresh Perspective?

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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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