3 Promising TSX Dividend Stocks Offering Yields Up To 8.3%

As the Canadian market continues its impressive recovery, with the TSX gaining 67% since October 2022, investors are closely watching how ongoing trade tensions and interest rate policies might influence future growth. In this environment, dividend stocks stand out as a compelling option for those seeking steady income and potential resilience amid economic uncertainties.

Top 10 Dividend Stocks In Canada

Click here to see the full list of 22 stocks from our Top TSX Dividend Stocks screener.

Let's uncover some gems from our specialized screener.

Sun Life Financial (TSX:SLF)

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

Overview: Sun Life Financial Inc. is a financial services company offering asset management, wealth, insurance, and health solutions to individual and institutional customers across various countries including Canada, the US, and several Asian markets with a market cap of CA$48.54 billion.

Operations: Sun Life Financial Inc. generates revenue from various segments including Asia (CA$2.16 billion), Canada (CA$11.63 billion), Asset Management (CA$6.80 billion), and the United States (CA$13.85 billion).

Dividend Yield: 4.1%

Sun Life Financial provides a reliable dividend yield of 4.09%, supported by a sustainable payout ratio of 59.7% and cash flow coverage at 47.5%. Recent strategic moves, including expanding Family Leave Insurance in the U.S., enhance its market position and potentially support future earnings growth, which has been stable with a recent increase of 4.7%. While not among the highest-yielding stocks in Canada, Sun Life's consistent dividend history adds appeal for income-focused investors.

• Get an in-depth perspective on Sun Life Financial's performance by reading our dividend report here.
• In light of our recent valuation report, it seems possible that Sun Life Financial is trading behind its estimated value.

Suncor Energy (TSX:SU)

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

Overview: Suncor Energy Inc. is an integrated energy company operating in Canada, the United States, and internationally with a market cap of CA$67.03 billion.

Operations: Suncor Energy Inc.'s revenue is primarily generated from its Oil Sands segment at CA$25.21 billion, Refining and Marketing at CA$30.61 billion, and Exploration and Production at CA$2.12 billion.

Dividend Yield: 4.1%

Suncor Energy's dividend yield of 4.09% is below the top 25% of Canadian dividend payers, with a history of volatility over the past decade. Despite this, dividends are well-covered by earnings and cash flows, with payout ratios at 49.5% and 32.8%, respectively. Recent executive changes and share buybacks totaling CAD 1.25 billion demonstrate ongoing strategic adjustments, while recent earnings showed a decline in revenue and net income compared to last year.

• Unlock comprehensive insights into our analysis of Suncor Energy stock in this dividend report.
• Our valuation report here indicates Suncor Energy may be undervalued.

Alphamin Resources (TSXV:AFM)

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

Overview: Alphamin Resources Corp., along with its subsidiaries, is involved in the production and sale of tin concentrate, with a market cap of CA$1.34 billion.

Operations: The company's revenue is primarily derived from the production and sale of tin from its Bisie Tin Mine, amounting to $579.49 million.

Dividend Yield: 8.3%

Alphamin Resources offers a dividend yield of 8.35%, placing it in the top 25% of Canadian dividend payers. Its dividends are covered by earnings and cash flows, with payout ratios of 76.2% and 50.9%, respectively, but have been volatile over its short payment history. Recent production results showed increased tin output following operational disruptions, while board changes reflect strategic shifts under new majority ownership by International Resources Holding's subsidiary, Alpha Mining Ltd.

• Navigate through the intricacies of Alphamin Resources with our comprehensive dividend report here.
• Insights from our recent valuation report point to the potential undervaluation of Alphamin Resources shares in the market.

Taking Advantage

• Get an in-depth perspective on all 22 Top TSX Dividend Stocks by using our screener here.
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Interested In Other Possibilities?

• 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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