3 TSX Dividend Stocks With Yields Ranging From 3.5% To 9%

July 08, 2024

As central banks, including the Bank of Canada, adjust interest rates in response to shifting economic indicators such as inflation and employment, investors might look for stable income opportunities amidst market fluctuations. In this context, dividend stocks can be particularly appealing, offering potential regular income streams and a degree of insulation against market volatility.

Top 10 Dividend Stocks In Canada

Name	Dividend Yield	Dividend Rating
Bank of Nova Scotia (TSX:BNS)	6.88%	★★★★★★
Whitecap Resources (TSX:WCP)	7.19%	★★★★★★
Secure Energy Services (TSX:SES)	3.35%	★★★★★☆
Boston Pizza Royalties Income Fund (TSX:BPF.UN)	8.48%	★★★★★☆
Enghouse Systems (TSX:ENGH)	3.39%	★★★★★☆
Royal Bank of Canada (TSX:RY)	3.83%	★★★★★☆
Firm Capital Mortgage Investment (TSX:FC)	9.02%	★★★★★☆
Canadian Western Bank (TSX:CWB)	3.20%	★★★★★☆
Russel Metals (TSX:RUS)	4.67%	★★★★★☆
Canadian Natural Resources (TSX:CNQ)	4.28%	★★★★★☆

Click here to see the full list of 33 stocks from our Top TSX Dividend Stocks screener.

Underneath we present a selection of stocks filtered out by our screen.

Evertz Technologies (TSX:ET)

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

Overview: Evertz Technologies Limited specializes in designing, manufacturing, and distributing video and audio infrastructure solutions for the production, post-production, broadcast, and telecommunications sectors globally, with a market cap of approximately CA$951.29 million.

Operations: Evertz Technologies Limited generates CA$514.62 million in revenue from its television broadcast equipment market.

Dividend Yield: 6.2%

Evertz Technologies recently declared a quarterly dividend of CA$0.195, consistent with previous quarters, despite a decrease in Q4 sales to CA$122.77 million and net income to CA$13.76 million from the prior year. Annually, sales rose to CA$514.62 million with net income at CA$70.17 million, reflecting some earnings growth. However, the company's dividend history shows volatility and its yield of 6.25% is below the top Canadian payers' average of 6.57%. Trading at 49.5% below estimated fair value suggests potential undervaluation relative to peers.

K-Bro Linen (TSX:KBL)

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

Overview: K-Bro Linen Inc. operates in Canada and the United Kingdom, offering laundry and linen services to healthcare institutions, hotels, and other commercial organizations, with a market capitalization of approximately CA$349.49 million.

Operations: K-Bro Linen Inc. generates CA$330.33 million in revenue primarily from its laundry and linen services catering to the healthcare and hospitality sectors.

Dividend Yield: 3.6%

K-Bro Linen maintains a consistent dividend payout with a 3.59% yield, slightly lower than the top Canadian dividend payers. The company's dividends are well-supported by earnings and cash flow, with payout ratios of 73.2% and 38.5%, respectively, indicating sustainability. Recent activities include regular dividend affirmations and a share buyback program, signaling confidence in financial stability despite modest recent earnings growth of 18.06% per year forecasted and actual earnings growth of 174.1% last year.

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 capitalization of CA$2.83 billion.

Operations: Peyto Exploration & Development Corp. primarily generates its revenue from the exploration and production of oil and gas, which amounted to CA$876.26 million.

Dividend Yield: 9.1%

Peyto Exploration & Development's recent extension of its $1 billion credit facilities underscores a solid liquidity position, crucial for sustaining its dividends amidst a challenging cash flow environment. However, the company's dividend sustainability is questionable with a high cash payout ratio of 102.7% and coverage issues indicated by both earnings and free cash flows. Despite this, Peyto maintains a competitive 9.09% yield, attractive in the Canadian market but paired with historical volatility in payouts.

Summing It All Up

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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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