In the last week, the Canadian market has stayed flat, but it has seen a robust 22% increase over the past year with earnings expected to grow by 16% annually in the coming years. In this context, identifying dividend stocks with attractive yields can be a strategic way for investors to potentially benefit from both income and growth opportunities.
Top 10 Dividend Stocks In Canada
| Name | Dividend Yield | Dividend Rating |
| Whitecap Resources (TSX:WCP) | 6.99% | ★★★★★★ |
| Acadian Timber (TSX:ADN) | 6.55% | ★★★★★★ |
| Power Corporation of Canada (TSX:POW) | 4.84% | ★★★★★☆ |
| Enghouse Systems (TSX:ENGH) | 3.57% | ★★★★★☆ |
| Firm Capital Mortgage Investment (TSX:FC) | 8.62% | ★★★★★☆ |
| IGM Financial (TSX:IGM) | 4.79% | ★★★★★☆ |
| Canadian Natural Resources (TSX:CNQ) | 4.45% | ★★★★★☆ |
| Russel Metals (TSX:RUS) | 3.88% | ★★★★★☆ |
| Royal Bank of Canada (TSX:RY) | 3.34% | ★★★★★☆ |
| Sun Life Financial (TSX:SLF) | 3.95% | ★★★★★☆ |
Click here to see the full list of 29 stocks from our Top TSX Dividend Stocks screener.
Underneath we present a selection of stocks filtered out by our screen.
Canadian Imperial Bank of Commerce (TSX:CM)
Simply Wall St Dividend Rating: ★★★★★☆
Overview: Canadian Imperial Bank of Commerce is a diversified financial institution offering a range of financial products and services to personal, business, public sector, and institutional clients in Canada, the United States, and internationally with a market cap of CA$84.87 billion.
Operations: Canadian Imperial Bank of Commerce generates its revenue from Canadian Personal and Business Banking (CA$8.80 billion), Capital Markets and Direct Financial Services (CA$5.61 billion), U.S. Commercial Banking and Wealth Management (CA$2.02 billion), and Canadian Commercial Banking and Wealth Management (CA$5.46 billion).
Dividend Yield: 4%
Canadian Imperial Bank of Commerce (CIBC) offers a stable dividend yield of 3.97%, though it is lower than the top 25% of Canadian dividend payers. The bank's dividends have been reliable and growing over the past decade, supported by a sustainable payout ratio currently at 51.7%. Recent earnings growth of 44.8% strengthens its capacity to maintain dividends, despite recent insider selling activity and trading below estimated fair value by approximately 42.9%.
- Click here to discover the nuances of Canadian Imperial Bank of Commerce with our detailed analytical dividend report.
- Our comprehensive valuation report raises the possibility that Canadian Imperial Bank of Commerce is priced lower than what may be justified by its financials.
Evertz Technologies (TSX:ET)
Simply Wall St Dividend Rating: ★★★★☆☆
Overview: Evertz Technologies Limited designs, manufactures, and distributes video and audio infrastructure solutions for production, post-production, broadcast, and telecommunications markets globally with a market cap of CA$924.54 million.
Operations: Evertz Technologies Limited generates revenue from its Television Broadcast Equipment Market segment, which amounts to CA$500.44 million.
Dividend Yield: 6.5%
Evertz Technologies offers a high dividend yield of 6.46%, ranking in the top 25% of Canadian dividend payers, but the sustainability is questionable due to a high payout ratio of 92.4%. Although dividends have increased over the past decade, they have been volatile and not well covered by earnings. Despite trading at a good value, recent declines in sales and net income may impact future payouts. Dividends are currently supported by cash flows with a reasonable cash payout ratio of 60.1%.
- Delve into the full analysis dividend report here for a deeper understanding of Evertz Technologies.
- Our valuation report unveils the possibility Evertz Technologies' shares may be trading at a discount.
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$71.92 billion.
Operations: Suncor Energy Inc.'s revenue is derived from its Oil Sands segment at CA$25.24 billion, Refining and Marketing at CA$31.85 billion, and Exploration and Production at CA$2.15 billion.
Dividend Yield: 3.9%
Suncor Energy's dividend payments have been volatile over the past decade, but recent increases suggest some improvement. The current payout ratio of 34.9% indicates dividends are well covered by earnings, and a cash payout ratio of 31.8% shows strong coverage from cash flows. Despite trading below estimated fair value and completing significant share buybacks totaling CAD 2 billion, its dividend yield of 3.86% is modest compared to top Canadian payers, reflecting ongoing challenges in sustaining higher yields amidst forecasted earnings declines.
- Click to explore a detailed breakdown of our findings in Suncor Energy's dividend report.
- Our valuation report here indicates Suncor Energy may be undervalued.
Key Takeaways
- Embark on your investment journey to our 29 Top TSX Dividend Stocks selection here.
- Have you diversified into these companies? Leverage the power of Simply Wall St's portfolio to keep a close eye on market movements affecting your investments.
- Elevate your portfolio with Simply Wall St, the ultimate app for investors seeking global market coverage.
Looking For Alternative Opportunities?
- 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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About TSX:CM
Canadian Imperial Bank of Commerce
A diversified financial institution, provides various financial products and services to personal, business, public sector, and institutional clients in Canada, the United States, and internationally.
Flawless balance sheet with solid track record and pays a dividend.
