As the Canadian market navigates through trade developments and central bank meetings, investors are keeping a close eye on potential volatility while maintaining confidence in solid economic fundamentals. In this environment, dividend stocks can offer a stable income stream and act as a buffer against market fluctuations, making them an attractive option for those looking to balance growth with income.
|
Name |
Dividend Yield |
Dividend Rating |
|
Sun Life Financial (TSX:SLF) |
3.98% |
★★★★★☆ |
|
Russel Metals (TSX:RUS) |
3.94% |
★★★★★☆ |
|
Royal Bank of Canada (TSX:RY) |
3.53% |
★★★★★☆ |
|
Pulse Seismic (TSX:PSD) |
9.34% |
★★★★★☆ |
|
Power Corporation of Canada (TSX:POW) |
4.77% |
★★★★★☆ |
|
Olympia Financial Group (TSX:OLY) |
6.26% |
★★★★★☆ |
|
IGM Financial (TSX:IGM) |
5.20% |
★★★★★☆ |
|
Canadian Imperial Bank of Commerce (TSX:CM) |
4.18% |
★★★★★☆ |
|
Atrium Mortgage Investment (TSX:AI) |
9.65% |
★★★★★☆ |
|
Acadian Timber (TSX:ADN) |
6.44% |
★★★★★☆ |
Click here to see the full list of 28 stocks from our Top TSX Dividend Stocks screener.
Let’s review some notable picks from our screened stocks.
Simply Wall St Dividend Rating: ★★★★☆☆
Overview: Bird Construction Inc. is a Canadian company that offers construction services, with a market cap of CA$1.53 billion.
Operations: Bird Construction Inc.’s revenue primarily comes from its General Contracting Sector of the construction industry, which generated CA$3.43 billion.
Dividend Yield: 3.1%
Bird Construction’s dividend strategy is supported by a low payout ratio of 37.2%, indicating dividends are well covered by earnings, and a reasonable cash payout ratio of 74.3%. However, its dividend history has been unreliable and volatile over the past decade. Despite this, recent affirmations of monthly dividends at CAD 0.07 per share suggest ongoing commitment to shareholder returns amidst strong project wins totaling over $1 billion in value across various sectors.
Simply Wall St Dividend Rating: ★★★★★☆
Overview: Bank of Montreal offers diversified financial services primarily in North America and has a market cap of approximately CA$106.54 billion.
Operations: Bank of Montreal’s revenue segments include BMO Capital Markets at CA$6.63 billion, BMO Wealth Management at CA$6.01 billion, U.S. Personal and Commercial Banking (U.S. P&C) at CA$8.29 billion, and Canadian Personal and Commercial Banking (Canadian P&C) at CA$9.77 billion.
Dividend Yield: 4.4%
Bank of Montreal offers a reliable dividend yield of C$1.63 per share, recently increased by 5% from the prior year, supported by a sustainable payout ratio of 58.3%. While its yield is lower than the top tier in Canada, BMO’s dividends have been stable and growing over the past decade. Recent executive changes aim to enhance profitability and efficiency, potentially benefiting future dividend sustainability amidst strategic shifts to improve U.S. operations’ return on equity.
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 clients across multiple countries including Canada, the United States, and several Asian markets; it has a market cap of approximately CA$49.90 billion.
Operations: Sun Life Financial Inc.’s revenue segments include CA$2.27 billion from Asia, CA$11.39 billion from Canada, CA$370 million from Corporate, CA$6.82 billion from Asset Management, and CA$13.56 billion from the United States (U.S.).
Dividend Yield: 4%
Sun Life Financial’s dividend yield of 3.98% is supported by a sustainable payout ratio of 60.2%, with dividends well-covered by cash flows at a 44% cash payout ratio. While not among the highest yields in Canada, Sun Life has maintained stable and growing dividends over the past decade. Recent initiatives, such as its partnership with Wellthy, aim to enhance service offerings and potentially strengthen long-term financial stability, supporting continued dividend reliability.
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.
Companies discussed in this article include TSX:BDT TSX:BMO and TSX:SLF.
This article was originally published by Simply Wall St.
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