Yahoo Finance 3 TSX Dividend Stocks With Yields Up To 4.2%
In recent times, the Canadian market has shown resilience amidst global economic fluctuations, with particular attention on stable dividend-yielding stocks as a potential harbor for investors seeking consistent returns. As market conditions continue to evolve, understanding the characteristics of strong dividend stocks—such as robust financial health and a history of reliable payouts—becomes crucial for those looking to fortify their investment portfolios against uncertainty.
Top 10 Dividend Stocks In Canada
Name | Dividend Yield | Dividend Rating |
Bank of Nova Scotia (TSX:BNS) | 6.59% | ★★★★★★ |
Whitecap Resources (TSX:WCP) | 7.21% | ★★★★★★ |
Power Corporation of Canada (TSX:POW) | 5.69% | ★★★★★☆ |
Enghouse Systems (TSX:ENGH) | 3.78% | ★★★★★☆ |
Secure Energy Services (TSX:SES) | 3.51% | ★★★★★☆ |
Boston Pizza Royalties Income Fund (TSX:BPF.UN) | 8.61% | ★★★★★☆ |
Canadian Western Bank (TSX:CWB) | 5.38% | ★★★★★☆ |
Russel Metals (TSX:RUS) | 4.62% | ★★★★★☆ |
Canadian Natural Resources (TSX:CNQ) | 4.20% | ★★★★★☆ |
Royal Bank of Canada (TSX:RY) | 3.73% | ★★★★★☆ |
Click here to see the full list of 32 stocks from our Top TSX Dividend Stocks screener.
Let's review some notable picks from our screened stocks.
Canadian Natural Resources
Simply Wall St Dividend Rating: ★★★★★☆
Overview: Canadian Natural Resources Limited, operating in the energy sector, engages in the acquisition, exploration, development, production, marketing, and sale of crude oil, natural gas, and NGLs with a market cap of approximately CA$111.83 billion.
Operations: Canadian Natural Resources Limited generates revenue primarily through its segments: Midstream and Refining (CA$0.97 billion), Oil Sands Mining and Upgrading (CA$15.80 billion), Exploration and Production in the North Sea (CA$0.58 billion), North America (CA$17.43 billion), and Offshore Africa (CA$0.57 billion).
Dividend Yield: 4.2%
Canadian Natural Resources Limited (CNQ) offers a modest dividend yield of 4.2%, which is below the top quartile in the Canadian market. Despite this, dividends appear sustainable with a payout ratio of 56.2% and cash payout ratio at 49%. Recent financials show a decline in net income from CAD 1.8 billion to CAD 987 million year-over-year, but the firm maintains its dividend commitment, recently declaring a quarterly dividend post-stock split and actively repurchasing shares, signaling confidence in its financial health.
Leon's Furniture
Simply Wall St Dividend Rating: ★★★★☆☆
Overview: Leon's Furniture Limited, a Canadian retailer, specializes in selling home furnishings, mattresses, appliances, and electronics with a market capitalization of CA$1.49 billion.
Operations: Leon's Furniture Limited generates CA$2.50 billion in revenue primarily from its sales of home furnishings, mattresses, appliances, and electronics.
Dividend Yield: 3.3%
Leon's Furniture reported a strong Q1 in 2024, with sales rising to CA$562.25 million and net income increasing to CA$18.82 million. The company declared a quarterly dividend of $0.18 per share, maintaining its payout amidst executive transitions, including a new interim CFO from April 2024. Despite a decade of fluctuating dividends, recent earnings and cash flow coverage ratios (31.9% and 25.1%, respectively) suggest improved stability in dividend payments, though the yield remains modest at 3.25%.
Click here to discover the nuances of Leon's Furniture with our detailed analytical dividend report.
Total Energy Services
Simply Wall St Dividend Rating: ★★★★☆☆
Overview: Total Energy Services Inc. is an energy services company with operations mainly in Canada, the United States, and Australia, boasting a market capitalization of approximately CA$377.35 million.
Operations: Total Energy Services Inc. generates revenue through four primary segments: Well Servicing (CA$93.37 million), Contract Drilling Services (CA$286.01 million), Compression and Process Services (CA$397.05 million), and Rentals and Transportation Services (CA$82.87 million).
Dividend Yield: 3.9%
Total Energy Services has seen a decrease in profit margins from 7.1% to 3.8% over the past year, reflecting challenges in maintaining profitability. Despite this, dividends have grown over the last decade but with significant volatility, including annual drops exceeding 20%. The dividend yield stands at 3.86%, lower than the top quartile of Canadian dividend stocks at 6.39%. However, both earnings and cash flows substantiate current dividend levels with payout ratios of 40% and 18.1%, respectively, suggesting a foundation for ongoing payments despite an unstable track record. Recent affirmations include a quarterly dividend declaration of CAD$0.09 per share as of May 31, 2024.
Taking Advantage
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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.
Companies discussed in this article include TSX:CNQ TSX:LNF and TSX:TOT.
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