The Canadian market has shown stability and resilience in recent times, with a 12% increase over the past year and earnings expected to grow by 14% annually. Dividend stocks like Power Corporation of Canada are particularly attractive to investors looking for steady income and growth opportunities.
Here are some of the top 10 dividend stocks in Canada:
1. Bank of Nova Scotia (TSX:BNS) – Dividend Yield: 6.53%
2. Whitecap Resources (TSX:WCP) – Dividend Yield: 7.10%
3. Secure Energy Services (TSX:SES) – Dividend Yield: 3.56%
4. Power Corporation of Canada (TSX:POW) – Dividend Yield: 5.59%
5. Enghouse Systems (TSX:ENGH) – Dividend Yield: 3.59%
6. Boston Pizza Royalties Income Fund (TSX:BPF.UN) – Dividend Yield: 8.64%
7. Russel Metals (TSX:RUS) – Dividend Yield: 4.39%
8. Canadian Natural Resources (TSX:CNQ) – Dividend Yield: 4.06%
9. Royal Bank of Canada (TSX:RY) – Dividend Yield: 3.84%
10. Sun Life Financial (TSX:SLF) – Dividend Yield: 4.69%
Power Corporation of Canada operates in the financial services sector across North America, Europe, and Asia with a market capitalization of CA$25.96 billion. The company generates revenue primarily through Lifeco at CA$23.51 billion, Power Financial – IGM at CA$3.67 billion, and Alternative Asset Investment Platforms at CA$1.59 billion.
With a dividend yield of 5.6%, Power Corporation of Canada maintains a stable dividend profile supported by a payout ratio of 49.9% and a cash payout ratio of 28.4%. Despite trading below its estimated fair value, recent financials show significant growth with net income rising to CAD 722 million in Q1 2024 from CAD 326 million year-over-year.
Russel Metals Inc. is a Canada-based company specializing in metal distribution and processing with a market capitalization of approximately CA$2.31 billion. The company recently increased its quarterly dividend to CA$0.42 per share, demonstrating sustainability even with lower earnings figures.
Suncor Energy Inc. is an integrated energy company with operations in Canada, the United States, and internationally, boasting a market capitalization of CA$71.27 billion. Despite facing expected average earnings decline, the company declared a stable quarterly dividend of CA$0.545 per share.
Investors can explore the full list of 31 stocks from the Top TSX Dividend Stocks screener to maximize investment potential. It’s essential to conduct thorough research and leverage tools like Simply Wall St for comprehensive analysis before making investment decisions.