Top TSX Dividend Stocks to Consider in June 2024

The Canadian market has performed robustly, gaining 1.1% recently and increasing by an impressive 9.9% over the past year, alongside expectations for earnings growth of 15% per year. In this promising environment, dividend stocks offering consistent payouts and the potential for capital appreciation may be particularly attractive to investors seeking both stability and growth.

Top 10 Dividend Stocks in Canada

Name	Dividend yield	Dividend rating
Bank of Nova Scotia (TSX:BNS)	6.80%	★★★★★★
Whitecap Resources (TSX:WCP)	7.29%	★★★★★★
Enghouse Systems (TSX:ENGH)	3.49%	★★★★★☆
Boston Pizza Royalties Income Fund (TSX: BPF.UN)	8.59%	★★★★★☆
Secure Energy Services (TSX:SES)	3.34%	★★★★★☆
Royal Bank of Canada (TSX:RY)	3.93%	★★★★★☆
Russell Metals (TSX:RUS)	4.51%	★★★★★☆
Canadian Natural Resources (TSX:CNQ)	4.34%	★★★★★☆
Canadian Western Bank (TSX:CWB)	3.24%	★★★★★☆
Closed Equity Mortgage Investment (TSX:FC)	9.15%	★★★★★☆

Click here to see the full list of 33 stocks in our top TSX dividend stock picks.

Here we highlight a subset of our favorite stocks from the filter.

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

Preview: Alaris Equity Partners Income Trust is a private equity firm that focuses on various types of investments, including management buyouts and growth capital, primarily targeting lower and middle market companies, with a market capitalization of approximately 726.61 million Canadian dollars.

Operations: Alaris Equity Partners Income Trust generates revenue primarily through unclassified services, totaling CA$234.06 million.

Dividend yield: 8.5%

Alaris Equity Partners Income Trust offers a high dividend yield of 8.52%, ranking in the top 25% of Canadian dividend payers. However, its dividends have shown some volatility over the past decade, with payments declining over this period. Despite this instability, dividends are well supported by earnings and cash flow, with a payout ratio of 29.9% and a cash payout ratio of 77.8%. Recent financial data shows a significant decline in revenue from CAD 37.51 million to CAD 30.31 million year-over-year in the first quarter of 2024, but a dramatic increase in net profit from CAD 5.55 million to 73 .77 million CAD due to specific transactions.

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

Preview: The North West Company Inc. operates as a retailer providing food and everyday products and services to rural communities and urban neighborhoods in northern Canada, rural Alaska, the South Pacific and the Caribbean, with a market capitalization of approximately 2.01 billion Canadian dollars.

Operations: The North West Company Inc. generates C$2.50 billion from its core food and convenience retail businesses across its various geographies.

Dividend yield: 3.7%

North West Company Inc. has demonstrated a consistent ability to grow its earnings, with a notable increase of 15.8% over the past year, supporting a stable dividend yield of 3.73%. Dividends are well covered by both earnings and cash flow, with payout ratios of 55.2% and 59.7% respectively, indicating sustainability. However, its dividend yield is lower than the top quartile of Canadian dividend payers at 6.63%. Recent financial data reveals steady sales growth from CAD 593.56 million to CAD 617.52 million in the first quarter and net profit up from CAD 20.89 million to CAD 25.53 million year-on-year, strengthening reliability of its payments amid modest valuation concerns indicated by exchanges at a significant discount to estimated fair value.

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

Preview: The Toronto-Dominion Bank, together with its subsidiaries, offers a range of financial products and services in Canada, the United States and other international markets, with a market capitalization of approximately C$130.51 billion.

Operations: Toronto-Dominion Bank generates revenue through several key segments: Canadian Personal and Commercial Banking (C$17.39 billion), U.S. Retail Services (C$12.81 billion), Asset Management wealth and insurance (C$11.81 billion) and wholesale banking (C$6.63 billion).

Dividend yield: 5.4%

The Toronto-Dominion Bank (TD) offers a dividend yield of 5.44%, which, while reliable and growing over the past decade, is below the top quartile of Canadian dividend payers, at 6. 67%. TD’s dividends are currently well covered by earnings, with a payout ratio of 66.1%, and forecasts suggest continued coverage with an expected payout ratio of 50.8% in three years. Recent activities include several fixed income offerings totaling over C$1 billion, improving financial flexibility but also increasing leverage levels. Additionally, TD has partnered with MPOWER Financing to support international students in Canada, which could expand its customer base and revenue streams.

Key points to remember

• Unlock more gems! Our analyzer of the top TSX dividend stocks has uncovered 30 more companies to explore. Click here to reveal our expertly curated list of the 33 best dividend stocks on the TSX.
• Shareholder in one or more of these companies? Make sure you’re never caught off guard by adding your portfolio to Simply Wall St for timely alerts on important stock developments.
• Unlock the power of informed investing with Simply Wall St, your free guide to navigating the world’s stock markets.

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This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodology and our articles are not intended to constitute financial advice. It does not constitute a recommendation to buy or sell shares and does not take into account your objectives or your financial situation. Our goal is to provide you with targeted, long-term analysis based on fundamental data. Note that our analysis may not take into account the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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