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Exploring TSX Dividend Stocks In June 2024

As the Canadian market navigates through a phase of economic stabilization and rate cuts by the Bank of Canada, investors are closely monitoring shifts in market dynamics and opportunities. In this context, dividend stocks on the TSX emerge as a focal point for those seeking potential resilience and steady returns amidst evolving economic conditions.

Top 10 Dividend Stocks In Canada

Name

Dividend Yield

Dividend Rating

Bank of Nova Scotia (TSX:BNS)

6.56%

★★★★★★

Whitecap Resources (TSX:WCP)

7.46%

★★★★★★

Enghouse Systems (TSX:ENGH)

3.34%

★★★★★☆

Boston Pizza Royalties Income Fund (TSX:BPF.UN)

8.40%

★★★★★☆

Secure Energy Services (TSX:SES)

3.48%

★★★★★☆

Royal Bank of Canada (TSX:RY)

3.96%

★★★★★☆

Canadian Natural Resources (TSX:CNQ)

4.48%

★★★★★☆

Russel Metals (TSX:RUS)

4.45%

★★★★★☆

Canadian Western Bank (TSX:CWB)

3.40%

★★★★★☆

Firm Capital Mortgage Investment (TSX:FC)

9.24%

★★★★★☆

Click here to see the full list of 33 stocks from our Top TSX Dividend Stocks screener.

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Here we highlight a subset of our preferred stocks from the screener.

Bank of Montreal

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

Overview: Bank of Montreal offers a range of financial services mainly in North America, with a market capitalization of CA$84.62 billion.

Operations: Bank of Montreal generates its revenue from several key segments, including BMO Capital Markets with CA$6.38 billion, BMO Wealth Management at CA$7.68 billion, U.S. Personal and Commercial Banking contributing CA$9.04 billion, and Canadian Personal and Commercial Banking leading with CA$10.14 billion.

Dividend Yield: 5.3%

Bank of Montreal has demonstrated a stable dividend track record, with consistent growth over the past decade. As of recent updates, the dividends are well-covered by earnings with a payout ratio of 71.6%, expected to improve to 52.8% in three years, indicating sustainability. While its dividend yield stands at 5.34%, slightly lower than the top quartile in the Canadian market, it offers reliability and is underpinned by a solid financial performance including an anticipated earnings growth rate of 12.2% per year. The bank's strategic expansions and fixed income offerings further support its financial stability, although shareholder dilution has occurred within the last year which could concern investors focused on equity value retention.

TSX:BMO Dividend History as at Jun 2024
TSX:BMO Dividend History as at Jun 2024

Enghouse Systems

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

Overview: Enghouse Systems Limited operates globally, specializing in the development of enterprise software solutions with a market capitalization of approximately CA$1.73 billion.

Operations: Enghouse Systems Limited generates its revenue primarily through two segments: the Asset Management Group, which brought in CA$180.88 million, and the Interactive Management Group, contributing CA$299.55 million.

Dividend Yield: 3.3%

Enghouse Systems has shown a solid dividend history, maintaining stable payouts over the last decade. Recent financials reveal significant growth with Q2 revenue at CAD 125.81 million and net income at CAD 19.97 million, supporting a sustainable dividend with a payout ratio of 65.7%. The firm also confirmed a quarterly dividend of $0.26 per share, underscoring its commitment to shareholder returns despite its yield being lower than the top Canadian dividend payers at 3.34%.

TSX:ENGH Dividend History as at Jun 2024
TSX:ENGH Dividend History as at Jun 2024

Rogers Sugar

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

Overview: Rogers Sugar Inc. specializes in refining, packaging, marketing, and distributing sugar and maple products across Canada, the United States, Europe, and other international markets with a market capitalization of CA$722.73 million.

Operations: Rogers Sugar Inc. generates CA$944.83 million from its sugar operations and CA$215.14 million from its maple products sales.

Dividend Yield: 6.4%

Rogers Sugar reported increased Q2 sales to CA$300.94 million and a net income rise to CA$13.94 million, signaling improved financial health. However, the company's dividend sustainability is questionable with a high cash payout ratio of 193.3% and stagnant dividend growth over the past decade. Despite trading below its estimated fair value by 42.2%, challenges include high debt levels and recent production cuts due to labor disruptions, impacting its operational outlook for 2024.

TSX:RSI Dividend History as at Jun 2024
TSX:RSI Dividend History as at Jun 2024

Taking Advantage

  • Get an in-depth perspective on all 33 Top TSX Dividend Stocks by using our screener here.

  • Are you invested in these stocks already? Keep abreast of every twist and turn by setting up a portfolio with Simply Wall St, where we make it simple for investors like you to stay informed and proactive.

  • Unlock the power of informed investing with Simply Wall St, your free guide to navigating stock markets worldwide.

Seeking Other Investments?

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:BMO TSX:ENGH and TSX:RSI.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com