Canadian dividend stocks are the publicly traded equity securities of Canadian corporations or REITS. The best dividend stocks in Canada are from companies that are well established, have a blue chip track record of stable earnings and a commitment to paying shareholders on a regular basis.
Dividends can be paid out monthly, quarterly, annually or on special occasions when approved by management and the board of directors.
Remember, if a company experiences financial pressure due to a weak economy, they can cut the dividend to preserve cash for the operations of the business.
Also, dividend stocks are a great way to add stable income to your portfolio.
Best Dividend Stocks Canada
Below is a list of 35 dividend stocks in Canada, sorted by dividend yield.
If you’re not sure how to actually buy a stock, check out our article on how to invest in stocks in Canada before scanning the list of dividend paying stocks.
Note: Dividend yield is taken as of April 26, 2022 and is the indicated annual dividend yield of the stock.
1. Labrador Iron Ore Royalty Corporation (LIF)
Dividend Yield: 17.40%
Market Cap: $2.24 billion
Last 12 Months Revenue: $279 million
Last 12 Months Earnings Per Share: $5.93
2. First National Financial Corporation (FN)
Dividend Yield: 9.20%
Market Cap: $2.37 billion
Last 12 Months Revenue: $715 million
Last 12 Months Earnings Per Share: $3.20
3. True North Commercial REIT (TNT.UN)
Dividend Yield: 8.50%
Market Cap: $644 million
Last 12 Months Revenue: $139 million
Last 12 Months Earnings Per Share: $0.57
4. Fiera Capital Corporation (FSZ)
Dividend Yield: 8.49%
Market Cap: $1.06 billion
Last 12 Months Revenue: $750 million
Last 12 Months Earnings Per Share: $0.71
5. MCAN Mortgage Corporation (MKP)
Dividend Yield: 8.16%
Market Cap: $554 million
Last 12 Months Revenue: $100 million
Last 12 Months Earnings Per Share: $2.40
6. Doman Building Materials Group Ltd. (DBM)
Dividend Yield: 7.87%
Market Cap: $617 million
Last 12 Months Revenue: $2.54 billion
Last 12 Months Earnings Per Share: $1.27
7. Timbercreek Financial Corporation (TF)
Dividend Yield: 7.38%
Market Cap: $783 million
Last 12 Months Revenue: $61.78 million
Last 12 Months Earnings Per Share: $0.51
8. Alaris Equity Partners Income Trust (AD.UN)
Dividend Yield: 7.13%
Market Cap: $855 million
Last 12 Months Revenue: $211 million
Last 12 Months Earnings Per Share: $3.28
9. Atrium Mortgage Investment Corporation (AI)
Dividend Yield: 7.12%
Market Cap: $585 million
Last 12 Months Revenue: $51 million
Last 12 Months Earnings Per Share: $0.98
10. Canacol Energy Ltd. (CNE)
Dividend Yield: 7.07%
Market Cap: $502 million
Last 12 Months Revenue: $393 million
Last 12 Months Earnings Per Share: $0.11
11. Freehold Royalties Ltd. (FRU)
Dividend Yield: 6.43%
Market Cap: $2.21 billion
Last 12 Months Revenue: $206 million
Last 12 Months Earnings Per Share: $0.53
12. Sienna Senior Living Inc. (SIA)
Dividend Yield: 6.32%
Market Cap: $1.09 billion
Last 12 Months Revenue: $668 million
Last 12 Months Earnings Per Share: $0.31
13. Superior Plus Corp. (SPB)
Dividend Yield: 6.29%
Market Cap: $2.32 billion
Last 12 Months Revenue: $2.39 billion
Last 12 Months Earnings Per Share: $1.04
14. Extendicare Inc. (EXE)
Dividend Yield: 6.27%
Market Cap: $686 million
Last 12 Months Revenue: $1.22 billion
Last 12 Months Earnings Per Share: $0.13
15. Gibson Energy Inc. (GEI)
Dividend Yield: 6.11%
Market Cap: $3.53 billion
Last 12 Months Revenue: $7.21 billion
Last 12 Months Earnings Per Share: $0.99
16. Enbridge Inc. (ENB)
Dividend Yield: 6.09%
Market Cap: $113 billion
Last 12 Months Revenue: $47.07 billion
Last 12 Months Earnings Per Share: $2.27
17. Keyera Corp. (KEY)
Dividend Yield: 6.09%
Market Cap: $6.99 billion
Last 12 Months Revenue: $4.98 billion
Last 12 Months Earnings Per Share: $1.47
18. NorthWest Healthcare Properties REIT (NWH.UN)
Dividend Yield: 5.97%
Market Cap: $3.25 billion
Last 12 Months Revenue: $503 million
Last 12 Months Earnings Per Share: $1.96
19. Rogers Sugar Inc. (RSI)
Dividend Yield: 5.86%
Market Cap: $639 million
Last 12 Months Revenue: $901 million
Last 12 Months Earnings Per Share: $0.49
20. SmartCentres REIT (SRU.UN)
Dividend Yield: 5.79%
Market Cap: $5.52 billion
Last 12 Months Revenue: $1.00 billion
Last 12 Months Earnings Per Share: $5.72
21. Primaris REIT (PMZ.UN)
Dividend Yield: 5.75%
Market Cap: $1.42 billion
Last 12 Months Revenue: $254 million
Last 12 Months Earnings Per Share: $3.36
22. Automotive Properties REIT (ARP.UN)
Dividend Yield: 5.68%
Market Cap: $696 million
Last 12 Months Revenue: $78 million
Last 12 Months Earnings Per Share: $2.19
23. Transcontinental Inc. (TCL.A)
Dividend Yield: 5.56%
Market Cap: $1.43 billion
Last 12 Months Revenue: $2.71 billion
Last 12 Months Earnings Per Share: $1.39
24. AGF Management Limited (AGF)
Dividend Yield: 5.56%
Market Cap: $491 million
Last 12 Months Revenue: $478 million
Last 12 Months Earnings Per Share: $0.67
25. Corus Entertainment Inc. (CJR.B)
Dividend Yield: 5.53%
Market Cap: $897 million
Last 12 Months Revenue: $1.59 billion
Last 12 Months Earnings Per Share: $0.73
26. Great-West Lifeco Inc. (GWO)
Dividend Yield: 5.48%
Market Cap: $33.32 billion
Last 12 Months Revenue: $68.83 billion
Last 12 Months Earnings Per Share: $3.37
27. IGM Financial Inc. (IGM)
Dividend Yield: 5.48%
Market Cap: $9.78 billion
Last 12 Months Revenue: $3.90 billion
Last 12 Months Earnings Per Share: $4.10
28. Exchange Income Corporation (EIF)
Dividend Yield: 5.46%
Market Cap: $1.62 billion
Last 12 Months Revenue: $1.41 billion
Last 12 Months Earnings Per Share: $1.84
29. Pembina Pipeline Corporation (PPL)
Dividend Yield: 5.26%
Market Cap: $26.82 billion
Last 12 Months Revenue: $8.63 billion
Last 12 Months Earnings Per Share: $2.00
30. Power Corporation of Canada (POW)
Dividend Yield: 5.25%
Market Cap: $25.59 billion
Last 12 Months Revenue: $69.59 billion
Last 12 Months Earnings Per Share: $4.31
31. Capital Power Corporation (CPX)
Dividend Yield: 5.22%
Market Cap: $4.88 billion
Last 12 Months Revenue: $1.76 billion
Last 12 Months Earnings Per Share: $0.39
32. Manulife Financial Corporation (MFC)
Dividend Yield: 5.21%
Market Cap: $48.84 billion
Last 12 Months Revenue: $59.84 billion
Last 12 Months Earnings Per Share:
33. TransAlta Renewables Inc. (RNW)
Dividend Yield: 5.19%
Market Cap: $4.83 billion
Last 12 Months Revenue: $470 million
Last 12 Months Earnings Per Share: $0.52
34. BCE Inc. (BCE)
Dividend Yield: 5.17%
Market Cap: $64.78 billion
Last 12 Months Revenue: $23.45 billion
Last 12 Months Earnings Per Share: $2.99
35. TC Energy Corporation (TRP)
Dividend Yield: 5.08%
Market Cap: $69.54 billion
Last 12 Months Revenue: $13.39 billion
Last 12 Months Earnings Per Share: $1.87
Canadian Dividend Stock Criteria
Market Capitalization: Greater than $500 million
Earnings Per Share: Must have positive EPS
Exchange: Toronto Stock Exchange (TSX)
Dividend Yield: Greater than 4%
How To Invest In Dividend Stocks In Canada
Individual investors can build an income producing investment portfolio by purchasing Canadian dividend stocks as part of a balanced and diversified stock portfolio.
Here is how to buy dividend stocks in Canada:
1. Find dividend-paying stocks
I’ve put together a great list of stocks to research above but there are many more dividend paying stocks for you to choose from. Not listed above, but a staple in any Canadian investment portfolio, are bank stocks like Royal Bank, BMO and TD.
You can use free online tools to find dividend stocks or use tools offered by your online broker.
2. Evaluate the risk profile of the stock
The most important question to ask before buying a dividend stock is: can this company continue to pay a dividend?
Analyze the cash flows of any company before buying the stock for a dividend.
Payout ratio is the key financial metric to look at and is calculated by dividing the earnings of a company by the amount of dividends it pays out. You want to make sure this ratio is at least below 100% (if it is higher it means it is paying out more than it makes).
3. Build a diversified portfolio
Diversification is a risk management tool used by savvy investors to reduce the overall risk of their portfolio.
Everyone knows the expression “don’t put your eggs in one basket.”
Diversification makes sure that you are not over-exposed to one company or industry in case of an economic downturn.
4. Use a low-fee brokerage
Make sure that you are securing your own financial freedom and not that of your brokers.
Find a low cost or zero cost online broker to execute trades and keep management fees and trade fees close to zero.
Every cent you pay in transaction or management costs eats into the overall yield of your portfolio.
References
https://money.tmx.com/en/stock-screener
https://app.koyfin.com/