3 Top TSX Dividend Stocks To Watch With Up To 5.6% Yield

As the Canadian market navigates a complex landscape of economic uncertainties and energy supply disruptions, investors are keenly observing how these factors might influence dividend stocks on the TSX. In such an environment, selecting dividend stocks that offer stability and reliable income can be particularly appealing, especially when they provide yields up to 5.6%.

Top 10 Dividend Stocks In Canada

Click here to see the full list of 15 stocks from our Top TSX Dividend Stocks screener.

Let’s take a closer look at a couple of our picks from the screened companies.

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

Overview: IGM Financial Inc. operates in the wealth and asset management sector in Canada with a market capitalization of CA$17.16 billion.

Operations: IGM Financial Inc. generates revenue from two primary segments: Asset Management, contributing CA$1.34 billion, and Wealth Management, contributing CA$2.75 billion.

Dividend Yield: 3.3%

IGM Financial has recently increased its quarterly dividend by 10% to C$0.62 per share, reflecting a stable and growing dividend history over the past decade. The company’s dividends are well-covered by earnings and cash flows, with payout ratios of 48.3% and 63.2%, respectively. Despite trading below estimated fair value, IGM’s dividend yield of 3.33% is lower than the top Canadian payers but remains reliable amidst strategic leadership changes and inclusion in the FTSE All-World Index.

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

Overview: Manulife Financial Corporation, along with its subsidiaries, offers a range of financial products and services across the United States, Canada, Asia, and internationally, with a market cap of CA$87.54 billion.

Operations: Manulife Financial Corporation generates revenue from several segments, including CA$4.54 billion from Asia, CA$3.26 billion from Canada, and CA$7.04 billion from Global Wealth and Asset Management, while the U.S. segment reported a loss of CA$529 million.

Dividend Yield: 3.7%

Manulife Financial’s dividend payments have grown consistently over the past decade, supported by a sustainable payout ratio of 57.1% and a low cash payout ratio of 10.1%. The company’s recent dividend increase of 10.2% to C$0.485 per share underscores its commitment to shareholder returns, although its yield of 3.66% is below top Canadian payers. Strategic initiatives, including a new global partnership with L&G and expansion in alternative investments, aim to bolster long-term growth and diversification efforts.

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

Overview: Rogers Sugar Inc. is involved in the refining, packaging, marketing, and distribution of sugar and maple syrup products across Canada, the United States, Europe, and internationally with a market cap of CA$819.62 million.

Operations: Rogers Sugar Inc.’s revenue is primarily derived from its sugar segment, contributing CA$1.01 billion, and its maple products segment, which accounts for CA$268.70 million.

Dividend Yield: 5.6%

Rogers Sugar Inc. offers a high dividend yield of 5.61%, placing it among the top 25% of Canadian dividend payers, with dividends covered by earnings (59.7% payout ratio) and cash flow (67.1% cash payout ratio). Despite stable dividends over the past decade, they haven’t grown, reflecting some unreliability. Recent earnings show improvement with net income rising to C$28.55 million from C$15.81 million year-over-year, though sales declined slightly to C$298.19 million from C$331.33 million.

Key Takeaways

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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.

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