3 TSX Dividend Stocks Yielding Up To 6.9%

Amidst a backdrop of stable interest rates and contained inflation in Canada, investors are navigating a market landscape where economic fundamentals appear supportive for equities. In this environment, dividend stocks on the TSX can offer appealing opportunities for income-focused investors seeking stability and potential growth.

Top 10 Dividend Stocks In Canada

Click here to see the full list of 14 stocks from our Top TSX Dividend Stocks screener.

Let’s dive into some prime choices out of the screener.

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

Overview: Great-West Lifeco Inc. operates in the life and health insurance, retirement savings, wealth and asset management, and reinsurance sectors across Canada, the United States, and Europe with a market cap of CA$73.57 billion.

Operations: Great-West Lifeco Inc.’s revenue is primarily derived from its operations in Canada (CA$12.30 billion), Europe (CA$8.52 billion), the United States (CA$5.99 billion), and its Capital and Risk Solutions segment (CA$5.49 billion).

Dividend Yield: 3.2%

Great-West Lifeco’s dividends are well-covered by earnings and cash flows, with a payout ratio of 53.4% and a cash payout ratio of 48.3%. The company has maintained stable dividend payments over the past decade, although its yield of 3.23% is below the top tier in Canada. Recent initiatives include a USD 150 million investment in an AI fund to enhance long-term growth potential, signaling strategic alignment with technological advancements in financial services.

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

Overview: Olympia Financial Group Inc., with a market cap of CA$247.83 million, operates in Canada as a non-deposit taking trust company through its subsidiary, Olympia Trust Company.

Operations: Olympia Financial Group Inc. generates revenue through its subsidiary, Olympia Trust Company, which functions as a non-deposit taking trust company in Canada.

Dividend Yield: 7.0%

Olympia Financial Group’s dividend yield of 6.96% places it among the top Canadian payers, yet its sustainability is questionable due to a high payout ratio of 98.2%, not well-covered by earnings. Recent dividend volatility includes a decrease to C$0.50 per share in June from C$0.60 previously, reflecting potential instability. Despite trading below estimated fair value, projected earnings decline and historical dividend unreliability pose challenges for consistent income-seeking investors.

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

Overview: Power Corporation of Canada is an international management and holding company offering financial services across North America, Europe, and Asia with a market cap of CA$52.93 billion.

Operations: Power Corporation of Canada’s revenue segments include IGM with CA$3.93 billion, Great West contributing CA$32.79 billion, and Alternative Asset Investment Platforms at CA$3.05 billion.

Dividend Yield: 3.1%

Power Corporation of Canada’s dividend yield stands at 3.12%, lower than the top Canadian payers, but its dividends have been stable and growing over the past decade, supported by a sustainable payout ratio of 57.9% and a low cash payout ratio of 26.8%. Recent earnings growth and strategic investments in AI through a USD 150 million fund highlight efforts to enhance long-term growth potential, despite recent shareholder activism challenges.

Key Takeaways

• Get an in-depth perspective on all 14 Top TSX Dividend Stocks by using our screener here.
• Already own these companies? Link your portfolio to Simply Wall St and get alerts on any new warning signs to your stocks.
• Simply Wall St is your key to unlocking global market trends, a free user-friendly app for forward-thinking investors.

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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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