Top TSX Dividend Stocks To Consider In July 2024

In This Article:

As the Canadian market experiences a solid performance in the first half of 2024, with particularly strong showings in sectors like technology and utilities, investors might consider how dividend stocks could fit into their portfolios. Given the current economic climate and positive market momentum, dividend stocks could offer a blend of stability and potential income amidst ongoing economic developments.

Top 10 Dividend Stocks In Canada

Name

Dividend Yield

Dividend Rating

Bank of Nova Scotia (TSX:BNS)

6.78%

★★★★★★

Whitecap Resources (TSX:WCP)

7.29%

★★★★★★

Enghouse Systems (TSX:ENGH)

3.45%

★★★★★☆

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

8.48%

★★★★★☆

Secure Energy Services (TSX:SES)

3.30%

★★★★★☆

Royal Bank of Canada (TSX:RY)

3.90%

★★★★★☆

Russel Metals (TSX:RUS)

4.51%

★★★★★☆

Canadian Natural Resources (TSX:CNQ)

4.31%

★★★★★☆

Canadian Western Bank (TSX:CWB)

3.23%

★★★★★☆

Firm Capital Mortgage Investment (TSX:FC)

9.08%

★★★★★☆

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

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

Leon's Furniture

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

Overview: Leon's Furniture Limited operates as a retailer in Canada, offering home furnishings, mattresses, appliances, and electronics with a market capitalization of approximately CA$1.56 billion.

Operations: Leon's Furniture Limited generates CA$2.50 billion in revenue primarily from the retail of home furnishings, mattresses, appliances, and electronics.

Dividend Yield: 3.1%

Leon's Furniture Limited (LNF) is trading at 69% below its estimated fair value, indicating potential undervaluation relative to the market. Despite a low dividend yield of 3.15%, which is underwhelming compared to top Canadian dividend payers, LNF maintains a sustainable payout with a cash payout ratio of 25.1% and an earnings payout ratio of 31.9%. However, dividends have shown volatility over the past decade with significant annual fluctuations exceeding 20%. Recent financial results show growth, with net income rising from CA$12.92 million to CA$18.82 million year-over-year as of Q1 2024, supporting potential future stability in dividend payments despite past inconsistencies.

TSX:LNF Dividend History as at Jul 2024
TSX:LNF Dividend History as at Jul 2024

Olympia Financial Group

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

Overview: Olympia Financial Group Inc. specializes in providing trust services through its subsidiary, Olympia Trust Company, operating as a non-deposit taking trust company in Canada, with a market capitalization of approximately CA$224.97 million.