List of Best Dividend Stocks in Canada

This Page's Content Was Last Updated: January 11, 2024
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What You Should Know

  • A dividend-paying stock pays a certain amount of money to a shareholder periodically.
  • Shareholders usually vote during shareholders' meetings on the amount and date of a dividend payout.
  • The dividend yield is the ratio of the last dividend payment to the current price of a stock.
  • A high dividend yield does not necessarily mean that a stock is a good investment because the price of a stock may decrease before the dividend cut is announced.

What Is a Dividend?

Stock and Dividend Infographic

A dividend is a distribution of a part of a company’s profits to a certain class of dividend-paying shares. A dividend-paying share is a stock that pays a certain amount of money to every shareholder for each share they hold. A dividend is usually a small fraction of the share price, which means that the amount of dividend paid off can be written as a fraction of the share price. A shareholder is entitled to receive a dividend on a stock they hold if they don’t sell it before the dividend payout date. Some online trading platforms offer dividend reinvestment plans (DRIP) which automatically reinvests dividend into more shares.

The board of directors of a company decides what shares are dividend-paying before the shares are issued. Once the shares are issued, investors can buy those shares to receive a dividend. Depending on the type of share, the shareholder may have a right to vote at the shareholders' meeting or they may not have the right to do so. Before the dividend is paid out to the shareholders, the dividend must be approved by the board of directors. Once the board of directors votes for issuing a dividend, the dividend will be paid out to each share. A stock with a track record of consistently increasing its dividend also has had a track record of positively affecting the net worth of its holders.

It is important to note that a dividend-paying stock has two ways of providing income to the shareholder. First, it pays a dividend that may be consistent or growing over time. In addition to that, a dividend-paying stock changes in price depending on the news and market sentiment, which means that the shareholder may also realize capital gains or capital losses depending on the price of the share at the time of sale. The price of a dividend-paying stock may change, which means that the total return on a dividend-paying stock will not only be affected by the dividend yield but also by the price growth of a share. For example, if a stock paid $10 in dividends and increased in value by $5, then the shareholder made $15 while holding the stock. On the other hand, if a stock paid $10 in dividends but decreased in value by $15, then the shareholder lost $5 even though they received dividend payments. This means that not every stock with a high dividend yield is a good pick because the value of the share may decrease more than the dividends yield.

Many shares do not have a fixed dividend. Usually, the dividend is calculated and voted on by the shareholders, which means that if there is not enough money earned, there may be a dividend cut later on. A dividend cut may lead to a lower price of a share. Because of the lower price, the dividend yield may look high temporarily, but it will decrease once the dividend cut is announced. Any investment comes with a certain risk, and dividend-paying stocks are no different. It is important to make sure that your investments are in line with your risk tolerance and investment goals. Risk can be divided into general market and specific (issuer) risks. General market risk is not avoidable if you are invested in the market. But specific risks can be reduced by diversification. Self diversification can be very costly but using an instrument like one of the best Canadian ETFs or one of the best Canadian mutual funds enables cost-effective diversification. If you are specifically interested in dividend investing, you can see a list of Canadian ETFs with the highest dividend yield.

20 Highest Dividend Stocks in Canada

The information about the stocks has last been updated on January 10th, 2024.

A high-dividend stock does not mean that it is a good investment. It is important to be aware of the business activities and risks involved in investing in that type of business before buying their stock. The following list provides 20 stocks and ETFs with some of the highest dividend yields currently available.

1. Whitecap Resources Inc - WCP.TO

Whitecap Resources Inc Logo
Dividend Yield - 6.92%
Price - $8.92
Market Capitalization - $5,407,304 M
Sector - Oils-Energy

Whitecap Resources is an oil company based in Calgary, Alberta. It has operations in Alberta, Saskatchewan, and British Columbia. Whitecap’s strategy includes sustainable long-term growth, disciplined risk mitigation, and a premium asset base. They are recognized for their world-class CO2 sequestration and active community involvement.

2. Aecon Group Inc - ARE.TO

Aecon Group Inc Logo
Dividend Yield - 5.41%
Price - $13.80
Market Capitalization - $844,485 M
Sector - Industrial Products

Aecon Group is a construction company that works with private and public sectors to design and build structures in Civil and Urban Trasnportation as well as Nuclear, Utilities and Industrial sectors. Aecon focuses on priject development, financing, insvestment and management services within their projects.

3. Mullen Group Ltd - MTL.TO

Mullen Group Ltd Logo
Dividend Yield - 5.10%
Price - $14.26
Market Capitalization - $1,251,397 M
Sector - Transportation

Mullen Group is one of the largest logistics providers in North America. It is headquartered in Okotoks, Alberta, and it operates in Canada and the United States. They operate as a network of independently operated businesses and provide a range of services, including less-than-truckload, truckload, warehousing, logistics, and hauling services.

4. Manulife Financial Corporation - MFC.TO

Manulife Financial Corporation Logo
Dividend Yield - 5.01%
Price - $29.21
Market Capitalization - $52,641,959 M
Sector - Finance

Manulife is Canada's leading insurance and financial service provider. Manulife is headquartered in Toronto, Ontario, and it operates in Canada, the United States, and Asia. In Canada, Manulife provides a variety of financial services and products that include insurance, group benefits, group retirement, investments, wealth management, and banking.

5. Suncor Energy Inc - SU.TO

Suncor Energy Inc Logo
Dividend Yield - 4.83%
Price - $44.04
Market Capitalization - $58,482,916 M
Sector - Oils-Energy

Suncor Energy produces and supplies energy that is safe, reliable, cost-efficient, and environmentally responsible. Their business focuses on producing oil from oil sands, exploration of international energy markets, crude oil refining, low-carbon power production, renewable fuel investments, supply and trading, and operating Petro-Canada gas stations. Suncor Energy has four pillars of focus: employees, reliability, process and personal safety management, and environmental excellence.

6. Sun Life Financial Inc - SLF.TO

Sun Life Financial Inc Logo
Dividend Yield - 4.56%
Price - $68.60
Market Capitalization - $40,104,263 M
Sector - Finance

Sun Life Financial is a financial service company that is primarily focuses on life insurance. It also provides financial planning, health insurance, investments and more. Sun Life manages investments that total over $1.3 trillion in assets under management operating in multiple countries accross the globe.

7. CDN Western Bank - CWB.TO

CDN Western Bank Logo
Dividend Yield - 4.34%
Price - $30.56
Market Capitalization - $2,929,666 M
Sector - Finance

Canadian Western Bank provides expert advice and specialized financial services such as business and personal banking and wealth management. The bank offers specialty banking services for small and medium-sized companies with a focus on general commercial, equipment financing, construction financing, commercial real estate financing, real estate construction and project financing, equipment financing, and leasing.

8. National Bank of Canada - NA.TO

National Bank of Canada Logo
Dividend Yield - 4.21%
Price - $101.40
Market Capitalization - $34,053,623 M
Sector - Finance

National Bank is the 6th largest bank in Canada and the leading bank in Quebec. They have made a series of ESG commitments to demonstrate their dedication to the well-being of future generations. They provide a variety of services for personal and business clients, and they also provide wealth management services.

9. Leons Furniture - LNF.TO

Leons Furniture Logo
Dividend Yield - 3.77%
Price - $19.51
Market Capitalization - $1,299,371 M
Sector - Consumer Discretionary

Leon’s Furniture is a furniture store that was founded in 1909 and has gained a large popularity in Canada since. Leon’s Furniture is one of Canada’s most respected retailers that shows consistent growth in sales and profits. Leon’s Furniture takes pride in the after-sales service they provide to their customers and the professionalism of their team.

10. Nutrien LTD - NTR.TO

Nutrien LTD Logo
Dividend Yield - 3.75%
Price - $74.17
Market Capitalization - $37,120,723 M
Sector - Basic Materials

Nutrien is a fertilizer company, and it is the largest provider of crop inputs, services, and solutions in the world. Nutrien helps growers to increase food production in a sustainable manner. It has over 2,000 retail stores across North America, South America, and Australia, with over 23,500 employees.

11. Sleep Country Canada Holdings Inc - ZZZ.TO

Sleep Country Canada Holdings Inc Logo
Dividend Yield - 3.69%
Price - $25.50
Market Capitalization - $890,966 M
Sector - Consumer Discretionary

Sleep Country is one of Canada's largest mattress and bedding retailers. They have physical stores across Canada as well as an online store that can deliver anywhere in Canada. Founded in 1994 in Vancouver, British Columbia, the chain grew to include over 265 stores across Canada.

12. Tree Island Steel Ltd - TSL.TO

Tree Island Steel Ltd Logo
Dividend Yield - 3.53%
Price - $3.35
Market Capitalization - $92,944 M
Sector - Basic Materials

Three Island Steel is a North American supplier of premium quality steel wire and wire products. It operates three steel production facilities in North America, including its flagship facility in Richmond, British Columbia. Their business focuses on the quality of their work and products, the responsiveness of their team, and a strong organizational culture.

13. IA Financial Corp Inc - IAG.TO

IA Financial Corp Inc Logo
Dividend Yield - 3.45%
Price - $88.49
Market Capitalization - $9,347,562 M
Sector - Finance

iA Group is one of the largest insurance and wealth management groups in Canada that offers financial services that include insurance, savings, retirement, and loan products for individuals and businesses. It has $207.8 billion in assets, more than 4 million clients, over 9,000 employees, and more than 50,000 representatives.

14. Urbana Corp - URB.TO

Urbana Corp Logo
Dividend Yield - 2.45%
Price - $4.99
Market Capitalization - $187,038 M
Sector - Finance

Urbana is an asset management company in Toronto that was founded in 1947. It has a small team with nine upper-management employees. Apart from providing asset management services, they also provide their market thoughts and a podcast about current market conditions.

15. Gildan Activewear Inc - GIL.TO

Gildan Activewear Inc Logo
Dividend Yield - 2.34%
Price - $42.05
Market Capitalization - $7,323,657 M
Sector - Consumer Discretionary

Gildan Activewear is an American-owned Canadian manufacturer of branded clothing. It is also the world’s largest manufacturer of basic apparel, including activewear, underwear, and socks. Their business model, which combines manufacturing expertise and continuous investment, forms the backbone of their success. They pride themselves on the ethical and sustainable practices they have implemented in apparel production.

16. Transalta Corp - TA.TO

Transalta Corp Logo
Dividend Yield - 2.24%
Price - $10.79
Market Capitalization - $3,325,227 M
Sector - Utilities

TransAlta Corporation focuses on electricity power generation and wholesale electricity marketing. It is headquartered in Calgary, Alberta, with 76 power plants operating in Canada, the United States, and Australia. Their vision is to become a leader in clean electricity generation committed to a sustainable future.

17. Empire Company Ltd - EMP-A.TO

Empire Company Ltd Logo
Dividend Yield - 2.08%
Price - $35.05
Market Capitalization - $8,659,611 M
Sector - Consumer Staples

Empire Company Limited is a Canadian conglomerate that focuses on food retail and corporate investments. It was founded in 1963 and is headquartered in Stellarton, Nova Scotia. It owns the Sobeys market chain. Empire Company has approximately $31.5 billion in annual sales with $16.5 billion in assets and employs around 131,000 people.

18. Canadian National Railway Co. - CNR.TO

Canadian National Railway Co. Logo
Dividend Yield - 1.88%
Price - $166.70
Market Capitalization - $108,969,048 M
Sector - Transportation

Canadian National Railway is a leading North American transportation and logistics company. The CN team of around 23,971 employees transports more than $250 billion in goods annually. CN railway network of approximately 18,600 miles spans across Canada and mid-America. The company earned $17.9 billion in revenues and a 59.9% operating ratio in 2022.

19. Adentra Inc - ADEN.TO

Adentra Inc Logo
Dividend Yield - 1.82%
Price - $31.21
Market Capitalization - $686,460 M
Sector - Industrial Products

Adentra is a world-class distributor of architectural products. They focus on designing and delivering residential, commercial and industrial spaces. They commit to be the preferred choice to their customers, vendors and eployees.

20. Mty Food Group Inc - MTY.TO

Mty Food Group Inc Logo
Dividend Yield - 1.81%
Price - $55.69
Market Capitalization - $1,347,867 M
Sector - Consumer Discretionary

Mty Food Group has been delivering quick service and casual dining experiences for over 40 years. It controls over 90 brands in over 40 countries with over 7,100 locations worldwide. MTY strives to provide quality food from a diverse group of cuisines and develop innovative concepts to serve people all over the world.

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