In the last week, the Canadian market has stayed flat, yet it has shown impressive growth of 27% over the past 12 months with earnings forecast to grow by 16% annually. In this context, dividend stocks that offer reliable income and potential for capital appreciation can be a solid choice for enhancing your portfolio.

Top 10 Dividend Stocks In Canada

Click here to see the full list of 29 stocks from our Top TSX Dividend Stocks screener.

Here's a peek at a few of the choices from the screener.

Enghouse Systems

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

Overview: Enghouse Systems Limited, along with its subsidiaries, develops enterprise software solutions globally and has a market capitalization of approximately CA$1.73 billion.

Operations: Enghouse Systems Limited generates revenue through its Asset Management Group, which contributes CA$187.17 million, and its Interactive Management Group, which accounts for CA$312.77 million.

Dividend Yield: 3.3%

Enghouse Systems offers a stable dividend with a payout ratio of 66%, indicating sustainability supported by earnings and cash flows, with a cash payout ratio of 45.4%. The company has consistently increased dividends over the past decade. Despite trading at 49.7% below estimated fair value, its current yield of 3.35% is lower than top Canadian dividend payers. Recent financials show solid growth in revenue and net income, enhancing its capacity to maintain dividends amidst executive changes.

• Dive into the specifics of Enghouse Systems here with our thorough dividend report.
• Our valuation report unveils the possibility Enghouse Systems' shares may be trading at a discount.

Olympia Financial Group

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

Overview: Olympia Financial Group Inc., with a market cap of CA$237.02 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 several segments, including Health (CA$10.21 million), Corporate (CA$0.13 million), Exempt Edge (EE) (CA$1.41 million), Investment Account Services (IAS) (CA$79.02 million), Currency and Global Payments (CGP) (CA$8.43 million), and Corporate and Shareholder Services (CSS) (CA$3.98 million).

Dividend Yield: 7.5%

Olympia Financial Group provides a high dividend yield, ranking in the top 25% of Canadian payers, with dividends covered by earnings and cash flows at payout ratios of 68.1% and 72.7%, respectively. Despite past volatility in its dividend history, recent affirmations suggest stability with consistent monthly payments of C$0.60 per share. However, potential investors should note that earnings are forecasted to decline over the next three years, which may impact future payouts.

• Click here to discover the nuances of Olympia Financial Group with our detailed analytical dividend report.
• Our expertly prepared valuation report Olympia Financial Group implies its share price may be lower than expected.

Toronto-Dominion Bank

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

Overview: The Toronto-Dominion Bank, along with its subsidiaries, offers a range of financial products and services across Canada, the United States, and internationally, with a market cap of CA$138.38 billion.

Operations: The Toronto-Dominion Bank generates revenue from several segments, including CA$17.77 billion from Canadian Personal and Commercial Banking, CA$12.75 billion from U.S. Retail, CA$12.20 billion from Wealth Management and Insurance, and CA$6.76 billion from Wholesale Banking.

Dividend Yield: 5.2%

Toronto-Dominion Bank's dividend reliability is evident from its stable payments over the past decade, though its current payout ratio of 92.7% indicates dividends are not well covered by earnings. Despite a lower profit margin compared to last year, the bank's dividend yield of 5.19% remains appealing but below top-tier Canadian payers. Recent executive changes and fixed-income offerings highlight strategic shifts, yet investors should consider sustainability concerns regarding future dividend coverage.

• Get an in-depth perspective on Toronto-Dominion Bank's performance by reading our dividend report here.
• According our valuation report, there's an indication that Toronto-Dominion Bank's share price might be on the expensive side.

Make It Happen

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Interested In Other Possibilities?

• Explore high-performing small cap companies that haven't yet garnered significant analyst attention.
• Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management.
• Find companies with promising cash flow potential yet trading below their fair value.

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.

Companies discussed in this article include TSX:ENGH TSX:OLY and TSX:TD.

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