Over the last 7 days, the Canadian market has risen 2.8%, and in the last year, it has climbed 14%. With earnings forecasted to grow by 15% annually, investors may find dividend stocks particularly appealing for their potential to provide steady income and capital appreciation.

Top 10 Dividend Stocks In Canada

Click here to see the full list of 32 stocks from our Top TSX Dividend Stocks screener.

We'll examine a selection from our screener results.

Bank of Montreal

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

Overview: Bank of Montreal provides diversified financial services primarily in North America and has a market cap of approximately CA$84.82 billion.

Operations: Bank of Montreal generates revenue through several key segments, including Canadian Personal and Commercial Banking (CA$10.20 billion), U.S. Personal and Commercial Banking (CA$8.89 billion), BMO Wealth Management (CA$7.61 billion), and BMO Capital Markets (CA$6.47 billion).

Dividend Yield: 5.3%

Bank of Montreal offers a stable dividend, currently yielding 5.26%, with a payout ratio of 69.5%, indicating dividends are well-covered by earnings. The bank's recent fixed-income offerings, including $1.1 billion in variable rate notes and multiple senior unsecured notes, reflect its robust capital management strategy. Despite trading at 42% below estimated fair value, BMO maintains reliable dividend payments and has consistently increased dividends over the past decade, making it an attractive option for income-focused investors.

• Click here and access our complete dividend analysis report to understand the dynamics of Bank of Montreal.
• The valuation report we've compiled suggests that Bank of Montreal's current price could be quite moderate.

Secure Energy Services

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

Overview: Secure Energy Services Inc. operates in waste management and energy infrastructure across Canada and the United States, with a market cap of CA$2.79 billion.

Operations: Secure Energy Services Inc.'s revenue segments consist of CA$8.61 billion from Energy Infrastructure and CA$1.13 billion from Environmental Waste Management (EWM).

Dividend Yield: 3.4%

Secure Energy Services pays a reliable quarterly dividend of C$0.10 per share, yielding 3.4%, which is well-covered by both earnings (payout ratio: 20.1%) and cash flows (cash payout ratio: 38.4%). Despite significant insider selling recently, SES's dividends have been stable and growing over the past decade. The company reported strong revenue growth in recent earnings, with H1 sales at C$5.40 billion compared to C$3.69 billion last year, indicating solid financial health supporting its dividend sustainability.

• Dive into the specifics of Secure Energy Services here with our thorough dividend report.
• Our expertly prepared valuation report Secure Energy Services implies its share price may be lower than expected.

Hemisphere Energy

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

Overview: Hemisphere Energy Corporation acquires, explores, develops, and produces petroleum and natural gas interests in Canada with a market cap of CA$173.35 million.

Operations: Hemisphere Energy Corporation generated CA$77.01 million from its petroleum and natural gas interests in Canada.

Dividend Yield: 7.3%

Hemisphere Energy's recent earnings report shows strong financial performance, with Q2 revenue at C$22.66 million and net income of C$10.39 million, up from last year. The company declared a C$0.025 dividend per share for August 2024, reflecting its commitment to returning value to shareholders despite an unstable dividend track record. With a payout ratio of 33.6% and cash payout ratio of 53.5%, dividends are well-covered by earnings and cash flows, supporting sustainability amid market volatility.

• Take a closer look at Hemisphere Energy's potential here in our dividend report.
• Our comprehensive valuation report raises the possibility that Hemisphere Energy is priced lower than what may be justified by its financials.

Key Takeaways

• Get an in-depth perspective on all 32 Top TSX Dividend Stocks by using our screener here.
• Have you diversified into these companies? Leverage the power of Simply Wall St's portfolio to keep a close eye on market movements affecting your investments.
• Invest smarter with the free Simply Wall St app providing detailed insights into every stock market around the globe.

Ready For A Different Approach?

• 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:BMO TSX:SES and TSXV:HME.

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