As the Canadian economy experiences a cooling labor market and anticipates further rate cuts from the Bank of Canada, investors are looking at dividend stocks as a potential opportunity to enhance portfolio returns. In this environment, selecting dividend stocks with robust yields can offer stability and income, making them an attractive option for those seeking to navigate current market conditions.

Top 10 Dividend Stocks In Canada

Click here to see the full list of 31 stocks from our Top TSX Dividend Stocks screener.

Let's explore several standout options from the results in the screener.

Alaris Equity Partners Income Trust

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

Overview: Alaris Equity Partners Income Trust is a private equity firm focused on management buyouts, growth capital, and investments in lower and middle-market companies with a market cap of CA$825.79 million.

Operations: Alaris Equity Partners Income Trust generates revenue of CA$215.71 million from unclassified services.

Dividend Yield: 7.5%

Alaris Equity Partners Income Trust offers a high dividend yield, currently in the top 25% of Canadian payers. Despite its low payout ratio of 29.5%, indicating dividends are well covered by earnings, the dividends have been volatile over the past decade with significant drops and unreliable growth. The recent affirmation of a quarterly distribution suggests commitment to payouts, but investors should be cautious given historical instability despite strong earnings growth last year.

• Unlock comprehensive insights into our analysis of Alaris Equity Partners Income Trust stock in this dividend report.
• Our comprehensive valuation report raises the possibility that Alaris Equity Partners Income Trust is priced lower than what may be justified by its financials.

Amerigo Resources

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

Overview: Amerigo Resources Ltd., with a market cap of CA$290.15 million, operates through its subsidiary Minera Valle Central S.A. to produce and sell copper and molybdenum concentrates from Codelco’s El Teniente underground mine in Chile.

Operations: Amerigo Resources Ltd. generates revenue primarily from the production and sale of copper and molybdenum concentrates sourced from the El Teniente mine in Chile.

Dividend Yield: 6.9%

Amerigo Resources has shown improved financial performance, with Q3 2024 net income of US$2.78 million and sales of US$45.44 million, reflecting a turnaround from losses a year ago. The company declared its thirteenth quarterly dividend at C$0.03 per share, supported by low payout ratios (earnings: 19.4%, cash flow: 37.1%). However, the dividend history is relatively short and volatile despite being among the top Canadian yields, necessitating cautious optimism for dividend-focused investors.

• Dive into the specifics of Amerigo Resources here with our thorough dividend report.
• The valuation report we've compiled suggests that Amerigo Resources' current price could be quite moderate.

Royal Bank of Canada

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

Overview: Royal Bank of Canada operates as a diversified financial services company worldwide, with a market cap of CA$240.63 billion.

Operations: The Royal Bank of Canada's revenue is primarily derived from Personal & Commercial Banking (CA$21.78 billion), Wealth Management (CA$17.92 billion), Capital Markets (CA$11.19 billion), and Insurance (CA$5.86 billion).

Dividend Yield: 3.3%

Royal Bank of Canada maintains a stable dividend history with consistent growth over the past decade. Its current payout ratio of 49% indicates dividends are well covered by earnings, with future coverage expected to improve slightly. Despite a lower yield compared to top Canadian dividend payers, the bank's reliable and growing dividends offer appeal. Recent debt financing activities, including issuing senior notes, highlight its strategic efforts in capital management amidst ongoing financial commitments.

• Delve into the full analysis dividend report here for a deeper understanding of Royal Bank of Canada.
• The valuation report we've compiled suggests that Royal Bank of Canada's current price could be inflated.

Taking Advantage

• Delve into our full catalog of 31 Top TSX Dividend Stocks here.
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Looking For Alternative Opportunities?

• 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:AD.UN TSX:ARG and TSX:RY.

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