Finder’s list of the best dividend stocks in Canada was updated based on the results of our proprietary ranking system. These 10 best Canadian dividend stocks are starting points for your own research and should not be taken as advice to buy any particular stock.
The best dividend stocks in Canada
Over the past 12 months, the energy and healthcare sectors have risen solidly in Canada, while the communications and technology sectors have dropped. Overall the S&P/TSX Composite High Dividend Index has yielded negative total returns of -4.34% over the past year and positive total returns of 2.65% over the past 5 years.
Here’s a quick view of the best Canadian dividend stocks. Get more details below.
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Our selection of top picks is based on the same criteria as our annual Stock Trading Platform Awards. This is updated yearly to reflect changes in the market.
"Best for" picks are those we've evaluated to be best for specific product features or categories – you can read our full methodology here. If we show a "Promoted" pick, it's been chosen from among our commercial partners and is based on factors that include special features or offers, and the commission we receive.
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More info on the best dividend stocks in Canada
ARC Resources Ltd. (ARX.TO)
ARC Resources Ltd. engages in the acquiring and developing crude oil, natural gas, condensate, and natural gas liquids in Canada.
CES Energy Solutions Corp., together with its subsidiaries, engages in the design, implementation, and manufacture of advanced consumable fluids and specialty chemicals in the United States and Canada. The company provides solutions for drill-bit, point of completion and stimulation, wellhead and pump-jack, and pipeline and midstream markets.
Computer Modelling Group Ltd., a software and consulting technology company, engages in the development and licensing of reservoir simulation and seismic interpretation software and related services. The company offers CMOST-AI, an optimization and analysis tool that offers solution for reservoir by combining statistical analysis, machine learning, and impartial data interpretation; IMEX, a black oil reservoir simulator that is used to model primary, secondary, and tertiary oil recovery processes in conventional and unconventional reservoirs; and GEM, an equation-of-state reservoir simulator for compositional, chemical, and unconventional reservoir modelling.
Fairfax Financial Holdings Limited, through its subsidiaries, provides property and casualty insurance and reinsurance, and investment management services in the United States, Canada, the Middle East, Asia, and internationally. It operates through Property and Casualty Insurance and Reinsurance; Life insurance and Run-off; and Non-Insurance Companies segments.
Stantec Inc. provides professional services in the areas of infrastructure and facilities to the public and private sectors in Canada, the United States, and internationally.
Constellation Software Inc., together with its subsidiaries, acquires, builds, and manages vertical market software businesses to develop mission-critical software solutions for public and private sector markets. It is involved in the software licensing; and sale of hardware activities.
Enerplus Corporation, together with its subsidiaries, explores and develops crude oil and natural gas in the United States. Its oil and natural gas properties are located primarily in North Dakota, Colorado, and Pennsylvania.
Mainstreet Equity Corp. engages in the acquisition, redevelopment, repositioning, and management of mid-market residential rental apartment buildings in Western Canada.
TerraVest Industries Inc., together with its subsidiaries, manufactures and sells goods and services in Canada, the United States, and internationally. The company operates in four segments: HVAC and Containment Equipment, Compressed Gas Equipment, Processing Equipment, and Service.
What you should know before buying the best dividend stocks in Canada
There’s no single winning strategy to finding what experts might call the best Canadian dividend stocks, because the most important considerations are your own goals and circumstances.
Our list of the best dividend stocks in Canada is not personal financial advice; we have not considered your personal objectives and financial situation. Do your own research, and speak with an investment professional if in doubt.
Whether you care more about short-term capital gains or long-term dividend growth, it’s important to know what risk you’re comfortable with and whether a stock is performing well, making a profit, paying dividends or losing value. Past performance does not guarantee future results. Investments can increase and decrease in value.
We used Finder’s proprietary algorithm to rate the best Canadian dividend stocks listed on the TSX based on price, performance, profit, revenue and dividends. Our fundamental analysis filters stocks by taking into account historical prices, dividends, revenue growth, (low) price volatility and profit margins. This might indicate a quality stock, but we do not guarantee the performance or returns of any investment.
To avoid smaller, more speculative dividend stocks, we only include companies with a market cap of more than CAD $200 million. In order to better compare historical data, we filtered out stocks that have been listed for less than five years. This methodology no doubt filters out some good stocks, so our decision to include or exclude a stock from our list does not indicate whether it’s a good or bad investment.
For more information about our algorithm, check out our stock ranking page.
This list and data was compiled April 16, 2024. The algorithm was last updated January 27, 2021.
FAQs about the best Canadian dividend stocks
To buy the best Canadian dividend stocks, you'll need to open an investment account with a broker. Canada's Big Banks offer online investment platforms such as CIBC Investor's Edge and Scotia iTRADE. But you can also open an account with other online brokers like Wealthsimple, Qtrade and Interactive Brokers.
Popular indices for tracking Canadian dividend stocks include the following:
S&P/TSX Composite High Dividend Index. Tracks 50-75 dividend stocks from the S&P/TSX Composite Index.
S&P/TSX Canadian Dividend Aristocrats Index. Tracks stocks in the S&P Canada BMI that have shown stable or increased annual dividends for at least five years.
Morningstar Canada Dividend Yield Focus Index. Tracks a subset of high-quality, dividend-paying stocks from the Morningstar Canada Index.
One way to find and invest in the best Canadian dividend ETF is to buy shares of exchange traded funds (ETFs) that hold high-performing Canadian dividend stocks. Popular ETFs that track dividend stocks in Canada include the following:
VDY Vanguard FTSE Canadian High Dividend Yield Index ETF (VDY)
iShares S&P/TSX Canadian Dividend Aristocrats Index ETF (CDZ)
Invesco Canadian Dividend ETF (PDC)
BMO Canadian Dividend ETF (ZDV).
Sources
Important information: Powered by Finder.com. This information is general in nature and is no substitute for professional advice. It does not take into account your personal situation. This information should not be interpreted as an endorsement of futures, stocks, ETFs, CFDs, options or any specific provider, service or offering. It should not be relied upon as investment advice or construed as providing recommendations of any kind. Futures, stocks, ETFs and options trading involves substantial risk of loss and therefore are not appropriate for most investors. You do not own or have any interest in the underlying asset. Capital is at risk, including the risk of losing more than the amount originally put in, market volatility and liquidity risks. Past performance is no guarantee of future results. Tax on profits may apply. Consider the Product Disclosure Statement and Target Market Determination for the product on the provider's website. Consider your own circumstances, including whether you can afford to take the high risk of losing your money and possess the relevant experience and knowledge. We recommend that you obtain independent advice from a suitably licensed financial advisor before making any trades.
Compare defensive and growth investments to find the best investment accounts in Canada for you.
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Finder.com is an independent comparison platform and information service that aims to provide you with the tools you need to make better decisions. While we are independent, the offers that appear on this site are from companies from which Finder receives compensation. We may receive compensation from our partners for placement of their products or services. We may also receive compensation if you click on certain links posted on our site. While compensation arrangements may affect the order, position or placement of product information, it doesn't influence our assessment of those products. Please don't interpret the order in which products appear on our Site as any endorsement or recommendation from us. Finder compares a wide range of products, providers and services but we don't provide information on all available products, providers or services. Please appreciate that there may be other options available to you than the products, providers or services covered by our service.
We update our data regularly, but information can change between updates. Confirm details with the provider you're interested in before making a decision.
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