Best dividend stocks in Canada

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.

	52 week change	Industry
ARC Resources (ARX)	+51.84%	Oil & Gas E&P	Buy on Questrade
CES Energy Solutions (CEU)	+111.36%	Oil & Gas Equipment & Services	Buy on Questrade
Computer Modelling Group (CMG)	+47.79%	Software—Application	Buy on Questrade
Fairfax Financial Holdings (FFH)	+60.67%	Insurance—Property & Casualty	Buy on Questrade
Stantec (STN)	+38.30%	Engineering & Construction	Buy on Questrade

52-week performance was updated on April 16, 2024

More info on the best dividend stocks in Canada

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.

• How did we pick the best dividend stocks in Canada?

  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

• Where do I buy the best dividend stocks in Canada?

  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.

  Dive deeper: Best online stock trading platforms in Canada

• What indices track the best dividend stocks in Canada?

  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.

• How do I find the best Canadian dividend ETF?

  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).

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.