Over the last 7 days, the Canadian market has risen by 1.4%, contributing to a remarkable 28% climb over the past year, with earnings forecasted to grow by 16% annually. In this thriving environment, dividend stocks like Canadian Imperial Bank of Commerce offer potential for portfolio enhancement through steady income and long-term growth prospects.

Top 10 Dividend Stocks In Canada

Name Dividend Yield Dividend Rating Whitecap Resources (TSX:WCP) 7.08% ★★★★★★ Labrador Iron Ore Royalty (TSX:LIF) 8.12% ★★★★★☆ Olympia Financial Group (TSX:OLY) 7.31% ★★★★★☆ Power Corporation of Canada (TSX:POW) 5.07% ★★★★★☆ Enghouse Systems (TSX:ENGH) 3.31% ★★★★★☆ Russel Metals (TSX:RUS) 4.12% ★★★★★☆ Firm Capital Mortgage Investment (TSX:FC) 8.49% ★★★★★☆ Canadian Natural Resources (TSX:CNQ) 4.28% ★★★★★☆ Sun Life Financial (TSX:SLF) 4.11% ★★★★★☆ Royal Bank of Canada (TSX:RY) 3.26% ★★★★★☆

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

We're going to check out a few of the best picks from our screener tool.

Canadian Imperial Bank of Commerce

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

Overview: Canadian Imperial Bank of Commerce is a diversified financial institution offering a range of financial products and services to personal, business, public sector, and institutional clients across Canada, the United States, and internationally, with a market cap of approximately CA$81.68 billion.

Operations: Canadian Imperial Bank of Commerce generates revenue through segments including Canadian Personal and Business Banking (CA$8.80 billion), Capital Markets and Direct Financial Services (CA$5.61 billion), U.S. Commercial Banking and Wealth Management (CA$2.02 billion), and Canadian Commercial Banking and Wealth Management (CA$5.46 billion).

Dividend Yield: 4.2%

Canadian Imperial Bank of Commerce offers a stable dividend with a payout ratio of 51.7%, indicating sustainability, and has consistently increased dividends over the past decade. However, its dividend yield of 4.16% is lower than the top Canadian payers. Recent insider selling could be a concern for investors. The bank's strategic initiatives, including new product offerings and leadership changes, aim to enhance growth and shareholder value amidst ongoing fixed-income activities and share repurchase plans.

Click to explore a detailed breakdown of our findings in Canadian Imperial Bank of Commerce's dividend report. The analysis detailed in our Canadian Imperial Bank of Commerce valuation report hints at an deflated share price compared to its estimated value. TSX:CM Dividend History as at Oct 2024

Russel Metals

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



Overview: Russel Metals Inc. is a metal distribution and processing company operating in Canada and the United States with a market cap of CA$2.34 billion.

Operations: Russel Metals Inc.'s revenue is primarily derived from its Metals Service Centers segment at CA$2.84 billion, followed by the Energy Field Stores at CA$984 million and Steel Distributors at CA$413.80 million.

Dividend Yield: 4.1%

Russel Metals Inc. maintains a stable dividend, supported by a low cash payout ratio of 39.6%, ensuring coverage by both earnings and cash flows. Despite its dividend yield of 4.12% being lower than top Canadian payers, the company has consistently increased dividends over the past decade with minimal volatility. Recent actions include redeeming $150 million in senior notes and announcing a share repurchase program, reflecting proactive capital management to sustain shareholder returns amidst fluctuating earnings performance.

Unlock comprehensive insights into our analysis of Russel Metals stock in this dividend report. According our valuation report, there's an indication that Russel Metals' share price might be on the cheaper side. TSX:RUS Dividend History as at Oct 2024

Sun Life Financial

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

Overview: Sun Life Financial Inc. is a financial services company offering savings, retirement, and pension products globally, with a market cap of CA$45.49 billion.

Operations: Sun Life Financial Inc. generates revenue through its segments in Asia (CA$4.20 billion), Canada (CA$17.81 billion), Corporate (CA$420 million), Asset Management (CA$6.39 billion), and the United States (U.S.) (CA$13.72 billion).

Dividend Yield: 4.1%

Sun Life Financial offers a stable dividend, supported by a reasonable payout ratio of 59% and a cash payout ratio of 48.5%, ensuring coverage by earnings and cash flows. Despite its 4.11% yield being below top Canadian payers, dividends have grown steadily over the past decade with little volatility. Recent leadership changes aim to enhance digital innovation and strategic growth, potentially strengthening Sun Life's long-term financial health and dividend sustainability.

Get an in-depth perspective on Sun Life Financial's performance by reading our dividend report here. Upon reviewing our latest valuation report, Sun Life Financial's share price might be too pessimistic. TSX:SLF Dividend History as at Oct 2024

Make It Happen

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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:CM TSX:RUS and TSX:SLF.

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