30 of the Best Dividend Paying Stocks to Buy in Canada Today

WRITTEN BY Dan Kent | UPDATED ON: April 9, 2024

Top Canadian Dividend Stocks

Disclaimer: The writer of this article or employees of Stocktrades Ltd may have positions in securities listed in this article. Stocktrades Ltd may also be compensated via affiliate links in this post. Stocktrades Ltd will run advertisements on our posts. These advertisements do not represent an endorsement by us.

Adding Canadian dividend stocks, especially Canadian Dividend Aristocrats, to your stock portfolio is an excellent strategy for enhancing its value. They will generate income regardless of the market conditions.

Many investors first learning how to buy stocks in Canada want to know what the best options are today. This is why we decided to make a list of the top 30 options in Canada using our unique grading system.

What are the 30 of the best dividend stocks in Canada?

Ticker Name Market Cap Shares Outstanding Forward Annual Dividend Rate Free Cash Flow Operating Cash Flow Diluted EPS EPS Streak Payout Ratio FCF Ratio OCF Ratio DGR Streak DGR 5YR DGR 1YR Yield Dividend Frequency Sector Industry GRADE (1-5)
FTS.TO Fortis Inc 26,001.00 493 2.36 -624.00 3,545.00 3.10 3.00 48.82% -186.46% 32.82% 50 5.78% 5.30% 4.47% Quarterly Utilities Utilities - Regulated Electric 4.30
L.TO Loblaw Companies Ltd 46,240.00 309 1.78 3,582.00 5,654.00 6.53 5.00 26.76% 15.40% 9.76% 12 8.58% 10.32% 1.19% Quarterly Consumer Defensive Grocery Stores 4.20
DOL.TO Dollarama Inc 31,918.00 279 0.37 1,252.00 1,531.00 3.56 14.00 7.53% 8.19% 6.70% 13 12.10% 28.03% 0.27% Quarterly Consumer Defensive Discount Stores 4.10
MRU.TO Metro Inc 16,133.00 227 1.34 858.00 1,526.00 4.37 4.00 27.60% 35.47% 19.94% 29 10.98% 10.00% 1.89% Quarterly Consumer Defensive Grocery Stores 4.10
EMP.A.TO Empire Co Ltd 7,854.00 244 0.73 1,367.00 2,022.00 3.00 0.00 23.55% 13.03% 8.81% 29 9.46% 10.00% 2.27% Quarterly Consumer Defensive Grocery Stores 3.90
FTT.TO Finning International Inc 5,956.00 144 1.00 8.00 228.00 3.55 3.00 27.92% 1800.09% 63.16% 22 4.53% 5.68% 2.42% Quarterly Industrials Industrial Distribution 3.90
ACO.X.TO Atco Ltd 4,175.00 112 1.96 400.00 1,965.00 3.82 2.00 49.77% 54.94% 11.18% 30 4.78% 3.01% 5.26% Quarterly Utilities Utilities - Diversified 3.80
CWB.TO Canadian Western Bank 2,679.00 96 1.36 411.00 493.00 3.30 0.00 42.72% 31.94% 26.62% 32 5.39% 6.56% 4.83% Quarterly Financial Services Banks - Regional 3.80
ATD.TO Alimentation Couche-Tard Inc 0.00 0 0.70 0.00 0.00 4.09 1.00 14.53% 18.05% 10.69% 14 22.42% 26.58% 0.93% Quarterly Consumer Cyclical Specialty Retail 3.70
CCA.TO Cogeco Communications Inc 2,438.00 42 3.42 224.00 1,006.00 8.31 0.00 37.99% 64.39% 14.34% 20 10.31% 10.07% 5.92% Quarterly Communication Services Telecom Services 3.70
PKI.TO Parkland Corp 7,409.00 176 1.40 1,298.00 1,780.00 2.63 3.00 46.75% 18.96% 13.83% 11 3.05% 5.50% 3.32% Quarterly Energy Oil & Gas Refining & Marketing 3.70
QBR.B.TO Quebecor Inc 6,876.00 231 1.30 860.00 1,462.00 2.73 2.00 42.60% 34.89% 20.51% 0 44.20% 0.00% 4.36% Quarterly Communication Services Telecom Services 3.70
TCW.TO Trican Well Service Ltd 906.00 208 0.18 169.00 248.00 0.54 2.00 28.38% 22.16% 15.09% 16 - - 4.14% Quarterly Energy Oil & Gas Equipment & Services 3.70
CCL.B.TO CCL Industries Inc 12,294.00 178 1.16 542.00 1,003.00 2.95 0.00 35.50% 38.07% 20.55% 22 15.31% 10.42% 1.68% Quarterly Consumer Cyclical Packaging & Containers 3.60
CGO.TO Cogeco Inc 529.00 10 3.42 226.00 1,011.00 4.01 0.00 74.41% 14.56% 3.26% 19 13.39% 16.96% 6.23% Quarterly Communication Services Telecom Services 3.60
EMA.TO Emera Inc 13,541.00 286 2.87 -696.00 2,241.00 3.58 2.00 51.49% -117.85% 36.60% 17 4.08% 4.11% 6.06% Quarterly Utilities Utilities - Regulated Electric 3.60
GCG.A.TO Guardian Capital Group Ltd 1,238.00 25 1.48 79.00 81.00 21.85 0.00 5.62% 47.10% 45.86% 13 21.54% 40.00% 3.02% Quarterly Financial Services Asset Management 3.60
IAG.TO iA Financial Corp Inc 8,462.00 100 3.28 1,063.00 1,342.00 7.45 1.00 41.57% 30.75% 24.35% 10 13.31% 14.23% 3.86% Quarterly Financial Services Insurance - Diversified 3.60
BYD.TO Boyd Group Services Inc 6,022.00 21 0.60 403.00 483.00 5.44 2.00 10.83% 3.20% 2.67% 17 2.38% 2.07% 0.21% Quarterly Consumer Cyclical Personal Services 3.50
MFC.TO Manulife Financial Corp 0.00 0 1.60 0.00 0.00 2.60 0.00 54.40% 14.15% 14.15% 10 9.92% 10.61% 4.83% Quarterly Financial Services Insurance - Life 3.50
TIH.TO Toromont Industries Ltd 10,987.00 82 1.92 241.00 356.00 6.46 3.00 25.91% 65.48% 44.42% 34 13.33% 10.26% 1.44% Quarterly Industrials Industrial Distribution 3.50
AGF.B.TO AGF Management Ltd 0.00 0 0.46 0.00 0.00 1.30 2.00 31.16% 35.10% 33.71% 0 6.09% 10.26% 5.45% Quarterly Financial Services Asset Management 3.40
CAS.TO Cascades Inc 963.00 101 0.48 159.00 510.00 -0.76 0.00 -63.16% 30.40% 9.48% 0 24.57% 0.00% 5.02% Quarterly Consumer Cyclical Packaging & Containers 3.40
CEU.TO CES Energy Solutions Corp 1,318.00 233 0.12 0.00 0.00 0.61 2.00 14.57% 12.27% 9.26% 3 14.87% 39.71% 2.12% Quarterly Energy Oil & Gas Equipment & Services 3.40
CNQ.TO Canadian Natural Resources Ltd 0.00 0 4.20 0.00 0.00 7.48 0.00 47.26% 60.43% 36.41% 23 22.52% -19.57% 3.49% Quarterly Energy Oil & Gas E&P 3.40
CNR.TO Canadian National Railway Co 112,874.00 640 3.38 3,778.00 6,965.00 8.56 3.00 36.82% 57.28% 31.07% 28 11.67% 7.85% 1.92% Quarterly Industrials Railroads 3.40
CSU.TO Constellation Software Inc 0.00 0 5.43 0.00 0.00 36.02 2.00 15.06% 4.91% 4.79% 0 15.81% 1.52% 0.15% Quarterly Technology Software - Application 3.40
FSV.TO FirstService Corp 9,705.00 45 1.36 253.00 378.00 3.01 0.00 39.02% 24.12% 16.14% 11 11.66% 12.85% 0.63% Quarterly Real Estate Real Estate Services 3.40
IMO.TO Imperial Oil Ltd 0.00 0 2.40 0.00 0.00 8.51 0.00 22.56% 65.98% 34.44% 29 21.59% 32.88% 2.42% Quarterly Energy Oil & Gas Integrated 3.40
MTY.TO MTY Food Group Inc 1,186.00 24 1.12 0.00 0.00 4.25 1.00 23.45% 17.86% 14.75% 3 10.76% 19.05% 2.11% Quarterly Consumer Cyclical Restaurants 3.40

This list of top Canadian dividend stocks takes 3 things into consideration

The growth, safety, and current yield of the dividend.

A high-yielding income stock may be placed lower on this list due to safety, and a low-yielding stock could be placed higher on this list due to the company's dividend growth.

Warning - The best dividend stocks don't always have the highest yield

A mistake that is made time and time again with dividend investors, particularly new ones that haven't been burnt yet, is having tunnel vision on the dividend yield. They ignore the dividend payout ratio or the financial health of the company and instead chase high yields to generate larger passive income.

Unfortunately for many in early 2020, this strategy resulted in devastating consequences. We witnessed the quickest pace of dividend cuts in history, and many income stocks that were bloated in value due to their high yields saw their share prices collapse.

Chasing yield is one of the biggest and most common mistakes beginners make, and it is imperative you put the quality of the company at the top of your list rather than how much it will pay you.

Is there an ETF to make dividend investing easier?

Many people who don't have the time to consistently monitor a dividend portfolio want to make their lives easier via an ETF. Fortunately, we have a plethora of them in Canada.

Whether it is Vanguard, Horizons, BMO, or iShares, Canadians can choose a wide variety of dividend ETFs to generate passive income in a single click. Some quick examples?

  • Horizons Active CDN DividendETF (TSE:HAL)
  • BMO Canadian DividendETF (TSE:ZDV)
  • S&P/TSX Canadian Dividend Aristocrats Index Fund (TSE:CDZ)
  • iShares Core S&P/TSX Composite High Dividend Index ETF (TSX:XEI)
  • iShares Canadian Select Dividend Index ETF (TSX:XDV)

It's important to note that these dividend ETFs come with management fees and need to be considered before purchasing.

What Canadian stocks pay the best dividends?

You will typically see the best dividends located in reliable, mature sectors like telecoms, pipelines, and financial companies. However, we have plenty of industrial options that pay strong dividends as well, but their yields are often not as high as those of a pipeline or telecom company.

Which Canadian stocks pay monthly dividends?

Right now, we track over 67 Canadian stocks and REITs that pay monthly dividends. If you're interested to see what they are and what we view as the best, you can read our page on monthly dividend stocks here.

What are the 5 highest dividend-paying stocks?

At the time of writing, the 5 highest dividend-paying stocks in Canada are:

  • Fiera Capital (FSZ) 11.57%
  • Peyto Exploration (PEY) 10.70%
  • Canacol Energy (CNE) 10.35%
  • Labrador Iron Ore (LIF) 10.15%
  • Birchcliff Energy (BIR) 9.74%

However, I would strongly caution investors from focusing on dividend yield and instead look to buy strong companies. A very high yield can often be a warning sign of a dividend cut. And a dividend cut usually leads to a cratering share price.

How to make $1,000 a month in dividends?

If we assume an investor could build a safe, reliable portfolio of Canadian stocks that yield around 4%, you would need a $300,000 portfolio to generate $1000 in dividends every month.