The Top 10 Canadian Dividend Stocks for Outstanding Performance in…

Dividend-paying stocks that combine healthy balance sheets with hefty yields can provide investors with steady incomes, cushion against market downturns, and grow investments at a healthy clip.

In October 2024, the top-performing dividend-payers included waste management company Secure Energy Services SES, asset management firm CI Financial CIX, and asset management firm Brookfield BAM.

To find the month’s 10 best-performing income-focused stocks, we screened the Morningstar Canada Index—which measures the performance of Canada’s broad regional markets, targeting the top 97% of stocks by market capitalization—for companies with a forward dividend yield of at least 1.5%, excluding real estate investment trusts.

The Best-Performing Canadian Dividend Stocks of October 2024

1. Secure Energy Services SES
2. CI Financial CIX
3. Brookfield BAM
4. Pan American Silver PAAS
5. Lundin Gold LUG
6. Capital Power CPX
7. SSR Mining SSRM
8. Agnico Eagle Mines AEM
9. B2Gold BTO
10. TC Energy TRP

How Have Dividend Stocks Performed?

Over the past month, the Morningstar Canada Dividend Growth Index, which tracks the performance of Canadian stocks with a history of uninterrupted dividend growth and the capacity to sustain that growth, was roughly unchanged. The Morningstar Canada Dividend Yield Focus Index, which tracks the performance of high-quality, dividend-paying Canadian stocks, rose 1.8%. In the 12 months leading up to Oct 31, the dividend growth index gained 30.9% and the dividend yield focus index gained 25.7%.

The overall Canadian stock market, as measured by the Morningstar Canada Index, has gained 1.0% on the month and 32.6% on the year.

Yields and Metrics for October’s Best-Performing Dividend Stocks

Secure Energy Services

Waste management company Secure Energy Services rose 27.6% in October and gained 106.6% over the past 12 months. Trading at C$15.51 per share, its stock has a forward dividend yield of 2.58%. Secure Energy Services pays investors an annual dividend of C$0.40 per share. The stock has a quantitative Morningstar Rating of 2 stars.

CI Financial

Asset management firm CI Financial rose 24.4% in October and gained 88.5% over the past 12 months. At C$22.90 per share, its stock has a forward dividend yield of 3.49% and an annual dividend of C$0.80 per share. The stock, which has no economic moat, is moderately overvalued, trading 43% above its fair value estimate of C$16 per share. It has a Morningstar Rating of 2 stars.

Brookfield

Asset management firm Brookfield gained 15.5% in October and rose 90.8% over the past 12 months. The stock’s C$73.87 price gives it a forward dividend yield of 2.77%. Brookfield pays investors an annual dividend of C$2.05 per share. The stock has a quantitative Morningstar Rating of 1 star.

Pan American Silver

Gold company Pan American Silver rose 15.3% in October and gained 63.4% over the past 12 months. Trading at C$32.56 per share, Pan American Silver stock has a forward dividend yield of 1.66% and an annual dividend of C$0.54 per share. It has a quantitative Morningstar Rating of 3 stars.

Lundin Gold

Gold company Lundin Gold gained 15.1% in October and rose 105.4% over the past 12 months. Trading at C$33.67 per share, its forward dividend yield is 3.19%. Lundin Gold pays investors an annual dividend of C$1.07 per share. It has a quantitative Morningstar Rating of 1 star.

Capital Power

Independent power producer Capital Power gained 14.8% in October and rose 66.2% over the past 12 months. At C$56.47 per share, Capital Power stock has a forward dividend yield of 4.62% and an annual dividend of C$2.61 per share. It has a quantitative Morningstar Rating of 3 stars.

SSR Mining

Gold company SSR Mining rose 12.0% in October and lost 54.7% over the past 12 months. Trading at C$8.60 per share, SSR Mining stock has a forward dividend yield of 4.42% and an annual dividend of C$0.38 per share. It has a quantitative Morningstar Rating of 3 stars.

Agnico Eagle Mines

Gold company Agnico Eagle Mines rose 10.3% in October and gained 88.1% over the past 12 months. Trading at C$120.18 per share, Agnico Eagle Mines stock has a forward dividend yield of 1.8% and pays investors an annual dividend of C$2.17 per share. The stock, which has no economic moat, is currently trading at a 56% premium to its fair value estimate of C$77 per share, leaving it significantly overvalued, leaving it with a Morningstar Rating of 1 star.

B2Gold

Gold company B2Gold gained 10.0% in October and rose 8.5% over the past 12 months. The stock’s C$4.60 price gives it a forward dividend yield of 4.72%. B2Gold pays investors an annual dividend of C$0.22 per share. The stock has a quantitative Morningstar Rating of 3 stars.

TC Energy

Midstream oil and gas company TC Energy rose 9.8% in October and gained 55.8% over the past 12 months. At C$64.76 per share, TC Energy has a forward dividend yield of 5.93% and an annual dividend of C$3.84 per share. The stock, which has a narrow economic moat, is moderately overvalued, trading 22% above its fair value estimate of C$53 per share. It has a Morningstar Rating of 2 stars.

What Is the Morningstar Canada Index?

The Morningstar Canada Index measures the performance of Canada’s broad regional markets, targeting the top 97% of stocks by market capitalization. The index does not incorporate environmental, social, or governance criteria.

What Is the Morningstar Canada Dividend Yield Focus Index?

The Morningstar Canada Dividend Yield Focus Index captures the performance of a portfolio of high-quality, dividend-paying securities.

It’s a subset of the Morningstar Canada Index (which represents 97% of the equity market capitalization) that includes only stocks that pay dividends. The stocks are screened for economic moat and financial strength compared to others in their sector. Real estate investment trusts are excluded.

The 25 highest-yielding stocks are included in the index, weighted by the dollar value of the dividends. See the full rulebook here.

The Best Dividend Stock Leaders: More Ideas to Consider

Investors who would like to find more top-performing or cheap dividend stocks can do the following:

• Review the full list of stocks in the Morningstar Canada Dividend Yield Focus Index. Stocks with Morningstar Ratings of 4 or 5 stars are undervalued, according to our metrics.
• Use our Morningstar Stock Screener tool to find the best dividend stocks according to your specific criteria. You can search for stocks based on their dividend yields, valuation measures like price/earnings ratios, and more.
• When it comes to buying stocks, it’s more than just dividends. Read here how valuations and competitive advantages—known as economic moats—matter when it comes to a stock’s potential for outperformance.
• Read Morningstar’s Guide to Stock Investing to learn how our approach to investing can inform your stock-picking process.

Companies that are not formally covered by a Morningstar analyst are statistically matched to analyst-rated companies, allowing our models to calculate a quantitative star rating.

This article was compiled by Bella Albrecht, edited by Lauren Solberg, and reviewed by Morningstar Editors.

This article was generated with the help of automation and reviewed by Morningstar editors. Learn more about Morningstar’s use of automation.

The author or authors do not own shares in any securities mentioned in this article. Find out about Morningstar’s editorial policies.

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