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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 November 2024, the top-performing dividend-payers included asset management firm CI Financial CIX, chemical company Methanex MX, and industrial distributor Russel Metals RUS.
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 November 2024
1. CI Financial CIX
2. Methanex MX
3. Russel Metals RUS
4. Industrial Alliance Insurance and Financial Services IAG
5. Paramount Resources POU
6. Magna International MG
7. Parex Resources PXT
8. IGM Financial IGM
9. Sun Life Financial SLF
10. Arc Resources ARX
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, rose 4.8%. The Morningstar Canada Dividend Yield Focus Index, which tracks the performance of high-quality, dividend-paying Canadian stocks, rose 4.8%. In the 12 months leading up to Nov 30, the dividend growth index gained 30.3% and the dividend yield focus index gained 25.0%.
The overall Canadian stock market, as measured by the Morningstar Canada Index, has gained 6.8% on the month and 31.9% on the year.
Yields and Metrics for November’s Best-Performing Dividend Stocks
CI Financial
Asset management firm CI Financial rose 35.6% in November and gained 126.5% over the past 12 months. Trading at C$31.05 per share, its stock has a forward dividend yield of 2.58%. CI Financial pays investors an annual dividend of C$0.80 per share. The stock, which has no economic moat, is currently trading near its fair value estimate of C$32 per share, leaving it with a Morningstar Rating of 3 stars.
Methanex
Chemical company Methanex rose 20.4% in November and gained 15.1% over the past 12 months. At C$65.64 per share, its stock has a forward dividend yield of 1.57% and an annual dividend of C$1.03 per share. It has a quantitative Morningstar Rating of 5 stars.
Russel Metals
Industrial distributor Russel Metals gained 19.6% in November and rose 24.4% over the past 12 months. The stock’s C$45.96 price gives it a forward dividend yield of 3.66%. Russel Metals pays investors an annual dividend of C$1.68 per share. The stock has a quantitative Morningstar Rating of 4 stars.
Industrial Alliance Insurance and Financial Services
Diversified insurance firm Industrial Alliance Insurance and Financial Services rose 18.8% in November and gained 51.4% over the past 12 months. Trading at C$133.83 per share, Industrial Alliance Insurance and Financial Services stock has a forward dividend yield of 2.69% and an annual dividend of C$3.60 per share. It has a quantitative Morningstar Rating of 2 stars.
Paramount Resources
Oil and gas exploration and production company Paramount Resources gained 17.2% in November and rose 23.6% over the past 12 months. Trading at C$31.34 per share, its forward dividend yield is 5.74%. Paramount Resources pays investors an annual dividend of C$0.60 per share. It has a quantitative Morningstar Rating of 4 stars.
Magna International
Auto parts firm Magna International gained 17.0% in November and fell 9.5% over the past 12 months. At C$63.63 per share, Magna International stock has a forward dividend yield of 4.21% and an annual dividend of C$2.66 per share. The stock, which has no economic moat, is moderately undervalued, trading 27% below its fair value estimate of C$87 per share. It has a Morningstar Rating of 4 stars.
Parex Resources
Oil and gas exploration and production company Parex Resources rose 15.8% in November and lost 40.7% over the past 12 months. Trading at C$14.97 per share, Parex Resources stock has a forward dividend yield of 10.29% and an annual dividend of C$1.54 per share. It has a quantitative Morningstar Rating of 3 stars.
IGM Financial
Asset management firm IGM Financial rose 13.1% in November and gained 47.1% over the past 12 months. Trading at C$47.31 per share, IGM Financial stock has a forward dividend yield of 4.76% and pays investors an annual dividend of C$2.25 per share. The stock, which has no economic moat, is currently trading near its fair value estimate of C$47 per share, leaving it with a Morningstar Rating of 3 stars.
Sun Life Financial
Diversified insurance firm Sun Life Financial gained 12.7% in November and rose 30.5% over the past 12 months. The stock’s C$86.17 price gives it a forward dividend yield of 3.9%. Sun Life Financial pays investors an annual dividend of C$3.36 per share. With a fair value estimate of C$66 per share and no economic moat, the stock is moderately overvalued, trading at a 31% premium. It has a Morningstar Rating of 2 stars.
Arc Resources
Oil and gas exploration and production company Arc Resources rose 11.9% in November and gained 22.4% over the past 12 months. At C$25.81 per share, Arc Resources has a forward dividend yield of 2.63% and an annual dividend of C$0.68 per share. It has a quantitative Morningstar Rating of 3 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 Nathalie Cordier.
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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