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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 2024, the top-performing dividend-payers included asset management firm CI Financial CIX, regional bank Canadian Western Bank CWB, and gold company Lundin Gold LUG.
To find the year’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 2024
1. CI Financial CIX
2. Canadian Western Bank CWB
3. Lundin Gold LUG
4. Secure Energy Services SES
5. Capital Power CPX
6. Tamarack Valley Energy TVE
7. Agnico Eagle Mines AEM
8. Gildan Activewear GIL
9. Dundee Precious Metals DPM
10. Manulife MFC
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 2.0%. The Morningstar Canada Dividend Yield Focus Index, which tracks the performance of high-quality, dividend-paying Canadian stocks, rose 3.7%. In the 12 months leading up to Dec. 31, the dividend growth index gained 21.1% and the dividend yield focus index gained 16.2%.
The overall Canadian stock market, as measured by the Morningstar Canada Index, has gained 4.6% on the month and 23.1% on the year.
Yields and Metrics for 2024’s Best-Performing Dividend Stocks
CI Financial
Asset management firm CI Financial rose 117.3% in 2024 and gained 7.9% over the past three years, on an annualized basis. Trading at C$30.94 per share, its stock has a forward dividend yield of 2.59%. 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.
Canadian Western Bank
Regional bank Canadian Western Bank rose 97.8% in 2024 and gained 20.0% over the past three years, on an annualized basis. At C$58.75 per share, its stock has a forward dividend yield of 2.45% and an annual dividend of C$1.44 per share. It has a quantitative Morningstar Rating of 3 stars.
Lundin Gold
Gold company Lundin Gold gained 91.5% in 2024 and rose 45.8% over the past three years, on an annualized basis. The stock’s C$30.66 price gives it a forward dividend yield of 3.77%. Lundin Gold pays investors an annual dividend of C$1.16 per share. The stock has a quantitative Morningstar Rating of 2 stars.
Secure Energy Services
Waste management company Secure Energy Services rose 76.7% in 2024 and gained 48.4% over the past three years, on an annualized basis. Trading at C$16.26 per share, Secure Energy Services stock has a forward dividend yield of 2.46% and an annual dividend of C$0.40 per share. It has a quantitative Morningstar Rating of 2 stars.
Capital Power
Independent power producer Capital Power gained 75.1% in 2024 and rose 21.6% over the past three years, on an annualized basis. Trading at C$63.72 per share, its forward dividend yield is 4.09%. Capital Power pays investors an annual dividend of C$2.61 per share. It has a quantitative Morningstar Rating of 2 stars.
Tamarack Valley Energy
Oil and gas exploration and production company Tamarack Valley Energy gained 60.9% in 2024 and rose 10.6% over the past three years, on an annualized basis. At C$4.79 per share, Tamarack Valley Energy stock has a forward dividend yield of 3.19% and an annual dividend of C$0.05 per share. It has a quantitative Morningstar Rating of 5 stars.
Agnico Eagle Mines
Gold company Agnico Eagle Mines rose 57.8% in 2024 and gained 21.0% over the past three years, on an annualized basis. Trading at C$112.46 per share, Agnico Eagle Mines stock has a forward dividend yield of 2.02% and an annual dividend of C$2.28 per share. The stock, which has no economic moat, is significantly overvalued, trading 39% above its fair value estimate of C$81 per share. It has a Morningstar Rating of 1 star.
Gildan Activewear
Apparel manufacturing company Gildan Activewear rose 56.9% in 2024 and gained 9.6% over the past three years, on an annualized basis. Trading at C$67.65 per share, Gildan Activewear stock has a forward dividend yield of 1.72% and pays investors an annual dividend of C$1.17 per share. The stock, which has a narrow economic moat, is currently trading near its fair value estimate of C$66.50 per share, leaving it with a Morningstar Rating of 3 stars.
Dundee Precious Metals
Gold company Dundee Precious Metals gained 56.4% in 2024 and rose 20.5% over the past three years, on an annualized basis. The stock’s C$13.04 price gives it a forward dividend yield of 1.71%. Dundee Precious Metals pays investors an annual dividend of C$0.23 per share. The stock has a quantitative Morningstar Rating of 2 stars.
Manulife
Life insurance company Manulife rose 56.3% in 2024 and gained 26.3% over the past three years, on an annualized basis. At C$44.16 per share, Manulife has a forward dividend yield of 3.62% and an annual dividend of C$1.60 per share. The stock, which has no economic moat, is moderately overvalued, trading 30% above its fair value estimate of C$34 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 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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