There’s nothing quite like making money while you sleep and that’s essentially what you get with the best Canadian dividend stocks. Dividend stocks are public companies that pay their investors a portion of their profits in the form of a cheque either every three months or biannually.
Best Canadian Dividend Stocks
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![Aaron Brovernman Headhshot]()
Why you can trust us
The team at WealthRocket only recommends products and services that we would use ourselves and that we believe will provide value to our readers. However, we advocate for you to continue to do your own research and make educated decisions.
Even if you literally don’t do anything to get that cheque, as an investor you still always want the biggest return you can get for your investment, so that’s why we’re counting down the best Canadian dividend stocks to buy. By the end of this list you’ll be able to see those Canadian monthly dividend stocks with the best dividend yield percentage currently on the market.
The 10 Best Dividend Stocks in Canada for 2024
So, let’s get to it. Invest in these stocks and you’ll get a piece of the closest bet to a sure thing in the Canadian investment world.
1. Enbridge (TSX, NYSE: ENB)*
- Sector: Energy
- Dividend Yield: 7.09%
- Dividend Payout Ratio: 121%
- 5 Year Dividend Growth Rate:11.7%
- Market Cap: $98.68 billion
Like it or not, the world’s reliance on oil and natural gas is not going away any time soon. However, it’s likely that building new pipelines will become that much harder given the looming effects of climate change, which makes Enbridge’s existing pipeline structure that much more valuable in the present. Enbridge’s 3.7 million customers stretch across North America to places like Ontario, Quebec, New Brunswick, New York and several other U.S. states and they all rely on those pipelines. As a result, Enbridge has a reputation of consistently delivering long-term value for its shareholders with an incredible dividend payout ratio of 121% and this will continue, at least in the short to medium term.
2. Algonquin Power & Utilities Corp. (TSX, NYSE : AQN)*
- Sector: Utilities
- Dividend Yield: 4.67%
- Dividend Payout Ratio: 61.9%
- 5 Year Dividend Growth Rate:10.0%
- Market Cap: $12.34 billion
Algonquin’s continued investment in renewable energy makes it a stock for the future, as its position will only grow stronger. Its share price has dropped over the last year, but this is a huge and stable company that will only grow its position, so long-term investors should take this as an opportunity to buy more shares while they’re cheaper. Meanwhile, this could be the one chance new investors will find shares affordable enough to invest.
3. Manulife (TSX, NYSE: MFC)*
- Sector: Financial
- Dividend Yield: 4.76%
- Dividend Payout Ratio: 32.4%
- 5 Year Dividend Growth Rate: 11 %
- Market Cap: $45.75 billion
Manulife is a stalwart stock that you can never go wrong investing in. It is Canada’s largest insurance company and the 28th largest fund manager in the world. Plus, it operates both in Asia and the U.S., so it has its tentacles around the world. If you’re looking for an old, reliable stock for a company with 125 years’ experience that will always generate healthy returns, Manulife is the number one choice.
4. Telus (TSX: T, NYSE: TU)*
- Sector: Telecommunication
- Dividend Yield: 4.39%
- Dividend Payout Ratio: 137%
- 5 Year Dividend Growth Rate: 7.1%
- Market Cap: $38.00 billion
Telus has continued to be profitable thanks to Canadians’ addiction to their smartphones and the simple fact that Canadians pay some of the highest data rates in the world. The company has a very shareholder-friendly board, which has said they plan to increase Telus’s dividend by seven to ten percent by 2022 and there’s no reason to think they won’t accomplish that since they’ve increased its dividend every year since 2002.
5. TD Bank (TSX, NYSE: TD)*
- Sector: Financial Services
- Dividend Yield: 3.76%
- Dividend Payout Ratio: 46.1%
- 5 Year Dividend Growth Rate: 9.2%
- Market Cap: $171.49 billion
TD bank is not only one of Canada’s biggest bank, but the fifth largest bank in North America with 2300 retail locations across North America, including 1, 250 in the U.S. (30% of its net income). With such a large customer base, TD is a sure bet for investment, especially since people don’t change banks often.
6. Royal Bank (TSX, NYSE: RY)*
- Sector: Financial Services
- Dividend Yield: 3.65%
- Dividend Payout Ratio: 43.9%
- 5 Year Dividend Growth Rate: 6.9%
- Market Cap: $187.57 billion
Royal Bank is not only Canada’s largest bank, but one of its oldest and it has not missed a dividend payment since 1870. Whatever your opinion of the bank itself, you must stand and cheer for the clockwork stability of 150 years of dividends. Plus, in modern day, they recently raised their dividend payout by 11% and may continue to raise dividends in 2022.
7. National Bank (TSX : NA)*
- Sector: Financial Services
- Dividend Yield: 3.63%
- Dividend Payout Ratio: 38.8%
- 5 Year Dividend Growth Rate: 6.4%
- Market Cap: $32.41 billion
In early December 2021, National Bank raised dividends 23%, which is not bad for a bank that’s cantered mostly in Quebec. Although, on the other hand, it can’t be that surprising since National Bank is still Canada’s sixth largest bank even though it’s mostly a regional player. That being said, they are making inroads to expand into the rest of Canada and as a smaller payer they will be able to adapt and change faster than the large banks, which is a strong advantage for shareholders.
8. Bank of Montreal (TSX, NYSE: BMO)
- Sector: Financial Services
- Dividend Yield: 4.00%*
- Dividend Payout Ratio: 36.61%
- 5 Year Dividend Growth Rate: 3.95%
- Market Cap: $86.26 billion
Not to be out done, BMO hiked its own dividend by 25% in December 2021 and shares are up 35% year-to-date, but Canada’s big five banks remain undervalued when it comes to stock price, even though all of them have raised their dividends. This should tell you that there’s still room to grow, which makes BMO, and a lot of the other big five banks on this list, excellent investments.
9. Granite REIT (TSX : GRT.UN, NYSE : GRP.U)
- Sector: Industrial REIT
- Dividend Yield: 2.92%*
- Dividend Payout Ratio: 34.80%
- 5 Year Dividend Growth Rate: 4.80%
- Market Cap: $6.66 billion
With online shopping exploding in popularity thanks to the pandemic, it’s smart to invest in a real estate investment trust that owns the warehouses that hold that merchandise. This is what you get with Granite REIT—a Canadian real estate investment trust with 99.6% occupancy among its buildings, which are logistics, warehouse and industrial properties in North America and Europe. Its 118 properties cover 51.3 million square-feet of liveable space, which are impressive numbers already, before factoring in the continued rise of online shopping.
10. Alimentation Couche-Tard (TSX: ATD.B)
- Sector: Consumer Defensive
- Dividend Yield: 0.89%*
- Dividend Payout Ratio: 14.50%
- 5 Year Dividend Growth Rate: 21.70%
- Market Cap: $51.49 billion
You may wonder how a stock with a dividend yield under one percent cracks this list. Well, Alimentation Couche-Tard—owners of Circle K (the former Mac’s)—has been growing its dividend at a consistent rate. Also, its 40 years as a company and its plan to launch electric vehicle charging stations in Canada, the U.S. and Norway can only help their business as charging stations move to become as ubiquitous as gas stations. This is a great buy-and-hold stock with plenty of room to rise.
*As of December 21, 2021
How to Buy Dividend Stocks in Canada
The quickest way to get each of the above stocks is to sign-up for an account with one of Canada’s discount brokerages—Questrade or Wealthsimple. Here’s what each one gives you and what they leave behind. For more details, check out our reviews of both.
Questrade Pros and Cons
Pros
Low fees
Live chat customer service
Unlimited Free ETF purchases
Strong web and mobile apps
Low Canadian to USD conversion fees (USD and CAD can be kept in the same account)
Named “Best Brokerage in Customer Satisfaction” by J.D. Power and one of “Canada’s Best Managed Companies” for the tenth year in a row by Deloitte
Cons
ECN fees (You can avoid them if you know how)
Can be very expensive (depends on what you’re executing)
Lacks market data to inform your trades
Questrade
- Account Fees $0
- Minimum Deposit $1,000
- Asset Types Stocks, Options, Bonds, ETFs, Mutual Funds
- OTC stock fees $0.01 per share, min $4.95, max $9.95; free ETFs, selling costs $0.01 per share
Wealthsimple Trade Pros and Cons
Pros
Only commission-free trading platform in Canada
Access to thousands of stocks, ETFs and select cryptocurrency
Options for investing in registered (TFSA, RRSP, etc.) and non-registered accounts.
Receive a bonus of $25 when you invest your first $100
Easy-to-use mobile and web trading app
Regulated and trustworthy brand
Cons
Does not include any other trading vehicles beyond stocks, ETFs and some cryptocurrencies.
You can’t avoid foreign exchange fees on USD trades or hold Canadian and U.S. dollars in the same account.
Desktop platform still in beta and not as good as mobile app
Lack of educational tools and market analytics
Quotes are delayed by 15 minutes, so prices aren’t up to the minute (a 5% buffer is built-in for last minute price changes)
Wealthsimple
- Account Fees 0.4%-0.5%
- Minimum Deposit $1
- Asset Types Bonds (government and corporate), Real Estate, ETFs, Gold, Mutual Funds, and Currencies
Our Final Thoughts
The best dividend stocks in Canada are the blue chip, large and stable companies that have been around for over 100 years. As a result, you can’t go wrong with any of the dividend stocks listed above. You will always get your dividends on time and it’s always great to earn some passive income when you do.
Aaron Broverman
Frequently Asked Questions
Yes. Generally, stocks that pay a dividend are your reliable, longstanding companies that would have to suffer apocalyptic losses to even have a chance of going out of business, so it’s extremely likely that your money is safe. However, some companies have been known to use their dividend payouts to placate investors when a stock isn’t moving and hide mismanagement. This means if you’re investing in a stock that pays a dividend, it may be pushing its dividend artificially to cover up a lack of growth. Therefore, it’s important to at least investigate how a company uses its dividend in its corporate strategy before investing. After all, usually a company that artificially pushes out it dividend while growth remains stagnant may soon cut its dividend program all together, which will send the stock plummeting.
Beyond the dividend stocks listed above, overall, good dividend stocks are usually stalwart companies that have existed in this country for over 100 years and cover sectors that are never going away, such as energy, utilities, financial services and telecommunications. Though shares in these companies are not cheap—given how reliable they have been as investments—once you are a shareholder, you usually reap nothing but rewards. One should approach stocks paying out a dividend without a solid, blue chip reputation for their brand, and many customers worldwide, with great scepticism because one has to wonder where the money to pay out the dividend is actually coming from in that scenario.
Investing in dividend stocks does take some research and due diligence, as well as an understanding of what a dividend is and how dividend stocks work (most dividend stocks pay out their excess profits to investors every three months, but some do so on a biannual basis) but the actual act of investing in them is easy. You can either contact your stockbroker or financial planner to invest on your behalf or you can use a reputable online discount brokerage like Wealthsimple Trade or Questrade to buy the shares yourself. Either way, the opportunity to invest in dividend stocks is readily available and highly accessible anyone with the money needed to buy shares.
