What are some good dividend stocks in Canada?


Quick Answer

Canadian firms that pay attractive dividends include the Royal Bank of Canada and the National Bank of Canada, according to investment research firm Zacks. As of 2015, additional companies with appealing dividend stocks include the TransAlta Corporation and the Enerplus Corporation.

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Full Answer

The Royal Bank of Canada has consistently increased dividends since 2005, Zacks reports. The firm issues payments every three months; on May 22, 2015, the bank paid a cash dividend of $0.6189 per share, resulting in a dividend yield of 3.65 percent.

Apart from the comparatively high return, other attractive aspects of the Royal Bank of Canada include size and diversification, notes Zacks. The company is both the largest bank in Canada by market capitalization and assets and one of the most diversified financial services firms in North America.

With operations in wealth management, financial markets, and commercial and personal finance sectors, the National Bank of Canada is on a similar level in terms of diversification, Zacks reports. The company, which pays dividends every quarter, has increased payments nine times since 2010. As of June 2015, the bank pays a cash dividend of 50 cents per share, giving a yield of 4.92 percent.

TransAlta and Enerplus have similarly high dividend yields, Zacks notes. TransAlta, an electricity generation and marketing firm, has a yield of 4.6 percent and a projected growth rate of 38.6 percent in 2015. Enerplus, an oil and gas production firm, has a 2015 dividend yield of 3.85 percent.

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