The Canadian stock market has experienced significant volatility recently, with sharp swings and dramatic headlines, though ultimately ending the week with modest changes. Amid such fluctuations, dividend stocks can offer a stable income stream and potential for long-term growth, making them a compelling choice for investors seeking resilience in uncertain times.
Overview: Alaris Equity Partners Income Trust is a private equity firm that focuses on management buyouts, growth capital, and investments in lower and middle-market companies with a market cap of CA$739.35 million.
Operations: Alaris Equity Partners Income Trust generates revenue primarily from unclassified services, amounting to CA$215.71 million.
Dividend Yield: 8.5%
Alaris Equity Partners Income Trust offers an attractive dividend yield of 8.46%, placing it in the top 25% of Canadian dividend payers. Despite a volatile dividend history over the past decade, current payouts are well-covered by earnings and cash flows, with payout ratios at 29.5% and 72.6%, respectively. Recent Q2 results showed a decline in revenue to C$28.5 million from C$46.84 million year-over-year, but net income increased to C$31.68 million from C$28.39 million, indicating robust profitability despite revenue challenges.
Overview: iA Financial Corporation Inc. provides insurance and wealth management services in Canada and the United States, with a market cap of CA$9.34 billion.
Operations: iA Financial Corporation Inc. generates revenue from various segments, including CA$3.95 billion from Insurance in Canada, CA$2.42 billion from Wealth Management, CA$1.62 billion from US Operations, and CA$517 million from Investments.
Dividend Yield: 3.3%
iA Financial Corporation offers a stable and reliable dividend, with payments growing over the past decade. The current payout ratio of 43% ensures dividends are well-covered by earnings, while a low cash payout ratio of 17% indicates strong cash flow support. Recent Q2 results showed net income rising to C$214 million from C$204 million year-over-year. The company affirmed a quarterly dividend of $0.82 per share, payable on September 16, 2024.
Overview: The Toronto-Dominion Bank, along with its subsidiaries, offers a range of financial products and services in Canada, the United States, and internationally, with a market cap of CA$136.87 billion.
Operations: Toronto-Dominion Bank's revenue segments include CA$17.39 billion from Canadian Personal and Commercial Banking, CA$12.81 billion from U.S. Retail, CA$11.81 billion from Wealth Management and Insurance, CA$6.63 billion from Wholesale Banking, and CA$1.08 billion from Corporate operations.
Dividend Yield: 5.2%
Toronto-Dominion Bank's dividend payments have been stable and reliable over the past decade, with a current yield of 5.2%. The payout ratio stands at 66.1%, indicating dividends are well-covered by earnings, and future coverage is forecasted to improve to 51.6%. Despite recent profit margin declines from 31.1% to 20.9%, earnings are expected to grow annually by 8.03%. Recent fixed-income offerings highlight ongoing efforts to manage capital effectively amidst market changes.
Reveal the 34 hidden gems among our Top TSX Dividend Stocks screener with a single click here.
Hold shares in these firms? Setup your portfolio in Simply Wall St to seamlessly track your investments and receive personalized updates on your portfolio's performance.
Take control of your financial future using Simply Wall St, offering free, in-depth knowledge of international markets to every investor.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include TSX:AD.UN TSX:IAG and TSX:TD.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]
