Over the last 7 days, the Canadian market has risen by 1.3%, contributing to a remarkable 23% climb over the past year, with earnings forecasted to grow by 15% annually. In this thriving environment, dividend stocks such as National Bank of Canada offer investors potential for steady income and growth, making them an attractive option for those looking to strengthen their portfolios.
Overview: National Bank of Canada offers a range of financial services to individuals, businesses, institutional clients, and governments both within Canada and internationally, with a market cap of CA$44.39 billion.
Operations: National Bank of Canada's revenue segments include Wealth Management at CA$2.70 billion, Personal and Commercial at CA$4.41 billion, Financial Markets (Excluding USSF&I) at CA$2.96 billion, and U.S. Specialty Finance and International (USSF&I) at CA$1.21 billion.
Dividend Yield: 3.4%
National Bank of Canada offers a reliable dividend yield of 3.38%, supported by a low payout ratio of 41%, indicating sustainability. The bank's dividends have been stable and growing over the past decade, although its yield is lower than the top quartile in Canada. Recent financials show solid earnings growth with net income rising to C$1.03 billion for Q3 2024, despite declining net interest income. A recent C$5 billion shelf registration suggests ongoing capital management strategies.
Overview: Power Corporation of Canada is an international management and holding company providing financial services across North America, Europe, and Asia with a market cap of CA$28.28 billion.
Operations: Power Corporation of Canada's revenue segments include Lifeco with CA$26.23 billion, Power Financial - IGM at CA$3.65 billion, and Holding Company contributing CA$83 million, adjusted by an Effect of Consolidation of -CA$374 million.
Dividend Yield: 5.1%
Power Corporation of Canada offers a reliable dividend yield of 5.09%, supported by a low payout ratio of 47.8% and cash payout ratio of 33.4%, indicating sustainability. Dividends have been stable and growing over the past decade, though the yield is below Canada's top quartile. Recent earnings show strong growth, with net income reaching C$743 million for Q2 2024, up from C$514 million last year, supporting ongoing dividend payments and share buybacks totaling C$164 million this year.
Overview: Hemisphere Energy Corporation is involved in the acquisition, exploration, development, and production of petroleum and natural gas interests in Canada, with a market cap of CA$186.08 million.
Operations: Hemisphere Energy's revenue is primarily derived from its petroleum and natural gas interests, totaling CA$77.01 million.
Dividend Yield: 6.8%
Hemisphere Energy's dividend yield is notable, ranking in the top 25% of Canadian payers. Despite a short dividend history, payouts are well-covered by earnings and cash flows, with payout ratios of 33.6% and 53.5%, respectively. Recent announcements include a special dividend alongside regular payments, reflecting strong financial performance with Q2 net income at C$10.39 million, up from C$5.79 million last year, supporting its sustainable dividend strategy amidst share buybacks worth C$5.66 million since July 2023.
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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:NA TSX:POW and TSXV:HME.
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