The market has been flat in the last week but has risen 14% over the past 12 months, with earnings forecasted to grow by 15% annually. In this environment, selecting dividend stocks that offer stable income and potential for growth can be a prudent strategy for investors.

Top 10 Dividend Stocks In Canada

Click here to see the full list of 32 stocks from our Top TSX Dividend Stocks screener.

Let's take a closer look at a couple of our picks from the screened companies.

Bank of Montreal

Simply Wall St Dividend Rating: ★★★★★☆

Overview: Bank of Montreal provides diversified financial services primarily in North America and has a market cap of approximately CA$80.51 billion.

Operations: Bank of Montreal's revenue segments include Canadian Personal and Commercial Banking (CA$10.20 billion), U.S. Personal and Commercial Banking (CA$8.89 billion), BMO Wealth Management (CA$7.61 billion), and BMO Capital Markets (CA$6.47 billion).

Dividend Yield: 5.5%

Bank of Montreal recently declared a quarterly dividend of $1.55 per share on common shares, maintaining stability from the prior quarter. The bank's dividends are well-covered by earnings, with a current payout ratio of 69.5%, and forecasted to be 53.1% in three years. Despite its dividend yield being lower than the top 25% of Canadian market payers, BMO's dividends have been reliable and growing over the past decade.

• Click here and access our complete dividend analysis report to understand the dynamics of Bank of Montreal.

• The valuation report we've compiled suggests that Bank of Montreal's current price could be quite moderate.

Canadian Imperial Bank of Commerce

Simply Wall St Dividend Rating: ★★★★★☆

Overview: Canadian Imperial Bank of Commerce, a diversified financial institution with a market cap of CA$69.31 billion, offers various financial products and services to personal, business, public sector, and institutional clients in Canada, the United States, and internationally.

Operations: Canadian Imperial Bank of Commerce generates revenue from Canadian Personal and Business Banking (CA$8.53 billion), Capital Markets and Financial Services (CA$5.66 billion), U.S. Commercial Banking and Wealth Management (CA$1.75 billion), and Canadian Commercial Banking and Wealth Management (CA$5.37 billion).

Dividend Yield: 4.6%

Canadian Imperial Bank of Commerce declared a quarterly dividend of $0.90 per share, with dividends covered by earnings at a payout ratio of 53.9%, forecasted to be 50.5% in three years. The bank's dividend yield is lower than the top 25% in Canada but has been reliable and growing over the past decade. Recent Q3 earnings showed net income growth to C$1.79 billion from C$1.42 billion a year ago, supporting its dividend stability.

• Click to explore a detailed breakdown of our findings in Canadian Imperial Bank of Commerce's dividend report.

• Our valuation report unveils the possibility Canadian Imperial Bank of Commerce's shares may be trading at a discount.

Hemisphere Energy

Simply Wall St Dividend Rating: ★★★★☆☆

Overview: Hemisphere Energy Corporation acquires, explores, develops, and produces petroleum and natural gas interests in Canada with a market cap of CA$180.79 million.

Operations: Hemisphere Energy Corporation generated CA$77.01 million in revenue from its petroleum and natural gas interests.

Dividend Yield: 7.0%

Hemisphere Energy has shown strong financial performance, with Q2 2024 revenue increasing to C$22.66 million and net income rising to C$10.39 million from a year ago. The company announced a regular dividend of C$0.025 per share, payable on August 30, 2024, and a special dividend of C$0.03 in July 2024. Hemisphere's dividends are well-covered by earnings (payout ratio: 33.6%) and cash flows (cash payout ratio: 53.6%), although its dividend track record is relatively short at under ten years.

• Get an in-depth perspective on Hemisphere Energy's performance by reading our dividend report here.

• Upon reviewing our latest valuation report, Hemisphere Energy's share price might be too pessimistic.

Next Steps

• Investigate our full lineup of 32 Top TSX Dividend Stocks right here.

• Shareholder in one or more of these companies? Ensure you're never caught off-guard by adding your portfolio in Simply Wall St for timely alerts on significant stock developments.

• Streamline your investment strategy with Simply Wall St's app for free and benefit from extensive research on stocks across all corners of the world.

Interested In Other Possibilities?

• Explore high-performing small cap companies that haven't yet garnered significant analyst attention.

• Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management.

• Find companies with promising cash flow potential yet trading below their fair value.

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:BMO TSX:CM and TSXV:HME.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]