What are the top 3 TSX dividend stocks?
Peyto Exploration & Development Corp. (TSX:PEY), PHX Energy Services (TSX:PHX), and Wall Financial Corp. (TSX:WFC) are enticing options to yield-hungry investors because the dividend offers are from 8.8% to 12.65%. Performance-wise, the three stocks are beating the broader market thus far in 2024.
Royal Bank of Canada stock
The largest Canadian bank, Royal Bank of Canada (TSX:RY), is also one of the best dividend stocks in Canada. After ending 2023 with 5.3% gains, RY stock hasn't seen any notable change in 2024 so far, as it currently trades at $134.72 per share with a market cap of $189.8 billion.
Within the banking space, Bank of Montreal (TSX:BMO) stands out for its stellar dividend payment history. The financial services giant has been paying dividends for 195 years, the longest by any Canadian company. Also, its dividends have grown at a compound annual growth rate (CAGR) of 5% in the last 15 years.
Enbridge's high yield, solid dividend payment and growth history, and growing DCF make it an attractive passive income investment. Further, based on its current dividend yield of 7.9%, investors can make $1,975 per year on an investment of $25,000.
Safest Dividend Stock #1: Globe Life Inc. (
Founded in 1979, the company has raised its dividend every year for the past 18 years. Globe Life reported Q4 and full year 2023 earnings on February 7th, 2024. For the quarter, earnings-per-share were $2.88, above the $2.46 the company reported in the same quarter of 2022.
Walgreen Boots Alliance (4.8% dividend yield)
Walgreens also slashed its dividend last year, showing that it needs to reserve that money for revamping its business. Nonetheless, it's still the top-yielding stock on the Nasdaq 100, with a yield of 4.8%.
Royal Bank of Canada. (TSX:RY).
As of January 2024, the market capitalization of Royal Bank of Canada amounted to 142.03 billion Canadian dollars, which placed the company at the top of the ranking.
Some of the best Canadian stocks to buy include Shopify Inc. (NYSE:SHOP), Teck Resources Limited (NYSE:TECK), and Canadian Pacific Kansas City Limited (NYSE:CP). We chose the top Canadian stocks based on overall hedge fund sentiment toward each stock.
The Dogs of the TSX is based on a classic investment principle: buy when stocks are low and sell them at a higher price. By rotating your portfolio each year with the new “dogs”, you ensure to buy the best stocks at the lowest price while selling those with a great return over the past 12 months.
Can you live off dividends forever?
Creating a diversified portfolio, understanding the implications of dividend reinvestment plans (DRIPs) and being aware of tax efficiency are vital steps in maximizing dividend income while minimizing risks. The dream of living off dividends is attainable with the right financial planning and investment strategy.
Marginal tax rate for dividends is a % of actual dividends received (not grossed-up taxable amount). Marginal tax rate for capital gains is a % of total capital gains (not taxable capital gains). Gross-up rate for eligible dividends is 38%, and for non-eligible dividends is 15%.
You need to own a stock before the Ex-Dividend Date to receive the next dividend payment. If you buy a stock on or after the Ex-Dividend Date, you won't be eligible for the next payment. The dividend will be paid to the seller of the stock instead.
Dividends are taxable income
Luckily, dividends received by a Canadian resident from a Canadian business get special treatment with something called the dividend tax credit. On the other hand, dividends you receive from foreign corporations get taxed at your highest marginal rate.
So 8% preferred stock means the investor will get a yearly dividend of 8% of the face value. Preferred stock is equity and not a debt instrument. The company may have the flexibility to decide to withhold dividends sometimes and can pay later.
Dividends are typically paid on a quarterly basis, but companies can also pay dividends on a monthly or annual basis. Dividends paid out as a special dividend are one-time payments declared by the company.
A well-constructed dividend portfolio could potentially yield anywhere from 2% to 8% per year. This means that to earn $3,000 monthly from dividend stocks, the required initial investment could range from $450,000 to $1.8 million, depending on the yield.
A personal salary will show a steady, earned employment income and is more likely to help you be eligible. Mortgage brokers may not consider dividends as favourably. On the other hand, dividends tend to be lower in cost, which allows you to have more cash now, but less later, as you forego your CPP contributions.
Despite their storied histories, they cut their dividends. 9 In other words, dividends are not guaranteed and are subject to macroeconomic and company-specific risks. Another downside to dividend-paying stocks is that companies that pay dividends are not usually high-growth leaders.
The Coca-Cola Company's ( KO ) dividend yield is 3.32%, which means that for every $100 invested in the company's stock, investors would receive $3.32 in dividends per year. The Coca-Cola Company's payout ratio is 74.22% which means that 74.22% of the company's earnings are paid out as dividends.
Which stock gives highest return in 1 year?
Indian Railway Finance Corporation (IRFC): This finance sector PSU stock is the biggest gainer in the BSE 500 index. IRFC's share price has surged 448% to Rs 170.85 on January 29 from Rs 31.20 a year ago. It has a current market capitalisation (m-cap) of Rs.
Dividends can be classified either as ordinary or qualified. Whereas ordinary dividends are taxable as ordinary income, qualified dividends that meet certain requirements are taxed at lower capital gain rates.
A high dividend yield can be appealing since you're getting more income per dollar invested, but a high yield isn't always a positive thing. It could mean that the company's stock price has been falling or dividend payments have been increasing at a higher rate than the company's earnings.
Paypal Holdings (IT:1PYPL) does not pay a dividend.
Many stock brokerages offer their customers screening tools that help them find information on dividend-paying stocks. Investors can also find dividend information on the Security and Exchange Commission's website, through specialty providers, and through the stock exchanges themselves.
