Top 10 Canadian Dividend Stocks with Strong Performance

Dividend-paying stocks that combine healthy balance sheets with hefty yields can provide investors with steady incomes, cushion against market downturns, and grow investments at a healthy clip.

In April 2024, the top-performing dividend-payers included gold company Pan American Silver PAAS, gold company SSR Mining SSRM, and oil and gas exploration and production company Paramount Resources POU.

To find the month’s 10 best-performing income-focused stocks, we screened the Morningstar Canada Index—which measures the performance of Canada’s broad regional markets, targeting the top 97% of stocks by market capitalization—for companies with a forward dividend yield of at least 1.5%, excluding real estate investment trusts.

The Best-Performing Canadian Dividend Stocks of April 2024

Pan American Silver PAAS
SSR Mining SSRM
Paramount Resources POU
Lundin Mining LUN
Parex Resources PXT
Goeasy GSY
Maple Leaf Foods MFI
Compass Group  CPG
Methanex MX
Finning International FTT

How Have Dividend Stocks Performed?

Over the past month, the Morningstar Canada Dividend Growth Index, which tracks the performance of Canadian stocks with a history of uninterrupted dividend growth and the capacity to sustain that growth, fell 1.2%. The Morningstar Canada Dividend Yield Focus Index, which tracks the performance of high-quality, dividend-paying Canadian stocks, fell 2.5%. In the 12 months leading up to April 30, the dividend growth index gained 8.7% and the dividend yield focus index lost 3.5%.

The overall Canadian stock market, as measured by the Morningstar Canada Index, has lost 1.8% on the month, but has risen 9.9% on the year.

Yields and Metrics for April’s Best-Performing Dividend Stocks

Pan American Silver

Gold company Pan American Silver rose 24.3% in April and gained 7% over the past 12 months. Trading at C$25.39 per share, its stock has a forward dividend yield of 2.13%. Pan American Silver pays investors an annual dividend of C$0.54 per share. The stock has a quantitative Morningstar Rating of 3 stars.

SSR Mining

Gold company SSR Mining rose 22.4% in April and lost 60.5% over the past 12 months. At C$7.38 per share, its stock has a forward dividend yield of 5.15% and an annual dividend of C$0.38 per share. It has a quantitative Morningstar Rating of 3 stars.

Paramount Resources

Oil and gas exploration and production company Paramount Resources gained 14% in April and rose 1.9% over the past 12 months. The stock’s C$31.20 price gives it a forward dividend yield of 4.81%. Paramount Resources pays investors an annual dividend of C$0.50 per share. The stock has a quantitative Morningstar Rating of 4 stars.

Lundin Mining

Copper company Lundin Mining rose 13.4% in April and gained 55.4% over the past 12 months. Trading at C$15.72 per share, Lundin Mining stock has a forward dividend yield of 2.29% and an annual dividend of C$0.36 per share. It has a quantitative Morningstar Rating of 3 stars.

Parex Resources

Oil and gas exploration and production company Parex Resources gained 10.9% in April and fell 7.3% over the past 12 months. Trading at C$24 per share, its forward dividend yield is 6.25%. Parex Resources pays investors C$1.50 per share annually. It has a quantitative Morningstar Rating of 4 stars.

Goeasy

Credit services firm Goeasy gained 10.4% in April and rose 94.1% over the past 12 months. At C$176.04 per share, Goeasy stock has a forward dividend yield of 2.66% and an annual dividend of C$4.68 per share. It has a quantitative Morningstar Rating of 3 stars.

Maple Leaf Foods

Packaged foods company Maple Leaf Foods rose 9.7% in April and lost 9.1% over the past 12 months. Trading at C$24.37 per share, Maple Leaf Foods stock has a forward dividend yield of 3.61% and an annual dividend of C$0.88 per share. It has a quantitative Morningstar Rating of 4 stars.

Compass Group

Oil and gas exploration and production company Compass Group  rose 9.6% in April and gained 25.8% over the past 12 months. Trading at C$12.14 per share, Compass Group  stock has a forward dividend yield of 3.79% and pays investors an annual dividend of C$0.46 per share. The stock has a quantitative Morningstar Rating of 4 stars.

Methanex

Chemical company Methanex gained 9.2% in April and rose 10.3% over the past 12 months. The stock’s C$65.92 price gives it a forward dividend yield of 1.53%. Methanex pays investors an annual dividend of C$1.01 per share. The stock has a quantitative Morningstar Rating of 3 stars.

Finning International

Industrial distributor Finning International rose 8.5% in April and gained 25.9% over the past 12 months. At C$43.19 per share, Finning International has a forward dividend yield of 2.32% and an annual dividend of C$1 per share. It has a quantitative Morningstar Rating of 4 stars.

What Is the Morningstar Canada Index?

The Morningstar Canada Index measures the performance of Canada’s broad regional markets, targeting the top 97% of stocks by market capitalization. The index does not incorporate environmental, social, or governance criteria.

What Is the Morningstar Canada Dividend Yield Focus Index?

The Morningstar Canada Dividend Yield Focus Index captures the performance of a portfolio of high-quality, dividend-paying securities.

It’s a subset of the Morningstar Canada Index (which represents 97% of the equity market capitalization) that includes only stocks that pay dividends. The stocks are screened for economic moat and financial strength compared to others in their sector. Real estate investment trusts are excluded.

The 25 highest-yielding stocks are included in the index, weighted by the dollar value of the dividends. See the full rulebook here.

The Best Dividend Stock Leaders: More Ideas to Consider

Investors who would like to find more top-performing or cheap dividend stocks can do the following:

Review the full list of stocks in the Morningstar Canada Dividend Yield Focus Index. Stocks with Morningstar Ratings of 4 or 5 stars are undervalued, according to our metrics.
Use our Morningstar Stock Screener tool to find the best dividend stocks according to your specific criteria. You can search for stocks based on their dividend yields, valuation measures like price/earnings ratios, and more.

When it comes to buying stocks, it’s more than just dividends. Read here how valuations and competitive advantages—known as economic moats—matter when it comes to a stock’s potential for outperformance.

Companies that are not formally covered by a Morningstar analyst have quantitative ratings. These companies are statistically matched to analyst-rated companies, allowing our models to calculate a quantitative star rating.

This article was compiled by Bella Albrecht, edited by Lauren Solberg, and reviewed by Andrew Willis.

As part of our mission to put more information into the hands of investors, this article was compiled from Morningstar’s data and independent research using automation technology. The original article was written by Morningstar reporters and editors. This updated version was reviewed by an editor.

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