Top 10 Canadian Dividend Stocks with the Best Performance in…

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 July 2024, the top-performing dividend-payers included steel firm Stelco STLC, telecom services firm Cogeco CCA, and gold company SSR Mining SSRM.

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 July 2024

1. Stelco STLC
2. Cogeco CCA3. SSR Mining SSRM
4. Leon’s Furniture LNF
5. Agnico Eagle Mines AEM
6. Lundin Gold LUG
7. Brookfield Infrastructure Partners BIPC
8. Pan American Silver PAAS
9. CI Financial CIX
10. Brookfield Global Listed Infrastructure Income Fund BAM

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, rose 6.8%. The Morningstar Canada Dividend Yield Focus Index, which tracks the performance of high-quality, dividend-paying Canadian stocks, rose 6.0%. In the 12 months leading up to July 31, the dividend growth index gained 18.8% and the dividend yield focus index gained 7.9%.

The overall Canadian stock market, as measured by the Morningstar Canada Index, has gained 5.8% on the month and 16.6% on the year.

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

Stelco
Steel firm Stelco rose 78.8% in July and gained 48.3% over the past 12 months. Trading at C$66.45 per share, its stock has a forward dividend yield of 3.01%. Stelco pays investors an annual dividend of C$2 per share. The stock has a quantitative Morningstar Rating of 3 stars.

Cogeco
Telecom services firm Cogeco rose 24.4% in July and ended the past 12 months near zero. At C$63.30 per share, its stock has a forward dividend yield of 5.4% and an annual dividend of C$3.42 per share. It has a quantitative Morningstar Rating of 4 stars.

SSR Mining
Gold company SSR Mining gained 23.9% in July and fell 59.1% over the past 12 months. The stock’s C$7.66 price gives it a forward dividend yield of 4.96%. SSR Mining pays investors an annual dividend of C$0.38 per share. The stock has a quantitative Morningstar Rating of 3 stars.

Leon’s Furniture
Specialty retail firm Leon’s Furniture rose 19.7% in July and gained 26.5% over the past 12 months. Trading at C$27.40 per share, Leon’s Furniture stock has a forward dividend yield of 2.63% and an annual dividend of C$0.72 per share. It has a quantitative Morningstar Rating of 3 stars.

Agnico Eagle Mines
Gold company Agnico Eagle Mines gained 19.1% in July and rose 57.2% over the past 12 months. Trading at C$106.53 per share, its forward dividend yield is 2.03%. Agnico Eagle Mines pays investors an annual dividend of C$2.17 per share. The stock, which has no economic moat, is trading at a 38% premium to its fair value estimate of C$77 per share, leaving it significantly overvalued. It has a Morningstar Rating of 1 star.

Lundin Gold
Gold company Lundin Gold gained 18.3% in July and rose 38.3% over the past 12 months. At C$23.90 per share, Lundin Gold stock has a forward dividend yield of 2.29% and an annual dividend of C$0.55 per share. It has a quantitative Morningstar Rating of 3 stars.

Brookfield Infrastructure Partners
Regulated gas company Brookfield Infrastructure Partners rose 16.7% in July and lost 9.4% over the past 12 months. Trading at C$53.76 per share, Brookfield Infrastructure Partners stock has a forward dividend yield of 4.13% and an annual dividend of C$2.22 per share. It has a quantitative Morningstar Rating of 3 stars.

Pan American Silver
Gold company Pan American Silver rose 16.7% in July and gained 44.6% over the past 12 months. Trading at C$31.74 per share, Pan American Silver stock has a forward dividend yield of 1.72% and pays investors an annual dividend of C$0.54 per share. The stock has a quantitative Morningstar Rating of 3 stars.

CI Financial
Asset management firm CI Financial gained 15.9% in July and rose 4.7% over the past 12 months. The stock’s C$16.69 price gives it a forward dividend yield of 4.79%. CI Financial pays investors an annual dividend of C$0.80 per share. With a fair value estimate of C$16 per share and no economic moat, the stock is fairly valued and has a Morningstar Rating of 3 stars.

Brookfield Global Listed Infrastructure Income Fund
Asset management firm Brookfield Global Listed Infrastructure Income Fund rose 15.7% in July and gained 39.8% over the past 12 months. At C$60.26 per share, Brookfield Global Listed Infrastructure Income Fund has a forward dividend yield of 3.46% and an annual dividend of C$2.08 per share. It has a quantitative Morningstar Rating of 2 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.

• Watch this video to learn how Morningstar uses the star rating, moat rating and other metrics to evaluate stocks.

Companies that are not formally covered by a Morningstar analyst 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.

This article was generated with the help of automation and reviewed by Morningstar editors.

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