10 Best Canadian Dividend Stocks For March 2023

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Dividend Earner

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2 min read Affiliate Disclosure

While there are various dividend investing strategies, investors tend to choose between dividend growth investing, dividend income investing or a mix of both.

One key quality of the selected dividend stocks below is the blend of dividend yield and dividend growth. The blend is important, if not critical, as high yield dividend stocks can be dangerous and detrimental to your portfolio down the road. Don’t make the mistake.

You should consider these dividend stocks for a core dividend income portfolio to generate retirement income or as a foundation for your dividend growth portfolio. You can find many present in my portfolio.

Top 10 Canadian Dividend Stocks

The monthly top 10 rarely have the same 10 stocks. The page is updated monthly. Be sure to come back, or better yet, follow the top 10 with the Canadian Dividend Screener.

About Dividend Growth Stocks

You can see the dividend yield of a stock anywhere, but the dividend growth for a company is rarely free, and yet critical to make the best investment decision for maximum profit down the road.

Looking Past The Canadian Dividend Aristocrats

As a cautionary tale, the companies listed below look past the Canadian Dividend Aristocrats, and focus on 10 years of dividend increases – more like the Canadian Dividend Achievers.

The Focus Is Not High Yield

Another important note is that the best Canadian dividend stocks are not meant to be the highest dividend stocks. Here is how I categorize yield.

  • Over 6% is a risky yield (unless there is a market crash) or it comes from advanced investing instruments (think covered calls)
  • Between 4% and 6% is high yield (company has consistent excess cash)
  • Between 2% and 4% is normal yield
  • Under 2% is low yield with higher stock growth

The list is not about finding a stock that pays income in retirement. It’s about building wealth with dividend growth during the accumulation years. Investing for retirement income is a little more complicated a withdrawal, and taxes come into play.

REITs rarely make the top 10 as they have abismal distribution growth. Rogers Sugar will also not make it to the top either, it behaves too much like a bond.

Note that you need access to specialized dividend data to screen dividend stocks. You should consider a screener such as Dividend Snaspshot Screeners.

The Best TSX Dividend Stocks

Technically, you can consider the below as the best TSX dividend stocks now for an entry point. The list represents potential opportunities to consider adding to your portfolio provided the companies match your investing criteria.

1. Canadian Natural Resources

Canadian Natural Resources is a diversified and independent energy producer in the world. It is the largest independent natural gas and heavy crude oil producer in Canada.  It operates a balanced mix of natural gas, light crude oil, heavy crude oil, and oil sands. The company holds some of the best oil sand assets in North America, particularly thermal in situ properties, having tremendous growth potential.

The company’s business can be broadly classified into Exploration and Production (North America, North Sea, offshore Africa), Oil Sands Mining and Upgrading, and Midstream and Refining segments. The Exploration and Production segment is Canadian Natural’s core business, while the other two businesses provide a nice diversification.

Canadian Natural Resources has a balanced mix of natural gas, light crude oil, heavy crude oil, bitumen, and SCO. The company also owns midstream assets consisting of two crude oil pipeline systems and cogeneration plants, which enables the transportation of heavy crude oil in international markets.

Key Investment Data

  • Ticker: TSE:cnq
  • Sector: Energy
  • Industry: Oil & Gas E&P
  • Market Cap: 76.02B
  • Market Cap Group: Large Cap
  • P/E: 7.49
  • Dividend Yield: 5.05%

2. Scotia Bank

Scotiabank is a leading international bank in Canada and a leading financial services provider in the Americas. The bank has a presence in personal and commercial, corporate and investment banking, wealth management and capital markets, and serves 25 million customers worldwide.

With a rich history of 185 years, the bank has developed an extensive network of over 960 branches and more than 3,600 automated banking machines in Canada, and 1,800 international branches.

Scotiabank has a wide geographic presence in attractive markets in Latin America (71% of revenues), Caribbean & Central America (25%) and Asia (4%). It operates through Canadian banking (49% of earnings), international banking (36%) and global banking and markets (15%) business lines.

Key Investment Data

  • Ticker: TSE:bns
  • Sector: Financial Services
  • Industry: Banks - Diversified
  • Market Cap: 78.43B
  • Market Cap Group: Large Cap
  • P/E: 9.25
  • Dividend Yield: 6.20%

3. Equitable Group

Equitable Group Inc. is a leading financial services provider in Canada. It operates through its wholly owned subsidiary, Equitable Bank, which is the ninth largest Schedule I bank, and a Challenger Bank in Canada. The bank offers a wide range of residential and commercial lending and savings solutions to its wide range of clients including self borrowers, commercial real estate investors, and newcomers to Canada.

Equitable operates through a network of independent mortgage brokers and other business partners across Canada. The bank serves its clients from coast to coast through its branchless banking model and customer first approach. The bank’s operations can be organized into single family lending services, commercial lending services, securitization financing, EQ Bank and brokered deposits. Equitable Bank has approximately $27.5 billion in assets under management.

The bank has been diversifying into adjacent business such as reverse mortgages and cash surrender value LoC through its commercial lending platform, since 2018.

Key Investment Data

  • Ticker: TSE:eqb
  • Sector: Financial Services
  • Industry: Mortgage Finance
  • Market Cap: 2.06B
  • Market Cap Group: Mid Cap
  • P/E: 7.32
  • Dividend Yield: 2.53%

4. Cogeco Cable

Cogeco Communications is a leading North American communications company. It engages in providing internet, video and telephony services to residential and business customers. Cogeco Communications is a subsidiary of Cogeco Inc. The company operates as Cogeco Connexion in Canada, and Atlantic Broadband in 11 US states. Cogeco Communications Inc. provides a suite of information technology services to its business customers.

It is also the eighth largest cable operator in North America and operates 13 radio stations across Quebec through its subsidiary Cogeco Media. Cogeco Communications has three business segments: Canadian broadband services (60% of earnings), American broadband services (33%) and Business information and communications technology services (7%).

It has a strong presence in North America. Cogeco Communications owns extensive two-way broadband fiber networks, 16 data centers, and spectrum licenses of significant capacity. The company is known for providing superior internet speeds and video services and has developed sticky customer relationships in the last six decades of existence.

Key Investment Data

  • Ticker: TSE:cca
  • Sector: Communication Services
  • Industry: Telecommunication Services
  • Market Cap: 2.74B
  • Market Cap Group: Mid Cap
  • P/E: 6.70
  • Dividend Yield: 5.00%

5. Canadian Western Bank

Canadian Western Bank is a leading bank in Canada. It is a part of the CWB Financial group and was formed by the amalgamation of Bank of Alberta and Western & Pacific Bank of Canada. The bank provides specialized financial services in business and personal banking, and wealth management services to small and medium-sized companies.

It operates through an extensive network of branches, business offices, mobile relationship teams, and financial experts. Canadian Western Bank has a huge presence in western parts of Canada.

It focuses on general commercial, equipment financing; and construction and real estate project financing. Canadian Western Bank offers a wide range of services including chequing and savings accounts, mortgages, loans and investment products in the personal banking segment through a network of 42 branches.

Key Investment Data

  • Ticker: TSE:cwb
  • Sector: Financial Services
  • Industry: Banks - Regional
  • Market Cap: 2.30B
  • Market Cap Group: Mid Cap
  • P/E: 7.01
  • Dividend Yield: 5.36%

6. TD Bank

Toronto Dominion Bank is a leading Canadian bank providing banking products and services in Canada and the US. It is the fifth largest bank in North America by total assets. The bank was formed as a result of amalgamation of The Bank of Toronto and The Dominion Bank in 1955. Retail earnings accounts for more than 90% of TD Bank’s total earnings.

The bank operates through three business segments: Canadian retail banking (53% of latest income), U.S. retail banking (47%) and wholesale banking. TD Bank offers a wide range of retail, small business and commercial banking products and services to more than 25 million customers worldwide and almost 13 million digital customers.

Toronto Dominion bank operates through more than 1,250 locations along the Northeast, Mid-Atlantic, Metro DC, the Carolinas and Florida. It enjoys #1 or #2 market share positions for most of its retail products in Canada. The bank operates in four of the top ten metropolitan areas and seven of the ten wealthiest states in the U.S.

Key Investment Data

  • Ticker: TSE:td
  • Sector: Financial Services
  • Industry: Banks - Diversified
  • Market Cap: 141.91B
  • Market Cap Group: Large Cap
  • P/E: 9.45
  • Dividend Yield: 4.92%

7. Great West Life

Great-West Lifeco is a financial services company providing life and health insurance, retirement and investment services, asset management and reinsurance businesses.

In addition to providing traditional insurance products, the company also provides certain products on a fee-for-service basis such as segregated funds and mutual funds. Great-West Lifeco is a member of the Power Financial Corporation group of companies. It has over $1.3 trillion in total assets under administration as of December 2017.

Great-West Lifeco operates through Great-West Life, London Life, Canada Life, Irish Life, Great-West Financial and Putnam Investments in Canada, the United States and Europe. In the U.S., Great-West Financial is a leading provider of employer-sponsored retirement savings plans in the public and corporate sectors.

Key Investment Data

  • Ticker: TSE:gwo
  • Sector: Financial Services
  • Industry: Insurance - Life
  • Market Cap: 31.90B
  • Market Cap Group: Large Cap
  • P/E: 10.02
  • Dividend Yield: 6.01%

8. Bank of Montreal

Bank of Montreal is the eighth largest bank in North America by assets. The bank has a strong presence across regional economies and markets around the world and is in a good position to address the growing cross border needs of corporate customers.

The Bank of Montreal provides diversified financial services and products in personal and commercial banking, wealth management and investment banking segments, to a wide range of customers including more than 12 million individuals, businesses, governments and corporate customers across Canada and the U.S.

By geography, Canada is its largest market accounting for over 60% of net income, followed by the US (28%) and other countries (9%) like Europe, Asia, the Middle East and South America.

Key Investment Data

  • Ticker: TSE:bmo
  • Sector: Financial Services
  • Industry: Banks - Diversified
  • Market Cap: 83.08B
  • Market Cap Group: Large Cap
  • P/E: 7.40
  • Dividend Yield: 4.87%

9. goeasy

goeasy Ltd. is a leading leasing and lending company in Canada. The company offers both non-prime leasing and lending services through its easyhome and easyfinancial segments.

easyhome (~21% of revenues) is Canada’s largest lease-to-own company. easyfinancial (~89%) is goeasy’s financial services arm that provides installment loans to non-prime customers having limited access to traditional bank financing products.

As a leading full-service provider of goods and alternative financial services, goeasy operates through online and mobile channels, as well as over 400 leasing and lending locations across Canada from coast-to-coast. The company has served over 1 million Canadians and originated over $4.4 billion in loans.

Key Investment Data

  • Ticker: TSE:gsy
  • Sector: Financial Services
  • Industry: Credit Services
  • Market Cap: 1.81B
  • Market Cap Group: Small Cap
  • P/E: 12.92
  • Dividend Yield: 3.53%

10. Power Corporation

Power Corporation is a diversified international management company engaging in financial services, asset management, and renewable energy businesses.

The company has a presence in North America, Europe, and Asia and caters to more than 30 million customers worldwide. Power Corporation has a diversified business model and operates through its subsidiaries like Power Financial, Power Energy, Sagard Funds, China Asset Management, and Square Victoria Communications Group.

Its principal asset is its controlling interest in Power Financial. Power Corporation manages businesses and investments capable of generating sustainable and stable earnings growth. Founded in 1925, today Power Corporation owns some of the strongest financial service brands in North America and Europe.

Key Investment Data

  • Ticker: TSE:pow
  • Sector: Financial Services
  • Industry: Insurance - Life
  • Market Cap: 20.64B
  • Market Cap Group: Large Cap
  • P/E: 12.18
  • Dividend Yield: 6.07%

Build Your OWN Top List

My portfolio is generating over 12% annual returns since 2009. It's not from the beginning of the year or from 2019, it's from 2009 !!! That's a consistent return which means using the rule of 72, I double my portfolio every 6 years.

My approach is simple but you need key data that I have cultivated with the Dividend Snapshot Screeners. No other investment services provide you with easy to understand data but also actionable data. No hidden magic.

In fact, I have tried all of the investment services for dividend investors like a crash test dummy of investment services. Just ask me, and you'll learn why there was nothing I could use out there and build the Dividend Snapshot Screeners.