Top 11 Highest Paying Canadian Dividend Stocks To Buy In 2023

If you are looking to buy the highest paying Canadian dividend stocks then you came to the right place. In this post, we discuss 11 of the best Canadian stocks on the basis of market capitalization. And we also provide a graph of each stock.

On the other hand, many investors are looking to buy the highest paying Canadian dividend stocks. When selecting dividend stocks, it is important to consider more than one dividend yield. 

Other factors to consider include dividend growth rate, earnings history, company revenue growth, return on equity, and cash flow. We also believe that total return is equally important.

However, the main question that arises here is what are dividend stocks. So, let’s find out!

What Are Dividend Stocks?

Dividend stocks pay out a portion of their earnings as dividends to their shareholders regularly. Dividends are typically paid quarterly, although some companies may pay them annually or monthly.

In simpler words – Dividend stocks are shares of companies that pay out regular dividends to shareholders and are typically well-established and have a track record of generating earnings. 

When a company makes a profit, it has several options for what to do. It can reinvest the profit into the business, use it to pay off debt, or distribute it to shareholders as dividends.

Dividend stocks are popular among investors looking for a steady income stream. They are particularly attractive to retirees or other investors looking for passive income to boost their other sources of income.

Important Thing You Should Know About Dividend Stocks

One important thing to note about dividend stocks is that the dividend amount can fluctuate over time. A company may increase its dividend if it is doing well and generating strong profits or cut or suspend its dividend if facing financial difficulties.

As a result, investors interested in dividend stocks should research the company’s dividend history, financial health, and overall business strategy before investing. It’s also important to remember that dividend stocks are not immune to market volatility.

Overall, dividend stocks can be a good option for investors looking for a reliable source of income and willing to do their due diligence in selecting the right stocks.

Top 11 Highest Paying Canadian Dividend Stocks To Buy In 2023

The moment of truth – Here are the top 11 highest paying Canadian stocks that you can buy in 2023:

1. Enbridge Inc. (ENB.TO)

At number one we have Enbridge Inc. (ENB.TO). The market capitalization of this company is about 105 billion USD. However, the dividend yield of Enbridge Inc. (ENB.TO) is 6.39%. 

Quick Review:

• Sector: Energy
• Dividend Yield: 6.39%
• Dividend Payout Ratio: 121%
• PE Ratio: 17.78
• 5 Year Dividend Growth Rate: 9.5%
• Dividend Increase Streak: 26 years

Enbridge is a leading North American infrastructure company with a massive pipeline network. Enbridge owns a large network of natural gas and NGL pipelines across North America and the Gulf of Mexico.

2. National Bank (NA.TO)

The second highest paying Canadian dividend stocks on our list is National Bank (NA.TO). The market capitalization of the National Bank is nearly about 33.13 billion CAD. However, the dividend yield of this company is 3.82%.

Quick Review:

• Sector: Financial Services
• Dividend Yield: 3.82%
• Dividend Payout Ratio: 38.8%
• PE Ratio: 8.92
• 5 Year Dividend Growth Rate: 6.4%
• Dividend Increase Streak: 12 years

Because National Bank is heavily concentrated in Quebec, some Canadians may be unaware of it. However, it may come as a surprise that National Bank is Canada’s sixth-largest bank, with Quebec accounting for 62% of its revenues.

3. Canadian Imperial Bank of Commerce (CM.TO)

The third highest paying Canadian dividend stocks on our list is the Canadian Imperial Bank of Commerce (CM.TO). The market capitalization of this company is nearly about 42.79 billion USD. However, the dividend yield of this company is 5.12%.

Quick Review:

• Sector: Financial Services
• Dividend Yield: 5.12%
• Dividend Payout Ratio: 44.64%
• PE Ratio: 8.40
• 5 Year Dividend Growth Rate: 7.49%

The 150-year-old Canadian Imperial Bank of Commerce is a diverse financial institution that provides a wide range of financial products to both individuals and businesses. 

This includes checking, savings, and business accounts, as well as loans and lines of credit for homeowners, business owners, and students, credit cards, and investment services.

4. Manulife (MFC.TO)

At number four we have Manulife (MFC.TO). The market capitalization of this company is about 45.11 billion CAD. However, the dividend yield of Manulife (MFC.TO) is 5.66%.

Quick Review:

• Sector: Financial
• Dividend Yield: 5.66%
• Dividend Payout: 32.4%
• PE Ratio: 6.7
• 5 Year Dividend Growth Rate: 9.6%
• Dividend Increase Streak: 8 years

Manulife Financial Corporation is Canada’s largest insurance company and the world’s 28th largest fund manager. In Canada and Asia, the company is known as “Manulife,” and in the United States, it is primarily known as “John Hancock Financial.”

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5. Fortis (TSX:FTS)

At number five we have Fortis (TSX:FTS). The market capitalization of this company is about 25.59 billion CAD. However, the dividend yield of Fortis (TSX:FTS) is 4.50%.

Quick Review:

• Sector: Hospitals & Allied
• Dividend Yield: 4.50%
• Dividend Payout: 4.18%
• PE Ratio: 19.80
• 5 Year Dividend Growth Rate: 6.10%
• Dividend Increase Streak: 48 years

Fortis has Canada’s second-longest dividend growth streak. With a history of 48 years, the company will be among the first Canadian stocks to achieve Dividend King status, which is reserved for companies that have increased their dividend for at least 50 consecutive years.

6. Alimentation Couche-Tard (ATD)

Number six on our list of highest paying Canadian dividend stocks is Alimentation Couche-Tard (ATD). The market capitalization of Alimentation Couche-Tard (ATD) is nearly about 62.08 billion CAD. However, the dividend yield of this company is pretty low as compared to other stocks which is 0.70%.

Quick Review:

• Sector: Consumer Defensive
• Dividend Yield: 0.70%
• Dividend Payout: 14.5%
• PE Ratio: 16.17
• 5 Year Dividend Growth Rate: 19%
• Dividend Increase Streak: 12 years

While the initial dividend yield is extremely low, ATD has been steadily increasing its dividends. 

For us, ATD is a great Canadian dividend stock to own if you want something defensive and have a long investment horizon. On the other hand, Alimentation Couche-Tard (ATD) is one of the world’s largest convenience store operators, with over 15,000 locations worldwide.

7. Royal Bank of Canada

At number seven, we have the Royal Bank of Canada (TSE: RY). The market capitalization of this company is about 180.72 Billion CAD(which is Canadian dollars). 

Quick Review:

• Sector: Financial Services
• Dividend Yield: 4.05%
• Dividend Payout Ratio: 43.35%
• PE Ratio: 11.80
• Market Cap: 180.72 Billion CAD

According to market capitalization, the Royal Bank of Canada (RBC) is the biggest bank in Canada. On the other hand, it is one of the best-performing banks in North America as well. 

RBC has operations in 36 countries, serves over 17 million customers, and has been growing its asset base for over 50 years. If you are looking to invest in the highest-paying Canadian dividend stocks, then this one is right for you.

8. TC Energy Corporation

At number eight, we have the TC Energy Corporation. The market capitalization of this company is about 55.21 Billion CAD, which is Canadian dollars.

Quick Review:

• Symbol: TRP.TO
• Sector: Energy
• Dividend Yield: 5.58%
• Dividend Payout Ratio: 109.85%
• Market Cap: 55.21 Billion CAD

One of the biggest operators of oil and gas pipelines in North America is TC Energy Corporation. It has pipeline infrastructure in Mexico, the US, and Canada.

Because of its high rate of free cash flow, TC Energy, like Enbridge, can afford to pay out a dividend with a payout ratio above 100%, which is quite good.

The company runs 4,900 kilometers of oil pipelines and 92,600 kilometers of natural gas pipes. It also functions in renewable energy infrastructures like those for the production of wind and solar energy.

9. Shopify (TSE:SHOP)

Number nine on our list of highest paying Canadian dividend stocks is Shopify (TSE:SHOP). The market capitalization of this company is about 84.30 Billion CAD. However, the dividend yield of Shopify (TSE:SHOP) is Nil.

Quick Review:

• Sector: E-commerce.
• Previous Close: $68.82.
• Day Range: $66.92 – $69.34.
• Year Range: $33.00 – $117.87.
• Average Volume: 4.38M.

Shopify (TSE:SHOP) is a leading e-commerce platform that allows businesses to create and manage an online store.

On the other hand, It provides tools and resources for merchants to build and design a website, process payments, manage inventory, and ship products to customers. The platform also offers integrations with third-party apps and services, such as shipping carriers and payment gateways, to enhance the online store’s functionality.

10. Goeasy Ltd (TSE:GSY)

At number ten, we have Goeasy Ltd (TSE:GSY). The market capitalization of this company is about 2.11 Billion CAD. However, the dividend yield of Goeasy Ltd (TSE:GSY) is 2.83%.

Quick Review:

• Sector: Canadian financial services company.
• Previous Close: $129.32.
• Day Range: $127.73 – $129.27.
• Year Range: $95.00 – $170.60.
• P/E Ratio: 13.36.

Goeasy Ltd. (TSE:GSY) is a Canadian alternative financial services company that provides affordable and accessible financial services to individuals and small businesses. The company operates under two main brands, goeasy and easy home, and offers services such as unsecured personal loans, leasing for household furnishings and appliances, and various other financial products. 

11. Loblaw (TSE:L)

Number eleven on our list of highest paying Canadian dividend stocks is Loblaw (TSE:L). The market capitalization of this company is about 37.81 billion CAD. However, the dividend yield of Loblaw (TSE:L) is 1.39%.

Quick Review:

• Sector: Retail.
• Previous Close: $114.14.
• Day Range: $114.01 – $117.02.
• Year Range: $95.01 – $126.29.
• P/E Ratio: 18.39.

Loblaw Companies Limited (TSE:L) is a Canadian food and drug retail company. It is one of Canada’s largest grocery and pharmacy chains, operating under several well-known banners, including Loblaws, No Frills, Shoppers Drug Mart, and more. The company offers various financial services, including credit cards, insurance, and mutual funds. Loblaw has a long history in Canada, founded in 1919, and operates over 2,400 stores across the country today. On the other hand, the headquarter of this company is in Brampton, Ontario.

Conclusion

Here are our recommendations for the best highest paying Canadian dividend stocks. We choose these stocks from various industries to help build a diversified dividend portfolio.

On the other hand, it is very important for you to analyze any Canadian stocks before investing. For the most part, investing in these Canadian stocks is easy and very straightforward. So, do your research and enjoy juicy dividends. 

I hope you like our post, which is about the highest paying Canadian dividend stocks. If you like it then let us know in the comment section below!

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