Top 10 Dividend Stocks in Canada

As markets are fluctuating and investors are getting nervous, it might be interesting for some of us to turn to more conservative stocks. I wrote a previous post about insurance company stocks that was on line with today’s topic. I pulled out 10 high paying dividend stocks on the Canadian market. Here they are:

Company Ticker Dividend DRIP’ s

Rothmans ROC.TO 5,60% No

Russel Metals RUS.TO 6,10% No

BCE BCE.TO 3.70% Yes

Manitoba Telecom MBT.TO 5.60% No

Norbord NBD.TO 5.00% Yes

Emera EMA.TO 4.50% Yes

Transalta TA.TO 3.40% Yes

Torstar TS-B.TO 3,50% Yes

Laurentian Bank LB.TO 3,30% No

BMO BMO.TO 4.20% Yes

There are many advantages to high paying dividend stocks. One of them is that the dividend helps to protect your investments from inflation. With the inflation rate going up, it might not be a bad idea to start thinking about some protection. These 10 stocks will offer a great protection as their dividend yield is much higher than the expected inflation. The Bank of Canada aims a 1-3% bracket with an ideal 2% of inflation rate. Even BMO that is on the 10^th position is still way over that.

High dividend paying stocks also offer a reasonable growth perspective. Therefore, you could benefit from both the dividend and the growth from your stocks. They are usually stable companies that will not explode in term of growth. However, by combining both the dividend and growth, you will get an interesting result.

On the same note, some of the stocks listed above offer a DRIP (Dividend ReInvestment Program). You can then grow you position while the stocks and the dividend might increase as well. This is a good technique in order to average your stock price over time.

Please also note that the dividend is not taxed as regular income or interest income. In fact, it benefits from a preferential tax treatment when you complete your declaration. This is being the scope of this post but I will surely consider writing more about this topic.

Unfortunately, BCE has recently been bought and therefore, will not be available on the market anymore. However, there are still good companies out there. Look into them and you might find your shield against a bear market.

***I just re-edited this post as of August 11th to show the updated yield for each stocks. I kept them in their original ranking so you can appreciate the difference. I wrote this post a long time ago and I did not realize it would impact the yield this much. My apologies. ***

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• Where To the Put Your Dividend Paying Stocks

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