In this article, we will take a look at the 10 Canadian Stocks with Highest Dividends.
Speaking at CNBC’s CONVERGE LIVE in Singapore on April 23, Justin Trudeau said pressure from the United States has, at times, nudged Canadian companies to look toward China for partnerships and investment. He pointed to Bombardier as a telling case. The company had trouble selling its C Series aircraft, facing intense competition from Airbus and Boeing. That pressure limited its room to compete.
At that point, Chinese investors showed interest in stepping in with funding. Bombardier explored potential deals with China on multiple occasions, especially when talks with Western companies did not work out. Trudeau said he brought this up with global leaders at the 2017 G7 Summit. He warned that this kind of pressure was, in effect, pushing Canada toward China as it tried to protect jobs at home.
The situation later shifted when Airbus took a majority stake in the C Series program, helping secure those jobs in Canada. He also pointed to similar patterns during tariff threats from Donald Trump. The uncertainty around those measures pushed Canada to look for other trade partners, including Europe, for aluminum exports.
In his view, economic pressure among allied countries can weaken their position and open the door for more influence from countries like China. He also noted that major global powers are becoming more selective in how they follow international trade rules.
Given this, we will take a look at some of the best Canadian stocks with the highest dividends.
Photo by Viacheslav Bublyk on Unsplash
Our Methodology:
For this article, we screened for Canadian companies traded on US exchanges and identified dividend stocks from the list. From the group, we picked dividend stocks with yields above 2%, as of April 25. We picked companies that have recently reported noteworthy developments likely to impact investor sentiment. These companies are also popular among elite funds and analysts.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 498.7% since May 2014, beating its benchmark by 303 percentage points (see more details here).
10. Canadian National Railway Company (NYSE:CNI)
Dividend Yield as of April 25: 2.35%
On April 9, BofA upgraded Canadian National Railway Company (NYSE:CNI) to Buy from Neutral. It also raised its price target to $122 from $117. The analyst pointed out that as service levels improve, the company is already gaining share at a pace well above its flat full-year target. That strength is being supported by a record Canadian grain crop, along with stronger-than-expected intermodal and auto volumes. COO Patrick Whitehead is seen as a key driver behind these operational improvements. At the same time, the stock is still trading at a 3-turn discount to peers, which the analyst believes leaves room for upside.
On April 7, JPMorgan analyst Brian Ossenbeck raised the firm’s price recommendation on CNI to C$153 from C$147 while maintaining a Neutral rating. The adjustment came as part of the firm’s Q1 preview for the transportation and logistics group. The analyst noted that surface transportation rates are unlikely to return to last year’s lows. In the same note, JPMorgan said it sees “more stocks to own than avoid” heading into earnings. That said, the firm also cautioned that it may be too early to expect positive earnings revisions, as a more sustained recovery in freight demand is still needed.
Canadian National Railway Company (NYSE:CNI) operates as a transportation and logistics provider. Its services span rail, intermodal, trucking, and broader supply chain solutions. The rail segment includes equipment offerings, customs brokerage, transloading and distribution, and private railcar storage, among other services.
9. Suncor Energy Inc. (NYSE:SU)
Dividend Yield as of April 25: 2.75%
On April 21, Scotiabank raised its price recommendation on Suncor Energy Inc. (NYSE:SU) to C$90 from C$85. It reiterated a Sector Perform rating on the shares.
On April 14, JPMorgan raised its price goal on SU to C$105 from C$79 and kept an Overweight rating as part of a Q1 preview. The firm pointed to higher commodity prices as the main reason behind the increase. The analyst expects Suncor to deliver another strong quarter, with solid execution across both upstream and downstream operations.
Last month, Reuters reported that Suncor Energy expects most of its bitumen production by 2040 to come from steam-assisted extraction. This marks a structural shift for the company. It also signals a move toward lower costs and higher long-term cash flow. At present, about 70% of Suncor’s oil sands crude comes from large-scale mining operations in northern Alberta. These operations rely on trucks and shovels to extract bitumen that sits close to the surface.
The remaining 30% is produced from deeper deposits using steam-based methods. This process, known as in situ, helps loosen the oil underground so it can be pumped to the surface. Over the next 15 years, that mix is expected to change. By 2040, around 60% of production will come from in situ projects, while mining will account for 40%, according to CEO Rich Kruger at an investor day presentation. The shift reflects declining output from the Base Plant mine, which is expected to be largely depleted by the mid-2030s. It also aligns with the company’s focus on lowering production costs.
Suncor Energy Inc. (NYSE:SU) is a Canada-based integrated energy company. Its operations are organized into Oil Sands, Exploration and Production (E&P), and Refining and Marketing segments.
