10 Canadian Dividend Stocks with Over 3% Yield

Published November 6, 2021 at 4:44 pm EDT Updated September 7, 2026 at 11:24 am EDT

In this article, we discuss the 10 Canadian dividend stocks with over 3% yield.

Regulators in Canada recently allowed banks and insurers — companies that comprise more than 30% of the total market value of the Toronto Stock Exchange (TSX) — to resume dividend hikes, pushing the market to new highs as restrictions on executive compensations and share buybacks were also lifted. According to a report by news agency Reuters, 18 companies on the TSX posted 52-week highs on November 5. The positive sentiment around the Canadian economy was lifted by the earnings season, as several firms posted market-beating numbers.

The lifting of curbs is also a sign that the Canadian economy has now emerged out of the COVID-19 crisis. The Canadian government had imposed the restrictions on dividend hikes and shares buybacks at the height of the virus panic in March 2020. It had also eased requirements for cash stockpiles at the banks in a bid to use the extra capital to loan to businesses and households battling the pandemic. Barclays analyst John Aiken told The Star last week that large-cap banks could hike dividends by up to 45% to meet standard targets.

According to a report in the Insurance Journal, the six biggest banks in Canada — Royal Bank of Canada, Toronto-Dominion Bank, Bank of Nova Scotia, Bank of Montreal, Canadian Imperial Bank of Commerce and National Bank of Canada — were sitting on cash stockpiles of around C$49 billion at the end of July this year. Brian Madden, the portfolio manager at Goodreid Investment Counsel, told the publication that this had created an impetus for the valuation multiples to expand in the coming months.

Peter Routledge, the chief of the Office of the Superintendent of Financial Institutions in Canada, had earlier informed the Canadian media that the financial risks of the virus had eased and the economy was stable enough to resume normal service. Following the lifting of curbs, the S&P/TSX composite index at the TSX climbed 0.43% to reach 21,433.4 points. Banks and finance stocks in general gained 0.8%. Investors who are eager to profit from this boom in the Canadian economy should check out some top value plays in the market.

In addition to some top Canadian companies that have impressive yields, discussed in detail below, there are some dividend stocks in the US that investors could explore as well. These include Johnson & Johnson (NYSE:JNJ), The Procter & Gamble Company (NYSE:PG), The Coca-Cola Company (NYSE:KO), Parker-Hannifin Corporation (NYSE:PH), and Lowe’s Companies, Inc. (NYSE:LOW), among others. Even hedge funds are bullish on these companies, even as growth stocks disrupt the market.

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Our Methodology

Here is our list of the 10 Canadian dividend stocks with over 3% yield. These are arranged according to their forward dividend yields. The business fundamentals of each firm are discussed alongside growth catalysts and latest developments to provide readers with some context so they can make more informed investment decisions.

Canadian Dividend Stocks with Over 3% Yield

10. Shaw Communications Inc. (TSX:SJR-B.TO)

Forward Dividend Yield: 3.30%

Shaw Communications Inc. (TSX:SJR-B.TO) operates as a connectivity company offering cable, satellite, and wireless services. It recently posted earnings for the fourth fiscal quarter, reporting earnings per share of C$0.50, beating market predictions by C$0.15. The revenue over the period was C$1.3 billion, up more than 2% year-on-year. It also declared a monthly dividend of $0.0985 per share, in line with previous.

Rogers Communications, a rival of Shaw Communications Inc., is presently moving forward with a C$26 billion deal for purchase of the latter. As competitors like BCE oppose the deal, a Canadian antitrust regulator is looking into the deal on orders of a court.

However, there has been a fight for control of the board at Rogers, pushing the stock to a seven-month low in late October. The drama has not affected Shaw Communications Inc., which is up 66% in the past twelve months.

Just like Johnson & Johnson, The Procter & Gamble Company, The Coca-Cola Company, Parker-Hannifin Corporation, and Lowe’s Companies, Inc., Shaw Communications Inc. is one of the stocks attracting the attention of elite investors.

9. Canadian Natural Resources Limited (TSX:CNQ.TO)

Forward Dividend Yield: 3.57%

Canadian Natural Resources Limited (TSX:CNQ.TO) operates as an integrated oil and gas firm. The company operates in Canada, Europe, and off the shore of Africa. At the end of 2020, it had total proved oil and gas liquid reserves of 10,528 million barrels. The stock is up 150% over the past twelve months as demand for oil rises in the post-pandemic economy. The increase in prices of oil is also likely to benefit the film in the coming months.

Canadian Natural Resources Limited has a market cap of $49 billion and posted more than $13 billion in revenue last year. It is headquartered in Calgary, the energy capital of Canada, and was founded in 1973.

Canadian Natural Resources Limited has an impressive dividend history. On November 4, the firm declared a quarterly dividend of C$0.5875 per share, an increase of more than 25% from the previous dividend of C$0.47 per share.

8. Canadian Imperial Bank of Commerce (TSX:CM.TO)

Forward Dividend Yield: 3.90%

Canadian Imperial Bank of Commerce (TSX:CM.TO) is a diversified financial services firm based in Toronto. The company recently announced that it had signed an agreement with retail giant Costco to become the exclusive issuer of Costco Mastercard in Canada. As part of the deal, the bank will take charge of the Canadian Costco credit card portfolio. The portfolio has outstanding balances of more than $3 billion.

Canadian Imperial Bank of Commerce has solid fundamentals. The company recently posted earnings for the third quarter, reporting earnings per share of C$3.93, beating predictions by C$0.54.

Canadian Imperial Bank of Commerce also declared a quarterly dividend of C$1.46, in line with previous. The stock is being positively covered in the US after the firm announced a deal with software giant Microsoft to use the Azure cloud platform for business.

7. The Bank of Nova Scotia (TSX:BNS.TO)

Forward Dividend Yield: 4.34%

The Bank of Nova Scotia (TSX:BNS.TO) is another Canadian banking firm with an impressive dividend yield. Although it is primarily based in Canada, the bank provides financial services in the US, Mexico, Columbia, and the Caribbean. The firm beat market estimates on earnings per share in the third quarter results but missed on revenue. It also declared a quarterly dividend of C$0.90 per share, in line with previous, in late August.

In the third quarter, the earnings beat of The Bank of Nova Scotia narrowed as compared to the previous three months, largely because of a drop in demand for loans amid uncertainty around the spread of the Delta variant of COVID-19.

The Bank of Nova Scotia stock is up 53% in the past twelve months. The company has a market cap of over $80 billion and posted more than $18 billion in revenue last year.

6. TELUS Corporation (TSX:T.TO)

Forward Dividend Yield: 4.47%

TELUS Corporation (TSX:T.TO) is an integrated telecommunications firm. It recently raised the quarterly dividend payout by 3.5%, declaring a dividend of C$0.3274, up from previous dividend of C$0.3162. Although the firm managed to beat market estimates on earnings per share for the third quarter, it missed them on revenue. The firm is among a host of communications stocks opposed to the merger of Rogers and Shaw, two Canadian telecom giants.

In early September, TELUS Corporation had announced that it would be making a $90 million investment in the Greater Montreal area to improve the 5G infrastructure, expanding the services to serve 70 more communities in the area.

TELUS Corporation also recently revealed that it would be partnering up with Arlington Street Investments, an urban development firm, to expand the smart building footprint in Calgary, a business hub in Canada.

In addition to Johnson & Johnson, The Procter & Gamble Company, The Coca-Cola Company, Parker-Hannifin Corporation, and Lowe’s Companies, Inc., TELUS Corporation is one of the stocks on the radar of institutional investors.

5. Algonquin Power & Utilities Corp. (TSX:AQN.TO)

Forward Dividend Yield: 4.74%

Algonquin Power & Utilities Corp. owns and operates utility assets in the United States, Canada, Bermuda, and Chile. The company has interests in hydroelectric, wind, solar, and thermal facilities for the generation of electricity, as well as in the distribution of natural gas and water. It also offers wastewater collection services. It is headquartered in Oakville and was founded in 1988.

In late October, Algonquin Power & Utilities Corp. revealed that American Electric Power, an investor-owned utility firm based in Ohio, had agreed to sell the Kentucky operations to Liberty Utilities, a subsidiary of Algonquin, in a deal worth $2.8 billion.

Algonquin Power & Utilities Corp. has said it will use the proceeds from the sale to eliminate forecast equity needs. These include investments in renewables, transmission and other projects.

4. TC Energy Corporation (TSX:TRP.TO)

Forward Dividend Yield: 5.43%

TC Energy Corporation (TSX:TRP.TO) is an energy infrastructure company. The prime interests of the firm are in natural gas and it has so far built a network of over 93,000 kilometers of natural gas pipelines that it operates as well. The company recently announced that it will be seeking a 30% reduction in greenhouse gas intensity from operations by 2030 and will target net zero emission by 2050 as it explores low-carbon usage sources to support operations.

As part of the transition, TC Energy Corporation revealed in September that it would be partnering with EDP Renewables, a Spanish renewable energy firm, for the production of a 297 MW Sharp Hills wind farm in Alberta.

TC Energy Corporation also recently signed an agreement with Nikola, an American clean energy vehicle firm, to develop large-scale hydrogen hubs in the US and Canada to accelerate the adoption of clean energy vehicles.

3. First National Financial Corporation (TSX:FN.TO)

Forward Dividend Yield: 5.47%

First National Financial Corporation (TSX:FN.TO) is a Toronto-based firm that engages in the residential and commercial mortgage business. It recently posted earnings for the third quarter, reporting earnings per share of C$0.78 and a revenue of C$353 million, down 5% compared to the revenue over the same period last year. It also declared a special dividend of $1.25 per share, in addition to a monthly dividend of $0.1958 per share.

First National Financial Corporation is different from other mortgage companies in Canada because most of the services it provides are online. The company was founded in 1988 and has a market cap of more than $2 billion.

First National Financial Corporation CEO Stephen Smith, during the earnings call, said that the demand for single-family and commercial mortgages remained strong despite changing market dynamics and the company was posting strong profits despite higher volumes.

2. BCE Inc. (TSX:BCE.TO)

Forward Dividend Yield: 5.53%

BCE Inc. (TSX:BCE.TO) operates as a telecommunications and media firm. Some of the services it provides include wireless, wireline, Internet, and television, among others. The company recently approached Canadian regulators with regards to the merger of Rogers and Shaw, two of the biggest communications firms in Canada, on grounds that the deal would set up an “unprecedented level of market power”.

BCE Inc. has argued that the merger would also create a monopoly in the broadcast business, as the combined company would control 47% of the English broadcasting distribution network in Canada.

Even as it opposes the merger, BCE Inc. has been busy investing in ventures that would help it grow in the competitive telecom market. It recently announced that it was partnering with Amazon to help businesses manage hybrid cloud transitions.

1. Pembina Pipeline Corporation (TSX:PPL.TO)

Forward Dividend Yield: 6.02%

Pembina Pipeline Corporation (TSX:PPL.TO) is an energy transportation company based in Calgary. It recently posted earnings for the third quarter, reporting earnings per share of C$1.01, beating market predictions by C$0.32. The revenue over the period was C$2.1 billion, up 43% year-on-year and smashing estimates by C$270 million. It also declared a monthly dividend of C$0.21 per share, in line with previous.

Mick Dilger, the CEO of Pembina Pipeline Corporation, recently revealed that the company had asked two companies working on rival bids for carbon capture and transportation in Canada to join hands and support a Pembine-led initiative for the purpose.

The Pembina Pipeline Corporation CEO believes that a large program would be a better solution for all concerned and added that talks on the proposal were active and both groups were cooperating.

You can also take a peek at 10 Best Stocks to Buy According to Billionaire Ken Fisher and 10 Best Stocks to Buy for the Next Ten Years.

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