In this article, we discuss 10 TSX-60 stocks that pay dividends.
The TSX-60 is a stock market index that consists of the 60 largest Canadian companies by market capitalization. These companies are listed on the Toronto Stock Exchange, and they belong to 10 different industries. The TSX-60 exposes investors to the large-cap Canadian equity market.
The slowing economic growth is a global challenge, and Canada is also experiencing a similar macro backdrop. A hit to the technology sector led the TSX-60 to lose 300 points on April 26, consequently reaching its lowest level in three months. Giles Marshall, portfolio manager at Fiduciary Trust Canada, noted that while tech stocks were beaten down, the energy sector was booming. The underlying commodity market is strong, and the exploration and production segment shows particular resilience.
The Bank of Canada is implementing aggressive rate hikes to counter inflation, and on April 22, the country’s main stock index reached its worst two-day slump since the pandemic-ridden 2020. Pierre Cleroux, chief economist for the Business Development Bank of Canada, stated that more than one rate hike is expected, and the next increase will be more significant than the first. Upon this announcement, the Toronto market consequently dipped 4.9% over two days, the biggest decline since June 2020.
BofA Securities quantitative strategist Ohsung Kwon stated on April 27 that Canadian large-cap stocks are very attractively valued and are much cheaper as compared to US equities. Canada is also a major producer of commodities that are demanded globally in the current environment, which strengthens the bullish case for the Canadian market.
Investors usually gravitate towards dividend paying names like Johnson & Johnson (NYSE:JNJ), The Coca-Cola Company (NYSE:KO), and Altria Group, Inc. (NYSE:MO), but in this article, we explore some TSX-60 stocks that pay dividends.
Photo by Vitaly Taranov on Unsplash
Our Methodology
We selected the most notable dividend payers from the TSX-60 Index. We have mentioned the analyst ratings and hedge fund sentiment for the selected companies. Dividend yields for the companies are listed as of April 27.
TSX-60 Stocks that Pay Dividends
10. Suncor Energy Inc. (NYSE:SU)
Number of Hedge Fund Holders: 33
Dividend Yield as of April 27: 4.10%
Suncor Energy Inc. (NYSE:SU) was founded in 1917 and is headquartered in Calgary, Canada. It operates as an integrated energy company, supplying petroleum, natural gas, and petrochemicals. The company delivers a dividend yield of 4.10% as of April 27.
Suncor Energy Inc. (NYSE:SU) announced on April 5 that it will shift its efforts from wind and solar to areas complementary to its primary oil and gas business, to become a net-zero company by 2050. These efforts include shifting from coke-fired boilers at its oil sands Base Plant facility to lesser emission cogeneration systems and advancing the deployment of carbon capture technology.
In 2021, Suncor Energy Inc. (NYSE:SU)’s full-year revenue came in at approximately $31 billion, compared to $19.3 billion in the prior year. Net income in 2021 stood at $3.25 billion, a strong rebound from the $3.39 billion loss in 2020.
On February 2, Suncor Energy Inc. (NYSE:SU) declared a C$0.42 per share quarterly dividend, in line with previous. The dividend was distributed on March 25, to shareholders of record on March 4.
Scotiabank analyst Jason Bouvier on April 18 maintained an Outperform rating on Suncor Energy Inc. (NYSE:SU) and raised the firm’s price target on the stock to C$46 from C$45.
According to the fourth quarter database of Insider Monkey, 33 hedge funds held long positions in Suncor Energy Inc. (NYSE:SU), compared to 32 funds in the earlier quarter. The total stakes owned in Q4 amounted to $1.30 billion, up from $1.08 billion in the prior quarter. Peter Rathjens, Bruce Clarke, and John Campbell’s Arrowstreet Capital is the biggest position holder in the company, with 9.3 million shares worth approximately $235 million.
In addition to Johnson & Johnson (NYSE:JNJ), The Coca-Cola Company (NYSE:KO), and Altria Group, Inc. (NYSE:MO), Suncor Energy Inc. (NYSE:SU) is a notable dividend stock to look out for.
Here is what ClearBridge Investments International Growth ADR Strategy has to say about Suncor Energy Inc. (NYSE:SU) in its Q1 2022 investor letter:
“Also within the structural bucket, we added to our commodity exposure with the purchase of Suncor Energy (NYSE:SU). Suncor, a past holding, is a Canadian integrated oil company where we capitalized on attractive valuation due to a COVID-19-induced slowdown. We expect recovery in oil demand and strong pricing will result in faster than expected free cash flow growth and financial deleveraging.
The structural bucket has the shortest investment horizon across the spectrum of growth companies we target in the Strategy. We closely monitor the macro impacts and turnaround progress of these companies and will be disciplined sellers when the thesis for a holding plays out.”
9. TC Energy Corporation (NYSE:TRP)
Number of Hedge Fund Holders: 16
Dividend Yield as of April 27: 5.24%
TC Energy Corporation (NYSE:TRP) is a Calgary-based energy infrastructure company operating via five segments – Canadian Natural Gas Pipelines, U.S. Natural Gas Pipelines, Mexico Natural Gas Pipelines, Liquids Pipelines, and Power and Storage.
On February 15, TC Energy Corporation (NYSE:TRP) declared a C$0.90 per share quarterly dividend, a 3.4% increase from its prior dividend of C$0.87. The dividend is payable on April 29, to shareholders of the company as of March 31. The dividend yield on April 27 came in at 5.24%.
TC Energy Corporation (NYSE:TRP) reported its financial results for Q4 2021 on February 15, posting earnings per share of $0.83, beating market estimates by $0.01. Revenue for the period grew 8.26% year-over-year to $2.82 billion, surpassing analysts’ predictions by $8.60 million.
Morgan Stanley analyst Robert Kad on April 27 downgraded TC Energy Corporation (NYSE:TRP) to Underweight from Equal Weight, but raised the price target to C$78 from C$73. Although the analyst thinks TC Energy Corporation (NYSE:TRP)’s quality of assets and proactive energy transition strategy should remain attractive for investors, the stock’s performance year-to-date and consequent valuation are aligned with Underweight-rated names, he added.
Among the hedge funds tracked by Insider Monkey, 16 funds were bullish on TC Energy Corporation (NYSE:TRP) at the end of December 2021, with collective stakes worth $119.5 million, compared to 15 funds in the earlier quarter, holding stakes in the company valued at $84 million. Israel Englander’s Millennium Management is a significant shareholder of TC Energy Corporation (NYSE:TRP), with 974,847 shares worth $45.37 million.
8. BCE Inc. (NYSE:BCE)
Number of Hedge Fund Holders: 12
Dividend Yield as of April 27: 5.33%
Headquartered in Verdun, Canada, BCE Inc. (NYSE:BCE) is a telecommunications and media company offering wireless, wireline, internet, and television services to residential, enterprise, and wholesale customers. BCE Inc. (NYSE:BCE)’s dividend yield on April 27 came in at 5.33%.
BCE Inc. (NYSE:BCE) declared on February 3 a C$0.92 per share quarterly dividend, a 5.1% increase from its earlier dividend of C$0.88. The dividend was distributed on April 15, to shareholders of the company as of March 15.
In 2021, the full-year revenue for BCE Inc. (NYSE:BCE) came in at $18.5 billion, compared to $17.9 billion in the previous year. Net income in 2021 stood at $2.24 billion, up from $2 billion in 2020.
On April 27, Canaccord analyst Aravinda Galappatthige downgraded BCE Inc. (NYSE:BCE) to Hold from Buy but raised the price target to C$71 from C$70, ahead of the company’s Q1 results. While he expects solid wireless numbers and an uptick in Media off “a soft base”, he forecasts lagging return-to-work trends and supply chain tightness to impact the Enterprise side, as well as moderate wireline returns.
According to Insider Monkey’s Q4 data, BCE Inc. (NYSE:BCE) was found in the public stock portfolios of 12 hedge funds, compared to 15 funds in the third quarter. The total stakes owned in the fourth quarter amounted to roughly $82 million. Jim Simons’ Renaissance Technologies is the leading shareholder of the company, with 789,371 shares worth $41 million.
7. Canadian Natural Resources Limited (NYSE:CNQ)
Number of Hedge Fund Holders: 23
Dividend Yield as of April 27: 3.90%
Canadian Natural Resources Limited (NYSE:CNQ) markets and sells crude oil, natural gas, and natural gas liquids. The company was incorporated in 1973 and is headquartered in Calgary, Canada. Canadian Natural Resources Limited (NYSE:CNQ)’s dividend yield on April 27 came in at 3.90%.
Scotiabank analyst Jason Bouvier raised the firm’s price target on Canadian Natural Resources Limited (NYSE:CNQ) to C$88 from C$80 and reiterated an Outperform rating on the shares on April 18.
Canadian Natural Resources Limited (NYSE:CNQ)’s full-year revenue in 2021 stood at $23.76 billion, up from $13.2 billion in the prior year, representing a growth of almost 78%. The 2021 net income rebounded strongly to $6 billion from a loss of $342 million in 2020.
On March 3, Canadian Natural Resources Limited (NYSE:CNQ) declared a C$0.75 per share quarterly dividend, a 27.7% increase from its earlier dividend of C$0.59. The dividend was distributed on April 5, to shareholders of the company as of March 18.
According to the fourth quarter database of Insider Monkey, 23 hedge funds placed long calls on Canadian Natural Resources Limited (NYSE:CNQ), compared to 27 funds in the prior quarter. Donald Yacktman’s Yacktman Asset Management is the largest stakeholder of the company, with more than 17 million shares worth $719.4 million.
6. Nutrien Ltd. (NYSE:NTR)
Number of Hedge Fund Holders: 36
Dividend Yield as of April 27: 1.90%
Nutrien Ltd. (NYSE:NTR) was founded in 2017 and is headquartered in Saskatoon, Canada. The company sells crop nutrients, crop protection products, seeds, and merchandise products in the United States, Canada, South America, and Australia. Nutrien Ltd. (NYSE:NTR)’s fertilizer products include potash, nitrogen, phosphate, and sulfate.
On February 16, Nutrien Ltd. (NYSE:NTR) announced a $0.48 per share quarterly dividend, a 4.3% increase from its previous dividend of $0.46. The dividend was paid on April 14, to shareholders of the company as of March 31. The board also approved the purchase of almost 10% of the public float of common shares over a one-year period via a normal course issuer bid.
Nutrien Ltd. (NYSE:NTR)’s full-year 2021 revenue came in at $26.8 billion, compared to $20 billion in the preceding year. Net income in 2021 stood at $3.15 billion, up from $459 million in 2020, representing a year-over-year growth of 587%.
RBC Capital analyst Andrew Wong on April 21 raised the firm’s price target on Nutrien Ltd. (NYSE:NTR) to $135 from $120 and reiterated an Outperform rating on the shares ahead of its Q1 results. The analyst expects the solid agriculture and fertilizer fundamentals to persist and expects robust cash flows over the next multiple years. He added that Nutrien Ltd. (NYSE:NTR) has a potash opportunity in a very tight market, which reflects further upside.
Among the hedge funds tracked by Insider Monkey, 36 funds were bullish on Nutrien Ltd. (NYSE:NTR) at the end of December 2021, compared to 30 funds in the earlier quarter. The total stakes held in Q4 2021 amounted to approximately $870 million. Jean-Marie Eveillard’s First Eagle Investment Management is the biggest position holder in the company, with 11.3 million shares worth $853.25 million.
Elite hedge funds are piling into Nutrien Ltd. (NYSE:NTR), just like Johnson & Johnson (NYSE:JNJ), The Coca-Cola Company (NYSE:KO), and Altria Group, Inc. (NYSE:MO).
Here is what Miller/Howard Investments had to say about Nutrien Ltd. (NYSE:NTR) in its Q1 2021 investor letter:
“For the most part, performance of the stocks within the Income-Equity Strategies was skewed towards the high-performing market sectors with two exceptions – our consumer discretionary and technology stocks both did better than their broad market peers… We bought Nutrien (NTR), a producer of fertilizer, which we believe should benefit from increasing crop prices.”
5. Fortis Inc. (NYSE:FTS)
Number of Hedge Fund Holders: 9
Dividend Yield as of April 27: 3.41%
Fortis Inc. (NYSE:FTS) is headquartered in St. John’s, Canada, operating as an electric and gas utility company in Canada, the United States, and the Caribbean countries. As of April 27, Fortis Inc. (NYSE:FTS) delivers a dividend yield of 3.41%.
On February 11, Fortis Inc. (NYSE:FTS) declared a C$0.535 per share quarterly dividend, in line with previous. The dividend is payable on June 1, to shareholders of the company at the close of business on May 17.
Scotiabank analyst Robert Hope on April 19 raised the firm’s price target on Fortis Inc. (NYSE:FTS) to C$63 from C$61 and maintained a Sector Perform rating on the shares.
According to the Q4 database of Insider Monkey, Fortis Inc. (NYSE:FTS) was found in the public investment portfolios of 9 hedge funds, who collectively held stakes worth $517.4 million, compared to 5 funds in the prior quarter, holding stakes in Fortis Inc. (NYSE:FTS) valued at $171.2 million. Rajiv Jain’s GQG Partners is the leading position holder in the company, with almost 6.5 million shares worth $313 million.
4. Kinross Gold Corporation (NYSE:KGC)
Number of Hedge Fund Holders: 31
Dividend Yield as of April 27: 2.38%
Kinross Gold Corporation (NYSE:KGC) is a Toronto-based company that acquires, explores, and develops gold properties in the United States, the Russian Federation, Brazil, Chile, Ghana, and Mauritania.
On February 16, Kinross Gold Corporation (NYSE:KGC) declared a quarterly dividend of $0.03 per share, in line with previous. The dividend was paid on March 24, to shareholders of the company as of March 9. Kinross Gold Corporation (NYSE:KGC)’s dividend yield on April 27 stood at 2.38%.
Barclays analyst Matthew Murphy raised the price target on Kinross Gold Corporation (NYSE:KGC) to $7 from $6 and reiterated an Overweight rating on the shares on April 21. While the commodity market has been supportive for resource equities, as growth moderates and supply shocks persist, investors need to consider the possibility of margin compression, the analyst stated in a research note. He remains Overweight on select miners, with a preference for gold.
Among the hedge funds tracked by Insider Monkey at the end of December 2021, 31 funds were long Kinross Gold Corporation (NYSE:KGC), up from 27 funds in the preceding quarter. Jim Simons’ Renaissance Technologies is the largest shareholder of the company, with approximately 25 million shares worth $145 million.
3. Manulife Financial Corporation (NYSE:MFC)
Number of Hedge Fund Holders: 15
Dividend Yield as of April 27: 5.40%
Manulife Financial Corporation (NYSE:MFC) was incorporated in 1887 and is headquartered in Toronto, Canada. The company offers financial products and services in Asia, Canada, and the United States, operating via Wealth and Asset Management Businesses, Insurance and Annuity Products, and Corporate and Other segments.
On March 15, Manulife Financial Corporation (NYSE:MFC) announced a public offering in the United States of $750 million of 3.703% senior notes due 2032 at a price of 100%. The net proceeds will be used to finance green assets under the Manulife Sustainable Bond Framework.
Desjardins analyst Doug Young raised the price target on Manulife Financial Corporation (NYSE:MFC) to C$30 from C$29 and reiterated a Buy rating on the shares on February 14.
According to Insider Monkey’s Q4 data, 15 hedge funds were bullish on Manulife Financial Corporation (NYSE:MFC), compared to 18 funds in the earlier quarter. Noam Gottesman’s GLG Partners is the largest shareholder of the company, with a position worth roughly $168 million.
2. Pembina Pipeline Corporation (NYSE:PBA)
Number of Hedge Fund Holders: 10
Dividend Yield as of April 27: 5.28%
Pembina Pipeline Corporation (NYSE:PBA) is a Calgary-based company that provides transportation and midstream services for the energy industry. Pembina Pipeline Corporation (NYSE:PBA)’s dividend yield on April 27 stood at 5.28%.
On April 19, Scotiabank analyst Robert Hope raised the firm’s price target on Pembina Pipeline Corporation (NYSE:PBA) to C$54 from C$49 and kept an Outperform rating on the shares.
Pembina Pipeline Corporation (NYSE:PBA)’s full-year revenue for 2021 came in at $6.8 billion, compared to $4.6 billion in the preceding year. The 2021 net income stood at $982.2 million, a strong rebound from the loss of $248.3 million in 2020.
Pembina Pipeline Corporation (NYSE:PBA) declared a C$0.21 per share monthly dividend. The dividend will be distributed on May 13, to shareholders of the company as of April 25.
Among the hedge funds tracked by Insider Monkey, Pembina Pipeline Corporation (NYSE:PBA) was found in the public stock portfolios of 10 funds at the end of December 2021, compared to 8 funds in the prior quarter. Israel Englander’s Millennium Management is the leading stakeholder of the company, with a position worth $16.20 million.
1. Royal Bank of Canada (NYSE:RY)
Number of Hedge Fund Holders: 15
Dividend Yield as of April 27: 3.73%
Royal Bank of Canada (NYSE:RY) is a Canadian multinational financial services company that offers retail banking, corporate banking, investment banking, mortgage loans, private banking, wealth management, credit cards, and insurance.
On February 24, Royal Bank of Canada (NYSE:RY) declared a C$1.20 per share quarterly dividend, in line with previous. The dividend is payable on May 24, to shareholders of record on April 25. Royal Bank of Canada (NYSE:RY)’s dividend yield on April 27 came in at 3.73%.
Scotiabank analyst Meny Grauman on April 13 reiterated an Outperform rating on Royal Bank of Canada (NYSE:RY) but lowered the firm’s price target on the shares to C$150 from C$163.
Royal Bank of Canada (NYSE:RY) reported earnings for Q4 2021 on February 24, posting an EPS of $2.24, beating market estimates by $0.01. The $10.20 billion revenue also outperformed estimates by $795.5 million.
According to Insider Monkey’s database, 15 hedge funds were long Royal Bank of Canada (NYSE:RY) at the end of Q4 2021, compared to 16 funds in the preceding quarter. Rajiv Jain’s GQG Partners is the leading shareholder of the company, with more than 7 million shares worth $759.23 million.
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Disclosure: None. 10 TSX-60 Stocks that Pay Dividends is originally published on Insider Monkey.
