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10 Canadian Dividend Stocks With Over 3% Yield

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·8 min read
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In this article, we discuss 10 Canadian dividend stocks with over 3% yield. If you want to skip our detailed analysis of these stocks, go directly to 5 Canadian Dividend Stocks With Over 3% Yield.

According to OECD, the Canadian economy in 2021 grew by 4.8%, a growth rate that was lower than OECD’s forecasted growth rate of 5.3%, and global averages of 5.6%. While the government allowed monetary support to businesses in Canada, and household income was boosted, the COVID-19 headwinds, inflation, and uneven recovery in various market sectors remained a hindrance in achieving top-line economic growth.

The interest rate hikes scheduled by the Bank of Canada in 2022 are expected to control the rising prices in the country, but at the same time result in slower economic growth. Controlled inflation will provide businesses with greater confidence and increase the purchasing power of customers, which will assist in long-term growth for the Canadian economy.

Canada’s GDP is projected to come in at 3.8% in 2022, which is in line with OECD’s consensus, but lower than the global average of 4.5%. The federal government’s debt to GDP ratio is also expected to increase, which will make debt management crucial, or else it might cause fiscal uncertainty and scare off investors in the country.

Canada needs more global investment in its businesses, in addition to being increasingly export-oriented and innovative, if the country hopes to manage its debt and raise its GDP in line with global averages. Canada offers some largely liquid companies with attractive yields, solid cash flow, and healthy dividend payout ratios, which may be of interest to investors around the world.

Some of the most notable Canadian dividend stocks include B2Gold Corp. (NYSE:BTG), Suncor Energy Inc. (NYSE:SU), and Enbridge Inc. (NYSE:ENB).

10 Canadian Dividend Stocks With Over 3% Yield
10 Canadian Dividend Stocks With Over 3% Yield

Photo by lucas Favre on Unsplash

Our Methodology

We chose Canadian stocks that offer a dividend yield of over 3% to compile this list. We have ranked the securities according to the yields, from lowest to highest. We have also mentioned the hedge fund sentiment around each stock, so potential investors can assess the position of elite funds in each holding.

Canadian Dividend Stocks With Over 3% Yield

10. Canadian Imperial Bank of Commerce (NYSE:CM)

Dividend Yield as of February 11: 3.94%

Number of Hedge Fund Holders: 13

Canadian Imperial Bank of Commerce (NYSE:CM) is a multinational financial services corporation, headquartered in Toronto. The business segments at Canadian Imperial Bank of Commerce (NYSE:CM) include personal and business banking, commercial banking, wealth management, and capital markets. The bank serves clients in the United States and Canada.

On December 2, Canadian Imperial Bank of Commerce (NYSE:CM) declared a C$1.61 per share quarterly dividend, which is a 10.3% increase from its prior dividend of C$1.46. The dividend was paid on January 31, to shareholders of record on December 29.

Barclays analyst John Aiken on January 19 downgraded Canadian Imperial Bank of Commerce (NYSE:CM) to Equal Weight from Overweight with a price target of C$169, up from C$162. Canadian Imperial Bank of Commerce (NYSE:CM)’s turnaround in its domestic retail banking franchise has "been remarkable" but this story has entered the later innings, the analyst told investors in a research note.

Among the hedge funds tracked by Insider Monkey in Q3 2021, D E Shaw is the biggest stakeholder of Canadian Imperial Bank of Commerce (NYSE:CM), with 709,693 shares worth approximately $79 million. Overall, 13 hedge funds were bullish on the stock in the third quarter, with stakes totaling $289.7 million.

In addition to B2Gold Corp. (NYSE:BTG), Suncor Energy Inc. (NYSE:SU), and Enbridge Inc. (NYSE:ENB), Canadian Imperial Bank of Commerce (NYSE:CM) offers an attractive dividend yield to investors.

9. TELUS Corporation (NYSE:TU)

Dividend Yield as of February 11: 4.16%

Number of Hedge Fund Holders: 12

Headquartered in Vancouver, British Columbia, TELUS Corporation (NYSE:TU) is a multinational conglomerate that operates in the telecommunications, information technology, consulting health safety, and security industries via its subsidiaries. TELUS Corporation (NYSE:TU)’s dividend yield on February 11 came in at 4.16%.

TELUS Corporation (NYSE:TU) on November 4 declared a C$0.3274 per share quarterly dividend, which reflects a 3.5% increase from its prior dividend of C$0.3162. The dividend was paid on January 4, to shareholders of record on December 10.

On January 14, TELUS Corporation (NYSE:TU) reported that it is connecting more Canadians to next-generation 5G networks ahead of schedule, reaching 70% of the Canadian population as part of its significant $54 billion infrastructure investment and operations through 2024.

TD Securities analyst Vince Valentini lowered the price target on TELUS Corporation (NYSE:TU) to C$32 from C$33 and kept a Buy rating on the shares on November 9.

Renaissance Technologies is the largest TELUS Corporation (NYSE:TU) stakeholder as of the third quarter of 2021, holding 3.3 million shares worth $73.5 million. Overall, 12 hedge funds were long TELUS Corporation (NYSE:TU) in Q3 2021, with stakes equaling $141.2 million.

8. Manulife Financial Corporation (NYSE:MFC)

Dividend Yield as of February 11: 4.84%

Number of Hedge Fund Holders: 18

Manulife Financial Corporation (NYSE:MFC) is headquartered in Toronto, Ontario, and is a prominent insurance and financial services provider. Manulife Financial Corporation (NYSE:MFC) provides services including asset management, commercial and consumer banking, commercial mortgages, insurance and reinsurance, mutual funds, real estate, securities underwriting, and wealth management.

Manulife Financial Corporation (NYSE:MFC) declared on November 5 a supplemental dividend of C$0.05 per share. Combined with its quarterly common shareholders' dividend of C$0.28 per share announced on November 3, this supplementary dividend results in a total quarterly common shareholders dividend of $0.33 per share, which is an 18% increase from the prior quarter. The dividend was paid on December 20, to shareholders on record of December 1.

On January 28, Scotiabank analyst Meny Grauman lowered the price target on Manulife Financial Corporation (NYSE:MFC) to C$29 from C$30 and kept a Sector Perform rating on the shares.

At the end of the third quarter of 2021, 18 hedge funds monitored by Insider Monkey reported owning stakes in Manulife Financial Corporation (NYSE:MFC), valued at $351 million. GLG Partners is the leading stakeholder of the company, owning 7.91 million shares worth $152.2 million.

Manulife Financial Corporation (NYSE:MFC) is a popular dividend stock among elite hedge funds, just like B2Gold Corp. (NYSE:BTG), Suncor Energy Inc. (NYSE:SU), and Enbridge Inc. (NYSE:ENB).

7. The Bank of Nova Scotia (NYSE:BNS)

Dividend Yield as of February 11: 4.30%

Number of Hedge Fund Holders: 17

The Bank of Nova Scotia (NYSE:BNS) is a Canadian multinational bank and financial services corporation that operates as one of the Big Five Canadian banks, measured by deposits and market capitalization. The Bank of Nova Scotia (NYSE:BNS) serves customers around the world, providing services such as personal and commercial banking, wealth management, and corporate and investment banking.

On November 30, The Bank of Nova Scotia (NYSE:BNS) declared a C$1.00 per share quarterly dividend, which is an 11.1% increase from the prior dividend of C$0.90. The Bank of Nova Scotia (NYSE:BNS) delivers a 4.30% dividend yield as of February 11.

The Bank of Nova Scotia (NYSE:BNS) announced on December 8 a strategic agreement with BestEx Research, which provides algorithmic execution and measurement solutions for equities, futures, and foreign exchange trading, to reshape electronic trading for Canadian equities. The Bank of Nova Scotia (NYSE:BNS) will be the only Canadian bank to provide access to this trading platform in the Canadian market.

Canaccord analyst Scott Chan raised the price target on The Bank of Nova Scotia (NYSE:BNS) to C$89 from C$88 and kept a Buy rating on the shares on December 1.

In the third quarter of 2021, 17 hedge funds tracked by Insider Monkey were bullish on The Bank of Nova Scotia (NYSE:BNS), with stakes amounting to $193.3 million. Marshall Wace LLP is the largest stakeholder of The Bank of Nova Scotia (NYSE:BNS) as of Q3 2021, holding 836,796 shares worth $51.4 million.

6. B2Gold Corp. (NYSE:BTG)

Dividend Yield as of February 11: 4.07%

Number of Hedge Fund Holders: 16

B2Gold Corp. (NYSE:BTG) is a Canadian mining company operating gold mines across Mali, Namibia, and the Philippines. B2Gold Corp. (NYSE:BTG) was built by the mergers of multiple mining companies in 2007, and it is headquartered in Vancouver.

B2Gold Corp. (NYSE:BTG) on January 19 reported record annual total gold production of 1.04 million ounces for 2021. Heading into 2022, B2Gold Corp. (NYSE:BTG) guidance for production indicates 900,000 to 1.05 million ounces at an all-in sustaining cost of $1,010-$1,050 per ounce. The cost for gold mining will be higher than 2021 owing to higher budgeted prices for fuel, labor shortages, and factors attributable to the current inflationary environment.

On November 25, B2Gold Corp. (NYSE:BTG) declared a quarterly dividend of $0.04 per share, in line with previous, which was paid on December 17. Offering a dividend yield of 4.07% on February 11, B2Gold Corp. (NYSE:BTG) is one of the top Canadian dividend stocks to purchase.

Canaccord analyst Carey MacRury lowered the price target on B2Gold Corp. (NYSE:BTG) to C$8 from C$8.50 and kept a Buy rating on the shares on January 27.

In Q3 2021, 16 hedge funds were bullish on B2Gold Corp. (NYSE:BTG), with stakes totaling $176.3 million. First Eagle Investment Management is one of the largest stakeholders of B2Gold Corp. (NYSE:BTG), holding 19.5 million shares worth $66.8 million.

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Disclosure: None. 10 Canadian Dividend Stocks With Over 3% Yield is originally published on Insider Monkey.