Canada’s TSX is the largest exchange in the country and is the third largest overall in the entire North American region, trailing NASDAQ and the NYSE. The TSX lists over 1,500 companies that serve as attractive options for investors, and there is a specific class of investments that have been characterized by promising potential and healthy long-term projections.
Dividend stocks such as those on the TSX can provide a strong source of revenue through various options that tend to pay quarterly amounts to shareholders. This is usually derived from earnings and cash flow, and the top TSX dividend stocks such as blue chips feature a long history of consistent payouts even during economic downturns.
With that in mind, the TSX features some very attractive options for dividend stock investors with the following four options highlighted due to their average dividend yield of 2.75 percent with consistent financial performance and increasing payouts over the years.
Stocks to keep an eye on
There are a good number of portfolios that investors can consider in TSX, and it’ll be easy to see which ones have promising futures. Best to consider are companies that have their hands dipped in various money pots.
Canadian Tire Corporation Ltd. (TSX:CTC.A), for example, is a major supplier of various merchandise such as automotive, tools, hardware, and sporting goods. They also provide their own line of credit cards called Triangle, which can be used to accrue points as part of their rewards program for customers. Some of their additional products include unemployment, life, and terminal illness insurance coverage as well.
CTC also incorporates various housing services such as the installation of facilities including lighting, electronics, and sporting equipment. CT REIT owns a wide range of high-quality real estate assets that further increase their financial capabilities.
These various business arms have helped capture strong Q3 performances, highlighted by their annual dividend increase of 15 percent, resulting in a stock price rise from $3.60 to $4.15.
Enerflex Ltd. (TSX:EFX), on the other hand, provides and manufactures turnkey gas and oil solutions to address worldwide needs for efficient resource use. Essentially, they are a one-stop solution for all equipment needs as they provide various services such as compression, gas processing, and electric power. Providing retrofitting and servicing skills also help promote the longevity of energy efficient solutions for businesses.
With their strong financial resource capabilities and promising outlook, the Board of Directors saw fit to increase quarterly dividends by $0.105 per share, a 10.5 percent increase. The company has seen an overall dividend increase of 75 percent since they resurfaced as a public company.
Telus Corporation (TSX:T) is a rapidly developing telecommunications company that specializes in internet, TV, and phone services while also providing an effective business solution to enhance communication and get things done. They are also involved in promoting digital solutions to promote more effective health care services as well.
To promote health care for the disabled and underserved communities, Telus developed a program called Health for Good to provide mobilized health care services to address their needs. A $5 million infusion was recently announced to expand these services to those in need of convenient and effective health care solutions.
Telus saw an 8.2 percent increase in their EBITDA, a strong indicator of their growing financial strength alongside a 41 percent hike in cash flow. Their consolidated revenue also jumped by 11 percent while quarterly dividence were raised by $0.545 per share, which has allowed the company to provide solid returns of $1.2 billion to shareholders in 2018.
Equitable Group Inc. (TSX:EQB) provide mortgage financing solutions for prospective homeowners to assist them in their procurement of real estate property. They also provide a unique PATH Home Plan that serves as a reverse merger, effectively transforming a portion of home equity into liquid assets for an additional source of capital.
EQB also features various short-term deposits and GIC’s with adjustable interest rates and durations while also providing various investable savings account programs such as HISAs and TFSAs. For businesses, EQB has a variety of available loans such as inventory and term loans which help business owners take care of mortgage and investing in business expansions and infrastructure.
Diluted earnings per share increased from $2.21 in 2017 Q3 to $2.80 in 2018 Q3, an increase of 27 percent while return on shareholder’s equity also increased by an additional 1.5 percent on top of the previous years rise. Quarterly dividends also increased by 12 percent from 2017, raising shareholder earnings to $0.28 per share.
With continually strong performances amidst various key services and solutions, these are some of the top TSX dividend stock performers that should be on the list of investors looking to secure long-term and consistent investments of the highest quality.