High Yielding Canadian Dividend Stocks

Some Canadian dividend-paying stocks, including a few that pay rich dividend yields, have seen a pull-back in recent months. Indeed, while the pullback reflects the flagging appeal of dividend stocks in general amid a surge in Treasury yields, there are still some fundamentally-sound dividend payers that offer highly competitive yields. Morningstar Canada Dividend Target 30 Index, comprising of 30 Canada-based dividend-paying stocks, provides a glimpse at a carefully selected set of fundamentally-strong Canadian companies with attractive dividend characteristics. Some index members offer yields in excess of 4.0%.

Three sectors -banking, communications, and energy- dominate the high-yielding stocks featured in the table. In fact, one third of the listed securities represents banking stocks, while another third represents stocks of Canadian communication companies. Among the featured high-yielders is also a fertilizer company, Potash Corporation of Saskatchewan (POT), whose yield has been boosted by a combination of significant dividend growth over the past year and a recent steep stock price correction. The four banking stocks, namely Bank of Montreal (BMO), Royal Bank of Canada (RY), Canadian Imperial Bank of Commerce (CM), and Bank of Nova Scotia (BNS), generally have the lowest dividend payout ratios among the featured high-yielders comprising the index.

Source: Seeking Alpha

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