Dividend-paying stocks that combine healthy balance sheets with hefty yields can provide investors with steady incomes, cushion against market downturns, and grow investments at a healthy clip.
In February 2024, the top-performing dividend-payers included oil and gas exploration and production company Enerplus ERF, packaging and containers firm CCL Industries Inc Registered Shs -B- Non Vtg CCL.B, and specialty business services company Ritchie Bros. Auctioneers RBA.
To find the month's 10 best-performing income-focused stocks, we screened the Morningstar Canada GR CAD Index—which measures the performance of Canada's broad regional markets, targeting the top 97% of stocks by market capitalization—for companies with a forward dividend yield of at least 1%, excluding real estate investment trusts.
The Best-Performing Canadian Dividend Stocks of February 2024
- Enerplus ERF
- CCL Industries Inc Registered Shs -B- Non Vtg CCL.B
- Ritchie Bros. Auctioneers RBA
- Definity Financial DFY
- TFI International TFII
- Paramount Resources POU
- Compass Group CPG
- Primo Water Corp PRMW
- Arc Resources ARX
- Altus Group AIF
How Have Dividend Stocks Performed Over the Past Year?
In the 12 months leading up to February 29, the Morningstar Canada Dividend Growth GR CAD Index, which tracks the performance of Canadian stocks with a history of uninterrupted dividend growth and the capacity to sustain that growth, rose 10%. The Morningstar Canada Dividend Yield Focus GR CAD Index, which tracks the performance of high-quality, dividend-paying Canadian stocks, rose 0.4%.
During the same period, the overall Canadian stock market gained 10.1% as measured by the Morningstar Canada GR CAD Index.
Yields and Metrics for the Best-Performing Income Players
Enerplus
Oil and gas exploration and production company Enerplus rose 23.2% in February to end the last 12 months up 12.5%. Trading at C$24.05 per share, its stock has a forward dividend yield of 1.46%. Enerplus pays investors an annual dividend of C$0.36 per share. The no-moat stock is currently trading near its quantitative fair value estimate of C$26.72 per share.
CCL Industries Inc Registered Shs -B- Non Vtg
Packaging and containers firm CCL Industries Inc Registered Shs -B- Non Vtg rose 20.2% in February, leaving it up 7% over the past year. At C$69.18 per share, its stock has a forward dividend yield of 1.68% and an annual dividend of C$1.16 per share. The narrow-moat stock is trading near its quantitative fair value estimate of C$71.76 per share.
Ritchie Bros. Auctioneers
Specialty business services company Ritchie Bros. Auctioneers gained 19.4% in February to end the last 12 months up 26.2%. The stock's C$102.39 price gives it a forward dividend yield of 1.42%. Ritchie Bros. Auctioneers pays investors an annual dividend of C$1.44 per share. With a fair value estimate of C$73 per share, the narrow-moat stock is significantly overvalued, trading at a 40% premium.
Definity Financial
Property and casualty insurance firm Definity Financial rose 17.3% in February, leaving it up 29.3% over the past year. Trading at C$45.89 per share, Definity Financial stock has a forward dividend yield of 1.39% and an annual dividend of C$0.64 per share. The no-moat stock is trading near its quantitative fair value estimate of C$45.02 per share.
TFI International
Trucking company TFI International gained 13.5% in February to end the last 12 months up 21.6%. Trading at C$200.52 per share, its forward dividend yield is 1.07%. TFI International pays investors C$2.16 per share annually. The narrow-moat stock is trading near its quantitative fair value estimate of C$187.13 per share.
Paramount Resources
Oil and gas exploration and production firm Paramount Resourcesgained 12.8% in February, leaving it up 4.9% over the past year. At C$29.77 per share, Paramount Resourcesstock has a forward dividend yield of 5.04% and an annual dividend of C$0.48 per share. The no-moat stock is moderately undervalued, trading 15% below its quantitative fair value estimate of C$35.13 per share.
Compass Group
Oil and gas exploration and production company Compass Group rose 12.8% in February to end the last 12 months up 11.2%. Trading at C$9.89 per share, Compass Group stock has a forward dividend yield of 4.65% and an annual dividend of C$0.48 per share. The no-moat stock is moderately undervalued, trading 21% below its quantitative fair value estimate of C$12.57 per share.
Primo Water Corp
Non-alcoholic beverage firm Primo Water Corp rose 12.3% in February, leaving it up 6.2% over the past year. Trading at C$22.04 per share, Primo Water Corp stock has a forward dividend yield of 2.2% and pays investors an annual dividend of C$0.48 per share. The no-moat stock is currently trading near its fair value estimate of C$21.70 per share.
Arc Resources
Oil and gas exploration and production company Arc Resources gained 10.8% in February to end the last 12 months up 60.1%. The stock's C$23.13 price gives it a forward dividend yield of 2.94%. Arc Resources pays investors an annual dividend of C$0.68 per share. With a quantitative fair value estimate of C$23.50 per share, the no-moat stock is fairly valued.
Altus Group
Real estate services company Altus Group rose 10.5% in February, leaving it down 16.9% over the past year. At C$50.09 per share, Altus Group has a forward dividend yield of 1.2% and an annual dividend of C$0.60 per share. The no-moat stock is trading near its quantitative fair value estimate of C$53.32 per share.
What Is the Morningstar Canada Index?
The Morningstar Canada Index measures the performance of Canada's broad regional markets, targeting the top 97% of stocks by market capitalization. The index does not incorporate environmental, social, or governance criteria.
What Is the Morningstar Canada Dividend Yield Focus Index?
The Morningstar Canada Dividend Yield Focus Index captures the performance of a portfolio of high-quality, dividend-paying securities.
The Morningstar Canada Dividend Yield Focus Index captures the performance of a portfolio of high-quality, dividend-paying securities. It's a subset of the Morningstar Canada Index (which represents 97% of the equity market capitalization) that includes only stocks that pay dividends. The stocks are screened for economic moat and financial strength compared to others in their sector. Real estate investment trusts are excluded.
The 25 highest-yielding stocks are included in the index, weighted by the dollar value of the dividends. See the full rulebook here.
The Best Dividend Stock Leaders: More Ideas to Consider
Investors who would like to find more top-performing or cheap dividend stocks can do the following:
- Review the full list of stocks in the Morningstar Canada Dividend Yield Focus Index. Stocks with Morningstar Ratings of 4 or 5 stars are undervalued, according to our metrics.
- Use our Morningstar Stock Screener tool to find the best dividend stocks according to your specific criteria. You can search for stocks based on their dividend yields, valuation measures like price/earnings ratios, and more.
Companies that are not formally covered by a Morningstar analyst have quantitative ratings. These companies are statistically matched to analyst-rated companies, allowing our models to calculate a quantitative moat, fair value, and uncertainty rating.
This article was compiled by Bella Albrecht, edited by Lauren Solberg, and reviewed by Ruth Saldanha.
As part of our mission to put more information into the hands of investors, this article was compiled from Morningstar’s data and independent research using automation technology. The original article was written by Morningstar reporters and editors. This updated version was reviewed by an editor.
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