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 January 2025, the top-performing dividend-payers included gold company Agnico Eagle Mines AEM, gold company Lundin Gold LUG, and agricultural inputs company Nutrien NTR.
To find the month’s 10 best-performing income-focused stocks, we screened the Morningstar Canada 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 1.5%, excluding real estate investment trusts.
The Best-Performing Canadian Dividend Stocks of January 2025
1. Agnico Eagle Mines AEM
2. Lundin Gold LUG
3. Nutrien NTR
4. Pan American Silver PAAS
5. Dundee Precious Metals Inc DPM
6. Brookfield BAM
7. Centerra Gold CG
8. Gildan Activewear GIL 9.
TD Bank Group TD
10. EQB EQB
How Have Dividend Stocks Performed?
Over the past month, the Morningstar Canada Dividend Growth Index, which tracks the performance of Canadian stocks with a history of uninterrupted dividend growth and the capacity to sustain that growth, rose 2.5%. The Morningstar Canada Dividend Yield Focus Index, which tracks the performance of high-quality, dividend-paying Canadian stocks, was roughly flat. In the 12 months leading up to Jan. 31, the dividend growth index gained 23.6% and the dividend yield focus index gained 17.3%.
The overall Canadian stock market, as measured by the Morningstar Canada Index, has gained 3.5% on the month and 26.7% on the year.
Yields and Metrics for January’s Best-Performing Dividend Stocks
Agnico Eagle Mines
Gold company Agnico Eagle Mines rose 20.1% in January and gained 107.7% over the past 12 months. Trading at C$135.08 per share, its stock has a forward dividend yield of 1.69%. Agnico Eagle Mines pays investors an annual dividend of C$2.28 per share. The stock, which has no economic moat, is currently trading at a 67% premium to its fair value estimate of C$81 per share, leaving it with a Morningstar Rating of 1 star.
Lundin Gold
Gold company Lundin Gold rose 17.4% in January and gained 132.2% over the past 12 months. At C$36 per share, its stock has a forward dividend yield of 3.21% and an annual dividend of C$1.16 per share. It has a quantitative Morningstar Rating of 2 stars.
Nutrien
Agricultural inputs company Nutrien gained 16.6% in January and rose 16.3% over the past 12 months. The stock’s C$75.01 price gives it a forward dividend yield of 4.15%. Nutrien pays investors an annual dividend of C$3.11 per share. With a fair value estimate of C$97 per share and a narrow economic moat, the stock is moderately undervalued, trading at a 23% discount. It has a Morningstar Rating of 4 stars.
Pan American Silver
Gold company Pan American Silver rose 15.9% in January and gained 88.2% over the past 12 months. Trading at C$33.71 per share, Pan American Silver stock has a forward dividend yield of 1.66% and an annual dividend of C$0.56 per share. It has a quantitative Morningstar Rating of 1 star.
Dundee Precious Metals Inc
Gold company Dundee Precious Metals Inc gained 13.0% in January and rose 73.6% over the past 12 months. Trading at C$14.73 per share, its forward dividend yield is 1.56%. Dundee Precious Metals Inc pays investors an annual dividend of C$0.23 per share. It has a quantitative Morningstar Rating of 1 star.
Brookfield
Asset management firm Brookfield gained 11.6% in January and rose 64.7% over the past 12 months. At C$86.98 per share, Brookfield stock has a forward dividend yield of 2.51% and an annual dividend of C$2.18 per share. It has a quantitative Morningstar Rating of 1 star.
Centerra Gold
Gold company Centerra Gold rose 11.1% in January and gained 32.2% over the past 12 months. Trading at C$9.09 per share, Centerra Gold stock has a forward dividend yield of 3.08% and an annual dividend of C$0.28 per share. It has a quantitative Morningstar Rating of 5 stars.
American Apparel
Apparel manufacturing company American Apparel rose 10.8% in January and gained 71.3% over the past 12 months. Trading at C$74.95 per share, American Apparel stock has a forward dividend yield of 1.56% and pays investors an annual dividend of C$1.17 per share. The stock, which has a narrow economic moat, is currently trading at a 13% premium to its fair value estimate of C$66.50 per share, leaving it moderately overvalued, leaving it with a Morningstar Rating of 2 stars.
TD Bank Group
Diversified bank TD Bank Group gained 9.7% in January and rose 6.6% over the past 12 months. The stock’s C$82.91 price gives it a forward dividend yield of 5.07%. TD Bank Group pays investors an annual dividend of C$4.20 per share. With a fair value estimate of C$92 per share and a wide economic moat, the stock is moderately undervalued, trading at a 10% discount. It has a Morningstar Rating of 4 stars.
EQB
Regional bank EQB rose 9.5% in January and gained 19.4% over the past 12 months. At C$108.36 per share, EQB has a forward dividend yield of 1.81% and an annual dividend of C$1.96 per share. It has a quantitative Morningstar Rating of 3 stars.
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.
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. • When it comes to buying stocks, it’s more than just dividends. Read here how valuations and competitive advantages—known as economic moats—matter when it comes to a stock’s potential for outperformance. • Read Morningstar’s Guide to Stock Investing to learn how our approach to investing can inform your stock-picking process.
Companies that are not formally covered by a Morningstar analyst are statistically matched to analyst-rated companies, allowing our models to calculate a quantitative star rating.
This article was generated with the help of automation and reviewed by Morningstar editors. Learn more about Morningstar’s use of automation.
The author or authors do not own shares in any securities mentioned in this article. Find out about Morningstar's editorial policies.