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 2025, the top-performing dividend-payers included renewable energy firm Innergex Renewable INE, packaged foods company Maple Leaf MFI, and industrial distributor Finning FTT.
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 February 2025
- Innergex Renewable Energy INE
- Maple Leaf Foods MFI
- Finning International FTT
- Northland Power NPI
- Boralex BLX
- TMX Group X
- Great-West Lifeco GWO
- Superior Plus SPB
- Power Corporation of Canada POW
- Lundin Gold LUG
Best-Performing Dividend Stocks in Canada
Source: Morningstar Direct. Data as of Feb. 28, 2025.
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 1.5%. The Morningstar Canada Dividend Yield Focus Index, which tracks the performance of high-quality, dividend-paying Canadian stocks, fell 1.3%. In the 12 months leading up to Feb. 28, the Dividend Growth Index gained 22.7% and the Dividend Yield Focus Index gained 15.1%.
1-Year Performance of Canadian Dividend Stocks
Source: Morningstar Direct. Data as of Feb. 28, 2025.
The overall Canadian stock market, as measured by the Canada Index, was roughly flat on the month but has risen 23.7% on the year.
Yields and Metrics for February’s Best-Performing Dividend Stocks
Innergex Renewable Energy
Renewable energy firm Innergex rose 86.8% in February and gained 65.2% over the past 12 months. Trading at C$13.46 per share, its stock has a forward dividend yield of 2.67%. Innergex pays investors an annual dividend of C$0.36 per share. The stock has a quantitative Morningstar Rating of 5 stars.
Maple Leaf Foods
Packaged foods company Maple Leaf rose 19.2% in February and gained 14.1% over the past 12 months. At C$25.22 per share, its stock has a forward dividend yield of 3.81% and an annual dividend of C$0.96 per share. It has a quantitative Morningstar Rating of 3 stars.
Finning International
Industrial distributor Finning gained 18.4% in February and rose 23.1% over the past 12 months. The stock’s C$41.82 price gives it a forward dividend yield of 2.63%. Finning pays investors an annual dividend of C$1.10 per share. The stock has a quantitative Morningstar Rating of 5 stars.
Northland Power
Renewable energy firm Northland rose 17.4% in February and lost 8.4% over the past 12 months. Trading at C$19.42 per share, Northland stock has a forward dividend yield of 6.18% and an annual dividend of C$0.40 per share. The stock, which has no economic moat, is moderately undervalued, trading 22% below its fair value estimate of C$25 per share. It has a Morningstar Rating of 4 stars.
Boralex
Renewable energy firm Boralex gained 15.5% in February and rose 1.7% over the past 12 months. Trading at C$29.12 per share, its forward dividend yield is 2.27%. Boralex pays investors an annual dividend of C$0.66 per share. The stock, which has no economic moat, is trading at a 19% discount to its fair value estimate of C$36 per share, leaving it moderately undervalued. It has a Morningstar Rating of 4 stars.
TMX Group
Financial data firm TMX gained 14.7% in February and rose 46.6% over the past 12 months. At C$50.83 per share, TMX stock has a forward dividend yield of 1.51% and an annual dividend of C$0.80 per share. It has a quantitative Morningstar Rating of 2 stars.
Great-West Lifeco
Life insurance company Great-West Lifeco rose 14.4% in February and gained 32.5% over the past 12 months. Trading at C$53.22 per share, Great-West Lifeco stock has a forward dividend yield of 4.58% and an annual dividend of C$2.44 per share. The stock, which has no economic moat, is moderately overvalued, trading 20% above its fair value estimate of C$44.50 per share. It has a Morningstar Rating of 2 stars.
Superior Plus
Regulated gas company Superior Plus rose 13.6% in February and lost 22.3% over the past 12 months. Trading at C$6.78 per share, Superior Plus stock has a forward dividend yield of 2.65% and pays investors an annual dividend of C$0.18 per share. The stock has a quantitative Morningstar Rating of 3 stars.
Power Corporation of Canada
Life insurance company Power Corporation of Canada gained 11.5% in February and rose 31.0% over the past 12 months. The stock’s C$49.27 price gives it a forward dividend yield of 4.57%. Power Corporation of Canada pays investors an annual dividend of C$2.25 per share. With a fair value estimate of C$44.50 per share and no economic moat, the stock is fairly valued and has a Morningstar Rating of 3 stars.
Lundin Gold
Gold company Lundin Gold rose 10.7% in February and gained 157.3% over the past 12 months. At C$38.94 per share, Lundin Gold has a forward dividend yield of 4.46% and an annual dividend of C$1.74 per share. It has a quantitative Morningstar Rating of 1 star.
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 compiled by Bella Albrecht, edited by Lauren Solberg, and reviewed by Nathalie Cordier.
The author or authors do not own shares in any securities mentioned in this article. Find out about Morningstar's editorial policies.
