4 Top Canadian Dividend Stocks to Buy Under $15

These four Canadian stocks could boost your passive income given their stable cash flows and high dividend yield.

| More on:
Where to Invest?

Image source: Getty Images

A portfolio is incomplete without few high-quality dividend stocks. Given their regular payouts and stable cash flows, these companies provide stability to your portfolio. If you are ready to invest in dividend stocks, here are four under-$15 Canadian stocks to consider.


Through its 120 long-term care homes and retirement communities, Extendicare (TSX:EXE) serves around 83,500 senior citizens across Canada. The company has delivered impressive returns of 45.1% over the last 12 months. Despite the substantial rise, the company still trades at an attractive valuation, with its forward price-to-sales multiple standing at 0.6.

Besides, Extendicare had reported an improved second-quarter performance last month, with the occupancy rate of long-term care homes and the average daily volumes of the home health care increasing by 2.5% and 3.7%, respectively. Further, the company is constructing nine new long-term care centres at the cost of $500 million amid rising demand for its services. So, given its improving financials and healthy growth prospects, I believe its dividends are safe. The company currently pays a monthly dividend of $0.04 per share, with its forward yield at 6.24%.

Roger Sugar

Second on my list would be Rogers Sugar (TSX:RSI), which produces and markets sugar and maple syrup. After a tough 2020, the company’s financials are improving this fiscal year. In the first three quarters of fiscal 2021, the company’s revenue and adjusted EPS increased by 5.9% and 15%, respectively. Higher sugar volumes and favourable pricing drove the company’s financials. However, maple syrup sales had declined due to the tough year-over-year comparison amid pantry-loading in the early stage of the pandemic.

Meanwhile, the increased sugar production and improving demand for maple syrup could drive its financials in the coming quarters. The company could also benefit from the continued anti-dumping and countervailing duties on sugar imported from the United States, the United Kingdom, and the European Union. So, the company is well-equipped to continue paying dividends at a healthier rate. Currently, it pays a quarterly dividend of $0.09 per share, with its forward yield standing at an impressive 6.42%.

Pizza Pizza Royalty

Pizza Pizza Royalty (TSX:PZA) could also be an excellent buy for income-seeking investors, given its high-dividend yield and stable cash flows due to its highly franchised business model. Last month, the company raised its monthly dividends by 9% to $0.6 per share, with its forward yield currently standing at 6.22%.

The raising of dividends shows the management’s confidence in its future cash flows. With the easing of restrictions, Pizza Pizza has now reopened its dining space and non-traditional restaurants. The improvement in economic activities and continued sales growth from its digital channels could drive its financials in the coming quarters. So, its growth prospects look healthy.

NorthWest Healthcare

My final pick would be NorthWest Healthcare Properties REIT (TSX:NWH.UN), which pays a monthly dividend of $0.0667 per share, with its forward yield standing at 6%. Thanks to its highly defensive and diversified healthcare portfolio, the company enjoys high occupancy and collection rate. The government-backed tenants, inflation-indexed rent, and long-term agreements provide stability to its earnings and cash flows.

Meanwhile, NorthWest Healthcare is also working on acquiring Australian Unity Healthcare Property, which owns a portfolio of 62 healthcare properties with an occupancy rate of 98%. Also, NorthWest has around $350 million projects in the construction or approval stage. As well, it recently strengthened its financial position by raising about $200 million.

So, given its healthy growth prospects, stable cash flows, and high dividend yield, NorthWest could be a good buy in this volatile environment.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

The Motley Fool owns shares of and recommends PIZZA PIZZA ROYALTY CORP. The Motley Fool recommends NORTHWEST HEALTHCARE PPTYS REIT UNITS. Fool contributor Rajiv Nanjapla has no position in any of the stocks mentioned.

More on Dividend Stocks

consider the options
Dividend Stocks

Is TD Bank the Best Dividend Stock for You?

Toronto-Dominion Bank (TSX:TD) has a high dividend yield but is embroiled in a serious money-laundering scandal.

Read more »

The TFSA is a powerful savings vehicle for Canadians who are saving for retirement.
Dividend Stocks

How to Use Your TFSA to Earn $6,000 Per Year in Passive Income

Hint: You'll need this Hamilton covered call ETF, which yields over 10%.

Read more »

Growth from coins
Dividend Stocks

2 Dividend-Growth Stocks With TSX-Beating Potential That Deserve More Respect

Here are two of the best TSX dividend-growth stocks you can buy today and hold for the next decade.

Read more »

Man pointing at a recycling symbol
Dividend Stocks

GFL Stock Rose 24% Last Month: Is It Still a Buy in July?

GFL stock (TSX:GFL) exploded by 24% in June, but is the growth now over for July? Or can investors still…

Read more »

A woman shops in a grocery store while pushing a stroller with a child
Dividend Stocks

Better Buy: Loblaw Stock or Metro Stock?

Loblaw (TSX:L) and another grocer that could do well over the long haul as markets get rocky.

Read more »

concept of real estate evaluation
Dividend Stocks

BRE Stock: Should You Buy the 10.5% Yield?

BRE stock (TSX:BRE) offers investors the opportunity for a rebound in a real estate sector that should see high prices…

Read more »

dividends grow over time
Dividend Stocks

Prediction: These Could Be the Best-Performing Value Stocks Through 2030

Seeking value stocks trading at a discount? These top value stocks could outperform through 2030 through valuation expansion.

Read more »

Dividend Stocks

3 TFSA Hacks to Build a $1 Million Tax-Free Nest Egg

These TFSA investing hacks could help convert $95,000 into $1 million tax-free. Here's how to get started.

Read more »