The Best Canadian Dividend Stocks to Buy in April 2025

Canadian dividend stocks are some of the best options out there, and these few look like some of the best.

Amy Legate-Wolfe

Amy became interested in investing in 2018 after having her first daughter. After receiving a masters degree in journalism from Western University, she became frustrated that the finance industry remained a confusing place for Canadians like her: new parents, millennials, and other young people who needed to understand their finances. Now, Amy focuses on tech companies and renewable energy for growth opportunities, coupling that with long-term investing strategies and equities. She also provides investors with a daily newsletter, Canada Stock Digest, for daily market updates. Before joining Motley Fool Canada, she wrote for major news organizations including HuffPost, CTVNews.ca, and CBC. When she’s not researching investing strategies, Amy’s time is pretty much monopolized by her two wild daughters, but in what little spare time she has she loves to do yoga, go on walks with her dog, and travel with her husband. Follow Amy on LinkedIn and Canada Stock Digest. Favorite Investment Quote: “October: This is one of the particularly dangerous months to speculate in stocks. The others are July, January, September, April, November, May, March, June, December, August and February.” – Mark Twain

Published April 10, 2025 10:30 am EDT

Want some cash flowing into your investment account? Dividend stocks can be a great way for Canadians to get regular income. It’s April 2025, so let’s look at some top dividend payers on the TSX. Three names popping up for income-seeking investors are Parex Resources (TSX:PXT), Timbercreek Financial (TSX:TF), and Freehold Royalties (TSX:FRU). These dividend stocks are each in different businesses yet have their own pluses and minuses for dividend lovers.

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Parex

Parex Resources digs for oil and gas, mainly in Colombia. As of writing, this dividend stock is worth about $2.2 billion on the market. It’s been doing a good job getting oil and gas out of the ground, which means good money coming in. In its latest report, Parex Resources showed strong earnings of $4.46 per share. That’s a nice chunk of profit!

The dividend stock pays a quarterly dividend of $0.38 per share. If you add that up over a year, the dividend yield looks pretty sweet at around 13.58% as of writing. What’s really good news is that Parex Resources only pays out about 26% of its earnings as dividends. This low payout ratio suggests the dividend stock can easily cover its dividend payments. It might even have room to increase those payouts down the road, making it a potentially stable and reliable dividend payer.

Timbercreek

Timbercreek Financial lends money for commercial real estate projects for shorter periods. With a market value of over $500 million, Timbercreek has become a notable income-generating option for Canadian investors. As of writing, Timbercreek Financial offers a really high dividend yield of around 11.2% based on its stock price. What’s extra appealing is that it pays these dividends out every month! This can be great for investors who like a regular and frequent income stream.

However, there’s something important to look at: its dividend-payout ratio is around 123%. This means Timbercreek Financial is currently paying out more in dividends than it’s actually earning in profit. While the dividend stock has a history of consistent dividend payments and says it focuses on good-quality mortgage loans, a payout ratio over 100% can make investors wonder if the dividend is sustainable long-term. Investors should keep a close eye on the company’s overall financial health, how its profits are doing, and what’s happening in the commercial real estate lending market to see if those dividend payments can keep coming.

Freehold

Freehold Royalties is another company in the energy business. But instead of drilling for oil and gas itself, it owns land and collects royalties from other companies that do the drilling. With a market value of about $1.76 billion at writing, Freehold Royalties gives investors a way to invest in the energy sector without the direct risks of running the oil and gas operations. In its latest report, Freehold Royalties announced a monthly dividend of $0.09 Canadian per share. Over a year, that works out to a dividend yield of around 9.53% based on its stock price.

However, just like Timbercreek, Freehold Royalties has a high dividend payout ratio, reported to be around 110%. This means it’s also paying out more in dividends than it’s making in profit. That could be a warning sign for investors wondering about the long-term reliability of those dividend payments. While Freehold Royalties has a diverse bunch of properties producing royalties and has bought other royalty-producing assets in the past to support its dividend, the amount of money it makes depends on the prices of oil and natural gas and how well the company is doing financially. Investors should watch these things closely to see if Freehold’s dividend income will stay steady.

Bottom line

Canadian investors wanting dividend income in April 2025 should certainly consider these dividend stocks. Each offers interesting options with different pros and cons. Parex Resources looks like the most sustainable choice right now, with a low payout ratio backed by strong profits. Timbercreek and Freehold offer a really high yield and pay monthly, which some investors will love, but high payout ratios need careful attention. All together, investors should keep a close eye on company financials to see if dividends will continue.