There are plenty of dividend stocks in the Canadian market for investors to choose from. That said, I’d argue a very small slice would likely fit into the “all-star” bucket, or at least my own personal watch list (which I like to think is chock full of such all-stars). Time will tell if that’s the case.
But as far as the top dividend stocks I’m watching most closely right now, there are two that stand out as potential winners over the near- (one year), medium-, and long-term horizons.
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Sienna Senior Living
For investors looking to benefit from rather dominant demographic trends underway, Sienna Senior Living (TSX: SIA) is a top stock to consider.
As the company’s name suggests, Sienna owns and operates a vast portfolio of senior living properties located primarily in the Canadian market. As the average age of Canadians continues to rise, and more baby boomers seek a comfortable retirement with the care they need, Sienna’s portfolio of high-quality assets in key Canadian markets should provide meaningful net income growth.
With a dividend yield of 4.5% and plenty of balance sheet room to continue raising dividends over time, I think Sienna’s vastly improved balance sheet and growth outlook make this a top stock to consider here. Previously overvalued as investors broadly looked to front-run these aforementioned demographic shifts, I like to think that Sienna has been left for dead (generally speaking) by the market in recent years.
While this stock doesn’t provide a dividend yield in the high-single-digit range anymore, this is a yield I think is worth stepping into. In terms of a stock with both passive income and growth upside, Sienna is a top pick of mine right now.
Whitecap Resources
Another top Canadian dividend stock I continue to pound the table on is Whitecap Resources (TSX: WCP).
With a dividend yield of 6.2% and a forward price-to-earnings multiple less than 10 times, there’s a lot to like about Whitecap’s underlying valuation and its income potential.
What’s perhaps most impressive about this yield is the move WCP stock has made in recent years. Now trading near its highest level in a decade, investors are clearly pricing in greater margins and upside, if oil prices can stay where they are.
That’s a big if, and there’s plenty of risk with any energy producer. For those in the small or mid-cap range (I’d put Whitecap in the mid-cap bucket), that’s perhaps more true.
But with an improving balance sheet and plenty of operating leverage (revenues nearly doubled year-over-year this past quarter, in part due to rising production), there’s a lot to like about where this stock is positioned right now.
