There are a lot of excellent Canadian dividend stocks, but I’m going to try to narrow it down to three that are particularly attractive at this point.

All three of these have good growth prospects going forward, and all of them have great management.  That said, the usual disclaimer applies – do your own research and check with your own advisor before making investment decisions.  These only represent my own personal picks.  For a more thorough list, see my post on Canadian dividend stocks.

Canada’s Top 60 Publicly-Traded Companies

High-Yield Canadian Stocks

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Yield isn’t everything; dividend growth is just as important, if not more; but yield is a good, quick way to make comparisons.  And it is a good indicator of some return on your investment at the time of its purchase.

1.  Canadian Imperial Bank of Commerce (TSX: CM) – CIBC isn’t usually a top bank stock pick, but I like it right now for a few reasons.  Its P/E ratio is the lowest of any of the Big 5 right now; it yields 4.92%, which is quite flush for a bank stock, and given its share price, it seems especially poised for a stock split once Basel 3 rules are worked out and dividends come back.  I expect that CIBC could be one of the first to raise its dividend.

Compare Canada’s Big 5 Banks

2. Freehold Royalty Trust (TSX: FRU.UN) – Freehold is a great oil and gas play.  You get exposure to the industry without some of the commodity risk, because Freehold is a trust that collects royalties off the properties it owns and is less dependent on the oil prices themselves.  Right now it yields about 10% and is one of the last high-yielders in the energy income trust sector.  It is also still sitting in the middle of its 52-week range, so it still has some room for technical growth.  Once oil prices remain higher than $80 on a consistent basis, I expect the distributions to increase again to meet pre-Lehmann levels.

3. BCE Enterprises (TSX: BCE) – Good old Bell Canada and more.  This was a dead stock for a while but under new management it has become a cash cow behemoth.  Mountains of free cash flow and moderate growth riding on the smart phone market wave make BCE a no-brainer.  It has one of the higher yields of any utility stock right now, at 5.6%, and still sits below its 52-week high.  Rumour has it they will be increasing their dividend again this quarter so they look poised to continue a regular twice a year increase.

10 Solid, Defensive Canadian Stocks

These stocks give you exposure to three of the largest sectors of the Canadian market with nice yields on top.  Gone are the days of the juicy high income trust yields, but you can still find solid plays that have years of dividend growth ahead of them, such as these.

*Disclosure: I currently own positions in each of the above stocks.

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