Three Top TSX Dividend Stocks to Watch

3 min read | September 24, 2024 12:21 PM EDT | By Team Kalkine Media

Three Top TSX Dividend Stocks to Watch — Image source: Shutterstock

Enghouse Systems Overview

Enghouse Systems Limited (TSX:ENGH), operating within the technology sector, boasts a market capitalization of CA$1.78 billion. The company is recognized for developing comprehensive enterprise software solutions through its various subsidiaries. In its latest report for Q3 2024, Enghouse Systems reported revenue of C$130.5 million, accompanied by a net income of C$20.58 million, reflecting a year-over-year growth trajectory.

Operational Breakdown

Enghouse Systems generates its revenue from two primary segments: the Asset Management Group, contributing C$187.17 million, and the Interactive Management Group, which accounts for C$312.77 million. This diversified approach supports the company’s overall financial health and stability.

Dividend Insights

The company offers a dividend yield of 3.1%. Recently, Enghouse Systems declared a quarterly dividend of C$0.26 per share. The dividend payout ratio stands at 66%, while the cash payout ratio is noted at 45.4%. Although this yield is somewhat lower than the top-tier Canadian payers, it has demonstrated consistency and growth over the past decade, enhancing its appeal in the software sector.

Olympia Financial Group Overview

Moving to the financial services sector, Olympia Financial Group Inc (TSX:OLY). operates as a non-deposit taking trust company in Canada, with a market cap of CA$243.04 million. Through its subsidiary, Olympia Trust Company, the firm provides a variety of financial services. Recent financial results show Q2 2024 revenue at C$26.25 million and net income reaching C$5.89 million. This indicates a stable performance, albeit with no significant growth compared to the previous year.

Revenue Segmentation

Olympia Financial Group’s revenue streams are diversified across several segments: Health (C$10.21 million), Corporate (C$0.13 million), Exempt Edge (EE) (C$1.41 million), Investment Account Services (IAS) (C$79.02 million), Currency and Global Payments (CGP) (C$8.43 million), and Corporate and Shareholder Services (CSS) (C$3.98 million). This segmentation allows the company to navigate the competitive landscape effectively.

Dividend Yield Analysis

Olympia Financial Group has maintained a monthly dividend of C$0.60 per share, with recent ex-dividend dates on September 18, August 21, and July 22, 2024. The payout ratio is 68.1%, with a cash payout ratio of 72.7%. Despite experiencing volatility in dividend history over the past decade, the current dividend payments are adequately covered by earnings.

Secure Energy Services Overview

Lastly, in the waste management and energy infrastructure sectors, Secure Energy Services Inc.(TSX:SES) operates with a market cap of CA$2.86 billion, focusing on operations across Canada and the United States. Recent reports indicated revenue segments of CA$8.61 billion from Energy Infrastructure and CA$1.13 billion from Environmental Waste Management (EWM).

Financial Performance

Secure Energy Services boasts a dividend yield of 3.2%, with a solid earnings coverage reflected in a payout ratio of 20.1% and a cash payout ratio of 38.3%. While the company has maintained stable dividends over the past decade, recent developments include its removal from the S&P/TSX Capped Energy Index and mixed results in Q2 2024, reporting sales of CAD 2.55 billion but a slight dip in net income to CAD 32 million from CAD 34 million last year.

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