Top Dividend Stocks On TSX For September 2024

3 min read | September 19, 2024 12:21 PM EDT | By Team Kalkine Media

Top Dividend Stocks On TSX For September 2024 — Image source: Shutterstock

PHX Energy Services Corp. (TSX:PHX)

PHX Energy Services Corp., operating within the energy sector, specializes in horizontal and directional drilling services. The company also rents performance drilling motors and sells motor equipment and parts to oil and natural gas exploration and development firms across Canada, the United States, Albania, the Middle East, and internationally. The firm holds a market capitalization of CA$437.03 million and generates CA$655.05 million in revenue from its drilling operations.

Recently, PHX Energy Services declared a quarterly cash dividend of C$0.20 per share, scheduled for payment on October 15, 2024. Additionally, the company has initiated a share repurchase program to acquire up to 3.36 million shares by August 2025. Despite an attractive dividend yield of 8.6%, there are concerns about the sustainability of this payout due to its volatility and limited coverage by free cash flows over the past decade.

Russel Metals Inc. (TSX:RUS)

In the metals sector, Russel Metals Inc. operates as a metal distribution and processing company in Canada and the United States. The company, which has a market capitalization of CA$2.27 billion, earns revenue from its Steel Distributors, Energy Field Stores, and Metals Service Centers segments, with respective revenues of CA$413.80 million, CA$984 million, and CA$2.84 billion.

Russel Metals has announced a dividend of C$0.42 per share, payable on September 16, 2024. The firm also plans to repurchase up to 5.81 million shares by August 2025, using existing cash resources or credit facilities. The dividend yield stands at 4.3%, with the payout well-supported by earnings (payout ratio of 47.2%) and cash flows (cash payout ratio of 40.2%). Despite experiencing lower earnings and revenue compared to the previous year, Russel Metals has maintained stable dividend payments over the past decade.

Sun Life Financial Inc.(TSX:SLF)

Operating in the financial services sector, Sun Life Financial Inc. provides savings, retirement, and pension products on a global scale. With a market capitalization of CA$44.26 billion, Sun Life generates revenue from various segments including Asia (CA$4.20 billion), Canada (CA$17.81 billion), Corporate (CA$420 million), Asset Management (CA$6.39 billion), and the United States (CA$13.72 billion).

Sun Life recently declared a dividend of C$0.81 per share, payable on September 27, 2024. The dividend yield is 4.2%, and the payments are well-supported by both earnings (payout ratio of 59%) and cash flows (cash payout ratio of 48.6%). The company continues to provide stable and reliable dividends while trading below its estimated fair value. Recent leadership changes are aimed at fostering growth and innovation within its Canadian operations.

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