Top 3 Canadian Dividend Stocks With Yield Over 3%

Global stock markets have been hit hard by the recent AI focused selloff, which has pulled attention away from steadier sources of income. When fast growth stories get repriced, reliable Canadian dividend payers offering yields above 3% and backed by solid coverage can look more appealing to investors who want regular cash flows. This article highlights three such dividend stocks from our income focused screener.

The three stocks highlighted here offer a compelling starting point if you want exposure to higher yielding dividend payers with steady, well covered payouts. However, if you want the strongest names, these 3 dividend aristocrats stocks are at the top of the list.

PrairieSky Royalty (TSX:PSK)

Overview: PrairieSky Royalty owns a large portfolio of Canadian oil and gas mineral rights and collects royalty income from third party operators, supporting its dividend focused profile.

Operations: PrairieSky Royalty generated CA$550.2 million from oil and gas exploration and production royalties, entirely from Canadian operations in the latest period.

Market Cap: CA$8.1b

PrairieSky Royalty matters to this Dividend Powerhouses screen because its royalty model turns drilling activity into relatively steady cash flows that can underpin a payout of more than 3% that investors can count on.

"Continued shift toward longer reach multilateral drilling and expanded waterflood and polymer flood programs on PrairieSky lands should lift recovery factors and sustain higher royalty volumes per well over time, which supports steady revenue growth and stronger earnings resilience."

One question for investors is what happens if a change in operator spending affects the pace of the royalty cheques that fund PrairieSky Royalty’s margins.

If that spending cycle is what worries you, read the full narrative for PrairieSky Royalty to see how capital allocation, line-of-sight volumes and dividend flexibility all tie together.

Sun Life Financial (TSX:SLF)

Overview: Sun Life Financial is a global insurer and asset manager that provides life and health coverage, retirement solutions and investment products supported by long term cash flows that underpin its 3%+ dividend profile.

Market Cap: CA$63.5b

For dividend investors, Sun Life Financial brings together a long history of paying out regular income with a business model built on recurring premiums and fee revenue. This combination is exactly what this 3%+ yield screener is looking to spotlight.

"Strong growth in Asia individual insurance sales, with $875 million of quarterly sales and over $7 billion of contractual service margin in the region, supports the view that Sun Life Financial can keep expanding its addressable market and add new premium and fee income streams that feed into earnings growth."

The real swing factor is how one pressure on a key U.S. line plays out and feeds through to margins and dividend headroom.

That pressure point is where the real story starts, and the full narrative for Sun Life Financial shows how Sun Life Financial handles capital strain while keeping the dividend engine accelerating.

Bank of Nova Scotia (TSX:BNS)

Overview: Bank of Nova Scotia is a large Canadian bank that provides everyday banking, lending, and wealth services that generate steady dividend funding.

Operations: Bank of Nova Scotia generates about CA$11.9b from Canadian Banking and CA$9.6b from International Banking, with Canada contributing roughly CA$20.3b of revenue.

Market Cap: CA$163.7b

For a Dividend Powerhouses screen built around well covered payouts, Bank of Nova Scotia matters because its Canadian and international retail and commercial banking engines keep throwing off recurring earnings that support a 3%+ yield without relying on one narrow product line.

"Expansion of banking and wealth management services in Pacific Alliance markets such as Mexico, Peru, Chile and Colombia remains a live driver. International Banking revenue and loan growth in these regions and ROE above 16% highlight the importance of fee income and earnings as Bank of Nova Scotia continues to deepen client relationships."

What happens if one quiet shift in credit costs or capital requirements starts to chip away at that comfortable earnings cushion?

When that cushion starts to thin, the full narrative for Bank of Nova Scotia shows whether Bank of Nova Scotia's earnings engine is quietly accelerating or if rising risks are masking it.

Seeking Fresh Alternatives Before Others?

New ideas do not stay under the radar for long. Once momentum hits, the best entry points can change quickly. Scan these fresh picks before the crowd and act now.

• Identify income workhorses with robust balance sheets before they get repriced by the market by running the list of solid balance sheet and fundamentals (5 results).
• Explore potential upside in smaller, cash generative AI players that are not on every watchlist yet by filtering for the 41 profitable AI stocks that aren't just burning cash.
• Consider long term power infrastructure opportunities by focusing on the 40 power grid technology and infrastructure stocks while these stories are still quietly building momentum.

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