Best Dividend Stocks in Canada This September 2025
As Canadian investors seek reliable income streams in an uncertain market, dividend stocks on the TSX continue to be an attractive option. While many focus on quarterly payouts, some of the best monthly dividend stocks in Canada provide more frequent distributions, making them particularly appealing for investors looking to generate steady passive income. Understanding today's top TSX dividend picks is crucial for building a resilient portfolio.
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Summary Table for Best Dividend Stocks in Canada This September 2025
| Stock | Dividend | 1-Year Return | Learn More |
|---|---|---|---|
|
Power Corporation of Canada (POW) Dividend Income |
4.22% | 24.0% | Learn More |
|
Pizza Pizza Royalty (PZA) Dividend Income |
6.01% | 10.31% | Learn More |
|
National Bank of Canada (NA) Dividend Income |
3.13% | 15.6% | Learn More |
|
Magna International (MG) Dividend Income |
4.16% | 13.19% | Learn More |
|
Canadian Imperial Bank of Commerce (CM) Dividend Income |
3.85% | 35.47% | Learn More |
|
Bank of Montreal (BMO) Dividend Income |
3.58% | 28% | Learn More |
|
Sun Life Financial (SLF) Dividend Income |
4.29% | -8.5% | Learn More |
|
Russel Metals (RUS) Dividend Income |
4.31% | 124.79% | Learn More |
|
Royal Bank of Canada (RY) Dividend Income |
3.03% | 14.22% | Learn More |
|
Enbridge (ENB) Dividend Income |
5.39% | 25.8% | Learn More |
|
BCE (BCE) Dividend Income |
5.43% | -31.1% | Learn More |
|
TC Energy Corp (TRP) Dividend Income |
4.57% | 29.26% | Learn More |
1. Power Corporation of Canada (POW)
Power Corporation of Canada is a diversified international management and holding company with strong positions in insurance, retirement, wealth management, and investment businesses across North America, Europe, and Asia, offering investors both growth potential and reliable dividend income.
Power Corporation of Canada (POW)
- Quarterly dividend payments on the 15th of January, April, July, and October
- Diversified portfolio across financial services, insurance, and wealth management
- Long-term total shareholder return of 24.0% over 20 years
- Fair value estimate of $120.08 CAD with 106.8% upside potential
Pros
- High dividend yield at 4.22%
- Diversified business model reducing sector-specific risks
- Strong long-term performance track record
- Reliable quarterly dividend payments
Cons
- Stock trading below fair value estimates
- Subject to financial market volatility
- Complex corporate structure through subsidiary holdings
Why is it Our Top Pick?
Power Corporation stands out for its robust dividend yield of 4.22% combined with strong historical performance, beating the S&P/TSX Composite index over multiple timeframes. The company's diversified business model across multiple financial sectors provides stability while maintaining growth potential.
2. Pizza Pizza Royalty (PZA)
Pizza Pizza Royalty Corp offers investors a compelling monthly dividend stock opportunity with a high 6.01% yield, making it an attractive choice for income-focused investors seeking regular cash flow from Canada's leading pizza restaurant royalty company.
Pizza Pizza Royalty (PZA)
- Monthly dividend payments of $0.0775 per share
- Annual dividend of $0.93 per share
- Consistent monthly income stream
- Strong cash flow generation
Pros
- High dividend yield compared to market average
- Monthly payment frequency
- Strong cash flow generation
- Stable business model
Cons
- Limited stock price growth potential
- Exposed to restaurant industry risks
- Interest rate sensitivity
- Dependent on franchise performance
3. National Bank of Canada (NA)
National Bank of Canada stands out as a major Canadian financial institution offering a compelling combination of steady dividend income and growth potential, with a market-leading return on equity of 15.6% and consistent quarterly dividend payments.
National Bank of Canada (NA)
- Quarterly dividend payments of $1.18 per common share
- Strong ROE of 15.6% as of June 2025
- Consistent dividend payment schedule on first day of February, May, August, and November
- Integrated CWB acquisition driving growth
Pros
- Market-leading return on equity of 15.6%
- Stable 3.13% dividend yield
- Strong organic growth performance
- Successful integration of acquisitions
Cons
- Short-term moving average showing sell signal
- ROE declined 8.59% versus historical average
- More regional focus compared to larger Canadian banks
4. Magna International (MG)
Magna International represents a compelling value opportunity in the automotive supply sector, combining an attractive 4.16% dividend yield with consistent dividend growth spanning 15 consecutive years.
Magna International (MG)
- Attractive valuation with 11.1x P/E ratio
- 15-year consecutive dividend growth history
- Sustainable 42% payout ratio
- Focus on operational efficiencies
Pros
- Reliable dividend growth history
- Attractive 4.16% dividend yield
- Strong position in active safety systems
- Compelling valuation metrics
Cons
- Supply chain challenges
- Foreign exchange pressure from strong USD
- Weak global vehicle production affecting volumes
- Underperformance vs broader Canadian market
5. Canadian Imperial Bank of Commerce (CM)
CIBC stands out as Canada's fifth-largest bank, offering a compelling combination of stable dividend income and growth potential, with analysts maintaining a "Moderate Buy" consensus rating and a target price of $107.50.
Canadian Imperial Bank of Commerce (CM)
- Established presence as one of Canada's Big Five banks
- Comprehensive retail and business banking services
- Strong international student payment service capabilities
- Consistent dividend payment history
Pros
- Moderate Buy rating from 11 Wall Street analysts
- Strong historical returns with 122.83% 5-year return
- Stable dividend growth potential
- Diversified business model across retail, business, and wealth management
Cons
- Significant exposure to housing market fluctuations
- Higher debt levels compared to some competitors
- Performance subject to market volatility
- More concentrated in Canadian market compared to peers
6. Bank of Montreal (BMO)
BMO demonstrates strong financial performance with consistent dividend growth and robust market returns, featuring a notable 28-30% year-to-date gain in 2025 and maintaining a reliable quarterly dividend program.
Bank of Montreal (BMO)
- Quarterly dividend of $1.63 per share
- Annual dividend equivalent of $6.00
- Market cap of $130.37B
- Strong presence in Canadian banking sector
Pros
- Trading near 52-week high
- Above 200-day moving average
- Strong dividend payout ratio of 55.74%
- Room for further dividend growth
Cons
- High total debt of C$268.88B
- Higher P/E ratio at 15.95
- Market volatility exposure
- Interest rate sensitivity
7. Sun Life Financial (SLF)
Sun Life Financial stands out as one of Canada's premier financial services companies, offering a compelling combination of strong regulatory oversight, financial stability, and consistent dividend income with a 4.29% yield.
Sun Life Financial (SLF)
- Regulated by Canada's Office of the Superintendent of Financial Institutions
- Strong and well-capitalized enterprise structure
- Comprehensive insurance and financial services portfolio
Pros
- Top ratings from independent rating agencies
- Strong financial stability and capitalization
- Robust regulatory oversight
Cons
- Recent 8.5% stock price drop due to US dental business concerns
- Uncertainty over Medicaid funding affecting growth
- Missed 2025 profit target for dental business
8. Russel Metals (RUS)
Russel Metals is a leading Canadian metal distribution company with strong analyst backing, earning a consensus "Strong Buy" rating and offering an attractive 4.31% dividend yield for income-focused investors.
Russel Metals (RUS)
- Metal distribution operations across Canada and United States
- Three primary metals distribution segments
- Strong analyst consensus with $52 average price target
Pros
- Unanimous "Strong Buy" rating from analysts
- Diversified metal distribution business
- Strategic transformation underway
Cons
- Exposure to metal price volatility
- Cyclical industry nature
- Supply chain disruption risks
9. Royal Bank of Canada (RY)
Royal Bank of Canada stands out as one of Canada's premier financial institutions, offering a compelling combination of strong analyst ratings (9 buys, 2 holds) and consistent dividend growth, while currently being undervalued by 17% according to market analyses.
Royal Bank of Canada (RY)
- Strong Buy consensus rating from analysts
- Quarterly dividend of $1.54 per share
- Currently undervalued by 17% according to market analysis
- Consistent dividend growth track record
Pros
- Strong analyst consensus (9 buy ratings)
- Undervalued stock price
- Consistent dividend growth history
- Stable financial performance
Cons
- Some market volatility risk
- 17% of analysts advise selling
- Banking sector cyclical risks
- Interest rate sensitivity
10. Enbridge (ENB)
Enbridge is a standout dividend stock with an impressive 30-year history of dividend growth and a substantial 5.39% yield, making it a cornerstone investment for income-focused portfolios in the energy infrastructure sector.
Enbridge (ENB)
- 30-year dividend growth history
- Quarterly dividend of $0.9425 per share
- 9% compound annual dividend growth rate
- Recent 3% dividend increase in 2025
Pros
- Long-standing dividend growth history
- Above-average dividend yield
- Stable, recurring cash flow
- Strong market position in energy infrastructure
Cons
- Some ROI volatility (24.46% decline in 2022)
- Energy sector exposure risks
- Price target suggests potential -0.67% decrease
- Capital-intensive business model
11. BCE (BCE)
BCE is one of Canada's largest communications companies, operating as Bell Canada, with a significant dividend yield of 5.43% and a long history of dividend payments, though it recently underwent a dividend reduction in 2025.
- Extensive wireless and internet service provider network across Canada
- Dividend payment date October 15, 2025
- Two major operating segments: Bell Communication and Bell Media
Pros
- Sustainable dividend yield of 5%
- Strong market position in Canadian telecommunications
- Trading below value with forward P/E of 11.82
Cons
- Recent dividend reduction to CA$0.4375
- Significant 1-year decline of -31.87%
- High payout ratio above 100%
12. TC Energy Corp (TRP)
TC Energy stands out as a resilient dividend stock with an extensive network of natural gas pipelines, maintaining an unbroken 20-year dividend payment history and offering attractive yields with strong growth potential.
TC Energy Corp (TRP)
- Extensive natural gas pipeline network
- Quarterly dividend payments
- Planned separation into two independent companies
Pros
- Never missed a payment in 20 years
- Strong dividend growth history
- Solid analyst support with 40% Buy/Strong Buy ratings
Cons
- Recent corporate restructuring announcement
- Mixed analyst ratings with 47% Hold recommendation
- Some analyst sell recommendations (14% combined Sell/Strong Sell)
Final Words
Selecting the ideal financial product ultimately depends on your individual goals, spending patterns, and financial situation. We recommend comparing the features and benefits of our top picks, then taking action to optimize your financial strategy for the current market conditions.
Frequently Asked Questions: Best Dividend Stocks in Canada This September 2025
What are the best dividend stocks to buy in Canada September 2025?
Power Corporation of Canada (POW) and National Bank of Canada (NA) lead the top dividend stocks with yields above 5% for September 2025.
Which Canadian bank stocks have the highest dividend yields in 2025?
Canadian Imperial Bank of Commerce (CM) and National Bank of Canada (NA) offer the strongest dividend performance among Canadian banks in September 2025.
How do I choose reliable dividend stocks in Canada for 2025?
Focus on established companies with consistent dividend histories like Pizza Pizza Royalty (PZA) with its 6.2% yield and Magna International (MG) with its strong automotive sector position.
