Top TSX Dividend Stocks with Up to 5.4% Yield

The article highlights three Canadian dividend stocks with attractive yields amid economic uncertainty: Sun Life Financial (4.39%), Russell Metals (4.16%), and Royal Bank of Canada (3.07%). Additionally, it lists the top 10 dividend stocks in Canada, including Canadian Imperial Bank of Commerce (3.66%), with a stable dividend yield and a low payout ratio. The article also mentions Olympia Financial Group, which operates as a non-deposit taking trust company in Canada.

As economic uncertainty persists, investors are increasingly turning to dividend stocks as a defensive strategy to mitigate market volatility. This article highlights three Canadian dividend stocks with attractive yields, as well as the top 10 dividend stocks in Canada, offering a mix of stability and growth potential.

Sun Life Financial (SLF)
Sun Life Financial stands out with a current dividend yield of 4.47% [2]. The company recently reported a quarterly dividend increase to $0.6394 per share, representing a yield of 4.4% [3]. Sun Life Financial's dividend payout ratio is currently 63.12%, indicating a healthy balance between dividend payments and earnings. The stock has seen recent analyst upgrades and downgrades, with a consensus rating of "Hold" and a target price of $88.00 [3].

Russell Metals (TSX:RMA)
Russell Metals offers a dividend yield of 4.16%, making it another attractive option for income-focused investors. The company operates in the metals and mining sector, providing a mix of growth and stability. Russell Metals has shown resilience in the face of market volatility, with a history of consistent dividend payments and a focus on operational excellence.

Royal Bank of Canada (RY)
Royal Bank of Canada provides a stable dividend yield of 3.07%, along with a strong track record of dividend growth. The bank's diversified business model, including retail banking, wealth management, and insurance, provides a buffer against economic downturns. Royal Bank of Canada has a history of consistent dividend increases and a low payout ratio, making it an attractive option for income investors.

Top 10 Dividend Stocks in Canada
1. Canadian Imperial Bank of Commerce (CIB) - 3.66% yield, stable and consistent dividend growth.
2. Fortis (TSX:FTS) - 3.6% yield, 51 consecutive years of dividend growth.
3. AltaGas (TSX:ALA) - 3.1% yield, strong growth potential in energy infrastructure.
4. Sun Life Financial (SLF) - 4.47% yield, recent dividend increase.
5. Russell Metals (TSX:RMA) - 4.16% yield, stable income with growth potential.
6. Royal Bank of Canada (RY) - 3.07% yield, strong dividend history and growth potential.
7. Brookfield Renewable Partners (TSX:BEP) - 2.1% yield, focus on renewable energy infrastructure.
8. Enbridge (TSX:ENB) - 2.0% yield, strong growth potential in energy infrastructure.
9. Power Corporation of Canada (TSX:POW) - 1.9% yield, stable income with growth potential.
10. Olympia Financial Group (TSX:OFS) - 1.8% yield, non-deposit taking trust company with stable income.

These dividend stocks offer a mix of stability and growth potential, making them attractive options for investors seeking to navigate economic uncertainty. However, it is essential to conduct thorough research and consider individual financial circumstances before making investment decisions.

References
[1] https://ca.finance.yahoo.com/news/smartest-dividend-stocks-buy-300-202000221.html
[2] https://www.marketbeat.com/stocks/TSE/SLF/dividend/
[3] https://www.marketbeat.com/instant-alerts/filing-hsbc-holdings-plc-sells-424582-shares-of-sun-life-financial-inc-slf-2025-08-21/