For investors seeking steady income and potential capital appreciation, dividend stocks are a cornerstone of a solid portfolio. In Canada, the appeal of dividend-paying stocks is further enhanced by the favorable tax treatment of dividend income, making them particularly attractive to both seasoned and novice investors.

As we look ahead to 2024, it's a good time to evaluate some of the best Canadian dividend stocks that can provide reliable income streams and long-term growth potential. Here,

Royal Bank of Canada (TSX: RY, NYSE: RY)

Dividend Yield: 4.1%

Overview: As Canada’s largest bank by market capitalization, Royal Bank of Canada (RBC) is known for its strong financial performance and extensive reach in personal and commercial banking, wealth management, and capital markets.

Why It’s a Top Pick: Consistent dividend growth and a strong balance sheet make RBC a cornerstone for any dividend-focused portfolio.

Toronto-Dominion Bank (TSX: TD, NYSE: TD)

Dividend Yield: 4.2%

Overview: TD Bank is a major player in both Canadian and U.S. banking markets, offering a wide range of financial services. Its strong retail banking presence in the U.S. provides growth opportunities.

Why It’s a Top Pick: Stable earnings, robust capital position, and a history of dividend increases. It's one of Canada's largest banks and has recently gone through a drip in price due to some AML (Anti-Money Laundering) fines. It has weathered many financial storms before and have always proven to be resilient.

Enbridge Inc. (TSX: ENB, NYSE: ENB)

Dividend Yield: 7.4%

Overview: Enbridge is North America’s largest energy infrastructure company, focusing on the transportation and distribution of crude oil and natural gas.

Why It’s a Top Pick: High dividend yield, reliable cash flows from long-term contracts, and a strong position in the energy sector.

Bank of Nova Scotia (TSX: BNS, NYSE: BNS)

Dividend Yield: 6.5%

Overview: Known as Scotiabank, this institution has a substantial international footprint, particularly in Latin America, which provides diversification beyond Canadian borders.

Why It’s a Top Pick: Attractive dividend yield, international exposure, and consistent profitability.

BCE Inc. (TSX: BCE, NYSE: BCE)

Dividend Yield: 6.3%

Overview: BCE, or Bell Canada Enterprises, is one of Canada’s largest communications companies, offering a range of services including wireless, internet, and media.

Why It’s a Top Pick: Stable, recurring revenue streams, significant market share in telecom, and a strong history of dividend payments.

Canadian Imperial Bank of Commerce (TSX: CM, NYSE: CM)

Dividend Yield: 6.2%

Overview: CIBC is a leading North American financial institution with a robust retail banking network and a growing presence in wealth management.

Why It’s a Top Pick: High dividend yield, solid financials, and a commitment to returning capital to shareholders.

Fortis Inc. (TSX: FTS, NYSE: FTS)

Dividend Yield: 4.1%

Overview: Fortis is one of North America’s largest utility companies, with operations in Canada, the U.S., and the Caribbean. Its business model is heavily focused on regulated, low-risk utilities.

Why It’s a Top Pick: Stability and predictability of cash flows, a 47-year history of dividend increases, and plans for further expansion.

Manulife Financial Corporation (TSX: MFC, NYSE: MFC)

Dividend Yield: 5.9%

Overview: Manulife is a major insurance company with a significant presence in Asia, Canada, and the U.S., providing insurance, investment, and financial services.

Why It’s a Top Pick: Strong capital position, diversified revenue sources, and attractive dividend yield.

Canadian National Railway (TSX: CNR, NYSE: CNI)

Dividend Yield: 2.1%

Overview: Canadian National Railway is a leading transportation and logistics company, operating a vast network of railways across Canada and into the United States.

Why It’s a Top Pick: Essential infrastructure, consistent cash flow, and a history of dividend growth.

Suncor Energy Inc. (TSX: SU, NYSE: SU)

Dividend Yield: 4.5%

Overview: Suncor is one of Canada’s largest integrated energy companies, with operations in oil sands development, refining, and retail.

Why It’s a Top Pick: Strong operational cash flow, strategic investments in renewable energy, and shareholder-friendly dividend policies.

Rogers Communications Inc. (TSX: RCI.B, NYSE: RCI)

Dividend Yield: 3.4%

Overview: Rogers is a major telecommunications and media company in Canada, offering services in wireless, cable, internet, and media.

Why It’s a Top Pick: Solid market position, recurring revenue, and a commitment to dividend growth.

Telus Corporation (TSX: T, NYSE: TU)

Dividend Yield: 5.4%

Overview: Telus is a leading national telecommunications company, providing a wide range of communication products and services.

Why It’s a Top Pick: Strong focus on customer service, ongoing investments in 5G and fiber optics, and a reliable dividend.

Pembina Pipeline Corporation (TSX: PPL, NYSE: PBA)

Dividend Yield: 6.4%

Overview: Pembina provides transportation and midstream services for the energy industry in North America.

Why It’s a Top Pick: High dividend yield, stable cash flow from long-term contracts, and growth potential in natural gas infrastructure.

Nutrien Ltd. (TSX: NTR, NYSE: NTR)

Dividend Yield: 3.2%

Overview: Nutrien is a global leader in agriculture, producing and distributing crop nutrients and providing crop services.

Why It’s a Top Pick: Strategic position in the agriculture sector, growth opportunities in sustainable farming, and consistent dividend payments.

Alimentation Couche-Tard Inc. (TSX: ATD.B)

Dividend Yield: 0.9%

Overview: A leading global convenience store operator, Alimentation Couche-Tard operates under brands such as Circle K and Mac's.

Why It’s a Top Pick: Strong international expansion, resilient business model, and potential for dividend growth.

TC Energy Corporation (TSX: TRP, NYSE: TRP)

Dividend Yield: 7.3%

Overview: TC Energy operates pipelines and energy infrastructure across North America, focusing on natural gas transmission and power generation.

Why It’s a Top Pick: Stable cash flows, essential infrastructure, and a strong track record of dividend increases.

Great-West Lifeco Inc. (TSX: GWO)

Dividend Yield: 5.8%

Overview: Great-West Lifeco is a financial services company that offers insurance, retirement, and investment services in Canada, the U.S., and Europe.

Why It’s a Top Pick: Solid financials, consistent dividend payouts, and growth potential in international markets.

Bank of Montreal (TSX: BMO, NYSE: BMO)

Dividend Yield: 4.8%

Overview: As one of Canada's oldest banks, BMO offers a wide range of banking services and has a strong presence in both Canada and the U.S.

Why It’s a Top Pick: Strong dividend track record, solid earnings, and exposure to the U.S. market.

Power Corporation of Canada (TSX: POW)

Dividend Yield: 6.0%

Overview: Power Corporation is a diversified management and holding company with interests in financial services, insurance, and asset management.

Why It’s a Top Pick: High dividend yield, diversified business operations, and a history of consistent dividend payments.

Canadian Utilities Limited (TSX: CU)

Dividend Yield: 4.7%

Overview: Canadian Utilities provides energy infrastructure services, including electricity generation, transmission, and distribution.

Why It’s a Top Pick: 50-year streak of increasing dividends, stable cash flow from regulated utilities, and ongoing investment in renewable energy.

Conclusion

Canadian dividend stocks offer a reliable source of income and potential for capital appreciation, making them a valuable addition to any investment portfolio. The 20 stocks highlighted in this post represent some of the best options in our opinion.