The Canadian market has been reaching new heights, with the TSX recently achieving all-time highs, buoyed by optimism surrounding central bank policies and a robust economic outlook. In this environment of growth and opportunity, dividend stocks like PHX Energy Services stand out for their potential to provide steady income streams while benefiting from favorable market conditions.

Top 10 Dividend Stocks In Canada

Click here to see the full list of 31 stocks from our Top TSX Dividend Stocks screener.

Let's take a closer look at a couple of our picks from the screened companies.

PHX Energy Services

Simply Wall St Dividend Rating: ★★★★☆☆

Overview: PHX Energy Services Corp. offers horizontal and directional drilling services, rents performance drilling motors, and sells motor equipment and parts to oil and natural gas exploration and development companies across Canada, the United States, Albania, the Middle East regions, and internationally with a market cap of CA$425.40 million.

Operations: PHX Energy Services Corp. generates revenue primarily from its horizontal oil and natural gas well drilling services, amounting to CA$655.05 million.

Dividend Yield: 8.3%

PHX Energy Services recently affirmed a quarterly dividend of C$0.20 per share, reflecting its position in the top 25% of Canadian dividend payers. However, sustainability concerns arise as dividends are not covered by cash flows, with a high cash payout ratio of 126.2%. Despite trading at a significant discount to estimated fair value and implementing share buybacks to enhance shareholder returns, past dividend volatility and insider selling may be cautionary signals for investors.

• Unlock comprehensive insights into our analysis of PHX Energy Services stock in this dividend report.

• Insights from our recent valuation report point to the potential undervaluation of PHX Energy Services shares in the market.

Russel Metals

Simply Wall St Dividend Rating: ★★★★★☆

Overview: Russel Metals Inc. is a metal distribution and processing company operating in Canada and the United States, with a market cap of CA$2.36 billion.

Operations: Russel Metals Inc.'s revenue segments include CA$2.84 billion from Metals Service Centers, CA$984 million from Energy Field Stores, and CA$413.80 million from Steel Distributors.

Dividend Yield: 4.1%

Russel Metals offers a reliable dividend with a 4.14% yield, supported by stable payments over the past decade. The company's dividends are well-covered by earnings and cash flows, with payout ratios of 47.2% and 40.2%, respectively. Recent actions include redeeming $150 million in senior notes and initiating a share repurchase program for up to 9.91% of its shares, funded through existing resources, which could enhance shareholder value despite recent declines in sales and earnings.

• Delve into the full analysis dividend report here for a deeper understanding of Russel Metals.

• The analysis detailed in our Russel Metals valuation report hints at an deflated share price compared to its estimated value.

Sun Life Financial

Simply Wall St Dividend Rating: ★★★★★☆

Overview: Sun Life Financial Inc. is a global financial services company offering savings, retirement, and pension products, with a market cap of CA$45.12 billion.

Operations: Sun Life Financial Inc.'s revenue segments include CA$4.20 billion from Asia, CA$17.81 billion from Canada, CA$0.42 billion from Corporate, CA$6.39 billion from Asset Management, and CA$13.72 billion from the United States (U.S.).

Dividend Yield: 4.1%

Sun Life Financial's dividend yield of 4.15% is reliable, with stable growth over the past decade. Dividends are well-covered by earnings and cash flows, with payout ratios of 59% and 48.6%. Recent leadership changes aim to enhance digital capabilities, potentially supporting future financial stability. The company's share repurchase program and debt redemption indicate a focus on capital management, though its dividend yield lags behind top Canadian payers at 5.89%.

• Take a closer look at Sun Life Financial's potential here in our dividend report.

• The valuation report we've compiled suggests that Sun Life Financial's current price could be quite moderate.

Taking Advantage

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Searching for a Fresh Perspective?

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• Find companies with promising cash flow potential yet trading below their fair value.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include TSX:PHX TSX:RUS and TSX:SLF.

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