Dividend-paying stocks that combine healthy balance sheets with hefty yields can provide investors with steady incomes, cushion against market downturns, and grow investments at a healthy clip. In May 2025, the top-performing dividend-payers included industrial distributor Finning International FTT, engineering company Bird Construction BDT, and auto parts firm Linamar LNR.

To find the month’s 10 best-performing income-focused stocks, we screened the Morningstar Canada Index—which measures the performance of Canada’s broad regional markets, targeting the top 97% of stocks by market capitalization—for companies with a forward dividend yield of at least 1.5%, excluding real estate investment trusts.

The Best-Performing Canadian Dividend Stocks of May 2025

1. Finning International FTT
2. Bird Construction BDT
3. Linamar LNR
4. MEG Energy MEG
5. Tamarack Valley Energy TVE
6. Parex Resources PXT
7. Paramount Resources POU
8. MAG Silver MAG
9. Leon’s Furniture LNF
10. Lundin Gold LUG

How Have Dividend Stocks Performed?

Over the past month, the Morningstar Canada Dividend Growth Index, which tracks the performance of Canadian stocks with a history of uninterrupted dividend growth and the capacity to sustain that growth, rose 4%. The Morningstar Canada Dividend Yield Focus Index, which tracks the performance of high-quality, dividend-paying Canadian stocks, rose 4.4%. In the 12 months leading up to May 31, the Dividend Growth Index gained 26.3% and the Dividend Yield Focus Index gained 18.7%.

The overall Canadian stock market, as measured by the Canada Index, has gained 5.5% on the month and 22.2% on the year.

Yields and Metrics for May’s Best-Performing Dividend Stocks

Finning International

Industrial distributor Finning rose 31.0% in May and gained 27.2% over the past 12 months. Trading at C$49.95 per share, its stock has a forward dividend yield of 2.42%. Finning pays investors an annual dividend of C$1.21 per share. The stock has a quantitative Morningstar Rating of 3 stars.

Bird Construction

Engineering and construction company Bird rose 28.4% in May and gained 28.2% over the past 12 months. At C$26.65 per share, its stock has a forward dividend yield of 3.15% and an annual dividend of C$0.28 per share. It has a quantitative Morningstar Rating of 4 stars.

Linamar

Auto parts firm Linamar gained 24.6% in May and fell 10.2% over the past 12 months. The stock’s C$61.82 price gives it a forward dividend yield of 1.88%. Linamar pays investors an annual dividend of C$1.16 per share. The stock has a quantitative Morningstar Rating of 3 stars.

MEG Energy

Oil and gas exploration and production company MEG rose 24.2% in May and lost 17.8% over the past 12 months. Trading at C$24.62 per share, MEG stock has a forward dividend yield of 1.62% and an annual dividend of C$0.40 per share. It has a quantitative Morningstar Rating of 3 stars.

Tamarack Valley Energy

Oil and gas exploration and production company Tamarack Valley gained 22.8% in May and rose 17.8% over the past 12 months. Trading at C$4.46 per share, its forward dividend yield is 3.43%. Tamarack Valley pays investors an annual dividend of C$0.05 per share. It has a quantitative Morningstar Rating of 5 stars.

Parex Resources

Oil and gas exploration and production company Parex Inc gained 22.3% in May and fell 32.5% over the past 12 months. At C$13.77 per share, Parex stock has a forward dividend yield of 11.18% and an annual dividend of C$1.54 per share. It has a quantitative Morningstar Rating of 3 stars.

Paramount Resources

Oil and gas exploration and production company Paramount rose 22.0% in May and gained 8.1% over the past 12 months. Trading at C$19.37 per share, Paramount stock has a forward dividend yield of 3.1% and an annual dividend of C$0.20 per share. It has a quantitative Morningstar Rating of 4 stars.

MAG Silver

Silver company MAG rose 21.6% in May and gained 44.2% over the past 12 months. Trading at C$27.09 per share, MAG stock has a forward dividend yield of 1.94% and pays investors an annual dividend of C$1.10 per share. The stock has a quantitative Morningstar Rating of 3 stars.

Leon’s Furniture

Specialty retail firm Leon’s gained 19.8% in May and rose 29.7% over the past 12 months. The stock’s C$28.38 price gives it a forward dividend yield of 2.82%. Leon’s pays investors an annual dividend of C$0.80 per share. The stock has a quantitative Morningstar Rating of 4 stars.

Lundin Gold

Gold company Lundin rose 18.9% in May and gained 237.8% over the past 12 months. At C$68.60 per share, Lundin has a forward dividend yield of 2.34% and an annual dividend of C$2.49 per share. It has a quantitative Morningstar Rating of 1 star.

What Is the Morningstar Canada Index?

The Canada Index measures the performance of Canada’s broad regional markets, targeting the top 97% of stocks by market capitalization. The index does not incorporate environmental, social, or governance criteria.

What Is the Morningstar Canada Dividend Yield Focus Index?

The Canada Dividend Yield Focus Index captures the performance of a portfolio of high-quality, dividend-paying securities. It’s a subset of the Canada Index (which represents 97% of the equity market capitalization) that includes only stocks that pay dividends. The stocks are screened for economic moat and financial strength compared to others in their sector. Real estate investment trusts are excluded.

The 25 highest-yielding stocks are included in the index, weighted by the dollar value of the dividends. See the full rulebook here.

The Best Dividend Stock Leaders: More Ideas to Consider

Investors who would like to find more top-performing or cheap dividend stocks can do the following:

• Review the full list of stocks in the Morningstar Canada Dividend Yield Focus Index. Stocks with Morningstar Ratings of 4 or 5 stars are undervalued, according to our metrics.
• Use our Morningstar Stock Screener tool to find the best dividend stocks according to your specific criteria. You can search for stocks based on their dividend yields, valuation measures like price/earnings ratios, and more.
• When it comes to buying stocks, it’s more than just dividends. Read here how valuations and competitive advantages—known as economic moats—matter when it comes to a stock’s potential for outperformance.
• Read Morningstar’s Guide to Stock Investing to learn how our approach to investing can inform your stock-picking process.

Companies that are not formally covered by a Morningstar analyst are statistically matched to analyst-rated companies, allowing our models to calculate a quantitative star rating.

This article was compiled by Frank Lee.

This article was generated with the help of automation and reviewed by Morningstar editors. Learn more about Morningstar’s use of automation.

The author or authors do not own shares in any securities mentioned in this article. Find out about Morningstar's editorial policies.