Canada’s Best Dividend Growth Stocks for 2020

By FT | June 1, 2020 | Comments

I originally started looking at the best Canadian dividend growth stocks back in 2013.  As one of the most popular annual articles on the site, I’m proud to enlarge the list this year to include my top 25 Canadian dividend stocks for 2020. 

I have included all the top 25 Canadian dividend stocks that have the longest track record of increasing their dividends. The longest streak as of January 2020 belongs to Canadian Utilities (CU.TO), while the 25th position is occupied by Intact Financial (IFC.TO).  The list includes all of Canada’s Dividend All Stars, as well as all of the Canadian Dividend Aristocrats.

This list was constructed post-Covid market meltdown + quick snapback. It should be noted though that even when Earth-shaking events such as a pandemic happen, dividend stock investing is best approached over the long-term. Constantly jumping in and out of stock purchases is a good way to drive yourself crazy while costing yourself a lot of money!

Click here to jump directly to the list

 

Staying Up to Date: Top Dividend Growth Stocks on the TSX

Please note: this Canadian Dividend Stocks list was created largely by gathering information from Dividend Stocks Rocks (DSR).

This resource has been managed by my fellow blogger Mike Heroux from the Dividend Guy Blog since 2013. DSR offers more than a weekly newsletter; it’s a complete program to help you manage your portfolio and get better performance with less stress.

Click here to instantly receive their CURRENT top picks 2020 (both Canadian and US) by subscribing to his newsletter.

Canadian Dividend Stocks as a Strategy

If you’ve been following Million Dollar Journey for a while, you’ll know that I’m a fan of dividend growth investing because it provides a dependable stream of increasing tax-efficient income. For those of you interested in this strategy as well, you can see an example through my leveraged dividend portfolio.  In fact, growing a passive dividend income stream is my strategy for achieving financial freedom.

Two questions that I often get asked are: “What are my favorite dividend all star stocks?” and “What do I think are the absolute best dividend stocks for Canadians?”

As a dividend growth investor, I like to invest in dividend paying companies that have a history of increasing their dividends, but the stocks also have to provide diversification within my portfolio. Unfortunately, the TSX has a limited number of stocks with a long dividend growth history.  To see a list of my Top 10 dividend positions, keep reading below. These selections include companies showing a strong mix of revenue growth, earnings growth, and dividend growth.  Thus making them excellent candidates to not only keep paying a dividend, but to grow that juicy payout each year.

New 2020 Picks for Best Canadian Dividend Stocks

Doing some background research for 2020, I dug up 25 Canadian dividend growth stocks with the longest histories of annual dividend increases. Usually, there is little change in the list because companies who have a mandate to pay increasing dividends tend to follow that pattern.

Sometimes, dividend companies get removed from the list because of three possible reasons:

1) A pause in dividend increases
2) A dividend cut/reduction
3) The company gets acquired

This time around, no companies were deleted, and I added three more!

  • Cogeco Inc. (CGO.TO)
  • Stella-Jones Inc (SJ.TO)
  • Intact Financial Corp (IFC.TO)

Are Canada's Dividend Stocks Applicable in an Economic Downturn?

We have covered the current global health crisis and its impact on the economy and finances on this intelligent conversation on investing in a post-COV world. The gist of what we believe is that you can't catch the bottom of the markets or try to time them; going in and out of the markets is LIKELY to be less efficient than continued long-term investing.

The same logic applies to Canada's dividend stocks - your best dividend stocks strategy may have a lower- or higher-return yield than it did yesterday, but over the LONG TERM it is tough to deny the track records of these stocks.  Many of them have established ever-increasing dividend payouts through wars, economic collapses, and countless natural disasters.

The quick bounce back in the share prices of many of these companies reveals just how resilient their revenue streams are, and there are even substantial prospects for these companies with bullet-proof balance shoots to gobble up market share one chunk at a time, as smaller companies go out of business during this downturn.

2020 Best Canadian Dividend Stocks

This table contains much information about the best Canadian dividend stocks of 2020. It includes Ticker Name, Sector, Dividend, Streak, Dividend Yield, 5yr Revenue Growth, 5yr EPS Growth, 5yr Dividend Growth, Payout Ratio, and P/E. These are numbers are true for the article's last update and isn't being updated on a real-time basis.

Ticker Name Sector Dividend Streak Dividend Yield 5yr Revenue Growth 5yr EPS Growth 5yr Dividend Growth Payout Ratio PE
CU.TO Canadian Utilities Ltd Utilities 47 4.30% 5.30% -0.10% 10.15% 47.92% 10.86
FTS.TO Fortis Inc Utilities 46 3.37% 15.70% 8.41% 6.83% 33.29% 14.98
TIH.TO Toromont Industries Ltd Industrials 30 1.53% 17.07% 14.06% 12.09% 28.97% 20.61
CWB.TO Canadian Western Bank Financial Services 27 3.44% 8.14% 2.40% 6.72% 39.43% 10.53
ACO.X.TO Atco Ltd Utilities 26 3.24% 2.32% -4.60% 14.97% 32.21% 10.13
TRI.TO Thomson Reuters Corp Industrials 25 2.04% -11.43% 111.39% 6.04% 19.42% 10.63
EMP.A.TO Empire Co Ltd Consumer Defensive 24 1.48% 3.71% 7.77% 4.88% 26.40% 17.92
IMO.TO Imperial Oil Ltd Energy 24 2.47% 1.33% -2.94% 8.30% 22.14% 9.61
MRU.TO Metro Inc Consumer Defensive 24 1.48% 7.66% 10.47% 15.27% 27.95% 19.5
CNR.TO Canadian National Railway Co Industrials 24 1.81% 6.25% 13.69% 16.18% 33.26% 19.25
ENB.TO Enbridge Inc Energy 25 5.70% 7.10% 21.56% 16.33% 100.69% 17.92
SAP.TO Saputo Inc Consumer Defensive 19 1.64% 7.90% 7.41% 7.80% 34.02% 21.02
CNQ.TO Canadian Natural Resources Ltd Energy 19 3.58% 4.42% 0.38% 18.44% 42.17% 12.37
TRP.TO TC Energy Corp Energy 19 4.18% 9.23% 10.13% 8.45% 46.58% 16.44
CCL.B.TO CCL Industries Inc Consumer Cyclical 18 1.21% 22.26% 34.27% 24.77% 23.37% 20.64
FTT.TO Finning International Inc Industrials 18 3.25% 0.70% -6.59% 5.74% 53.44% 16.74
TCL.A.TO Transcontinental Inc Industrials 18 5.59% 8.83% 7.23% 6.84% 45.76% 8.19
PLZ.UN.TO Plaza Retail REIT Real Estate 17 6.13% 4.59% N/A 4.46% 63.89% 10.6
RBA.TO Ritchie Bros Auctioneers Inc Industrials 17 1.79% 25.80% 9.94% 11.77% 59.42% 35.23
SU.TO Suncor Energy Inc Energy 17 3.94% -0.54% -4.92% 14.55% 51.35% 13.51
CCA.TO Cogeco Communications Inc Communication Services 16 1.90% 3.67% 14.41% 11.84% 24.97% 13.62
T.TO TELUS Corp Communication Services 16 4.46% 4.45% 5.92% 9.08% 70.14% 17.56
CGO.TO Cogeco Inc Communication Services 15 1.80% 3.12% 16.94% 14.34% 19.40% 11.79
SJ.TO Stella-Jones Inc Basic Materials 14 1.47% 16.00% 8.12% 19.14% 23.92% 16.81
IFC.TO Intact Financial Corp Financial Services 13 2.16% 7.31% 9.09% 9.73% 61.08% 27.47

How to Keep Up to Date with the Market?

The resource we on Million Dollar Journey use is Dividend Stocks Rocks (DSR). This resource has been managed by my fellow blogger Mike Heroux from the Dividend Guy Blog since 2013. DSR offers more than a weekly newsletter; it’s a complete program to help you manage your portfolio and get better performance with less stress. Mike's recommendations and insights prove extremely useful in times like these. 

You can receive his CURRENT top choices for 2020 (both Canadian and US) by subscribing to his newsletter here.

You can receive 45% lifetime discount for his paid program using he link below:

 

My Top Canadian Dividend Stock Recommendations

Sorted in order of dividend streak:

Fortis (FTS.TO) – 46 years of dividend increases

Fortis is probably one of the strongest Canadian dividend stocks you can find on the market. This utility has aggressively reinvested over the past few years, resulting in strong and solid growth of its core business. You can expect FTS revenue to continue to grow, as it is expanding. Strong from its Canadian base business, the company has generated sustainable cash flow leading to four decades of dividend payments. The company has a five-year capital investment plan of approximately $14.5 billion for the period 2018 through 2022, up $1.5 billion from the prior year’s plan. Chances are most of its acquisitions will happen south of our border. FTS’ yield isn’t impressive for a utility (3.50%), but there is a price to pay for such a high-quality dividend grower.

Enbridge (ENB.TO) – 23 years of dividend increases

Enbridge clients enter into 25-year transportation contracts. The company is already well positioned to benefit from the Canadian Oil Sands (as its ,ain line covers 70% of Canada’s pipeline network). As production grows, need for ENB pipelines remain strong. Now that it has merged with Spectra, about a third of its business model will come from natural gas transportation. The company has a handful of projects on the table or in development. ENB saw progressed execution of Line 3 Replacement project in 2019. Canadian segment construction is expected to be completed by the end of May 2020; Minnesota Public Utilities Commission (MPUC) denied all petitions to reconsider its project approvals. Project in-service date targeted for the second half of 2020.

Canadian National Railway (CNR.TO) – 23 years of dividend increases

Canadian National has been known for being the “best-in-class” for operating ratios for many years. CNR improved its operating ratio in 2019 and the company owns unmatched quality railroads assets. With a yield under 2%, we can’t talk about a “strong” dividend payer. However, after digging further, I realized how strong the company’s fundamentals are. CNR has a very strong “economic moat”, as railways are virtually impossible to replicate. Therefore, you can count on increasing cash flow each year. Plus, there isn’t any better way to transport most commodities than by train.

Telus (T.TO) – 15 years of dividend increases

Telus has been showing a very strong dividend triangle over the past decade. The company can grow its revenues, earnings and dividend payouts on a very consistent basis. Telus is very strong in the wireless industry, and are now launching into other growth vectors such as the internet and television services. The company shows the best customer service (read: lower churn) in the wireless industry. It uses its core business to cross-sell its wireline services. The company is particularly strong in Western Canada. Telus is well-positioned to surf the 5G technology tailwind.

Emera (EMA.TO) – 12 years of dividend increases

Emera is a very interesting utility with a solid core business established on both sides of the border. EMA now shows $30 billion in assets and will generate revenues of about $6.3 billion. It is well established in Nova Scotia, Florida and four Caribbean countries. This utility counts on several “green projects” with hydroelectricity and solar plants. Through 2020, EMA intends to invest over $6B in new projects. This decreases the risk of future regulations affecting its business as the world is slowly moving toward greener energy.

CAE (CAE.TO) – 11 years of dividend increases

CAE has developed a close relationship with many of its clients. The switching cost for them is relatively

high, as CAE clearly understands their needs and can improve/modify its training/simulation solutions to evolve with its customer. This creates a high recurring volume of business. With over 160 locations across 35 countries, CAE can meet any international clients’ demands. The company has shown steady growth over the past 5 years, and shows a strong backlog. As the economy continues to grow, demand for commercial and business aviation will remain strong. Therefore, more training will be required.

National Bank (NA.TO) – 9 years of dividend increases

Like BMO, NA aimed at capital market and wealth management to support its growth. Private Banking 1859 has become a serious player in that area. The bank even opened a private banking branch in Western Canada to capture additional growth. Since NA is heavily concentrated in Quebec, it concluded deals to do credit for investing and insurance firms under the Power Corporation (POW). Branches are currently going through a major transformation with new concepts and enhanced technology to serve clients. While waiting for the results, it seems wise to invest in digital features to reach out to the millennials and improve efficiency.

Royal Bank (RY.TO) – 8 years of dividend increases

Over the past five years, RY did well because of its smaller divisions acting as growth vectors. The insurance, wealth management and capital markets push RY revenue. Those sectors now combine to represent about 50% of its revenue. Royal Bank also made huge efforts into diversifying its activities outside Canada. Canadian banks are protected by federal regulations, but this limits their growth. Having a foot outside of the country helps RY to reduce risk and to improve growth potential. Royal Bank shows a perfect balance between revenue growth and dividend growth. It’s a keeper.

Alimentation Couche-Tard (ATD.B.TO) – 2 years of dividend increases;

An investment in ATD is definitely not ideal for an income producing stock. However, if you are looking at the long-term horizon, your dividend payouts will grow in the double digits for a while and you will enjoy a strong stock price growth. ATD’s potential is directly linked to its capacity to swallow and integrate more convenience stores. Management has often proven its ability to pay the right price and generate synergy for each deal. ATD shows a perfect combination of the dividend triangle: revenue, EPS and dividend strong growth.

Intertape Polymer (ITP.TO) – 1 year of dividend increases

A surprise inclusion with my final recommendation this year!  With the rise of online shopping, the packaging industry should benefit from this tailwind. ITP expects to reach $1.5 billion in sales by 2022. Intertape is #1 and #2 in its main market in North America and shows strong international expansion opportunities. Management also expects to grow by acquisition in order to expand its current line of products, consolidate its activities, and open additional doors in international markets. In August 2018, the company completed the acquisition of Polyair Inter Pack for $146M. This was a strategic move to expand ITP’s product offering while opening doors to cross-selling opportunities to PIP’s clients.

My COVID-19 Best Dividend Stocks Recommendations

The year 2020 has been one of intense change and turmoil.  The COVID-19 pandemic has forced us to review each company in our portfolio and review their business model. Some will survive and thrive, while others will have a hard time surviving this crisis. The point here is not to change my list, but to add more perspective now that we know more about the nature of the economic lockdown. Some companies are great, but they just don’t function well when their doors are closed!

Here are a few additions to the previous top Canadian stocks. The following have been handpicked for their ability to face the economic lockdown and thrive going forward.

OPEN TEXT (OTEX.TO) 6 years of dividend increases

Big data, cloud, and security. Three keywords you are not done hearing about. As we evolve through this era of consolidation; businesses grow larger every second. Managing growth is one thing, but dealing with the enormous amount of data this growth is bringing inside each company is part of the modern Hercules’ labors. Enterprise Information Management (EIM) systems have been developed to manage this issue, and OpenText is one of the leaders in this emerging business. OTEX has developed a strong expertise in growth by acquisitions. Each time it adds a new business, it increases cross-selling opportunities.

Sylogist (SYZ.V) 9 years of dividend increases

Who doesn’t like a company offering overall improvements in business processes, quality and systems control through their services? Sylogist shows a strong model of growth by acquisition and has no debt! It also offers a surprisingly-high yield for a small tech stock. Through their Enterprise Resource Planning (ERP) solutions, SYZ can help both public and private sectors to manage intellectual property. Knowing how managing data has been crucial for businesses lately, SYZ is at the right place at the right time. We like their client diversification reaching over 1,000 customers worldwide, including local and national government departments. One of the major downsides of a company like this is that small caps could be quite hectic on the market. For that reason, investors should proceed with caution (or buy it and forget about the transaction for a while).

Savaria (SIS.TO) 9 years of dividend increases

If you are looking for a company with an aggressive growth plan through acquisitions and surfing on a solid tailwind, you may have found it with Savaria. Through various acquisitions, SIS almost tripled its revenue between 2008 and 2018. The company didn’t cut its dividend in 2017, but rather increased it by 38% and switched it to a monthly payment. However, keep in mind that SIS has a hectic dividend growth history. An investment in Savaria is not about its monthly dividend, but rather a bet on its overall business growth potential - and its willingness to pass those profits along to shareholders.

A Concluding Look at Canada’s Dividend Growth Stocks Landscape in 2020

For me, I like dividend stocks with a yield above 2.5%, a payout ratio less than 80%, strong financials, and, of course, an established track record of dividend increases.  Once I create a dividend stock watchlist, I wait for them to drop in price to reach a particular dividend yield (when to buy dividend stocks).

As previously mentioned, more due diligence is required before blindly buying companies with the longest history of dividend growth.  For example, from the table above, there are some stocks with red flags such as companies with high payout ratios. The list of stocks in this article should be treated as a starting point for your research. 

If you plan on using dividends as a long-term investing strategy, and intend to add to your positions over time, I’ll again recommend Mike Heroux’s Dividend Stocks Rock service. And yes, you do get 45% off the service using the link below.

Subscribe to Dividend Stock Rocks with 45% Discount Today

As we look forward to 2020, remember that in order to be a successful dividend investor, one of the keys is to ignore the daily noise.  Many of these Canadian Dividend Stocks  are companies that have been around for an incredibly long time, and have long established histories of not only surviving ups and downs in the market, but continuing to pay solid dividends over those ups and downs!

I’m curious to see what everyone else thinks about the upcoming year.  Are you a dividend growth investor? Which are your favorite Canadian Dividend All Star Stocks for 2020?

57 Comments

  1. Echo on April 8, 2013 at 10:33 am

    Interesting list. I’ve got some cash in my trading account but I’m having a tough time finding a dividend growth stock to buy. This gives me a few ideas investigate further.

    I recently bought SNC-Lavalin and Empire, and I’ve held Fortis for a few years.

    AGF scares me a bit with its nearly double-digit yield.

    • GYM on October 18, 2017 at 5:01 pm

      @Echo- Hey I thought you were just doing ETFs! :) Have you come back to the dark (dividend paying equities) side?

      @FT- Great list, thanks for updating it! I only have FTS and SNC-Lavalin on this list. I used to have ESI but sold it a long time ago.

  2. Canadian Dividend Blogger on April 8, 2013 at 11:22 am

    AGF hasn’t raised its dividend since July 2011, and even then they probably shouldn’t have as their earnings were dropping. There are a couple of good names here too though, like Empire, Ensign and Canadian REIT.

  3. Jordan on April 8, 2013 at 12:03 pm

    Hi Frugal — what earnings numbers do you use to calculate payout ratio? 12-mos. trailing EPS or some kind of multi-year average?

    The main reason I ask is that my spreadsheet (link below) has TCL posting losses, and a negative payout ratio currently.

    https://docs.google.com/spreadsheet/ccc?key=0AnU4nXDzXQaidFVhV3lUdlBucXBVdENZN3hWYk1JZXc&usp=sharing

  4. John on April 8, 2013 at 6:13 pm

    With regards to your leveraged portfolio and performing the Smith manoeuvre, it is my understanding that one must have an expectation of income (in your case, dividends) in order to make the interest on their investment loan tax deductible.

    Does this then mean that any sale of securities from your leveraged portfolio are 100% taxable as income rather than 50% taxable as capital gains? Since you’ve purposefully earmarked the investment loan as an income generator to gain a tax credit on the interest paid.

    • FrugalTrader on April 8, 2013 at 7:50 pm

      @John, yes an “expectation” of income, but not “mandatory” as any equity can “potentially” pay a dividend. Sales of securities under an investment loan still qualify for capital gains tax (ie. not income).

  5. My Own Advisor on April 8, 2013 at 10:18 pm

    I hold a few position above.

    I like dividend payers above 4% and payouts under 80%. Many banks fall into that list.

    Unfortunately, few others in Canada do.

    I see very few deals in the CDN market right now.

    I would definitely avoid AGF and TCL. Regarding the latter, I don’t see any growth in TCL and there hasn’t been in 10 years.

    My favourite stocks? All 5 big banks, all telcos, all life insurance and many energy and utilities.

    I think you have more holdings than I do :)

  6. John on April 8, 2013 at 11:21 pm

    @FrugalTrader, I guess that’s where I am confused.

    Can one really declare the borrowed money is for the purpose of income generation, receive tax deductions on the interest and yet still call the purchased securities capital property?

    Purpose: http://www.cra-arc.gc.ca/E/pub/tp/it533/it533-e.html#P124_11018

    Disposition of Securities: http://www.cra-arc.gc.ca/E/pub/tp/it479r/it479r-e.html

    The disposition of securities section doesn’t really spell it out very clearly in my opinion. Your thoughts?

  7. Goldberg on April 9, 2013 at 10:05 am

    John. You are mixing apples and oranges. Owning stocks is owning a share of a business expected to earn income filtered to you directly (div) or indirectly (value appreciation) which meets purpose.

    And disposal of securities is capital gains, unless your business is repeatedly buying/selling, than that’s income. That is not the case for FT. He is a sporadic and passive investor.

    What FT is doing, tens of thousands are as well. His case is rather clear cut and uncontroversial… which is not always so.

  8. John on April 9, 2013 at 1:43 pm

    @Goldberg, thanks for your response.

    You’re right. The Smith manoeuvre is a very popular strategy and from what I’ve read the CRA hasn’t gone after anybody implementing it as such.

    As someone trying to educate himself on the exact mechanics of the Smith manoeuvre and how it fits into our tax system I still find it strange that one can declare the purpose of an investment loan to be income generating but can call the purchased securities capital property rather than income property.

    But hey, if that’s how it works…cool.

  9. Roni Mitra on April 9, 2013 at 2:33 pm

    Retail investors should always judge the smart money’s sentiment before making an investment decision.I would take these things into account when making decisions but a good article.

  10. FrugalTrader on April 9, 2013 at 7:26 pm

    @Jordan and CanadianDividendblogger, you guys are right, something doesn’t look right there. I’ll need to double check my numbers.

  11. Goldberg on April 10, 2013 at 9:33 am

    @ John. Its the same thing with every other investments, never mind Smith Manoeuvre. For example, in a regular account, if you buy income trust that channel all its earnings to shareholders through dividends, you are buying a capital asset for the purpose of income. It won’t grow much since it doesn’t invest in new projects, it just channel its earnings to dividends. But when you sell your income trust, its a capital gains.

    Smith Manoeuvre or not, buying shares is buying a business for the purpose of income. And when selling said shares, its a capital gains for sporadic, passive investors like FT.

  12. SST on April 10, 2013 at 9:03 pm

    @Roni #10: “Retail investors should always judge the smart money’s sentiment…”

    Only problem is that ‘smart money’ gets on board way before ‘retail investors’ ever take notice, and once they do, it’s the smart money that sells to them.

    Phases of a Bull Market:
    http://politicalmetals.files.wordpress.com/2011/03/phases.png?w=587

    And then there is the problem with ego.
    Most people would like to think that they are the “smart money”. ;)

  13. CanadianTaxSystemIsAJoke on April 10, 2013 at 9:58 pm

    @John Our tax system is a mess. The Smith manoeuvre is obviously an income tax avoidance mechanism (loophole) and the fact that CRA is not currently doing anything about it is mind-blowing. On the other hand there are a lot of other tax loopholes in our tax system and one can’t predict what CRA will do or not do.

    • FrugalTrader on April 11, 2013 at 9:49 am

      I don’t see it as a loophole. People borrow to invest all the time (leverage), either through equities, their business, or rental properties. How do you see the SM as a tax loophole?

  14. The Dividend Guy on April 11, 2013 at 9:56 am

    Hey FT!

    how’s your pick doing since the beginning of the year? I think it’s an interesting list but some stocks don’t pay enough dividend to be considered in my portfolio.

    I was happy to see that my list of 20 US stocks and 10 Cdn stocks both beat dividend ETFs and global index this year after 3 months.

    I should have bought all those stocks ;-) lol!

  15. Goldberg on April 11, 2013 at 11:05 am

    It’s not a tax loophole at all since there is a risk that those equities will come falling down or the dividend will be eliminated, or both. You get the deductibility for your investment loan since you are taking a risk. How large or small of a risk is not the point. It’s an investment. There’s a risk of loss. And its a loan.

    In the US, mortgage interest loans are deductible, no need for SMs. SM in Canada allows for a middle ground between the US way, and not at all. Plus it stimulates investment that otherwise wouldn’t be (since the equity would lay dormant rather than being borrowed against and invested).

    I don’t see a tax loophole here.

  16. Michael on June 15, 2013 at 11:05 pm

    Any thoughts on Royal Gold? It’s not a company I usually see in dividend lists. I’d never heard of it prior to reading your article. It looks like I might have to add it to the Canadian Dividend All-Star List as it has more than 5 years of dividend increases.

    I already own Fortis, SNC Lavalin, from your list and if CNQ drops to $25 (2% yield point) I’d be interested in buying.

  17. SST on June 16, 2013 at 2:12 am

    Don’t waste your time with anything gold.
    It is high-risk and doesn’t produce anything.

    Well…that is if you don’t count 11 years of dividend growth. :)

  18. Victor on July 31, 2013 at 4:16 am

    Great list as it has a mix of stocks from across a diversified spectrum of industries; however I invest in U.S. stocks only :) Look forward to your post on top U.S dividend growth stocks.

  19. Bernie on November 9, 2015 at 1:26 pm

    The title of your article should have read “The 16 Canadian Dividend Growth Stocks with the longest records of dividend increases for 2015”.

    Everyone’s opinion of their top 16 will vary. I wouldn’t base my favourites on length of dividend streak alone. I would choose any or all of the Canadian “big five” banks over your choice of top 16. Their streaks may be short due to freezes
    brought on by the great recession but how can anyone discount TD, BNS or CM who never once cut their dividend or RY and BMO who last cut over 70 years ago? Furthermore, some of the “top 16” you list have had only nominal increases on occasion and/or went 6 to7 quarters without an increase.

  20. Peter on November 13, 2015 at 2:29 am

    Did you mention the dividend astrocrats list for Canada? For the u.s.?

    Provides a good starting list for companies that always increase dividends…..

  21. Peter on November 15, 2015 at 12:52 am

    Good article but I don’t think it mentioned anything about the DRIP of stocks

  22. SST on November 15, 2015 at 11:25 am

    Peter, try this Canadian PF website: http://www.dividendgrowthinvestingandretirement.com/canadian-dividend-all-star-list/

    The spreadsheet has a ton of metrics/data on dividend stocks, including DRIP.

  23. Chris Daniels on November 18, 2015 at 11:45 pm

    Nice article. What about high dividend index etf’s? Ever considered that?

  24. Peter on November 19, 2015 at 2:44 am

    I disagree with Metro and Saputo in your list. The yield is too low. I prefer the sweet spot which is 3 to 4.50% yield. I also like to purchase just enough shares to have the DRIP buy 1 share and then that is dripped next dividend payment. Of course, you buy a few more shares just in case it goes up. When the yield is too low, you end up paying way too much to get a DRIP share. I prefer to get shares and this way, I am truly in it for the long run. A lot of people say they are in it for the long run. This 1 DRIP share gives me something to look forward to. The next dividend payment will be even bigger.

  25. Yves Quevillon on November 29, 2015 at 11:04 am

    What do you think of Brookfield Asset Management (TSX: BAM.A)? I am considering buying. Thanks!

    • Raleigh Epp on January 8, 2018 at 1:31 am

      I am definitely buying Brookfield Asset Management and all of its splits! Huge growth potential with all of its acquisitions.

  26. Dividend Beginner on May 8, 2016 at 8:45 pm

    Great post! Love the Canadian Dividend All-Stars and try to keep my portfolio picks within that realm. Tons of great names here.

  27. Patrick on June 13, 2016 at 6:16 pm

    In response to Peter’s comment about Saputo’s yeild being too low- in my dividend portfolio, (running for 10 yrs now) Saputo is my 2nd best performer, only bested by Starbucks. I own several of the big Canadian banks, and while their yield is higher, their value in my portfolio is average. Clearly, there is more to dividend investing than yield alone.

  28. Arlene on October 31, 2016 at 12:18 pm

    Hello! I was wondering what your thoughts were on The equitable Life Insurance Company of Canada. A financial planner thinks it’s a good idea to get whole life insurance policies for our three children, each $100,000 policies. Is this a good idea?

    • good advice on November 3, 2016 at 9:45 pm

      No, that would be very, very bad advice. Run away from whoever told you that because those products are some of the most notoriously bad financial products with many excessive and hidden fees attached.

  29. Stephen on November 4, 2016 at 1:24 am

    Some very high quality picks in that list! I’m going to have to look into them further for next year’s investment spending. Thanks!

  30. BeSmartRich on November 5, 2016 at 8:32 am

    Look at all those boring names. Haha Great lineup!
    I like SAP, HCG, CNR, MRU and CWB from there.

    I think
    SAP is a bit expensive.
    CNR and MRU are fair
    HCG and CWB are great value now.

    But if you are holding them for a decade or so, then it does not really matter.

  31. jimmy on November 28, 2016 at 2:34 am

    Why does this list not include Brookfield infrastructure (BIP.UN) or Brookfield Renewable (BEP.UN) which have 5-9% dividend growth per annum over many years and 12-15% total annual returns yearly with globally diversified businesses? Seems like a huge omission. I would take either of these over most of the companies in the list.

    • FrugalTrader on November 28, 2016 at 4:36 pm

      Good point Jimmy, BIP.UN is a very popular stock among dividend investors. My records are showing that they have increased their dividends for 8 years in a row. But you are right, I would not build a dividend portfolio solely on this list.

  32. Passivecanadianincome on February 6, 2017 at 11:44 pm

    Thanks for the list and a fantastic chat going on here. I agree brookfield renewable should be on here. I think that’s going to be one of my core holdings going forward. Unless they actually charge the 15% withholding tax on the dividend which they currently are not.

  33. Eric on February 7, 2017 at 6:07 pm

    What do you think of the following ETFs or stocks as another source of dividend generator?

    EMB :pay around 5% per year and is a portfolio of international bonds (of countries in USD)

    JNK: pay around 5.5% per year and is a portfolio of US high yield (or junk) bonds

    HYG: pay around 4% per year and is a portfolio of US high yield (or junk) bonds

    IYR: pay around 3% per year and is a portfolio of US real estate companies

    T: AT&T pay around 5% per year

    thanks!

  34. Purple on October 25, 2017 at 10:50 pm

    I agree there are more things to look at besides just dividend history. I keep the core of my portfolio based on dividend growers like Fortis and Canadian National Rail Way. But I have been doing more research into value investing and not just focusing on dividends. This has been bringing in much higher returns to my portfolio.

    Note Atco ltd owns Canadian utilities, so you wouldn’t need to own both of these businesses. I think Atco offers more diversification and has more opportunity to deliver higher returns through growth but you will get the higher yield with Canadian Utilities with a longer history of dividend growth….

  35. Passivecanadianincome on October 27, 2017 at 11:09 pm

    Nice list enbridge is one of my favourites. Waitung for a nice pullback on some others

  36. Sustainable PF on December 14, 2017 at 9:29 pm

    Would like to see the 2017 version of this list.

    • FT on December 19, 2017 at 10:59 am

      This is the 2017 version. :)

  37. negosyongpinoy on March 23, 2019 at 11:20 am

    Very interesting. I was not very familiar with dividend growth investing but I really like this concept. Thanks for the insights!

  38. van on May 27, 2019 at 11:06 am

    please enlist me

  39. Newbie on May 28, 2019 at 12:14 am

    Why is the payout so high in some cases such as energy companies?
    I see above P/O higher than 200%!
    How is this calculated?
    How can such companies pay dividends twice more than their income??

    • FT on May 28, 2019 at 9:22 am

      Payout ratio is a ratio of the payout relative to earnings. Some can pay out more because non-cash items like amortization and depreciation can be added back to their net income (cash flow). Others, they borrow (debt) to pay for their dividend. Either way, I generally don’t like to see high payout ratios.

  40. Philippe on June 11, 2019 at 11:19 pm

    What’s wrong with The Keg (KEG.UT aka KEG.UN)? 6.6% yield, slow and steady increases since 2011, 6.6% yield, 60% payout ratio, 1.89EPS

  41. Paul N on September 26, 2019 at 12:15 pm

    I’m just curious about Suncor being on this list. Even back in 2007 the price was briefly higher than pricing in this month Sept 2019. So for 12 years, is just getting the quarterly dividend (now 4%) worth holding this stock for over that time? Just trying to understand the logic. It would have been better to just purchase more Emera, or even an ETF like XEI and take the 5% dividend (monthly distribution) and utilize the cash from it.

    • FT on September 29, 2019 at 1:51 pm

      Cyclical stocks are tricky, and are usually the ones to cut their dividend first. Suncor, Exxon and other energy large caps have managed to stay the course with dividend increases. IF picking stocks are a concern, then an ETF is probably a better choice.

  42. Derek on October 24, 2019 at 12:07 pm

    where is BCE???? that’s been paying a nice dividend for years!!! not even a mention???

    • RICARDO on February 2, 2020 at 8:40 am

      I’ll second that. BCE is more expensive per share than T but pays a higher dividend so far. All the bloggers talk about compound interest well here is a case where the higher dividend payout can lead to higher compound purchases of equities.
      Another one is IPL. Maybe a bit risky now because of their heartland project but none the less I have held them since 2003. Haven’t missed a dividend yet and have raided every year so far. My original purchase (2004) pays me 25% on COP

      RICARDO

  43. Abad on January 9, 2020 at 11:27 am

    FT, will you make a post about your BTTSX picks for 2020?

    • Kyle Prevost on January 13, 2020 at 1:05 pm

      I know that FT is planning to do that one in a few months Abad!

    • FT on January 20, 2020 at 11:57 am

      Hey Abad, as Kyle mentioned, I will be posting about BTTSX soon!

  44. GYM on June 10, 2020 at 12:24 am

    Great updated list. I recently bought some more Fortis myself.

    For some reason, I thought Savaria was like a Cannabis company… turns out it’s exactly the opposite of ‘sexy’ haha!

  45. Freedom45 on June 18, 2020 at 5:42 pm

    New to this board. Just curious about the energy space further to Paul N and FT comments in Sept. I got burned in the downturn with energy (ie opportunity cost of holding a under-performing sector only to be hit by the coronavirus cyclical downturn that may last years). There is no question that the sector was cheap before the downturn, but thanks to the green folks, ESG investors, and the Canadian government, I am not sure that in the long term a proper multiple will ever return. I have no doubt that earnings and cash flow will return, as well as probably $100 oil due to chronic under investment, but it appears to me that these stocks – even SU and CNQ – are no longer buy and hold investments, but have become more like trades on the hopes of a large and quick spike in oil price. I am disappointed as I disagree with investors buying up cash-burning Tesla shares at huge multiples while selling Canadian energy stocks that were bringing in cash hand over fist, but seems to me that is unfortunately the way investing is going. Ultimately the sentiment could spread to TRP and ENB despite stable outlook (I still hold the pipelines though).

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