Canadian Dividend Achievers

Dividend AchieversDividend Achievers are dividend growth stocks with at least 10 years of dividend growth behind them. It’s the first step in building your master stock list and finding a solid dividend growth stocks.

On the US stock market, there are 3 groups distinctly tracked:

  • Dividend Kings with 50+ years of dividend growth
  • Dividend Aristocrats with 25+ years of dividend growth
  • Dividend Achievers with 10+ years of dividend growth

The primary criteria to be on any of those list is increasing dividend annually. The amount of growth is not important with the filter to be included. One cent will keep you going and that’s why you want to look into the companies further after they make it onto these lists.

On the Canadian front, there is only one list officially tracked but I intend to show who is a Canadian Dividend Achiever.

Use the List to Select Stocks

When investing, you have to narrow down your choice to one stock before making a purchase. The best investors such as Warren Buffett have a process to select stocks. These list can be your first step in narrowing down your selection.

  1. Have clear investing rules – see my 7 Investing Rules
  2. Make a list of stocks matching your investing criteria
  3. Identify what your portfolio needs
  4. Pick a few options
  5. Research the few options further to select one

Canadian Dividend Achievers

Below is the list of all the Canadian Dividend Achievers stocks (excluding REITs and small cap stocks). The list presents you with 35 companies. That’s half the Dividend Aristocrats list and just a little more than the 10-10 stock list.

Image courtesy of David Castillo Dominici – FreeDigitalPhotos.net

6 Responses to "Canadian Dividend Achievers"

  1. The one aspect of these dividend lists that I don’t really get is yield.
    CCL.B for example, has a very low yield, relative to most of the rest of the Achievers. Even with regular increases, I doubt many people buy CCL for the dividend. Their payout ratio is so low, the stock is really more about capital appreciation.

    Making the list is somewhat of a merit badge, but even if they raised the dividend every year by 20%, it would take 5 years to get the yield up to 2%, and that would still leave you way behind about 3/4’s of the other Achievers.
    With such a low yield, being on the list isn’t even a great indicator of stability, in my opinion. It’s much less of an achievement to increase a dividend when the payout ratio is a fraction of what others pay.

    Maybe I’m missing an important concept, but to me the list is a tool, to be sure, but one that should be taken with a grain of salt when you’re looking for income primarily from dividends.

    Reply
    1. @Terry

      Great points! It’s a start though and an easy filter but it’s manipulated by some in that they can increase the dividend by 1 cent and the trend continues.

      That’s why I like the 10-10 stocks.
      – 10 years of dividend growth
      – 10% dividend growth average

      There are 26 on the list which I share by subscribing.

      Reply
    2. Not always but if a low yielding stock raises its dividend 10% or more per year, its yield may not raise that fast, but its capital gain may follow the 10% growth. Personally, I prefer med yield with med div growth. Steady Eddie.

      Reply
    3. Terry,
      Don’t confuse yield with dividends. The dividend yield is stock price/annual dividend and expressed in a percentage. When the dividend is increased the yield does not necessarily go up. It may go up, down or remain the same as the yield is dependent on both the dividend and the stock price. The yield is more likely to increase if the company decides to increase the payout ratio.

      Reply

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