Top 10 Canadian Dividend Stocks – January 2017

While we know that the stock market will grow over time, on a day-to-day or even month-to-month basis, the stock market is always changing value due to the daily fluctuation of all the stocks.

The opportunities will vary every month and that’s why it’s important to have a systematic approach to understanding which dividend stocks is an opportunity. An opportunity can be for a stock you already own or simply for a new addition to your portfolio. It is important to note that the rankings below do not assess the viability of the business. Some of the companies are strong blue chip stocks while others are smaller companies with growth.

Top 10 Canadian Dividend Stocks

Here is a summary of the top 10 Canadian dividend stocks for the month of January, see below for the details. This is obviously a snapshot in time at the time of writing, many factors could change the rankings.

Here is a quick excerpt on the top 10 dividend growth stocks identified for January 2017

Exco Technologies Limited

TSE:XTCExco Technologies Limited (TSE:XTC) is a global designer, developer and manufacturer of dies, moulds, components and assemblies, and consumable equipment for the die-cast, extrusion and automotive industries.

  • Opportunity Score: 86%
  • Stock: TSE:XTC
  • Sector: Consumer Cyclical
  • Dividend Yield: 2.54%
  • Dividend Payout Ratio: 25.23%
  • Technical Trend: Trend Analysis

Genworth MI Canada Inc.

TSE:MICGenworth MI Canada Inc. (TSX: MIC) through its subsidiary, Genworth Financial Mortgage Insurance Company Canada (Genworth Canada), is the largest private residential mortgage insurer in Canada. The Company provides mortgage default insurance to Canadian residential mortgage lenders, making homeownership more accessible to first-time homebuyers. For more than two decades, Genworth Canada has supported the housing market by providing thought leadership and a focus on the safety and soundness of the mortgage finance system.

  • Opportunity Score: 81%
  • Stock: TSE:MIC
  • Sector: Financial Services
  • Dividend Yield: 5.16%
  • Dividend Payout Ratio: 42.72%
  • Technical Trend: Technical Trend Analysis

Gluskin Sheff + Associates

TSE:GSGluskin Sheff + Associates Inc.(TSE:GS) is one of Canada’s pre-eminent wealth management firms. Founded in 1984 and serving high net worth private clients and institutional investors, we are dedicated to meeting the needs of our clients by delivering strong risk-adjusted returns together with the highest level of personalized client service.

  • Opportunity Score: 80%
  • Stock: TSE:GS
  • Sector: Financial Services
  • Dividend Yield: 5.85%
  • Dividend Payout Ratio: 90.09%
  • Technical Trend: Technical Trend Analysis

Home Capital Group Inc

TSE:HCGHome Capital Group Inc. (TSE:HCG) is a holding Company and operates through its principal subsidiary, Home Trust Company. Home Trust is a federally regulated trust company offering deposit, mortgage lending, retail credit and credit card issuing services. Licensed to conduct business across Canada, Home Trust has offices in Ontario, Alberta, British Columbia, Québec, Nova Scotia and Manitoba.

  • Opportunity Score: 76%
  • Stock: TSE:HCG
  • Sector: Financial Services
  • Dividend Yield: 3.41%
  • Dividend Payout Ratio: 26.53%
  • Technical Trend: Technical Trend Analysis

Brookfield Office Properties

TSE:BPY.UNBrookfield Property Partners (TSE:BPY.UN, NYSE:BPY) is a diversified global real estate company that owns, operates and develops one of the largest portfolios of office, retail, multifamily, industrial, hospitality, triple net lease and self-storage assets. Its investment objective is to generate attractive long-term returns on equity of 12-15% based on stable cash flows, asset appreciation and annual distribution growth of 5-8%.
The company seeks this objective by acquiring high-quality assets in resilient and dynamic markets and pursuing diversification across both geographic areas and property sectors, and continually recycling capital from stabilized assets at or near peak values into higher-yielding strategies. Brookfield Property Partners’ portfolio features some of the world’s best-known commercial properties.

Metro Inc.

TSE:MRUMetro Inc. (TSE:MRU) is a leader in the food and pharmaceutical distribution in Québec and Ontario. It has more than 600 food stores operating notably under the banners Metro, Metro Plus, Super C and Food Basics. Under the banners Brunet, Clini Plus, Pharmacy and Drug Basics, Metro Inc., has more than 250 drugstores and pharmacies in operation.

  • Opportunity Score: 73%
  • Stock: TSE:MRU
  • Sector: Consumer Defensive
  • Dividend Yield: 1.39%
  • Dividend Payout Ratio: 23.43%
  • Technical Trend: Technical Trend Analysis

2 Overlooked Canadian Dividend Aristocrats

Evertz Technologies Ltd

TSE:ETEvertz Microsystems (TSX:ET) is a leading global manufacturer of broadcast equipment and solutions that deliver content to television sets, on-demand services, WebTV, IPTV, and mobile devices (like phones and tablets). Evertz has expertise in delivering complete end-to-end broadcast solutions for all aspects of broadcast production including content creation, content distribution and content delivery.

Emera

TSE:EMAEmera Inc. is a geographically diverse energy and services company headquartered in Halifax, Nova Scotia with approximately $27.5 billion in assets and 2015 pro-forma revenues of $ 6.3 billion. The company invests in electricity generation, transmission and distribution, gas transmission and distribution, and utility energy services with a strategic focus on transformation from high carbon to low carbon energy sources. Emera has investments throughout North America, and in four Caribbean countries. Emera continues to target having 75-85% of its adjusted earnings come from rate-regulated businesses.

BCE

TSE:BCEBCE Inc. (TSE:BCE, NYSE:BCE) is Canada’s largest communications company, providing a comprehensive and innovative suite of broadband communications and content services to consumer, residential, business and government customers in Canada.

Powered by industry-leading investments in advanced networks and media content, Bell communications services are offered under the Bell and Bell Aliant brands. These include fibre-based IPTV and high-speed Internet services, 4G LTE wireless, home phone and business network and communications services, including data hosting and cloud computing.

Bell Media is Canada’s premier multimedia company with leading assets in television, radio, out of home and digital media, including CTV, Canada’s #1 television network, and the country’s most-watched specialty channels.

Telus

TSE:TTelus (TSE:T, NYSE:TU) is Canada’s fastest-growing national telecommunications company, with $12.7 billion of annual revenue and 12.6 million subscriber connections, including 8.5 million wireless subscribers, 1.6 million high-speed Internet subscribers, 1.4 million residential network access lines and more than 1.0 million TELUS TV customers. TELUS provides a wide range of communications products and services, including wireless, data, Internet protocol (IP), voice, television, entertainment and video, and is Canada’s largest healthcare IT provider.

Dividend Achiever: Telus Growth in a Telecom Oligopoly

Methodology

The top 10 stocks identified below are based on a score calculated using a number of financial data points from the companies. In the end, the score is generated from following five key indicators:

  • 52-Week Range : Trend over the past 52 weeks. Is the stock pulling back from a 52 week high?
  • P/E Ratio : Is the stock price running away from its earnings?
  • Dividend Yield : Is the yield attractive? Usually could identify a pull back if the yield starts to go up or major trouble if it goes too high.
  • Dividend Growth : Uses dividend growth and the Chowder Rule. Is the company capable of growing the dividend consistently?
  • Dividend Payout Ratio : Uses historical averages to put today’s ratio in perspective. Is the company able to grow the dividend at the same rate it increases its earnings?

If you are interested in more details, the Canadian Dividend Performance List provides many more data points to help make your investment decision.

Disclosure: At the time of writing, I own shares in TSE:BCE, TSE:T, TSE:EMA, TSE:MRU, NYSE:BPY. See my list of holdings.

Image courtesy of David Castillo Dominici – FreeDigitalPhotos.net