Top 10 Canadian Dividend Stocks – March 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 opportunities identified through the Canadian Dividend Performance List 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: 89%
  • Stock: TSE:XTC
  • Sector: Consumer Cyclical
  • Dividend Yield: 2.70%
  • Dividend Payout Ratio: 28.83%
  • Technical Trend: Technical Trend Analysis

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: 86%
  • Stock: TSE:MRU
  • Sector: Consumer Defensive
  • Dividend Yield: 1.68%
  • Dividend Payout Ratio: 27.08%
  • Technical Trend: Technical Trend Analysis

Wi LAN Inc

WiLAN (TSE:WIN) develops and commercializes innovative patented technologies, manages intellectual property and licenses these inventions to corporations. Intellectual Property has been highly valued in America since the creation of the U.S. Constitution. The Founding Fathers of the United States believed it to be of such importance that the intellectual property clause was included in the first Article of the Constitution. Their desire was to create an environment that was supportive of innovation through the establishment of property rights. The first U.S. Patent Act demonstrates a desire to create a system that rewards inventors in order to stimulate inventive activity and thereby foster economic growth.

Stella-Jones Inc.

Stella-Jones Inc. is a leading producer and marketer of pressure treated wood products. The Company supplies North America’s railroad operators with railway ties and timbers, and the continent’s electrical utilities and telecommunication companies with utility poles. Stella-Jones also provides residential lumber and customized services to retailers and wholesalers for outdoor applications, as well as industrial products which include marine and foundation pilings, construction timbers, wood for bridges and coal tar based products.

  • Opportunity Score: 85%
  • Stock: TSE:SJ
  • Sector: Basic Materials
  • Dividend Yield: 0.96%
  • Dividend Payout Ratio: 16.46%
  • 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: 84%
  • Stock: TSE:HCG
  • Sector: Financial Services
  • Dividend Yield: 3.95%
  • Dividend Payout Ratio: 28.03%
  • Technical Trend: Technical Trend Analysis

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.

Enbridge Income Fund Holdings Inc

When Enbridge Income Fund (TSE:ENF) was formed in 2003, their objective was to create the lowest-risk, high payout energy infrastructure investment in the energy sector. The value proposition to investors is based on the following four key elements.

  • A Low-risk Business Model
  • Diversified Asset Base
  • High Payout of Predictable Cash Flows
  • Strong Sponsorship

ENF has the necessary financial flexibility and access to capital markets to execute our growth strategy. This successful business model provides long-term stability, and gives us confidence that we’ll continue to deliver reliable and attractive returns to our investors both today and well into the future.

TFI International Inc

TFI International Inc. (TSE:TFII) is a North American leader in the transportation and logistics industry, operating across the United States, Canada and Mexico through its subsidiaries.

TFI International creates value for shareholders by identifying strategic acquisitions and managing a growing network of wholly-owned operating subsidiaries. Under the TFI International umbrella, companies benefit from financial and operational resources to build their businesses and increase their efficiency. TFI International companies service the following segments; package and courier, less-than-truckload, truckload, and logistics.

Telus

TSE:TTelus is the 3rd largest telecom in Canada after Bell (TSE:BCE, NYSE:BCE) and Rogers Communications (TSE:RCI.B, NYSE:RCI) but it’s not far behind Rogers. In 2011, Telus had a market capitalization of $16B and it is now worth $24B while Rogers is at $26B.

Back in 1885, Telus made the first phone call between Fort Edmonton and St. Albert in Alberta. Telus went on to become the phone company for Alberta with provincial ownership at first. Over the years, it became a fully publicly traded company with no provincial ties and it merged with BC Tel. In 2001, Telus started buying assets in Quebec by capturing Quebec Tel and other assets.

  • Opportunity Score: 76%
  • Stock: TSE:T, NYSE:TU
  • Sector: Communication Services
  • Dividend Yield: 4.44%
  • Dividend Payout Ratio: 93.20%
  • Technical Trend: Technical Trend Analysis

CI Financials

CI Financial Corp. is a diversified wealth management firm and one of Canada’s largest investment fund companies. Independent and Canadian-owned, CI is committed to providing investors with a comprehensive and innovative selection of top-quality investment products and services.

Since it began managing money in 1965, CI has consistently anticipated and responded to the changing needs of Canadian investors. Starting with its expertise in the international mutual fund arena, CI has steadily enhanced and improved its lineup. CI is built on choice – offering the best possible choice in portfolio management expertise and in products and services.

  • Opportunity Score: 75%
  • Stock: TSE:CIX
  • Sector: Financial Services
  • Dividend Yield: 5.08%
  • Dividend Payout Ratio: 74.59%
  • Technical Trend: Technical Trend Analysis

Past Top 10 Dividend Stocks

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.

 

  
 
40+ Data Points
Sector & Industry
52-Week Ratio
Chowder Rules
Aristocrat Status
10/10 Status
3, 5, 10 year Dividend Growth Rate
3, 5, 10 year EPS Growth Rate
3, 5, 10 year Dividend Payout Rate
Excel Required

CDN Dividend List

$119
Annually
40+ Data Points
Sector & Industry
52-Week Ratio
Chowder Rules
Aristocrat Status
10/10 Status
3, 5, 10 year Dividend Growth Rate
3, 5, 10 year EPS Growth Rate
3, 5, 10 year Dividend Payout Rate
Excel Required

CDN Dividend List

$39
First 3 Months
40+ Data Points
Sector & Industry
52-Week Ratio
Chowder Rules
Aristocrat Status
10/10 Status
3, 5, 10 year Dividend Growth Rate
3, 5, 10 year EPS Growth Rate
3, 5, 10 year Dividend Payout Rate
Excel Required

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