Updated September 25, 2017.
Looking for the best of the best dividend stocks? The Canadian Dividend Aristocrats list is the perfect place to start. To be included in the Canadian Dividend Aristocrats list, a Canadian company must match the following criteria.
- The company’s security is a common stock or income trust listed on the Toronto Stock Exchange and a constituent of the S&P Canada BMI.
- The security has increased ordinary cash dividends every year for five years, but can maintain the same dividend for a maximum of two consecutive years within that five year period.
- The float-adjusted market capitalization of the security, at the time of the review, must be at least C$ 300 million.
- For index additions, the company must have increased dividend in the first year of the prior five years of review for dividend growth. This rule does not apply for current index constituents.
The list currently has 88 Canadian dividend stocks listed with companies varying vastly in market capitalization.
The Dividend Aristocrats list can be a good list to start researching investments but the 5-year of dividend growth requirement is not a guarantee for dividend stability. Considering, a one cent dividend growth also qualifies any company, it’s important you look a little further to narrow down the list but a good start nonetheless.
Canadian Dividend Aristocrats Performance
Are you looking to get average returns from the dividend aristocrats index or to find a gem in a haystack?
This is where it gets interesting. You can purchase the dividend ETF index tracking the Canadian dividend aristocrats to keep it simple. BlackRock offers the ISHARES SP TSX CDN DIVIDEND IDX FD TSE:CDZ (a.k.a Claymore S&P/TSX Canadian Dividend ETF) exchange-traded fund covering the S&P list. It can be a good choice for some accounts such as your RESP account.
On the other hand, would you really own all of the 75 stocks in your portfolio? Assuming you have some rules on how many stocks you hold, you will want to find the top dividend growth stocks and as such, the list is a great start to finding core blue chip stocks.
Below is the cash distribution from the ETF. As you can see, it’s not providing a consistent growth even though all holdings should be increasing their dividends annually. The capital gains from removals and exposure control come into play when it comes to the fluctuating distribution. Investing in a select group of stocks might be better than buying the ETF as a whole.
Source: BlackRock CDZ
Dividend Aristocrats Sector Representation
The sector diversification of the list is outlined below and just like the TSX, Financials, and Energy lead the way. Would the breakdown below match the diversification you want for your stock portfolio? Nevertheless, you can find some solid dividend growth stocks in many of the sectors.
Canadian Dividend Aristocrats List
Below are the 87 securities listed in the index as per the rules outlined above. Before you go and agree or not with the index or the rules, indexes are put together to attempt at categorizing certain stocks and investment strategies such as monthly income investing, dividend investing or dividend growth investing. ETFs and mutual funds then use those to put products together to satisfy investor demand.
September 2017 Update: HCG and AIM were removed since they reduced their dividends.
May 2017 Update: 1 company was removed. Nevsun Resources (TSE:NSU) was removed from the list.
February 2017 Update: 14 companies were added while 1 was removed. New comers are: ALA, AP.UN, ARE, BAM.A, BEI.UN, BMO, CAR.UN, FCR, ITP, L, NWC, PPL, STN, and WN. BDT was the company removed from the aristocrat index in the last update.
- Agrium TSE:AGUNYSE:AGU Market Trend
- Franco-Nevada Corp TSE:FNV Market Trend
- Methanex Corp TSE:MX Market Trend
- Russel Metals Inc. TSE:RUS Market Trend
- Stella-Jones Inc. TSE:SJ Market Trend
- BCE TSE:BCENYSE:BCE Market Trend
- Cogeco Cable Inc TSE:CCA Market Trend
- Rogers TSE:RCI.BNYSE:RCI Market Trend
- Shaw Communications TSE:SJR.BNYSE:SJR Market Trend
- Telus TSE:TNYSE:TU Market Trend
- Boyd Group Income Fund TSE:BYD.UN Market Trend
- CCL Industries Inc. TSE:CCL.B Market Trend
- Cineplex Galaxy Fund TSE:CGX Market Trend
- Corus Entertainment TSE:CJR.B Market Trend
- Canadian Tire Corporation TSE:CTC.A Market Trend
- Gildan Activewear Inc. TSE:GIL Market Trend
- Intertape Polymer Group Inc. TSE:ITP Market Trend
- Magna International Inc TSE:MGNYSE:MGA Market Trend
- Transcontinental Inc TSE:TCL.A Market Trend
- Thompson Reuters TSE:TRINYSE:TRI Market Trend
- Uni-Select Inc TSE:UNS Market Trend
- Alimentation Couche-Tard Inc. TSE:ATD.B Market Trend
- Dollarama Inc TSE:DOL Market Trend
- Empire Co TSE:EMP.A Market Trend
- Loblaws TSE:L Market Trend
- Metro TSE:MRU Market Trend
- The North West Company Inc. TSE:NWC Market Trend
- Jean Coutu Group Inc TSE:PJC.A Market Trend
- Saputo TSE:SAP Market Trend
- George Weston LimitedTSE:WN Market Trend
- AltaGas TSE:ALA Market Trend
- Canadian Natural Resources TSE:CNQNYSE:CNQ Market Trend
- Enerflex Ltd TSE:EFX Market Trend
- Enbridge TSE:ENBNYSE:ENB Market Trend
- Enbridge Income FundTSE:ENF Market Trend
- Ensign Energy ServicesTSE:ESI Market Trend
- Gibson Energy Inc. TSE:GEI Market Trend
- Imperial Oil TSE:IMONYSE:IMO Market Trend
- Inter Pipeline LtdTSE:IPL Market Trend
- Keyera Corp TSE:KEY Market Trend
- Pembina PipelineTSE:PPL Market Trend
- Pason Systems IncTSE:PSI Market Trend
- ShawCor Ltd TSE:SCL Market Trend
- Suncor TSE:SUNYSE:SU Market Trend
- Transcanada Pipelines TSE:TRPNYSE:TRP Market Trend
- Alaris Royalty Corp TSE:AD Market Trend
- Bank of Montreal TSE:BMONYSE:BMO Market Trend
- Bank of Nova Scotia <TSE:BNSNYSE:BNS Market Trend
- CI Financials TSE:CIX Market Trend
- CIBC TSE:CMNYSE:CM Market Trend
- Canadian Western Bank TSE:CWB Market Trend
- Royal Bank of Canada TSE:RYNYSE:RY Market Trend
- Gluskin Sheff + Associates TSE:GS Market Trend
- Intact Financial TSE:IFC Market Trend
- IGM FinancialTSE:IGM Market Trend
- Laurentian BankTSE:LB Market Trend
- Genworth MI Canada Inc.TSE:MIC Market Trend
- National Bank TSE:NA Market Trend
- TD Bank TSE:TDNYSE:TD Market Trend
- Aecon Group Inc TSE:ARE Market Trend
- CAE Inc TSE:CAE Market Trend
- Canadian National Railway TSE:CNRNYSE:CNI Market Trend
- Enercare Inc. TSE:ECI Market Trend
- Exchange Income Fund TSE:EIF Market Trend
- Finning Intl Inc TSE:FTT Market Trend
- Ritchie Bros Auctioneers Inc TSE:RBANYSE:RBA Market Trend
- SNC – LAVALIN GROUP INC.TSE:SNC Market Trend
- Stantec Inc.TSE:STN Market Trend
- TFI International Inc TSE:TFII Market Trend
- WestJet Airlines Ltd TSE:WJA Market Trend
- Allied Properties REITTSE:AP.UN Market Trend
- Brookfield Asset Management TSE:BAM.A Market Trend
- Boardwalk REITTSE:REI.UN Market Trend
- Canadian Apartment Properties REITTSE:CAR.UN Market Trend
- First Capital Realty Inc. TSE:FCR Market Trend
- Granite REITTSE:GRT.UN Market Trend
- Northview Apartment REITTSE:NVU.UN Market Trend
- Canadian REITTSE:REF.UN Market Trend
- Atco Ltd TSE:ACO.X Market Trend
- Algonquin Power & Utilitties Corp TSE:AQN Market Trend
- Canadian Utilities TSE:CU Market Trend
- Emera TSE:EMA Market Trend
- Fortis TSE:FTS Market Trend
DISCLOSURE: Please note that I may have a position in one or many of the holdings listed. For a complete list of my holdings, please see my Dividend Portfolio.
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