Top 10 Canadian High Yield Stocks – January 2019

Top High Yield Stocks

Are you looking for income with high yield stocks? While the highest yield isn’t always the best investment, it’s a good place to start looking for income.

Based on stock prices which can move up or down depending on company news and performance, the list will change. As such, the opportunities will vary every month and that’s why it’s important to have a systematic approach to understanding which high yield stocks are 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.

Top 10 Canadian High Yield Dividend Stocks

This month’s results are a snapshot in time at the time of writing and many factors could change the rankings. It’s important to be aware that a high yield stock can either be a good income source or a warning sign for the dividend. Do look further into their payout strategy and history before committing to a high yield stock to avoid unnecessary risks on your portfolio.

Get your list of STRONG Dividend Growth Stocks

Maxar Technologies

MAXR - Maxar Technologies - SmallMaxar Technologies is a leading global provider of advanced space technology solutions, delivering unmatched end-to-end capabilities in satellites, robotics, earth imagery, geospatial data, analytics and insights.

The world’s foremost businesses and governments trust us to solve their most mission-critical challenges with confidence..

Investment Data
  • Opportunity Score: 41%
  • Ticker: TSE:MAXR
  • Sector: Technology
  • Industry: Communication Equipment
  • Market Cap: 0.39B
  • P/E: -
  • Dividend Yield: 22.26%
  • Dividend Payout Ratio: 100.00%

Chemtrade Logistic

CHE.UN - Chemtrade LogisticsChemtrade operates a diversified business providing industrial chemicals and services to customers in North America and around the world. Chemtrade is one of North America’s largest suppliers of sulfuric acid, spent acid processing services, inorganic coagulants for water treatment, sodium chlorate, sodium nitrite, sodium hydrosulfite and phosphorus pentasulfide. Chemtrade is a leading regional supplier of sulfur, chlor-alkali products, liquid sulfur dioxide, potassium chloride, and zinc oxide.

Investment Data
  • Opportunity Score: 45%
  • Ticker: TSE:CHE.UN
  • Sector: Basic Materials
  • Industry: Chemicals
  • Market Cap: 0.98B
  • P/E: 75.57
  • Dividend Yield: 11.34%
  • Dividend Payout Ratio: 857.14%

Gluskin Sheff + Associates

Gluskin Sheff + Associates Inc. 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.

Investment Data
  • Opportunity Score: 63%
  • Ticker: TSE:GS
  • Sector: Financial Services
  • Industry: Asset Management
  • Market Cap: 0.33B
  • P/E: 8.08
  • Dividend Yield: 9.44%
  • Dividend Payout Ratio: 76.34%

Dorel Industries

DII.B Dorel IndustriesDorel Industries Inc. has annual sales of US$2.6 billion and employs approximately 10,000 people in facilities located in twenty-five countries worldwide. The Company operates three distinct business segments. Each consists of several operating divisions or subsidiaries: juvenile, sports, and home.

Dorel's strength lies in the diversity, innovation and quality of its products as well as the superiority of its brands. A high level of customer satisfaction has been achieved through the location of permanent Dorel teams in close proximity to certain major accounts. Dorel maximizes cross-selling, cross-marketing, procurement and other complementary business opportunities.

Investment Data
  • Opportunity Score: 42%
  • Ticker: TSE:DII.B
  • Sector: Consumer Cyclical
  • Industry: Manufacturing - Apparel & Furniture
  • Market Cap: 0.43B
  • P/E: -
  • Dividend Yield: 8.98%
  • Dividend Payout Ratio: 100.00%

Ensign Energy Services

ESI - Ensign Energy ServicesEnsign Energy Services is a global enterprise that provides a unique edge in oilfield service. We are defined by our inspired thinking; our innovative use of technology; our confident, dedicated, well-trained workforce; and our culture of achievement. We are built to serve. We deliver a superior customer experience and trusted, reliable performance.

We are among the world’s strongest, fastest-growing energy services companies. Ensign is equipped with industry leading technology and empowered by a culture of innovation and action. Our employees across the globe are united in a commitment to service. We are able to deliver safety and excellence to our customers where they need us, when they need us.

Investment Data
  • Opportunity Score: 44%
  • Ticker: TSE:ESI
  • Sector: Energy
  • Industry: Oil & Gas - Drilling
  • Market Cap: 0.84B
  • P/E: -
  • Dividend Yield: 8.97%
  • Dividend Payout Ratio: 100.00%

Alaris Royalty Corp

AD - Alaris RoyaltyAlaris Royalty Corp is a Canadian company based in Calgary, Alberta. We provide cash financing to private businesses across North America using an innovative structure which fills a niche in the private capital markets. This niche is: providing capital to successful businesses, which are in need of This niche is: providing capital to successful businesses, which are in need of capital but are unwilling to compromise the current state of their equity ownership and operational control of the business.

Alaris provides capital to well-run, profitable private companies in exchange for a monthly cash distribution on our new preferred equity position. These distributions to Alaris are based on the yield on the original contribution, set 12 months in advance and adjusted annually based on the year over year percentage change in a “top-line” performance metric such as net sales, gross profit or same location sales. Alaris creates long-term partnerships with companies that have a proven track record of stability and profitability in varying economic conditions.

Investment Data
  • Opportunity Score: 44%
  • Ticker: TSE:AD
  • Sector: Financial Services
  • Industry: Credit Services
  • Market Cap: 0.68B
  • P/E: 12.54
  • Dividend Yield: 8.83%
  • Dividend Payout Ratio: 110.74%

Vermillion Energy

Vermillion Energy Inc. is a Calgary, Alberta based international oil and gas producer celebrating over 20 years of outstanding performance.  Vermilion adheres to a value creation strategy through the execution of full cycle exploration and production programs focused on the acquisition, exploration, development, and optimization of producing properties in North America, Europe and Australia.  Our business model targets annual organic production growth, along with providing reliable and increasing dividends to investors.

Investment Data
  • Opportunity Score: 50%
  • Ticker: TSE:VET
  • Sector: Energy
  • Industry: Oil & Gas - E&P
  • Market Cap: 4.98B
  • P/E: -
  • Dividend Yield: 8.45%
  • Dividend Payout Ratio: 100.00%

TransAlta Renewables Inc.

RNW - TransAlta RenewablesTransAlta recognizes renewable power generation as a high growth opportunity. The company has grown this segment of our business significantly during the last several years and continues to see tremendous opportunities going forward to accelerate the growth of this part of its business. Establishing an entity with scale and diversity comprised of fully contracted assets, the majority of which are renewable, will enhance the ability of both companies to compete for growth and create value for shareholders. Scale and diversification also provide investors with more stable base cash flows.

Investment Data
  • Opportunity Score: 66%
  • Ticker: TSE:RNW
  • Sector: Utilities
  • Industry: Utilities - Independent Power Producers
  • Market Cap: 2.97B
  • P/E: 15.93
  • Dividend Yield: 8.31%
  • Dividend Payout Ratio: 132.34%

Inter Pipeline Limited

IPL - InterPipelineInter Pipeline is a major petroleum transportation, storage and natural gas liquids processing business based in Calgary, Alberta, Canada. IPL owns and operates four business segments operating in western Canada and Europe. Our pipeline systems span over 7,700 kilometers in length and transport approximately 1.3 million barrels per day (b/d). In Europe, IPL operates 16 strategically located petroleum and petrochemical storage terminals that have a combined storage capacity of approximately 27 million barrels. Their NGL business is one of the largest in Canada, processing an average of 3 bcf/d in 2016, with the capacity to produce over 240,000 b/d of NGL.

Investment Data
  • Opportunity Score: 73%
  • Ticker: TSE:IPL
  • Sector: Energy
  • Industry: Oil & Gas - Midstream
  • Market Cap: 8.55B
  • P/E: 14.01
  • Dividend Yield: 7.92%
  • Dividend Payout Ratio: 111.04%

High Liner Foods

High Liner Foods is the leading North American processor and marketer of value-added frozen seafood. The retail branded products are sold throughout the United States, Canada and Mexico under the High Liner, Fisher Boy, Sea Cuisine and C. Wirthy labels, and are available in most grocery and club stores. HLF also sells branded products under the High Liner, Icelandic Seafood, and FPI labels to restaurants and institutions, and are a major supplier of private-label, value-added frozen seafood products to North American food retailers and foodservice distributors.

Investment Data
  • Opportunity Score: 80%
  • Ticker: TSE:HLF
  • Sector: Consumer Defensive
  • Industry: Consumer Packaged Goods
  • Market Cap: 0.25B
  • P/E: 6.05
  • Dividend Yield: 7.83%
  • Dividend Payout Ratio: 47.37%
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Methodology

The top 10 high yield stocks identified are based on the highest yield of dividend stocks excluding REITs within the Canadian Dividend Performance List covering over 120 of the top Canadian stocks. For a REIT list, se the Canadian REIT list.

Please note that generating income with a high yield is a great short-term reward but it’s not without risks. Either a dividend cut is imminent or growth is limited. Make sure you look for the right stock for your portfolio and that you really understand the business you are investing in. I like to look at the Chowder Score to assess growth for both the stock appreciation and the dividend.

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

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.

DISCLAIMER: Please note that this blog post represents my opinion and not an advice/recommendation. I am not a financial adviser, I am not qualified to give financial advice. Before you buy any stocks/funds consult with a qualified financial planner. Make your investment decisions at your own risk – see my full disclaimer for more details.
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