Top 10 Canadian Dividend Stocks – June 2018

Top 10 CDN - June 2018While 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 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. Some of the companies are strong blue chip stocks while others are smaller companies with growth.

Top 10 Canadian Dividend Stocks

Here are the top 10 Canadian dividend stocks for this month, 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.

Stay on top of your next investment decision with the Dividend Snapshot Canadian Dividend Performance List. Review the Chowder Rule along with the 3, 5, and 10 year ratios for dividend growth, EPS growth and the payout ratio to pick a solid investment for your portfolio.

The monthly top 10 rarely have the same top 10 stocks. Be sure to come back, or better yet, follow the top 10 with the Canadian Dividend Performance List.

Get your list of STRONG Dividend Growth Stocks
DISCLOSURE: Please note that links to merchants mentioned within this post might be using an affiliate link. Using an affiliate link means that, at zero cost to you, I might earn a commission if you buy something through that affiliate link.

TransCanada

TRP - TransCanada PipelineFor more than 65 years, TransCanada has proudly operated pipelines, storage facilities and power-generation plants that support life in Canada, the U.S. and Mexico.TransCanada's focus is on large scale, long-life assets with the goal of generating sustainable returns for decades to come.

Cogeco Communication

CCA - Cogeco Cable IncCogeco Communications Inc. is a communications corporation. It is the 8th largest cable operator in North America, operating in Canada under the Cogeco Connexion name in Québec and Ontario, and in the United States under the Atlantic Broadband name in 11 states along the East Coast, from Maine to Florida.

Cogeco Communications Inc. provides its residential and business customers with Internet, video and telephony services through its two-way broadband fibre networks. Through its subsidiary Cogeco Peer 1, Cogeco Communications Inc. provides its business customers with a suite of information technology services (colocation, network connectivity, hosting, cloud and managed services), through its 16 data centres, extensive FastFiber Network® and more than 50 points of presence in North America and Europe.

Emera

EMA - EmeraEmera Inc. is a geographically diverse energy and services company headquartered in Halifax, Nova Scotia. 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 companies are working to create cleaner energy and deliver it to market. The company maintains high standards in safety, reliability, customer service and environmental care.

Laurentien Bank

LB - Laurentian BankLaurentian Bank of Canada is a financial institution whose activities extend mainly across Canada. Founded in 1846, its mission is to help customers improve their financial health and it is guided by values of proximity, simplicity and honesty.

The Bank is a major player in numerous market segments. The Bank caters to the needs of retail clients via its branch network based in Quebec. The Bank also stands out for its know-how among small and medium-sized enterprises and real estate developers owing to its specialized teams across Canada. Its subsidiary B2B Bank is, for its part, one of the major Canadian leaders in providing banking products and services and investment accounts through financial advisors and brokers. Laurentian Bank Securities offers integrated brokerage services to a clientele of institutional and retail investors.

Metro Inc.

TSE:MRUMetro Inc. 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.

Exco Technologies

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

Loblaw

L - LoblawLoblaw is Canada's food and pharmacy leader, with a network of corporate and independently- operated stores in communities across the country, and employing close to 200,000 Canadians.Loblaw's purpose – Live Life Well – supports the needs and well-being of Canadians who make one billion visits each year to the company’s stores. Loblaw is positioned to meet and exceed those needs in many ways: convenient locations that span the value spectrum from discount to specialty; full-service pharmacies; no-fee banking; affordable fashion and family apparel; and, three of Canada's top consumer brands in President's Choice®, Life Brand®, and no name®.Loblaw operates six independent divisions; market, Shoppers Drug Mart, discount, emerging business, financial, and Joe Fresh.

Canadian Utilities

CU - SmallAlberta-based Canadian Utilities Limited (TSE:CU), with approximately 5,400 employees and assets of $19 billion, is an ATCO Company. ATCO is a diversified global corporation delivering service excellence and innovative business solutions in Structures & Logistics (workforce housing, innovative modular facilities, construction, site support services, and logistics and operations management); Electricity (electricity generation, transmission, and distribution); Pipelines & Liquids (natural gas transmission, distribution and infrastructure development, energy storage, and industrial water solutions); and Retail Energy (electricity and natural gas retail sales).

Bank of Nova Scotia

BNS - SmallScotiabank is Canada’s international bank and a leading financial services provider in North America, Latin America, the Caribbean and Central America, and Asia-Pacific. Scotiabank is dedicated to helping our 24 million customers become better off through a broad range of advice, products and services, including personal and commercial banking, wealth management and private banking, corporate and investment banking, and capital markets.

Scotiabank provides a full suite of financial advice and banking solutions, supported by an excellent customer experience, to over 10 million Retail, Small Business, Commercial Banking, and Wealth Management customers. It serves these customers through its network of 963 branches and more than 3,600 automated banking machines (ABMs), as well as internet, mobile and telephone banking and specialized sales teams. Canadian Banking also provides an alternative self-directed banking solution to over two million Tangerine Bank customers.

Telus

TSE:TTelus is the 3rd largest telecom in Canada after Bell and Rogers Communications 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. Get your list of STRONG Dividend Growth Stocks

Top 5 US Aristocrats – March 2018

Opportunity Score Formula

The top 10 stocks identified above 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 pullback 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?

The generated score is meant to assess an entry point opportunity based on historical and today’s numbers. It completely ignores the business quality, the quality of the company is for every investor to assess. My stock selection process breaks down the quantitative and qualitative assessments investors should establish to pull the trigger before buying.

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.

Image courtesy of David Castillo Dominici - FreeDigitalPhotos.net