Top 10 Canadian Dividend Stocks – November 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 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 is a summary of 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.

Get your list of STRONG Dividend Growth Stocks

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.

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.

Exco Technologies Limited

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.

  • Opportunity Score: 86%
  • Stock: TSE:XTC
  • Sector: Consumer Cyclical
  • Dividend Yield: 3.06%
  • Dividend Payout Ratio: 29.91%
  • Technical Trend: Market Trend

Methanex Corporation

MX - Methanex CorpHeadquartered in Vancouver, Canada, Methanex currently operates production sites in Canada, Chile, Egypt, New Zealand, Trinidad and Tobago and the United States.

The global operations are supported by an extensive global supply chain of terminals, storage facilities and the world’s largest dedicated fleet of methanol ocean tankers.

In 2012, Methanex embarked on a global brand journey to help define their key brand differentiator. Through a process of identifying what is important to stakeholders around the globe, they discovered it to be The Power of Agility®.

  • Opportunity Score: 84%
  • Stock: TSE:MX
  • Sector: Basic Materials
  • Dividend Yield: 2.37%
  • Dividend Payout Ratio: 39.12%
  • Technical Trend: Market Trend

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.

  • Opportunity Score: 85%
  • Stock: TSE:MRU
  • Sector: Consumer Defensive
  • Dividend Yield: 1.58%
  • Dividend Payout Ratio: 25.90%
  • Technical Trend: Market Trend

Canadian Utilities

CU - SmallAlberta-based Canadian Utilities Limited, 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).

  • Opportunity Score: 82%
  • Stock: TSE:CU
  • Sector: Consumer Cyclical
  • Dividend Yield: 3.71%
  • Dividend Payout Ratio: 70.10%
  • Technical Trend: Market Trend

Suncor

SU - SmallSuncor has grown to become a globally competitive integrated energy company with a balanced portfolio of high-quality assets, a strong balance sheet, and significant growth prospects. Across our operations, we intend to achieve production of one million barrels of oil equivalent per day.

  • Opportunity Score: 81%
  • Stock: TSE:SU
  • Sector: Energy
  • Dividend Yield: 2.96%
  • Dividend Payout Ratio: 59.26%
  • Technical Trend: Market Trend

ATCO

ACO.X - SmallBased in Alberta, ATCO is one of Canada’s premier corporations. ATCO Group is a $20 billion enterprise with approximately 7,000 employees, engaged in Structures & Logistics, Electricity, Pipelines & Liquids, and Retail Energy.

From the safe and reliable delivery of natural gas and electricity to providing modular housing and water infrastructure solutions, ATCO has a consistent record of quality service and products, customer satisfaction, an excellent safety record and sustainable growth for our shareowners.

  • Opportunity Score: 83%
  • Stock: TSE:ACO.X
  • Sector: Utilities
  • Dividend Yield: 2.80%
  • Dividend Payout Ratio: 51.78%
  • Technical Trend: Market Trend

Uni-Select

UNS - Uni-SelectFounded in 1968 in Boucherville, QC and now work coast to coast in Canada, in the United Kingdom and 33 U.S. states.

Uni-Select is the leader in the distribution of automotive refinish and industrial paint and related product in North America, as well as a leader in the automotive aftermarket parts business in Canada and the United Kingdom.

  • Opportunity Score: 80%
  • Stock: TSE:UNS
  • Sector: Consumer Cyclical
  • Dividend Yield: 1.34%
  • Dividend Payout Ratio: 22.29%
  • Technical Trend: Market Trend

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.

  • Opportunity Score: 77%
  • Stock: TSE:L
  • Sector: Consumer Defensive
  • Dividend Yield: 1.60%
  • Dividend Payout Ratio: 36.12%
  • Technical Trend: Market Trend

Enbridge Income Fund Holdings Inc

When Enbridge Income Fund 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.

  • Opportunity Score: 76%
  • Stock: TSE:ENF
  • Sector: Energy
  • Dividend Yield: 6.87%
  • Dividend Payout Ratio: 96.85%
  • Technical Trend: Market Trend

CIBC

CIBC is a leading Canadian-based financial institution. Through three main business units – Retail and Business Banking, Wealth Management and Capital Markets – CIBC provides a full suite of financial products and services in Canada and around the world.

  • Opportunity Score: 74%
  • Stock: TSE:CMNYSE:CM
  • Sector: Financial Services
  • Dividend Yield: 4.59%
  • Dividend Payout Ratio: 47.27%
  • Technical Trend: Market Trend

Get your list of STRONG Dividend Growth Stocks

Past Top 10 Dividend Stocks


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 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?

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