Top 10 Canadian Dividend Stocks – May 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.

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.

Ranking Details – How To Read The Opportunity Score

The Opportunity Score formula is purely quantitative based on current and historical data.

A score above 80% can be attributed to a stock beaten down or an adjustment in fundamentals. Aggressive investors can see opportunities in those stocks whereas others might still see risks.

A score between 60% and 80% usually highlights a strong company with consistency. It’s often the range you want to focus on to find an opportunity in a sector by comparing the competitions. For example, which bank should you invest in next?

Very few holdings are usually in the 80% range and most of them move out relatively quickly as investor get back in. SNC Lavalin (TSE:SNC) was an exception for a while due to the potential litigation it was facing and it now has a score in the low 60%.

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.

First National Financial Corporation

Over the last 25 plus years, First National (TSE:FN) has grown to become a recognized and respected leader in real estate financing. On both the residential and commercial sides of our business, FN has grown and evolved, yet have maintained true to their values – trust, honesty, transparency, delivery, ingenuity, responsiveness and partnership.

Their mortgage specialists have earned a reputation for delivering exceptional service underscored by unparalleled knowledge. That reputation is a collective one. It’s not one individual or even a group of individuals standing out from the crowd. Going beyond service is ingrained in how they do business, in how they operate, in how they innovate and in how they deliver.

  • Opportunity Score: 82%
  • Stock: TSE:FN
  • Sector: Financial Services
  • Dividend Yield: 7.40%
  • Dividend Payout Ratio: 56.58%
  • Technical Trend: Technical Trend Analysis

First Capital Realty Inc.

FCR - SmallFirst Capital Realty (TSE:FCR) develops, owns and operates urban retail properties that deliver a strategic mix of leading retailers who together provide communities with their daily shopping needs. FCR strongly believes by investing in urban shopping centres, they help neighbourhoods flourish as vibrant communities.

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: 81%
  • Stock: TSE:XTC
  • Sector: Consumer Cyclical
  • Dividend Yield: 2.72%
  • Dividend Payout Ratio: 26.89%
  • Technical Trend: Technical Trend Analysis

CIBC

CIBC (TSE:CM, NYSE:CM) 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: 81%
  • Stock: TSE:CM, NYSE:CM
  • Sector: Financial Services
  • Dividend Yield: 4.67%
  • Dividend Payout Ratio: 43.16%
  • Technical Trend: Technical Trend Analysis

Bird Construction Inc.

Bird Construction (TSE:BDT) operates from 12 offices across Canada serving the heavy industrial market in all provinces as well as serving the industrial, commercial and institutional (ICI) markets in all provinces with the exception of Quebec. The work of the company is split almost evenly between the heavy industrial market and the ICI sector.

Bird is well-respected in the construction industry for its strong operational capabilities. The strategic focus of Bird is to secure and execute challenging projects that take advantage of the technical strength of the company and its talented employees in order to generate superior and sustainable margins. In the industrial market, Bird self-performs concrete, civil and underground works and also undertakes contracts to design-build process and non-process buildings, often on remote sites. In the ICI sector, the company concentrates on design-build and other technically and logistically complex projects including those in the public-private partnership market..

  • Opportunity Score: 80%
  • Stock: TSE:BDT
  • Sector: Industrials
  • Dividend Yield: 4.17%
  • Dividend Payout Ratio: 66.10%
  • Technical Trend: Technical Trend Analysis

Genworth MI Canada Inc.

TSE:MICGenworth MI Canada Inc. (TSE:MIC) through its subsidiary, Genworth Financial Mortgage Insurance Company Canada (Genworth Canada), is the largest private residential mortgage insurer in Canada. The Company provides mortgage default insurance to Canadian residential mortgage lenders, making homeownership more accessible to first-time homebuyers. For more than two decades, Genworth Canada has supported the housing market by providing thought leadership and a focus on the safety and soundness of the mortgage finance system.

  • Opportunity Score: 77%
  • Stock: TSE:MIC
  • Sector: Financial Services
  • Dividend Yield: 5.22%
  • Dividend Payout Ratio: 42.72%
  • Technical Trend: Technical Trend Analysis

Imperial Oil

Imperial (TSE:IMO) is Canada’s largest refiner of petroleum products. Imperial refines raw hydrocarbons into about 650 petroleum products essential to consumers and businesses: gasoline, diesel, heating oil, natural gas, lubricants, and chemicals used to make plastics. It’s hard to imagine life without the products manufactured from hydrocarbons. They fuel our economies, heat our homes and make our lives easier and more enjoyable. Like you, Imperial is concerned about the effects of chemicals on health and the environment and we have integrated Responsible Care® into our business practices.

Imperial offers products and services to consumers across Canada as well as in export markets.  In total, we manufacture and sell about a quarter of the petroleum products used every day by Canadians.  We are a leading marketer of fuels, lubricants, asphalts and specialty products.

  • Opportunity Score: 77%
  • Stock: TSE:IMO
  • Sector: Energy
  • Dividend Yield: 1.53%
  • Dividend Payout Ratio: 19.61%
  • Technical Trend: Technical Trend Analysis

Canadian Utilities

Alberta-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).

  • Opportunity Score: 75%
  • Stock: TSE:CU
  • Sector: Utilities
  • Dividend Yield: 3.63%
  • Dividend Payout Ratio: 65.00%
  • Technical Trend: Technical Trend Analysis

High Liner Foods Inc

High Liner Foods (TSE:HLF) 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.

  • Opportunity Score: 74%
  • Stock: TSE:HLF
  • Sector: Consumer Defensive
  • Dividend Yield: 3.10%
  • Dividend Payout Ratio: 38.62%
  • 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