Top 10 Canadian Dividend Stocks – January 2018

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 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.

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.

Transcontinental Inc

TCL.A - Transcontinental IncTranscontinental Inc., known as TC Transcontinental, has more than 7,000 employees in Canada and the United States, and revenues of C$2.0 billion in 2016. Canada's largest printer with operations in print, flexible packaging, publishing and digital media, TC Transcontinental's mission is to create products and services that allow businesses to attract, reach and retain their target customers. Respect, teamwork, performance and innovation are strong values held by the Corporation and its employees. The Corporation's commitment to all stakeholders is to pursue its business and philanthropic activities in a responsible manner.

  • Opportunity Score: 91%
  • Stock: TSE:TCL.A
  • Sector: Consumer Cyclical
  • Dividend Yield: 3.22%
  • Dividend Payout Ratio: 29.30%
  • 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: 88%
  • Stock: TSE:MRU
  • Sector: Consumer Defensive
  • Dividend Yield: 1.61%
  • Dividend Payout Ratio: 25.19%
  • Technical Trend: Market Trend

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: 87%
  • Stock: TSE:XTC
  • Sector: Consumer Cyclical
  • Dividend Yield: 3.16%
  • Dividend Payout Ratio: 32.00%
  • Technical Trend: Market Trend


ENB - EnbridgeEnbridge exists to fuel people's quality of life and has done so for more than 65 years. A North American leader in delivering energy, Enbridge has been ranked on the Global 100 Most Sustainable Corporations index for the past eight years.Enbridge operates the world's longest crude oil and liquids transportation system and is a North American leader in the gathering, transportation, processing and storage of natural gas.Enbridge is Canada's largest natural gas distribution provider, with about 3.6 million retail customers in Ontario, Quebec, New Brunswick and New York State.Enbridge has interests in nearly 3,000 MW of net renewable generation and power transmission capacity, based on projects in operation or under construction, and continues to expand into wind, solar and geothermal power.
  • Opportunity Score: 86%
  • Stock: TSE:ENB
  • Sector: Energy
  • Dividend Yield: 5.46%
  • Dividend Payout Ratio: 136.94%
  • Technical Trend: Market Trend


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: 83%
  • Stock: TSE:L
  • Sector: Consumer Defensive
  • Dividend Yield: 1.58%
  • Dividend Payout Ratio: 25.78%
  • Technical Trend: Market Trend

Keyera Corp

KEY - Keyera CorpKeyera provides essential services to oil and gas producers in the Western Canada Sedimentary Basin. The fee-for-service based business consists of natural gas gathering and processing, natural gas liquids fractionation, transportation, storage and marketing, iso-octane production and sales, and an industry-leading condensate system in the Edmonton/Fort Saskatchewan area of Alberta.Since 1998, Keyera has developed a strong reputation for their expertise in operating complex energy processing facilities safely and responsibly, in a manner that demonstrates respect for the employees and the communities.
  • Opportunity Score: 80%
  • Stock: TSE:KEY
  • Sector: Energy
  • Dividend Yield: 4.74%
  • Dividend Payout Ratio: 132.28%
  • Technical Trend: Market Trend

George Weston Limited

WN - George Weston LimitedGeorge Weston Limited is a Canadian public company, founded in 1882, engaged in food processing and distribution. The Company has two reportable operating segments: Weston Foods and Loblaw, and holds cash and short-term investments. Supported by a strong balance sheet, the Company seeks long-term, stable growth in its operating segments through continuous capital investment. Weston is committed to creating value for its shareholders and employees, and to supporting the communities in which it operates.
  • Opportunity Score: 80%
  • Stock: TSE:WN
  • Sector: Consumer Defensive
  • Dividend Yield: 1.67%
  • Dividend Payout Ratio: 30.69%
  • Technical Trend: Market Trend

TransCanada Corporation

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.
  • Opportunity Score: 79%
  • Stock: TSE:TRP
  • Sector: Energy
  • Dividend Yield: 4.09%
  • Dividend Payout Ratio: 123.76%
  • Technical Trend: Market Trend


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.
  • Opportunity Score: 79%
  • Stock: TSE:EMA
  • Sector: Energy
  • Dividend Yield: 4.81%
  • Dividend Payout Ratio: 84.64%
  • 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: 79%
  • Stock: TSE:ENF
  • Sector: Energy
  • Dividend Yield: 6.89%
  • Dividend Payout Ratio: 97.31%
  • Technical Trend: Market Trend

Get your list of STRONG Dividend Growth Stocks

Top 5 US Aristocrat Stocks – January 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 -