Top 10 Canadian Dividend Stocks – September 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.

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 (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: 89%
  • Stock: TSE:XTC
  • Sector: Consumer Cyclical
  • Dividend Yield: 3.25%
  • Dividend Payout Ratio: 29.91%
  • 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: 86%
  • Stock: TSE:CM, NYSE:CM
  • Sector: Financial Services
  • Dividend Yield: 4.96%
  • Dividend Payout Ratio: 47.27%
  • Technical Trend: Technical Trend Analysis

Suncor

SU - SmallSuncor (TSE:SU) 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.

Metro Inc.

TSE:MRUMetro Inc. (TSE:MRU) 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: 1.59%
  • Dividend Payout Ratio: 25.90%
  • Technical Trend: Technical Trend Analysis

Canadian Pacific

CP - SmallCanadian Pacific (TSE:CP) is one of Canada’s oldest and most recognizable companies. With operations in both Canada and the United States, CP is capable of serving 14 markets. Through its terminals, CP is capable of reaching 4 major ports; Vancouver, Montreal, New York and Philadelphia.

ATCO

ACO.X - SmallBased in Alberta, ATCO (TSE:ACO.X) 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 share owners..

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).

  • Opportunity Score: 81%
  • Stock: TSE:CU
  • Sector: Consumer Cyclical
  • Dividend Yield: 3.65%
  • Dividend Payout Ratio: 66.82%
  • Technical Trend: Technical Trend Analysis

Bank of Montreal

BMO - SmallEstablished in 1817, BMO Financial Group is a highly diversified financial services provider based in North America. With three separate entities, BMO is servicing different segments across North America.

BMO Bank of Montreal® provides personal and commercial banking business, BMO Nesbitt Burns®*, one of Canada’s leading wealth management firms, provides wealth management and BMO Capital MarketsTM provides North American investment and corporate banking.

First National Financial Corporation

FN - SmallOver 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: 80%
  • Stock: TSE:FN
  • Sector: Financial Services
  • Dividend Yield: 7.15%
  • Dividend Payout Ratio: 49.60%
  • Technical Trend: Technical Trend Analysis

Saputo

Saputo (TSE:SAP) produces, markets, and distributes a wide array of dairy products of the utmost quality, including cheese, fluid milk, extended shelf-life milk and cream products, cultured products and dairy ingredients.

Saputo is one of the top ten dairy processors in the world, the largest cheese manufacturer and the leading fluid milk and cream processor in Canada, one of the top three dairy processors in Argentina, and among the top four in Australia.

In the US, Saputo ranks among the top three cheese producers and is one of the largest producers of extended shelf-life and cultured dairy products. Our products are sold in several countries under well-known brand names such as Saputo, Alexis de Portneuf, Armstrong, COON, Cracker Barrel*, Dairyland, DairyStar, Friendship Dairies, Frigo Cheese Heads, La Paulina, Milk2Go/Lait’s Go, Neilson, Nutrilait, Scotsburn*, Stella, Sungold, Treasure Cave and Woolwich Dairy

  • Opportunity Score: 80%
  • Stock: TSE:SAP
  • Sector: Consumer Defensive
  • Dividend Yield: 1.42%
  • Dividend Payout Ratio: 31.58%
  • Technical Trend: Technical Trend Analysis

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 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.

Disclosure: At the time of writing, I own shares in TSE:CM, TSE:SU, TSE:MRU, TSE:EMA, TSE:BMO, TSE:SAP. See my list of holdings for a full list of holdings.
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