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 or just simply beaten down.
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
Canadian Natural Resources
Canadian Natural Resources manages a balanced mix of natural gas, light crude oil, heavy crude oil, bitumen and synthetic crude oil (SCO). It represents one of the strongest and most diversified asset portfolios of any independent energy producer in the world.
The Company has completed its transition to a Long Life Low Decline asset base through the development of its Horizon oil sands mine, its vast thermal in situ opportunities and the expansion of it world class polymer project at Pelican Lake. CNQ operates in 4 major segments; natural gas, North America crude oil and NGLs, oil sands mining and upgrading, and international crude oil.Investment Data
Transcontinental 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.Investment Data
Suncor 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.Investment Data
For 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.Investment Data
Lassonde is the North American leader in the development, manufacture and sale of fruit and vegetable juices and beverages, and it is Pierre-Paul Lassonde, son of Willie Lassonde, who ensures that his grandparents’ passion is passed on to future generations.
Generation after generation, the company and its dedicated employees have continued to excel and innovate in order to push the limits of the agri-food industry. Always for the well-being of families.Investment Data
- Opportunity Score: 83%
- Ticker: TSE:LAS.A
- Sector: Consumer Defensive
- Industry: Beverages - Non-Alcoholic
- Market Cap: 1.41B
- P/E: 16.01
- Dividend Yield: 1.61%
- Dividend Payout Ratio: 25.80%
Magna is a leading global automotive supplier with 312 manufacturing operations and 98 product development, engineering and sales centres in 29 countries. Magna has over 155,000 employees focused on delivering superior value to our customers through innovative processes and World Class Manufacturing.Investment Data
Cogeco Inc. is a diversified holding corporation which operates in the communications and media sectors. Through its Cogeco Communications Inc. subsidiary, Cogeco provides its residential and business customers with Internet, video and telephony services through its two-way broadband fibre networks.
Cogeco Communications Inc. operates 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. Through 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. Through its subsidiary Cogeco Media, Cogeco owns and operates 13 radio stations across most of Québec with complementary radio formats serving a wide range of audiences as well as Cogeco News, its radio news agency.Investment Data
Laurentian 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.Investment Data
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.
Dividend growth investing works and you can generate a healthy retirement income but you have to buy individual stocks. If you are not comfortable with holding individual stocks, you can always buy dividend ETFs or consider different passive income ideas to generate a retirement income.
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.