Top 10 Canadian Dividend Stocks – August 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 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: 3.02%
  • 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: 83%
  • Stock: TSE:CM, NYSE:CM
  • Sector: Financial Services
  • Dividend Yield: 4.68%
  • Dividend Payout Ratio: 42.30%
  • Technical Trend: Technical Trend Analysis

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: 7.36%
  • Dividend Payout Ratio: 49.60%
  • 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 - SmallDividend AmbassadorBased 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.

Suncor

SU - SmallDividend AmbassadorSuncor (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 their operations, Suncor intends to achieve production of one million barrels of oil equivalent per day.

Emera

TSE:EMAEmera Inc. is a geographically diverse energy and services company headquartered in Halifax, Nova Scotia with approximately $27.5 billion in assets and 2015 pro-forma revenues of $ 6.3 billion. 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 continues to target having 75-85% of its adjusted earnings come from rate-regulated businesses.

Metro Inc.

TSE:MRUDividend AmbassadorMetro 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: 79%
  • Stock: TSE:MRU
  • Sector: Consumer Defensive
  • Dividend Yield: 1.53%
  • Dividend Payout Ratio: 26.53%
  • Technical Trend: Technical Trend Analysis

SNC-Lavalin

SNC - SmallDividend AmbassadorFounded in 1911, SNC-Lavalin (TSE:SNC) is a global fully integrated professional services and project management company and a major player in the ownership of infrastructure. SNC provides comprehensive end-to-end project solutions – including capital investment, consulting, design, engineering, construction, sustaining capital and operations and maintenance – to clients in oil and gas, mining and metallurgy, infrastructure and power.

Gluskin Sheff + Associates Inc

Gluskin Sheff + Associates Inc.(TSE:GS) is one of Canada’s pre-eminent wealth management firms. Founded in 1984 and serving high net worth private clients and institutional investors, we are dedicated to meeting the needs of our clients by delivering strong risk-adjusted returns together with the highest level of personalized client service.

  • Opportunity Score: 78%
  • Stock: TSE:GS
  • Sector: Financial Services
  • Dividend Yield: 5.96%
  • Dividend Payout Ratio: 76.34%
  • Technical Trend: Technical Trend Analysis

Dividend Snapshot

Dividend SnapshotDon’t limit yourself to the Top 10 stocks!

No portfolio can be built by just looking at 10 stocks. What if the 11th stock was so close to the 10th? and then what about the next one?

Get the full list sorted by the opportunity score and go further by using any sort and filtering criteria you wish with the Dividend Snapshot Dividend List.

With the full list, you can choose which sector you want to focus on or the industry for that matter. When you have a decent size portfolio, it’s about finding the right fit and not just picking a stock out of greed.

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.

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

Image courtesy of David Castillo Dominici – FreeDigitalPhotos.net