Top 20 Dividend Stocks – May 2013

Dividend StocksEvery other months, I share the Top 20 Dividend Stocks from my tracking list. It’s pre-filtered by about 150 stocks across Canada and the US. I do track many stocks by sectors and they are mostly large cap as I am mostly investing in blue chip stocks with an economic moat. The purpose of the Top 2o is to highlight the movement of many of the companies and that value buys do come into play every now and again. If you feel a stock might be missing, let me know. I am always interested in tracking good stocks.

For my last three Top 20, Apple (NASDAQ:AAPL) has been owning the crown of best valued company in my list and yet I continue to resist buying it. My investing strategy is for the long term and with Apple, it’s really hard to assess the long term and the highly competitive mobile landscape. When I say long term, I mean 10 + years… The cash on hand is making new buyers jump in feeling good about the dividends. I know we are all waiting for the next innovation and that’s why the company stock price is getting punished. Will it continue to be an innovator or just another electronic company? For those owning Apple, will you jump in Google if they start a dividend? They also have a lot of cash on hand. If not, why and what’s the difference? Google has more of an economic moat with advertisement than Apple with a phone. I personally would pick GOOG over AAPL if Google was to initiate a dividend with a growth target. What about you?

Top 20 Dividend Stocks – Technical Screening

Dividend Snapshot
Below are the values I used in my technical screening system. You may find the range to be wider than necessary but it’s required to have more stocks in the screener to compare. I need to be able to see more stocks in order to compare as trends can come into play. That’s why the end value is normalize to 1 in order to weight each criteria effectively. I don’t buy purely from the filter but it does indicate stocks to be on the look out for. Sometimes a dividend increase will give a boost and in other cases, it’s the lower stock price.

I have also removed the REITs from the list as the comparison is not really possible. The REITs need to be looked at differently and the payout ratio isn’t comparative to the corporations.

The Canadian Banks are still rocking. I own the big 6 and they pay well. I am not sure what the growth is going to be in the coming years but they certainly pay well and I am one of those that don’t believe we will see a market crash just yet with the mortgage industry.

  • P/E : Target is 15
  • 52 Week Range : The lower in the range the higher the score for an entry point
  • Yield : Normalized up to 6% (this one is manual)
  • Payout Ratio : Between 25% and 65%
  • Market Cap : Bonus multiplier with a target of $20B or more (+/- 10%). I normalize it between 0.9 and 1.1 and use that to multiply my previous total of the first 4 criteria.
  • Liability-to-Equity Ratio : Anything below 1.00 gets a full score and it goes down from there.
TickerCompanyQuoteP/EEPSMarket CapDebt RatioYieldPayout RatioValue Metric
AAPLApple$433.2610.34$41.89407.310.542.82%29.12%0.98
NA.TONational Bank$74.187.92$9.3712.0304.48%35.43%0.94
CM.TOCIBC$78.8210.07$7.8331.6804.77%48.02%0.93
IMO.TO* Imperial Oil$40.069.6$4.1733.950.791.20%11.51%0.92
G.TOGoldcorp$26.5814.73$1.8121.580.362.26%33.15%0.89
INTCIntel Corporation$24.0411.99$2118.900.653.74%45.00%0.88
BMO.TOBank of Montreal$62.1810.28$6.0540.5404.76%48.93%0.87
TD.TOTD Bank$82.8211.7$7.0876.2403.91%45.76%0.85
BNS.TOScotia Bank$58.7611.15$5.2770.0404.29%47.82%0.85
LB.TOLaurentian Bank$43.398.85$4.91.2304.52%40.00%0.83
TCK.BTeck Resources$27.9817.93$1.5616.230.932.86%51.28%0.82
RY.TORoyal Bank$62.1712.21$5.0989.9204.05%49.51%0.79
XOM** Exxon Mobile Corp$91.769.36$9.81408.000.942.48%23.24%0.78
CVXChevron$123.429.33$13.23239.310.692.92%27.21%0.78
AGU.TOAgrium$93.849.64$9.7413.981.311.09%10.47%0.77
CNQ.TO* Canadian National Resources$30.3919.89$1.5333.140.981.65%32.68%0.74
HSE.TOHusky$30.2415.17$1.9929.720.833.97%60.30%0.73
BPO.TOBrookefield Office Properties$19.298.94$2.1611.111.052.90%25.93%0.71
CWB.TOCanadian Western Bank$28.6312.71$2.252.2602.38%30.22%0.71
IFC.TO* Intact Financial$59.4513.94$4.269.123.052.96%41.31%0.70
The double star (**) highlights a US Dividend Aristocrat and the single star (*) indicates a Canadian Dividend Aristocrat.

Top 20 Dividend Stocks – Dividend Yield

This section could simply raise the  red flag yield or show you some good income producing investments as a high yield stock.

TickerCompanyQuoteP/EEPSMarket CapDebt RatioYieldPayout RatioValue Metric
AGF.B* AGF Management$12.0942.57$0.281.080.608.93%385.71%0.29
TA.TOTransAlta$15.46#N/A-$3.174.051.837.50%-36.59%#N/A
ATP.TOAtlantic Power Corp$4.95#N/A-$0.600.592.377.27%-60.00%#N/A
CPG.TOCrescent Point Energy$38.2461.02$0.6314.630.407.22%438.10%0.43
COS.TOCanadian Oil Sand$20.5712.33$1.679.971.256.81%83.83%0.44
BA.TOBell Alliant$28.148.63$3.266.410.006.75%58.28%0.53
ERF.TOEnerplus Corp$16.32#N/A-$0.783.240.776.62%-138.46%#N/A
AX.UNArtis REIT$16.635.72$2.912.091.146.49%37.11%0.59
EIF.TOExchange Income Fund$26.0421.60$1.210.541.136.45%138.84%0.35
KEG.UNThe Keg Royalty Income Fund$15.2566.05$0.230.170.176.30%417.39%0.22
PBH.TOPremium Brands Holding Corp$18.6025.45$0.730.391.996.24%158.90%0.23
CUF.UNCominar$23.617.95$2.972.951.086.10%48.48%0.65
LIQ.TOLiquor Store Income Fund$18.0321.99$0.820.410.585.99%131.71%0.62
RSI.TORogers Sugar$6.0114.55$0.410.571.085.66%82.93%0.60
DH.TODavis + Henderson$23.2719.26$1.211.380.845.50%105.79%0.46
MBT.TOManitoba Telecom$31.8113.85$2.302.152.385.34%73.91%0.56
CWT.UNCalloway REIT$29.233.94$7.413.860.785.30%20.91%0.85
HR.UNH&R REIT$24.579.03$2.724.801.315.19%46.89%0.79
ENF.TO* Enbridge Income Fund$26.3517.40$1.511.490.035.12%89.40%0.45
KMPKinder Morgan Energy$88.3841.23$2.1433.661.775.02%207.48%0.43

I maintain a list of my holdings in the Dividend Income section. It does not change very often since I am long with my investments and my dividend investing strategy. Have a look at my monthly dividend income since 2010.

If you are researching stocks, here are posts I have written to help others do their own research:

Readers: Any surprises in the list?

Disclaimer: I own a number of stocks listed, see my holdings in the Dividend Income section for a full list.

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 decision at your own risk – see my full disclaimer for more details.

Image: renjith krishnan / FreeDigitalPhotos.net

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