August 8, 2007, 7:00 am

Top 10 Dividend Stocks in Canada

by: The Financial Blogger    Category: Investment, Market and Risk
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First things first, if you are interested in dividend investing, I strongly suggest you to download your free copy of Dividend Investing: How To Build a Never Ending Cash Distributor from The Dividend Guy Blog.
 
 
As markets are fluctuating and investors are getting nervous, it might be interesting for some of us to turn to more conservative stocks. I wrote a previous post about insurance company stocks that was on line with today’s topic. I pulled out 10 high paying dividend stocks on the Canadian market. Here they are:  

TickerNameYieldMarket CapPrice
WFCWALL FINANCIAL19.53000133908080010.1
SPBSUPERIOR PLUS CO14.11121866905611.35
EIFEXCHANGE INCOME10.1220178140815.4
PBHPREMIUM BRANDS H9.00523096240013.05
GCLCOLABOR GROUP8.72326812889612.38
IFIFL INVT FOUNDTN8.64212951740162
ATPATLANTIC POWER8.32280296857613.1
MKPMCAN MORTGAGE CO8.22118246320012.54
CPGCRESCENT POINT7.48907393331237.329998
AGF/BAGF MANAGEMENT-B7.207129672396814.42
  There are many advantages to high paying dividend stocks. One of them is that the dividend helps to protect your investments from inflation. With the inflation rate going up, it might not be a bad idea to start thinking about some protection. These 10 stocks will offer a great protection as their dividend yield is much higher than the expected inflation. The Bank of Canada aims a 1-3% bracket with an ideal 2% of inflation rate. Even BMO that is on the 10th position is still way over that.   High dividend paying stocks also offer a reasonable growth perspective. Therefore, you could benefit from both the dividend and the growth from your stocks. They are usually stable companies that will not explode in term of growth. However, by combining both the dividend and growth, you will get an interesting result.   On the same note, some of the stocks listed above offer a DRIP (Dividend ReInvestment Program). You can then grow you position while the stocks and the dividend might increase as well. This is a good technique in order to average your stock price over time.   Please also note that the dividend is not taxed as regular income or interest income. In fact, it benefits from a preferential tax treatment when you complete your declaration. This is being the scope of this post but I will surely consider writing more about this topic.   Unfortunately, BCE has recently been bought and therefore, will not be available on the market anymore. However, there are still good companies out there. Look into them and you might find your shield against a bear market. ***I just re-edited this post as of August 11th to show the updated yield for each stocks. I kept them in their original ranking so you can appreciate the difference. I wrote this post a long time ago and I did not realize it would impact the yield this much. My apologies. ***

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Comments

They maybe the highest yielding dividends in the Canadian market, but perhaps you should look at companies that have been increasing their dividends steadily over the years. Mergents dividends achievers list will give you some ideas. Also, I think BMO’s yield is up the 4% range these days.

by: The Financial Blogger | August 8th, 2007 (9:03 am)

Good point MDJ,
However, if we take BMO example, they might not have much room to increase their dividend anymore. They are the banks with the highest dividend payout. Unfortunately the past will not grant the future for any stocks :cry:

BMO “may” not pump their dividends higher due to their payout ratio, but that doesn’t mean YOU can’t pump your dividends by buying more BMO shares with the higher yield.

:grin:

by: The Financial Blogger | August 9th, 2007 (7:29 am)

FJ, I you would buy more BMO stocks, you are definitely in a good timing! Most stocks are “in sale” on the market these days!

by: Ron Boutet | January 3rd, 2009 (9:32 am)

I am searching for advice in 2009….your credibility would be better if you updated your website…..i.e. BCE is still alive

by: The Financial Blogger | January 3rd, 2009 (3:00 pm)

Ron,

this post was written in August 2007… I will definitely take a look at creating a new one ;-0

look out our 2009 stock picking contest:
http://www.thefinancialblogger.com/4-stocks-to-consider-in-2009/

[...] Funny enough, I found more interesting dividend paying stocks in the bottom 20. So I thought I would do 2 posts and come back tomorrow with the second part of the top dividend stocks in Canada [...]

by: Vince Bull | August 11th, 2010 (10:54 am)

You listed Norbord NBD.TO 5.00% Yes as a dividend stock. Norbord suspended the dividend paying option in 2008 based upon their website information.

by: The Financial Blogger | August 11th, 2010 (1:26 pm)

@ Vince,

you are right, but this post is dated 2007… I’ll update this chart shortly.

thx!