September 24, 2009, 6:24 am

Top 20 Canadian Dividend Stocks

by: The Financial Blogger    Category: Canadian Dividend Stocks,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. I’ve also created a unique resources about Canadian Dividend Stocks.

On the Canadian stock market, we find a lot of great dividend paying companies. Considering the economic context, I would rather invest in a Canadian corporation than any other companies. Since the banking system has proven to be as solid as rock, Canadian stocks have their feet on solid ground enabling them to jump even higher. If you had missed yesterday’s post, you will find the top 10 Canadian dividend stocks. In order to build the top 10 Canadian Dividend Stocks, we used some severe criteria (such as a minimum dividend growth requirement and dividend payout ratio under 70%).

Unfortunately, 10 Canadian dividend stocks might not be enough to build a solid dividend portfolio. In order to find more high quality dividend stocks, I have changed some of my search criteria. Here’s how I have created the best 20 Canadian Dividend Stocks:

-          Dividend minimum yield: 3%

-          Dividend maximum yield: no maximum

-          Dividend payout ratio: under 80%

-          P/E ratio: under 20

There are obviously some overlaps with the top 10 but it still gives you more options with softer search criteria. The goal of this list is to include stocks that might be overpriced or having a higher dividend payout ratio due to specific and known situations. This can enlarge your scope and give you more options to include Canadian dividend stocks in your portfolio.

***last edit May 11th 2012***

 

TickerNamePriceDividend YieldPayout RatioPE_RATIO
SCUSecond Cup Ltd/The7.298.2311.175.4
CHWChesswood Group Ltd7.318.2134.0213.05
CFXCanfor Pulp Products Inc12.317.1558.6712.19
TATransAlta Corp16.58766.913.93
SPS/ASportscene Group Inc8.756.8664.4910.29
DHDavis & Henderson Corp19.286.4369.5911.98
WJXWajax Corp50.826.3855.7813.44
PWTPenn West Petroleum Ltd17.086.3279.3112.47
RSIRogers Sugar Inc5.556.1373.9818.5
COSCanadian Oil Sands Ltd23.056.0746.599.64
ADAlaris Royalty Corp19.55.8551.5319.9
GNVGenivar Inc26.55.6678.6213.87
MICGenworth MI Canada Inc20.585.6433.656.53
BCEBCE Inc405.4371.0312.66
FRCCanyon Services Group Inc11.45.2607.55
PMPrism Medical Ltd6.055.2547.4310.8
CFCanaccord Financial Inc7.675.2219.5811.45
CETCathedral Energy Services Ltd5.925.0732.588.97
TCL/BTranscontinental Inc11.445.0540.15.75
CFNCarfinco Financial Group Inc8.355.0368.9911.88

The first thing I liked when I pulled out the top 20 dividend paying stocks is that they are all over 3% (which is about the rate for a 5 years certificate of deposits). But what is even more interesting is that dividend income is less taxed than interest income. Therefore, the 3% dividend yield worth a lot more than the 3% from a CD.

Top Canadian Dividend Stocks = Financial Sector

Among the top 20 Canadian Dividend Stocks, you find a lot of financials. It is normal as the financial sector represent more than 20% of the Canadian Stock Market. Canadian Banks are heavily regulated and evolve in a ogopoly. These 2 factors contribute to make them some of the best Canadian Dividend payers on the stock market. Overtime, they have built a reputation of dividend stocks and now most Canadian investors count on banks in their portfolio to bring both capital growth and dividend growth. If you are looking to build a Canadian Dividend portfolio, Canadian banks should be place at the core of your investment account.

There are more to the Top 20 Canadian Dividend Stocks

However, you are also able to find other solid companies paying great dividends. After the 2008 stock market crash, others companies have proven that they are as solid as a rock. Communications and medias seem to be the next big dividend payer in Canada. They actualy evolve in a similar type of market as banks since they don’t have much competitors. Therefore, each of them have their fair share of the market and generate enough cash flow to constantly increase their dividend payouts. This is why they are among the best 20 Canadian Dividend Stocks.

Questrade Democratic Pricing - 1 cent per share, $4.95 min / $9.95 max



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Comments

[...] The Financial Blogger posted a list of top 20 Canadian dividend stocks. [...]

I like your stuff—would like to follow.

by: The Financial Blogger | September 25th, 2009 (12:56 pm)

You just have to click on the RSS feed and you will receive all my article via emails.

enjoy!

[...] 20 Canadian Dividend [...]

Good stuff!!

Question for all….

If you were able to invest $10,000 right now, in one or more of these stocks, which ones would you invest in and why?

by: The Financial Blogger | September 27th, 2009 (8:53 pm)

I’d say it depends on your goal and your capacity to handle fluctuations ;-)

I personally really like bank stocks!

I absolutely love this post and how you made it into a sequel. Great content. I think the blue chips you mention are good companies that are still offering quality yields.
Good stuff

[...] counting the dividend yield in the Best stocks 2009 contest BNS is definitely part of the best Canadian dividend stocks as it would be giving a 5.8% dividend yield considering my purchase price (which was very low!). I [...]

[...] Top 20 Canadian Dividend Stocks posted at The Financial Blogger, saying, “Considering the economic context, I would rather invest in a Canadian corporation than any other company. Since the banking system has proven to be as solid as rock, Canadian stocks have their feet on solid ground enabling them to jump even higher.” [...]

[...] @ GLBL presents Top 20 Canadian Dividend Stocks posted at The Financial Blogger, saying, “Considering the economic context, I would rather [...]

Would you please tell me if these numbers are up to date because I was on another site and the numbers were totally different.
Also where can I find the company financials like yahoo,and how long they have been paying these dividends.
Any information would be appreciated.
I think you left out BCE they pay 6%

by: The Financial Blogger | November 19th, 2009 (6:45 am)

Tony,
the price are as of Sept 16th. I’ll do an update shortly ;-)

BCE is part of the top 10 (this is the top 11-20). You can look at the other post (link is at the beginning of the post).

thx!

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