Top 20 Canadian Dividend Stocks

Now leaving the world of income trusts, we dig further down the TSX 60.  We find a lot of great dividend paying companies. 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. If you had missed yesterday’s post, you will find the top 10 Canadian dividend stocks as of November 23rd 2009. Today, we are looking at positions 11 through 20:

NAME	TICKER	PRICE (AS OF NOV 23rd 09)	DIVIDEND YIELD
Husky Energy Inc	HSE	$28.27	4.65%
TransCanada Corp	TRP	$33.61	4.50%
Shaw Communications Inc	SJR	$19.84	4.36%
Sun Life Financial Inc	SLF	$29.1	4.29%
Bank of Nova Scotia	BNS	$49.08	4.27%
National Bank of Canada	NA	$63.38	4.27%
Canadian Oil Sands Trust	COS-U	$30.13	4.23%
Fortis Inc/Canada	FTS	$26.59	4.20%
Manulife Financial Corp	MFC	$18.7	4.04%
Power Corp of Canada	POW	$26.52	3.96%

The first thing I liked when I pulled out the top 20 dividend paying stocks is that they are all over 4% (let’s give a little push to Enbridge at 3.98% ). While you will have a hard time finding a CD giving you 3.75% over 5 years, you have the opportunity to look at solid Canadian companies paying 4 to 5% in dividends.

You are right, I should not compare dividend stocks to CDs; dividends are actually more tax efficient . Seriously though folks, there is a much bigger risk attached to any stock when compared to certificates of deposit. However, if you are able to live with the fluctuations (you probably have a good idea of your risk tolerance since September 2008), you should agree with me that Canadian dividend stocks have never been so interesting (except about 6 months ago but nobody wanted to listen to me back then… the end of the world was coming!).

Among these 10 companies, I would probably buy all of them in a long term investment portfolio. You have 4 strong financials with Sun Life, Power Corp, Bank of Nova Scotia and National Bank. While National Bank stock had suffered the most among banks because of its size, it also shows one of the best comebacks on the TSX 60 this year. Back in December 2008, the stock went as low as $25 (imagine the dividend yield you would have gotten had you purchased it at the ideal time ).

I also like Shaw and Rogers.  They have shown a capacity of creating wealth while growing on a steady basis over the years. Now that the merger and acquisition and income trust trends seem to be finished in the telecom world, more investors have an eye on these 2 companies that are far more productive than Bell (not hard to beat).

If you are among the investors who believe that the resources will continue to drive the Canadian economy in the upcoming years, Enbridge and Husky could bring you the best of both worlds: long term growth along with steady and powerful dividends.

Considering that interest rates are predicted to remain pretty low for another 12 months, I am actually thinking of taking more risk and investing in high paying Canadian Dividend stocks. Their dividend yields are high enough to cover the interest I would pay on my line of credit and I could benefit from interesting growth…

I will probably wait for another month or 2 just to make sure I have enough liquidity to build another leveraged portfolio. My company is already starting to pay some good dividends and I think it is time to diversify my dividend portfolio

• Top Ten Canadian Dividend Stocks
• TSX 60 Dividend Yield and Ex-Dividend Date for February
• Canadian Dividend Stocks – Ex-Dividend Date
• Top 10 Dividend Stocks in Canada
• Canadian ETFs That Pays Dividends – Am I in Heaven?

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