September 23, 2009, 5:00 am

Top Ten Canadian Dividend Stocks

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. I’ve also created a unique resources about Canadian Dividend Stocks.

So my fellow Canadian stock pickers, are you wondering what your next buy will be? I recently completed some research among the best dividend paying stocks on the TSX and pulled out the top 10 Canadian dividend stocks (I must say it helps a lot to have a friend working on a trading desk… a few seconds after having sent the email, I received the top 10 dividend stocks! Hahaha!).

In order to find the top 10 Canadian dividend stocks, I had to define important criteria for the selection of my stocks:

-          Dividend minimum yield: 3% (so I ignore low dividend yield stocks)

-          Dividend maximum yield: 7% (so I ignore abnormalities ;-) )

-          Dividend payout ratio: under 70% (so I make sure that dividends will be paid consistently)

-          Dividend growth: minimum of 5% annualized growth over 5 years

-          P/E ratio: under 15

With these criteria, I know I will be able to find the best 10 Canadian Dividend Stocks of the moment. This list will be now updated quarterly and showed on the side bar in the must read section. We will be updating this list quarterly so some of the best canadian dividend stocks may not be there in a few months. Make sure to bookmark this page and take a look quartlerly.

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

 

TickerNamePriceDividend YieldPayout RatioPE_RATIOEQY_DPS_NET_5YR_GROWTH
RCI/BRogers Communications Inc36.684.3149.0112.4365.52
KMPKillam Properties Inc13.484.336.2310.0644.02
CSUConstellation Software Inc/Canada95.194.1626.9712.9841.18
PSIPason Systems Inc13.812.936.112.6724.9
CTYCalian Technologies Ltd20.854.9956.6911.7822.48
CJR/BCorus Entertainment Inc24.463.9245.3213.4415.8
TCL/ATranscontinental Inc11.774.9340.15.9115.72
LBLaurentian Bank of Canada44.424.0533.698.928.45
ADW/AAndrew Peller Ltd10.193.5343.1210.198.14
POWPower Corp of Canada27.254.2652.6711.87.99

top-canadian-dividend-stocksI have seen many investors buying dividend stocks over the past few months as they realized that most of those companies are very solid and will continue to pay their dividends. The 2008 crash gave us the great opportunity to buy some of the best companies at a fraction of their value. Even though the Canadian stock market gained more than 40% since March 2009, there is still a lot of room for stock appreciation. Another solid indicator is the high dividend yield offered by this top 10.

For example, bank dividends are usually only high enough to cover inflation (from 2 to 3%). But right now, most of them offer a dividend yield over 3% (and closed to 4%!). In the middle of the crisis (back in December-January), you could have bought banks giving 15% dividend yield. Wasn’t it the right time to buy back then?

If you want to take a look at the trend of the top 10 Canadian Dividend Stocks, you can use this free trend analysis tool:


Trend analysis is an investing tool showing you the trend (according to the moving average) of any Canadian stocks. You can track the progession of the top 10 Canadian Dividend Stocks and try to buy them when they cross their moving average and shows a uptrend.

If you are looking to open a brokerage account, I suggest you use Questrade. It is the cheapest broker in Canada so it’s perfect to buy a few shares of each of those top 10 Canadian Dividend Stocks:

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


image source: Kevin Zhengli



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Comments

Thanks for the list.

by: The Financial Blogger | September 23rd, 2009 (9:56 am)

tomorrow, I’m coming back with even better picks ;-)

One day, someone will have to explain the love affair with Yellow Pages.

One day, someone will have to explain to me the love affair with Yellow Pages.

[...] Financial Blogger: Are you Canadian? Well even if you aren’t, you may still be interested in checking out this list of top 10 Canadian dividend stocks. The Canadian stock market has done well since March 2009, [...]

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by: The Financial Blogger | September 24th, 2009 (6:25 am)

TMW,
I guess everybody loves going through a big fat piece of paper stacked together ;-) I don’t even have one anymore…. Viva internet!

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by: Lim, Christine | March 13th, 2010 (1:16 pm)

I am new in this business and found your info really helpful.
Thank you for sharing!
Chris

You say you update your lists on a quarterly basis but when I look at your list for the top Canadian dividend stocks the list is more than 6 months old. How can I see the most current lists?
Please copy my post back in your reply.
Thank you.
Judy

by: The Financial Blogger | May 18th, 2010 (3:09 pm)

Hey Judy,

I’ll update it this week… thx for the reminder!

Hey FB,

Is is possible to get a list of the Top 50 Canadian Dividend Stocks?

Thanks
Cecil

by: The Financial Blogger | July 15th, 2010 (3:58 am)

I’ll take a look at it and see what I can do :-D

top 10 dividend stocks updated May 18. Any further update?

Leo

by: The Financial Blogger | August 5th, 2010 (2:04 pm)

@Leo,

right… I should do an update! thx for reminding me!!

What about CFX.UN or YP.UN? Both yields are well about the ones listed in the article.

any updates on the list? Are these still at the top?

by: The Financial Blogger | January 11th, 2011 (1:49 pm)

Hey Ku,

didn’t have time to updated yet… sorry for the delay!

[...] Top 10 Canadian Dividend Stocks [...]

What tool(s) do you happen to use to filter for your criteria? Are you just downloading the TSX raw data and using excel?

by: The Financial Blogger | April 24th, 2011 (4:32 pm)

@Brad,

we have our own access to financial software ;-) but I guess most of the work can be done from downloading TSX raw data and using excel, it just requires more time!

We think alike. The only one I do not own or will not buy is Shaw. I own BCE as my only Canadian telecom and like it best. Also I like CTU.A at these prices of under 9$.