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Top Ten Canadian Dividend Stocks


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 [1] from The Dividend Guy Blog [2]. I’ve also created a unique resources about Canadian Dividend Stocks [3].

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 [4] 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:

[5]


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 [6]


image source: Kevin Zhengli [7]


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24 Comments (Open | Close)

24 Comments To "Top Ten Canadian Dividend Stocks"

#1 Comment By Phil Plasma On September 23, 2009 @ 9:11 am

Thanks for the list.

#2 Comment By The Financial Blogger On September 23, 2009 @ 9:56 am

tomorrow, I’m coming back with even better picks 😉

#3 Comment By Thicken My Wallet On September 23, 2009 @ 10:37 pm

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

#4 Comment By Thicken My Wallet On September 23, 2009 @ 10:43 pm

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

#5 Pingback By Stock Market Highs For 2009, Dividend Stocks, China IPOs On September 24, 2009 @ 1:30 am

[…] 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, […]

#6 Pingback By The Financial Blogger » Blog Archive » Top 20 Canadian Dividend Stocks On September 24, 2009 @ 6:24 am

[…] 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 September 16th 2009. Today, we are looking at positions 11 through […]

#7 Comment By The Financial Blogger On September 24, 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!

#8 Pingback By Friday Links | The Canadian Finance Blog On September 25, 2009 @ 4:09 am

[…] The Financial Blogger top ten Canadian dividend stocks. […]

#9 Pingback By Intelligent Speculator | Financial Ramblings On September 27, 2009 @ 11:05 am

[…] discusses the top Canadian dividend stocks as well as positions 11 through 20! -Zach discusses credit card defaults rising and rising! -A good […]

#10 Pingback By Economy and your Finances Carnival Oct 11 2009 On October 11, 2009 @ 3:07 am

[…] @ GLBL presents Top Ten Canadian Dividend Stocks posted at The Financial Blogger, saying, “I recently completed some research among the best […]

#11 Comment By Lim, Christine On March 13, 2010 @ 1:16 pm

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

#12 Comment By Judy On May 18, 2010 @ 10:20 am

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

#13 Comment By The Financial Blogger On May 18, 2010 @ 3:09 pm

Hey Judy,

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

#14 Comment By Clear Choice Credit Cards On July 14, 2010 @ 6:30 pm

Hey FB,

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

Thanks
Cecil

#15 Comment By The Financial Blogger On July 15, 2010 @ 3:58 am

I’ll take a look at it and see what I can do 😀

#16 Comment By Leo On August 5, 2010 @ 1:18 pm

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

Leo

#17 Comment By The Financial Blogger On August 5, 2010 @ 2:04 pm

@Leo,

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

#18 Comment By Mike On August 21, 2010 @ 10:32 pm

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

#19 Comment By ku chow On December 25, 2010 @ 1:54 pm

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

#20 Comment By The Financial Blogger On January 11, 2011 @ 1:49 pm

Hey Ku,

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

#21 Pingback By Top Canadian Dividend Stocks – Is There Anything Good Besides Banks? On April 20, 2011 @ 8:01 am

[…] Top 10 Canadian Dividend Stocks […]

#22 Comment By Brad On April 22, 2011 @ 11:09 pm

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

#23 Comment By The Financial Blogger On April 24, 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!

#24 Comment By D’Arcy On June 7, 2011 @ 3:58 am

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$.