It’s time again for my monthly CANADIAN DIVIDEND KINGS list. It’s not always easy to dig through the mountains of information to try to find some hidden gems out there. Hopefully, to make it easier, I have compiled a list of the best Canadian dividend stocks using some basic metrics. My hope is that this list provides a starting point for you to do you own research.
About my list
There are over 1500 stocks on the TSX and only 13 made my October list. As you can see by the list below, it’s not easy being a Canadian Dividend King and these stocks all had to pass a series of test to make it on the list.
The Criteria
- The company must have 5 or more years of uninterrupted dividend growth.
- The company must have a Graham number greater than its current share price.
- Its payout ratio must be under 70%
- Its P/E ratio must be under 15
- The company must have a price to book ratio under 2
OCTOBER CANADIAN DIVIDEND KINGS
| # | Ticker | Streak | Yield | Price | Graham Value | TTM P/E | EPS | Annual Dividend | Payout %Ratio | P/Book | Div/Gr 10yr |
| 1 | CWB.TO | 24 | 3.64 | $25.25 | $34.40 | 11.22 | 2.25 | 0.92 | 40.89 | 1.08 | 15.7 |
| 2 | HCG.TO | 17 | 3.56 | $27.00 | $46.23 | 6.85 | 3.94 | 0.96 | 24.37 | 1.12 | 26.3 |
| 3 | TCL-A.TO | 14 | 4.20 | $17.62 | $26.96 | 7.28 | 2.42 | 0.74 | 30.58 | 1.32 | 12.3 |
| 4 | ACD.TO | 10 | 3.97 | $9.06 | $14.00 | 8.97 | 1.01 | 0.36 | 35.64 | 1.05 | 6.9 |
| 5 | XTC.TO | 10 | 2.31 | $12.10 | $12.64 | 10.90 | 1.11 | 0.28 | 25.23 | 1.89 | 17.0 |
| 6 | NA.TO | 6 | 4.73 | $46.52 | $46.99 | 13.45 | 3.46 | 2.20 | 63.58 | 1.64 | 8.9 |
| 7 | WJA.TO | 6 | 2.44 | $22.92 | $29.38 | 9.71 | 2.36 | 0.56 | 23.73 | 1.41 | n/a |
| 8 | BNS.TO | 5 | 4.26 | $69.52 | $72.97 | 12.30 | 5.65 | 2.96 | 52.39 | 1.66 | 7.5 |
| 9 | CM.TO | 5 | 4.76 | $101.73 | $112.89 | 9.88 | 10.30 | 4.84 | 46.99 | 1.85 | 5.1 |
| 10 | EQB.TO | 5 | 1.43 | $58.86 | $92.09 | 7.72 | 7.62 | 0.84 | 11.02 | 1.19 | 9.0 |
| 11 | GRT-UN.TO | 5 | 6.08 | $40.08 | $59.70 | 9.75 | 4.11 | 2.44 | 59.27 | 1.04 | 13.4 |
| 12 | TD.TO | 5 | 3.78 | $58.24 | $59.68 | 13.15 | 4.43 | 2.20 | 49.66 | 1.63 | 9.7 |
| 13 | TFI.TO | 5 | 2.50 | $27.17 | $46.74 | 4.27 | 6.36 | 0.68 | 10.69 | 1.78 | (6.2) |
- Canadian Western Bank. Banks
- Home Capital Group. – Banks
- Transcontinental.- Publishing
- Accord Financial Corp. -Credit Service
- Exco Technologies.-Auto Parts
- National Bank Banks – Regional – Canada (new)
- Westjet Airlines Ltd. -Airlines
- Bank of Nova Scotia.- Banks
- Canadian Imperial Bank of Commerce.-Banks
- Equitable Group. – Finance
- Granite Real Estate Investment Trust REIT. – Industrial
- Toronto Dominion Bank.-Banks
- Transforce Inc. Trucking (new)
New to the list
- National Bank. Banks (new).
The National Bank of Canada is the sixth largest commercial bank in Canada. It is headquartered in Montreal, and has branches in most Canadian provinces and 2.4 million personal clients.
- Transforce Inc. Trucking (new)
Transforce is a Canadian transport and logistics company based in Montreal, Quebec. It operates across Canada through 4 business segments, and in parts of the United States through partnerships
Off the list
- Genworth MI Canada Inc. Insurance
- Laurentian Bank Of Canada. -Banks
Final Thoughts
The best way to use my Canadian Dividend Kings list is as a starting point for your own research. Don’t feel confined to my methods. Look up the values that mean the most to you. Like any screening method , the purpose of the Canadian Dividend Kings list is to help you dig through the stock market to find some hidden gems, which can then be further research by you.
Disclosure. I’m long CWB and may or may not purchase shares in any of the stocks in this post.
Resources from: Morningstar, Google Finance, Zacks,
Canadian dividend champion list provided and maintained by dividendgrowthinvestingandretirement
Thanks for the list! I own a couple of these but most of them aren’t in my portfolio are on my stock watch list. I guess I had better get to work! 🙂
Jay recently posted…Trend Following Stock Picks for October 2016 (Part 3)
My pleasure Jay.
Great overview of Canadian Dividend Stocks.
I am from Denmark and have a few divi stocks in US but would like to have from other countries for diversification.
Thanks Mike.
Great list. My biggest goal when it comes to the stock market is to be a better researcher- I still have a long way to go, but thanks for sharing this. I’ll be back! 🙂
Jen recently posted…SEO For Beginners: How To Improve Your Search Engine Ranking
Thanks Jen
I always find it amazing how most people who have a huge retirement nest egg in either mutual funds or some other form of a pension and have no idea where their money is or what they are paying in MER fees and so on.
If you do even a small amount of research you will be ahead of the curve 🙂
So, looks like banks are the way to go?
I own RBC and Western Canadian ank so I’m maybe a bit biased.
I do think that the banks do have good intrinsic value right now but I wouldn’t buy them just based on that. They do have other qualities I like, so I, and most Canadian investors will usually have at least 1 of the 5 major banks in their portfolio.