Category Archives: Canadian Dividend Stocks

TSX 60 Ex-Dividend Date, Dividend Yield & Dividend Payout Ratio

TSX 60 Ex-Dividend Date, Dividend Yield & Dividend Payout Ratio

  • Posted by in TSX60


  • We are at the beginning of a new month (right after seeing the Greek busting our party yesterday!) so it is now time for the TSX 60 ex-dividend date, dividend yield and dividend payout ratio. In addition to provide the TSX chart, I wanted to add a few random thoughts on those Canadian dividend stocks:
Canadian Gold Stocks Might Follow Newmont (NEW) and its Dividend Strategy
While price of gold has been sky rocketing since 2008, we can tell the same thing about Canadian gold stocks. In order to be more attractive to investors, some companies (Eldorado Gold ELD is mentioned in several rumors) may follow their American competitor Newmont (NEW) in their dividend payout strategy. NEW as declared their dividend payout will follow the price of gold. Therefore, if the price of gold goes up and the stock doesn’t, at least you will have a reason to celebrate!
Better be part of the Top Canadian dividend stocks:
Top 5 dividend payers right now have returned : -2.70%
Bottom 5: -13,77%
Crazy but true
2 stocks in TSX do not pay dividends
Valeant Pharmaceuticals International Inc (VRX)
Research in Motion (RIMM)
Valeant is the best performing stock in TSX60 (39.2%)
RIM is the worst (-63.54%)
and now my argument that dividend investing rules goes bust! haha!
Here’s the TSX60 ex-dividend date, dividend yield and payout ratio chart:

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Top 20 Dividend Stocks – May 2011

Over the past months, I have been doing regularStock Analysis and discussing different stocks and I realized that I had not shared the stocks that retain my attention. As such, I thought I’d go through my watch list and pull out the Top 20 Dividend Stocks based on my technical screening and thedividend yield. I watch about 100 stocks between the Canada and the US and I update my list as I find others that I believe worthy of being on my watch list. I have about 7 sectors on my watch list and I usually keep 6 to 12 stocks in each. The list is quite varied as it is composed of REITs, Income Trust and Companies with either small, medium or large caps.

Top 20 Dividend Stocks – Technical Screening

The technical screening is based on 4 criteria that I can easily fetch from Google Finance. Over time I should build enough data for historical trends but I don’t have it and I don’t have a team working for me :) I started looking at the Beta but I have not figured out how to mathematically weight it in yet… I am also not sure if I want to give it too much weight. I’d rather focus on the Debt-To-Equity ratio which I started entering but I am not done. For now, the following criteria are feeding the score.
  • P/E : Target is 15
  • 52 Week Range : The lower in the range the higher the score
  • Yield : Target is above 3% (this one is manual)
  • Payout Ratio : Under 75%
Edit
Ticker Name Stock Market Cap Yield Score Max. 6
RCI.B Rogers Communication $35.63 $19.70 3.96% 5.11
SLF.TO Sun Life Financial $30.01 $17.35 4.77% 5.10
RSI.TO Rogers Sugar $5.17 $0.46 6.53% 4.95
BMO.TO Bank of Montreal $60.89 $34.62 4.61% 4.71
REF.UN Canadian REIT $33.67 $2.26 4.10% 4.69
T AT&T $31.06 $183.94 5.48% 4.60
LMT Lockheed Martin Corp. $80.34 $28.08 3.77% 4.56
TA.TO TransAlta $21.27 $4.72 5.40% 4.56
LLY Lilly $39.15 $45.32 5.03% 4.53
CPB Campbell Soup $35.17 $11.26 3.18% 4.53
YLO.TO Yellow Media $4.57 $2.40 14.71% 4.50
CINF Cincinnati Financial Corp. $30.92 $5.04 5.18% 4.43
MSFT Microsoft $24.57 $207.19 2.56% 4.32
BNS.TO Scotia Bank $57.61 $62.13 3.62% 4.30
COS.TO Canadian National Resources $29.74 $14.41 3.87% 4.29
HSE.TO Husky $27.87 $25.00 4.32% 4.26
CM.TO CIBC $82.83 $33.82 4.22% 4.17
VNR.TO Valener $16.34 $0.61 6.18% 4.12
TD.TO Toronto Dominion $82.24 $72.68 3.23% 4.09
POW.TO Power Corporation $28.18 $11.58 4.09% 4.09
I currently own RCI.B, SLF, BMO, AT&T, TA and BNS

Top 20 Dividend Stocks – Dividend Yield

Since I was compiling the list above, I thought I’d share the highest paying stock on my watch list so you can see the difference between simply looking at yield versus other elements. The yield by itself can be an indicator to look further into an investment but by itself, it should not signal a purchase.
I have purposely excluded REITs from this list. The yields are usually high for many of them and I did not feel they belonged with the others. When there isn’t a score, it’s because the P/E is negative.
Edit
Ticker Name Stock Market Cap Yield Score Max. 6
YLO.TO Yellow Media $4.57 $2.40 14.71% 4.50
JE.TO Just Energy $14.90 $2.04 8.32% 3.49
ERF.TO Enerplus Corp $29.15 $5.22 7.39% 2.51
KEG.UN The Keg Royalty Income Fund $13.28 $0.15 7.26% 3.41
BA.TO Bell Alliant $27.10 $6.17 7.02%
PBH.TO Premium Brands Holding $16.72 $0.30 7.01% 2.70
LIQ.TO Liquor Store $15.50 $0.35 6.99% 3.22
PPL.TO Pembina Pipeline $23.42 $3.91 6.67% 2.24
RSI.TO Rogers Sugar $5.17 $0.46 6.53% 4.95
CPG.TO Crescent Point Energy $44.56 $12.04 6.19% 2.15
VNR.TO Valener $16.34 $0.61 6.18% 4.12
KMP Kinder Morgan Energy $72.09 $22.99 6.12% 2.49
DAY.TO Daylight Energy $10.21 $2.15 5.85%
T AT&T $31.06 $183.94 5.48% 4.60
BCE.TO Bell Canada $37.90 $29.34 5.47% 3.76
AGF.B AGF Management $19.47 $1.86 5.37% 2.66
CINF Cincinnati Financial Corp $30.92 $5.04 5.18% 4.43
MBT.TO Manitoba Telecom $33.25 $2.18 5.10% 2.41
CGX.TO Cineplex Galaxy $25.28 $1.46 5.05% 2.11
I currently own LIQ, BCE, CPG, AT&T, and JE

Thoughts

For those that follow Intel (INTC), when it was trading at around 19$-20$, it was at the top of the score list. I had no funds available unfortunately and I don’t sell holdings to chase other investments either. It was a missed opportunity but they come and go.
Yellow Media (YLO) is ranking high in both lists simply due to the fact that the stock has been beaten recently. The P/E is really low, it’s trading at the bottom of its 52-week range and the yield is just insane. The insane yield is, well, just insane … I have been watching this stock for a couple of years and it has always paid this much and I can’t believe that it is sustainable. The company appears to be re-inventing itself, and at some point they will need the money for expenditure I imagine …

Top 20 Canadian Dividend Stocks

Top 20 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 April 18th 2011***
Ticker Name Price Dividend Yield Payout Ratio
MKP MCAN Mortgage Corp 14.5 7.45 67.51
CTY Calian Technologies Ltd 18.43 5.43 47.87
NPR-U Northern Property Real Estate Investment Trust 28.53 5.36 57.54
SLF Sun Life Financial Inc 29.738 4.84 50.94
SJR/B Shaw Communications Inc 19.23 4.78 69.85
PNG Pacific Northern Gas Ltd 26.4 4.55 60.85
GWO Great-West Lifeco Inc 26.945 4.56 70.37
PWF Power Financial Corp 30.97 4.52 66.64
BMO Bank of Montreal 62.1 4.51 58.75
T TELUS Corp 49.08 4.28 62.09
IGM IGM Financial Inc 48.17 4.26 73.99
CM Canadian Imperial Bank of Commerce/Canada 82.856 4.2 59.13
POW Power Corp of Canada 28.4 4.09 61.32
X TMX Group Inc 39.98 4.01 58.15
FTS Fortis Inc/Canada 31.7 3.66 85.61
BNS Bank of Nova Scotia 57.45 3.62 50.1
CJR/B Corus Entertainment Inc 20.924 3.59 38.23
ADW/A Andrew Peller Ltd 8.98 3.67 50.25
NA National Bank of Canada 77.36 3.41 41.4
RY Royal Bank of Canada 60.39 3.31 57.26

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.

Top Ten Canadian Dividend Stocks

Top Ten 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 April 18th 2011***
Ticker Name Price Dividend Yield Payout Ratio
CTY Calian Technologies Ltd 18.43 5.43 47.87
NPR-U Northern Property Real Estate Investment Trust 28.53 5.36 57.54
SLF Sun Life Financial Inc 29.73 4.84 50.94
SJR/B Shaw Communications Inc 19.22 4.78 69.85
PNG Pacific Northern Gas Ltd 26.4 4.55 60.85
GWO Great-West Lifeco Inc 26.94 4.56 70.37
PWF Power Financial Corp 30.962 4.52 66.64
BMO Bank of Montreal 62.09 4.51 58.75
CM Canadian Imperial Bank of Commerce/Canada 82.89 4.2 59.13
POW Power Corp of Canada 28.37 4.09 61.32

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:

Top Canadian Dividend Stocks – Is There Anything Good Besides Banks?

Top Canadian Dividend Stocks – Is There Anything Good Besides Banks?

If you are Canadian and you are looking to invest in dividend stocks, I am ready to bet my first born (not really!) that you have Canadian banks in your portfolio. Why? Because Canadian Banks have several awesome qualities any dividend investor is looking for:
– They are leaders in their industry (they are actually part of the most solid banks in the world).
– They are steady dividend payers (they can’t qualify as dividend aristocrats, but they are still pretty solid).
– They show steady revenue and profit growth.
– Competition is protected and legislated by strict government laws (which improve their chances of having steady financial results!).
– They pay more than 3% in dividends (and are now starting to increase their dividends again since 2008!).
And on top of that, some of them (think about National Bank: NA) are reporting great growth for what is considered a “mature” market.

But is there anything else to buy in Canada for dividend investors?

Oohhh… that’s a good question! I am also a big fan of Canadian banks…. But this is far from being enough if you want to build a solid investment portfolio.

Then you have 2 choices… high dividend yield stocks or solid companies with lower dividend yields?

If you take option #1, I suggest you take a look at the high yield Canadian dividend stockslist over at What is Dividend. The list was created by looking at the highest dividend yield stocks on the Canadian market with no other criteria. In other words, it is to be used at your own risk ;-) . However, I would take a closer look at the first stock on the list: CFX: Canfor Pulp Products. The stock is literally on fire and pays high dividends. On the other hand, I haven’t looked at their financials yet so I could not write much about it… I was just surprised when I looked at it this morning. First National: FN could be interesting as well as they work in the Canadian mortgage industry (all right, almost like a bank ;-0 ).

Option #2 look among the best Canadian Dividend Stocks

I maintain 2 lists over @ The Financial Blogger:

The difference between the 2 lists is the criteria. The top 10 is way more selective since it includes dividend growth over 5 years along with a dividend payout ratio under 60%. But since following 10 stocks is sometimes not enough, I have decided to add a second list quarterly with different criteria. My favorites among them? Here they are:

NPR – Northern Property Real Estate Investment Trust
I have already mentioned that Canadian REITs could be a great investment in your portfolio. Well, one of the strongest Canadian Dividend Stocks is Northern Property Real Estate Investment Trust. Strong with a P/E ratio under 12 (which has become rare on the Canadian market), NPR is ranked second in the Top 10 Canadian Dividend Stocks according to my list. The current dividend yield is 5.36% with a dividend payout ratio of 57%

SJR – Shaw Communications
As I mentioned in my article about sector investing, I am a strong believer of choosing the right industry before choosing the right stock. Anything that touches the internet and telecommunication these days will grow in my opinion. Technologies have never evolved so fast and all distributors will greatly benefit from it. The current dividend yield is 4.78% and dividend payout ratio of 69.85%

POW – Power Corp
I like Power Corp as it is a very well diversified financial corporation. Under its umbrella, let’s just mention Investors Group, Great West and London Life. I have worked in a partnership with this company and I can attest to the strength of their upper management. This certainly one of the most steady dividend stocks in Canada. The current dividend yield is 4.09% and dividend payout ratio of 61.32%


T – Telus
With employers opening up to home offices and communications across their multiple offices, I think that Telus can play an interesting role in managing telecommunication for companies. Along with that, the cell phone market seems unstoppable with the multiple gadgets we find on the market (iPhone, wifi tablets, BlackBerries, etc.). The current dividend yield is 4.28% and dividend payout ratio of 62.09%
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