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Great Canadian Dividend Paying Stocks – December Edition

A few weeks ago, maybe like some of you, I received my December/January 2013 edition of MoneySense magazine in my mailbox.  In this edition, I found “The Top 200 Canadian Stocks” article that ranked some of the most compelling stocks Canada offers investors.  In this article author Norm Rothery graded stocks for growth and value, determining an all-star list of Canadian companies to hold for a period of time for financial prosperity.  The following stocks made the all-star list earning at least one “A” and one “B” grade on growth and value tests.  The article goes on to say “if you had bought equal amounts of our original All-Star stocks eight years ago and rolled your gains into the new batch each year, you would have enjoyed an average annual return of 15.2%”

Here are the All-Star Stocks:

  • E-L Financial (ELF)
  • Indigo Books & Music (IDG)
  • Industrial Alliance (IAG)
  • Magna International (MG)
  • Methanex (MX)
  • NewAlta (NAL)
  • Power Corporation (POW)
  • Winpak (WPK)

What do you make of these companies?  Would these All-Stars make your list of companies to own?

Personally, I tend to invest in mostly large-cap Canadian companies with more established dividend histories than some of those companies listed above.  Most of the companies I own you’ll find in broad market Canadian Exchange Traded Funds (ETFs) like XIU and XDV.  Otherwise, I index everything else because I have no idea what companies will make Norm’s list next year.  What other great Canadian companies didn’t make Norm’s cut?

Using the following criteria via TMX Money recently:

  • Current dividend yield >3%
  • Dividend yield 5-year average >3%
  • 5-year annual dividend growth rate > 5%
  • Market cap >$500 million

I found what I think are 23 other established companies not listed above:

Symbol

Company Name

Price

52 Wk High

52 Wk Low

Market Cap

BDT Bird Construction Inc.

13.690

15.540

11.060

577,086,151

CEU Canadian Energy Services & Tech.

10.680

13.500

8.570

601,583,285

KMP Killam Properties Inc.

11.860

13.600

10.820

603,385,695

CMG Computer Modelling Group Ltd.

19.750

20.500

14.130

745,193,708

AGF.B AGF Management Limited

8.380

17.400

8.510

745,568,248

BDI Black Diamond Group Limited

20.270

23.790

16.600

834,208,039

NWC The North West Company Inc.

23.540

23.880

18.280

1,138,818,120

LB Laurentian Bank of Canada

45.750

48.680

40.660

1,286,376,540

GRT Granite Real Estate Inc.

36.290

38.490

31.640

1,699,566,231

KEY Keyera Corp.

46.580

51.600

37.500

3,606,850,240

EMA Emera Incorporated

33.970

35.720

31.660

4,209,886,677

VET Vermilion Energy Inc.

50.880

51.000

41.270

5,030,687,088

FTS Fortis Inc.

32.890

34.980

31.700

6,271,511,673

T.A TELUS Corporation

63.680

65.260

51.980

9,609,894,417

T TELUS Corporation

64.350

65.790

54.670

11,255,493,635

NA National Bank of Canada

77.660

81.270

65.430

12,513,343,840

CPG Crescent Point Energy Corp.

37.410

47.300

35.850

13,855,661,524

TRI Thomson Reuters Corporation

27.520

30.250

26.100

22,743,703,489

TRP TransCanada Corporation

45.530

46.290

40.340

32,096,377,187

BCE BCE Inc.

42.220

45.280

39.120

32,701,806,968

BNS Bank of Nova Scotia (The)

55.770

57.170

47.540

66,063,670,229

TD Toronto-Dominion Bank (The)

82.650

85.850

71.690

75,892,054,315

RY Royal Bank of Canada

58.440

59.130

47.710

84,463,483,944

What do you make of my stock screen?  Any of these companies worth owning?  Any great Canadian companies missing from this list?   

Filed in: Stocks

12 Responses to "Great Canadian Dividend Paying Stocks – December Edition"

  1. Steve@ TheLoonieBin says:

    The list looks pretty good, Mark! I’m just waiting for a little dip before adding some more to my portfolio.

  2. Eddie says:

    Great list Mark!
    Only if I invested in dividend paying stocks……soon..one day…and likely I’ll hit you up for some guidance :)

  3. Starting Out says:

    Good post. If you were looking at building a portfolio of dividends stocks how would you start out? Would you look at buying 100 stocks of a few or would you look at investing a certain dollar amount in each?

    • Hey Starting Out,

      Nah, no way I’d start out buying a bunch of stocks and I would never own 100….unless it was in an ETF. It would not be cost effective nor could I personally follow that many companies.

      My personal belief: getting into stocks depends on the capital you can invest. If less than $25,000, I suggest using TD e-funds or a couple of ETFs only because only a few stocks will be poor diversification. Once the portfolio gets to $50 K or more, individual stock ownership might make some sense. I say this because I’m a conservative investor…not everyone feels the same.

      Thanks for stopping by.

  4. SPBrunner says:

    Looks like a great list. I follow most of these, but there are some that I do not and maybe should.

    Susan

  5. When a corporation declares a stock dividend, it adds undivided profits, which cannot be used to pay dividends, to the capital invested in the corporation, to reflect the additional shares it is issuing.
    Commodity Tips

  6. When a corporation declares a stock dividend, it adds undivided profits, which cannot be used to pay dividends, to the capital invested in the corporation, to reflect the additional shares it is issuing.

  7. I think buying foreign stock just because it is cheap is not investing — it is speculating or betting. Carefully research a cheap stock’s company fundamentals. Unlike large and higher-priced stocks, you usually find very little other information about these low-priced companies. As long as you stick with the dividend-investing model, you should be free of any temptation to buy a stock solely because it has a low share price.

  8. Good says:

    As a retjree I need advice for a Canadian Dividend stock portfolio based on low volatility of share price, yield between 3 and 7% .Should I take the dividends or DRIP? I do not need the income. Must I sell all each year and build a new portfolio?

    What is the strategy of numbers of stocks and quantity of each so that there is some diversification between industries

    Thanks

    • Hey Good, thanks for stopping by the site.

      I cannot offer advice, I am no financial expert or professional, but what I can say is…many Canadian blue-chip dividend paying stocks yield between 2%-6%.

      If you’re not comfortable with owning individual stocks, consider researching some of these ETFs as starters:
      XDV, CDZ and ZDV.

      As for the number of stocks to own for diversification, most financial experts recommend at least 15 stocks as a minimum.

  9. Good says:

    I am looking for 2 stock screeners and criteria for Canadian dividend Stocks. In addition these stocks should not be volatile. Growth is not as important as regular earnings and a sensible payout ratio. My objective is after tax income that will on average do better than inflation and measured by the dividend income plus or minus the capital gains or loss.

    I have access to the TDW screener, a Globeinvestor dividend Watch List and the Financial post screener. Not getting consistency between them.

    Any other screeners and beta criteria for volatility? Thanks

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