Weekend Reading – Top 100 Dividend Stocks
Hey Everyone,
Welcome to a new Weekend Reading edition listing the top-100 dividend stocks.
A link to that article and related articles will follow!
First up, a few recent reads and reminders…
Last Weekend Reading I shared a list of 30 Canadian Compounding stocks that have delivered some impressive total returns over the last 10 years. Check that list out! (I own a few compounders from that list but not every one…)
Almost right on schedule since we’re into a new month now, I shared our latest monthly dividend income update. We’ll probably make a few more purchases before the end of 2024 but for the most part, we are building our cash wedge.
You can read about both posts below:
And…
Weekend Reading – Top 100 Dividend Stocks
Headlining this edition is this MoneySense post that highlights the top-100 dividend stocks to consider for your portfolio. Although the stock prices are a bit dated, you get the idea…
“Consider our list of the top 100 Canadian dividend stocks for 2024, below, as a starting point for your search for investing prospects, not the final destination. You may find yourself looking long and hard for what investors typically consider dividend aristocrats: banks, telecoms, utilities, pipelines and real estate investment trusts (REITs). (They’re here. It’s just not that obvious.) Understand that this exercise is meant to identify candidates based on quantitative factors including not just dividend yield and sustainability, but also measures of profitability, financial strength and value.”
Related to this article, I read recently that with interest rates coming down, including this week once again, that many Canadian dividend stocks are set to soar – based on CIBC analyst reports.
“CIBC believes high-dividend-paying Canadian stocks are a “natural” home for these funds as they offer tax advantages over interest income and dividends can grow over time. The relative yield of these stocks compared with 2-year government rates is also becoming increasingly attractive, they said.”
“If its forecast bears out, the decline in rates at this pace should drive investors back to Canadian dividend paying stocks, especially since many of these equities have performed poorly compared to the boarder market over the past few years.”
“Sectors such as REITs, Utilities, Telecoms and Financials have added appeal of better-than-average business and earnings stability,” said the analysts.”
As such, you might want to consider adding to your “TULF” stocks for income and growth.
Long-time subscribers will know I own a few “TULF” stocks in Canada:
- “T” for telecommunication companies (e.g., Telus).
- “U” for utilities (think Fortis, Emera, Capital Power and others).
- “L” for low-yielding dividend growth stocks with growth potential (think Canadian National Railway, Waste Connections, Alimentation Couche-Tard, and others).
- “F” for financials (you know the names = our big-6 banks but consider owning EQB for growth too since EQB is up over 90% in the last 5-years!).
While TULF stocks are great to own in Canada, it’s hard to ignore the success of my U.S. stocks this year.
I’m now down to a handful of U.S. stocks in my portfolio after selling most of them over the years in favour of ETFs in my registered accounts but the ones I do own still have been flying…
Walmart (WMT) up 44% and Waste Management (WM) in our portfolio is up 14% YTD. It’s also been a fine and boring year for my favourite low-cost ETF: XAW. Even with the market declines in recent days XAW is up about 13% YTD at the time of this post. We’ll see what the rest of 2024 has in store. 🙂
A great interview from The Wealthy Barber here with Preet Banerjee. Worth the watch/listen. The Wealthy Barber Returns per se…it will be interesting to see what personal finance subjects Dave tackles on his new podcast. @wealthy_barber
Source: https://www.youtube.com/watch?v=Nc_TYimm1zA
I’ve thought about this for some time – the rise of Nvidia stock. @dollarsanddata captured it nicely. I own NVDA indirectly via my ETF QQQ. (QQQ is up about 11% YTD.)
Where does this go from here??
Source: https://x.com/dollarsanddata/status/1830935385221796014
Now for some fun, here is a golf drill I’m starting to work on. I’m working on getting my takeaway more straight-back from the ball and more connected to my body. Less moving parts. @TopSpeedGolf
Anything you’re working on in your golf game?
You still have lots of time to Save, Invest, Prosper this Summer!
As always, check my Deals page – partnerships and discounts to help you make the most out of your money – some of them you can’t find anywhere else!
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As a My Own Advisor reader, you always get a discount off either service. Just mention my site. That’s it.
Enjoy your weekend. 🙂
Mark
Mark, I’ve been catching up on your articles and back tracking & I’m prompted to ask your opinion for direction, not in buying or selling but rather decumulation. With a busy Fall fast approaching, I started calculating our income for this year to get a handle on what we want to do with regards to RRSP withdrawal moving it in-kind into our non-reg & tfsa. We are 63 with 1 pension & cpp (our decision). We are really debating rather than keeping our tax rate around 15%, should we move more out of our RRSP paying the next tax level? We are thinking about how are income level will grow going forward, RRIF withdrawals & OAS & an even higher tax rate. Is this something a tax accountant can assist with planning or is there something we could reference on our own?
Thanks for your comment, Sandra.
In short, the work we do at Cashflows is absolutely aligned to drawdown / spending in retirement work. 🙂
Feel free to email me directly to see if this is an opportunity for you and happy to provide a 10% discount as a My Own Advisor reader too. 🙂
Cheers,
Mark
Interesting top 100 list. Just a quick glance, out of the top 30, I’ve only ever only directly owned one of them. But I’ve never done any kind of serious in-depth analysis of anything I’ve owned either. Probably goes to show I should not be in the stock picking game. As unkempt Harry once said, “A man’s got to know his limitations”. 😉
I’ll probably just stick to the ETF and GIC route I’m on now. Costs are higher but it somehow just feels more relaxed at this stage in our life.
Don’t fix what isn’t broken, Lloyd. I only own a few in that list, with TD and CNQ as my largest holdings beyond RY in my portfolio as of today.
Equity ETFs for income and growth + GICs for security and future withdrawals. A pretty good formula.
Mark
If you are a fan of the simple one piece takeaway, you may also like Tom Saguto’s YT Channel. I have found his content very useful.
Ah, very good. Will look at Glenn!
Hi Mark, thanks and great timing for Top 100 and Canadian Compounders as I was just pondering what I would add to my TFSA next year ( new stock/ETF or more of what I already have). I have lots of time to decide and a few additional references to consider. Thanks!
For the golf swing… I find it very helpful to only bring your back swing back about 3/4 of your normal swing. Add in a slow back swing and I’m usually assured a good shot (we maybe not assured). This method for me is preferred especially when I didn’t do much warm up or didn’t play for a while. By the third or fourth hole the back swing is usually full range. Next week I can tell you how to three put, cause I’m really good at that. LOL.
Great stuff, Steve.
Ya, working on a few things like half-swings/mini-swings to get my impact zone more consistent. I used to be a 2-handicap golfer and while it would be nice to get back to that, I’d settle to be a solid 4- or 5-handicap in the coming years.
Keep ya posted. 🙂
Mark
I must have read the post wrong… it doesn’t look like you were seeking input but asking what we were working on. With a low handicap you might also have a blog golf…
Happy to get any insights, Steve. Played today. Shot 77 with a double. Gotta get rid of those!!
All my best,
Mark
As a debt free saver I feel the interest rate decreases as a double edged sword. On the one hand I liked having HISA paying over 5% and safe GIC’s with higher rates. Being on the edge of retirement safety is becoming much more appealing. I made a nice 3 year GIC ladder in my wife’s spousal RRSP Taking risk off the table felt good. On the other hand the interest rate decreases will really help my dividend stocks. Suddenly dividend stocks after either trending down or sideways over the last few years are starting to make some nice moves higher. Those purchases at lower prices are starting to look good. I guess at the end of the day you can’t have your cake and eat it too. Next year when the first leg of the GIC comes due I’ll have to decide on taking a lower rate or putting the money either part or all back into the market. Of course then my dividend stocks will most likely have risen in value as interest rates go down making them less attractive to buy. I guess I’ll just wait and see and enjoy the investment journey.
Indeed, I feel the same: “On the other hand the interest rate decreases will really help my dividend stocks…”
I would prefer equities with a chance for higher returns vs. higher interest rates too long. We’ll see!?
Our near-term plan (over the next year) has us buying a few more CDN stocks in our taxable when I can and then adding more XAW inside our registered accounts. Otherwise, just letting some dividends and distributions add up as cash. Very boring but given we have pretty much hit our financial independence goal this year I don’t want to take on any more risk than need to be.
Enjoy the investment journey back and keep me posted on your decisions!
Mark
As for golf; Golf is a good walk spoiled, according to Mark Twain lol.
LOL. Yes, it can be. 🙂
Mark
Don,
Great comments. I’m in a similar situation as you. These past couple of years I loaded up on GIC’s paying 5%+. However, I also did not sell any of my dividend stocks, but added to them slightly.
When my GIC’s come due, my overall projected income will drop. However – when I look at my retirement income projections, I only focus on my equity income, due to the severe interest rate risk with GIC’s – that gives me a conservative perspective.
CJ
Interestingly enough, I have cash/cash-alternative ETFs but I don’t count my income from that either. I only share our dividend and distribution income from our equities and only from a few key accounts.
Continued success, CJ.
Mark
Excellent as always Mark. This week we saw over $40K in value, disappear from our investments. This doesn’t affect our distributions and dividends. Also, since 2019 when I started withdrawals from it, my RSP is almost neutral. My withdrawals are just slightly more than my inbound distributions and dividends, I have forecasted that the balance in my RSP will exceed the beginning balance that I had on January 1, 2019, by the end of 2024. This is after all my withdrawals !! So much for trying to empty the darn thing, to reduce my mandatory RIF withdrawals that are coming soon. :o)
That is very good…re: your RRSP “…withdrawals are just slightly more than my inbound distributions and dividends, I have forecasted that the balance in my RSP will exceed the beginning balance that I had on January 1, 2019, by the end of 2024. This is after all my withdrawals !!”
We hope to be in a similar position in the coming years. Take our cash from RRSPs, let RRSP assets run/grow a bit and then do the same thing in the following year whereby RRSP growth is largely offsetting the RRSP withdrawals – but eventually we’ll knock those accounts down in value over the coming decades. Silly of us not to do that. 🙂
Continued success!
Mark
Thanks for that video. Both me and my wife enjoyed Preet and David. Great people who are so good at helping people on finance, life and incredibly entertaining doing that.
Good luck with your golf!
Yes, Dave (and Preet) have always had some very practical advice.
Keep ya posted on the golf game!
Mark