Canadian Dividend Stocks To Buy |WORK|
In this article, we discuss 10 high-growth Canadian dividend stocks to invest in. You can skip our detailed analysis of the Canadian equity market and the performance of Canadian dividend stocks, and go directly to read 5 High-Growth Canadian Dividend Stocks to Invest In.
canadian dividend stocks to buy
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Overall, dividend stocks in Canada have shown a strong performance in comparison to their peers. Especially companies that have raised their dividends for a significant period remained big winners. Another report published by RBC revealed that dividend growers delivered a compound annual return of 10.8% from 1986 to 2022, compared with a 9.1% return from the dividend-payers. During this period, the S&P/TSX Composite Index returned 6.2%, falling behind dividend growers by a wide margin. The report has additionally mentioned that dividend growers have displayed less volatility of 13.3% during this period, compared with a 23.4% volatility of non-dividend stocks. To enhance and diversify their portfolios, investors are advised to expand their investments in different regions. For this, readers can have a look at the 11 Most Profitable Canadian Stocks.
For this list, we selected Canadian dividend stocks that have been paying dividends for at least ten years. From those companies, we shortlisted stocks that have a 5-year average annual dividend growth rate above 6%. The stocks are ranked in ascending order of their dividend growth rates.
Enbridge Inc. (NYSE:ENB) is one of the high-growth Canadian dividend stocks on our list as the company has raised its payouts at an annual average rate of 6.3%. Overall, the company has been paying regular dividends to shareholders for 67 years. It currently offers a quarterly dividend of $0.8875 per share and has a dividend yield of 7.32%, as of March 15. The company can be added to dividend portfolios alongside some American dividend stocks like General Mills, Inc. (NYSE:GIS), Colgate-Palmolive Company (NYSE:CL), and PepsiCo, Inc. (NASDAQ:PEP).
On March 1, Royal Bank of Canada (NYSE:RY) declared a quarterly dividend of C$1.32 per share, which fell in line with its previous dividend. The company has raised its dividends consistently since 2012, which makes it one of the high-growth Canadian dividend stocks. Moreover, its 5-year average annual dividend growth rate stands at 6.6%. The stock has a dividend yield of 4.14%, as of March 15.
In fiscal Q1 2023, Royal Bank of Canada (NYSE:RY) reported revenue of C$15.09 billion, up 15.5% growth from the same period last year. The company paid nearly $1.8 billion in dividends to shareholders during the quarter.
TELUS Corporation (NYSE:TU) is a telecommunications company, based in Vancouver, Canada. The company provides a wide range of related services and products to its consumers. The company has had a run of paying regular dividends to shareholders since 2004 and has raised its payouts at an annual average rate of 6.7% in the past five years. The company offers a quarterly dividend of C$0.3511 per share and has a dividend yield of 5.29%, as recorded on March 15.
The Toronto-Dominion Bank (NYSE:TD), one of the high-growth Canadian dividend stocks on our list, has been raising its dividends consistently for the past eight years. Its 5-year average dividend growth rate stands at 7.98%. The company currently offers a quarterly dividend of C$0.96 per share for a dividend yield of 4.86%, as of March 15.
Another high-growth Canadian dividend stock on our list is Sun Life Financial Inc. (NYSE:SLF), which is a financial services company in Canada. The company mainly specializes in insurance-centric services for its consumers. The company currently pays a quarterly dividend of C$0.72 per share and has a dividend yield of 4.74%, as of March 15. It has grown its payouts at an annual average rate of 9.19% in the past five years.
In the fourth quarter of 2022, Sun Life Financial Inc. (NYSE:SLF) posted an EPS of C$1.69, which beat Street estimates by C$0.16. At the end of December 2022, the company had approximately $423 million available in cash and cash equivalents. In FY22, it returned over $1.6 billion to shareholders in dividends.
In this article, we discuss 11 best Canadian dividend stocks to buy now. You can skip our detailed analysis of Canadian dividend stocks and their performance and go directly to read 5 Best Canadian Dividend Stocks To Buy Now.
The Canadian stock market regained its footing last year after suffering heavily in the face of the pandemic in 2020. The stocks recorded their best year in over a decade, returning 22% in 2021, according to a report by Bloomberg. Though the performance of Canadian equities is not very promising this year, the Canadian benchmark index is still surpassing the S&P 500, its American counterpart. S&P/TSX Composite Index reported a 4.18% decline year-to-date, compared with a 16.8% drop in the broader market, as of the close of November 27.
Given the market volatility, investors around the world are increasingly considering dividend investments to glide through this uncertain period. Over the years, dividend stocks have balanced out the ill effects of inflation as companies with strong dividends continued with their payouts. According to a report published by RBC Global Asset Management, dividends have represented over 30% of the total return derived from the Canadian equity market in the last 30 years. The report also mentioned that dividend growth surpassed inflation in Canada in the past 20 years. The annual dividend growth rate of the S&P/TSX from 2002 to 2022 came in at 7.9%, while CPI recorded a 2.2% growth during the same period.
Many major companies in the US have reported dividend hikes during the third quarter of 2022. According to a report by S&P Dow Jones Indices, 529 dividend increases were reported during the quarter, amounting to over $19.1 billion. Moreover, per-share dividends for the S&P 500 showed an 8.5% year-over-year growth to $16.66.
For this list, we selected some of the best Canadian stocks that pay dividends to shareholders. These companies are headquartered in Canada. We examined these companies through their overall financial health. They are ranked according to dividend yields, as of November 28.
In the third quarter of 2022, Brookfield Asset Management Inc. (NYSE:BAM) reported revenue of $23.4 billion, which showed a 21.7% growth from the same period last year. The company's cash flow for the quarter came in at $1.4 billion and its net income stood at $716 million. During the quarter, it paid $3 million in dividends to shareholders, which makes it one of the best dividend stocks on our list.
On November 27, Brookfield Asset Management Inc. (NYSE:BAM) declared a quarterly dividend of $0.14 per share, in line with its previous dividend. The stock's dividend yield on November 28 came in at 1.23%. The company can be a good addition to diversified dividend portfolios, alongside General Mills, Inc. (NYSE:GIS), Colgate-Palmolive Company (NYSE:CL), and PepsiCo, Inc. (NASDAQ:PEP).
In Q3 2022, Canadian National Railway Company (NYSE:CNI) reported a 25.6% year-over-year growth in its revenue of C$4.51 billion. The company's free cash flow for the first nine months of the year came in at roughly C$3 billion, compared with C$2.03 billion in the prior-year period. Its strong cash flow was sufficient to cover its dividend payments.
Canadian National Railway Company (NYSE:CNI) currently pays a quarterly dividend of C$0.7325 per share, with a dividend yield of 1.70%, as of November 28. The company is one of the best dividend stocks on our list as it holds a 22-year track record of consistent dividend payments.
Royal Bank of Canada (NYSE:RY) is a Canadian multinational financial services company and is the largest bank in the country. The company has raised its dividends each year since 2012, which makes it one of the best dividend stocks on our list. It currently pays a quarterly dividend of C$1.28 per share for a dividend yield of 3.81%, as of November 28.
The Toronto-Dominion Bank (NYSE:TD) has been raising its dividends consistently for the past eight years, which makes it one of the best dividend stocks on our list. The company pays a quarterly dividend of C$0.89 per share and has a dividend yield of 3.91%, as of November 28.
Canadian Natural Resources Limited (NYSE:CNQ) is a Calgary-based oil and natural gas company that specializes in crude oil. In the third quarter of 2022, the company reported an operating cash flow of C$6.1 billion, and its free cash flow after dividend payments amounted to over C$1.7 billion. Moreover, it paid approximately $2.5 billion in dividends during the quarter, which makes it one of the best dividend stocks on our list.
On November 13, Canadian Natural Resources Limited (NYSE:CNQ) declared a 13% hike in its quarterly dividend to C$0.85 per share. This was the company's 23rd consecutive year of dividend growth. The stock's dividend yield on November 28 came in at 4.14%.
Pembina Pipeline Corporation (NYSE:PBA) is a pipeline transport company that specializes in the delivery of oil and natural gas. The company is one of the best dividend stocks on our list as it pays monthly dividends to shareholders. It has been raising its dividends consistently for the past six years. It currently pays a quarterly dividend of C$0.2715 per share for a dividend yield of 5.50%, as of November 28.
In addition to some of the best dividend stocks like General Mills, Inc. (NYSE:GIS), Colgate-Palmolive Company (NYSE:CL), and PepsiCo, Inc. (NASDAQ:PEP), Pembina Pipeline Corporation (NYSE:PBA) is another good option for dividend portfolios.
The board of directors of a company decides what shares are dividend-paying before the shares are issued. Once the shares are issued, investors can buy those shares to receive a dividend. Depending on the type of share, the shareholder may have a right to vote at the shareholders' meeting or they may not have the right to do so. Before the dividend is paid out to the shareholders, the dividend must be approved by the board of directors. Once the board of directors votes for issuing a dividend, the dividend will be paid out to each share. A stock with a track record of consistently increasing its dividend also has had a track record of positively affecting the net worth of its holders. 041b061a72
