In a volatile market, many investors flock toward stable growth companies that pay quarterly dividends. Consistent cash flow in a portfolio enables further buying opportunities when equities are priced lower— an event such as now. Picking high-quality dividend stocks is a time-consuming task for many investors, primarily because there are many factors involved in identifying quality.
Fortunately, the research has been done for you. Here are the top ten Canadian dividend stocks for the fourth quarter.
The First Five
Toronto-Dominion Bank (TD)
FILE PHOTO: A Toronto-Dominion Bank (TD) sign is seen outside of a branch in Ottawa, Ontario, Canada, May 26, 2016. REUTERS/Chris Wattie/File Photo
Toronto-Dominion Bank is among the largest corporations to provide banking and financial services across Canada. As of now, TD Bank stock has a dividend yield of 4.1% and a payout ratio of only 41.7%. Additionally, TD Bank has grown its dividend by an average of 8.6% on an annualized basis in the past five years.
Royal Bank (RY)
FILE PHOTO: The Royal Bank of Canada (RBC) logo is seen outside of a branch in Ottawa, Ontario, Canada, February 14, 2019. REUTERS/Chris Wattie/File Photo
Royal Bank is the largest financial institution and banking services provider across Canada. Currently, Royal Bank shares offer a dividend yield of 4.1%, with a payout ratio of only 42.9% of earnings. Dividend growth has been consistent over the past five years, averaging an annualized growth rate of 6.9%.
Brookfield Asset Management (BAM)
Brookfield is one of the world’s largest asset management companies. The company briefly faced a slow period during 2020 which forced a temporary cut in the dividend per share. Despite this, the dividend has grown 5.9% over the past five years with a current yield of 1.3%, and a very low payout ratio of only 23.7%.
Power Corporation of Canada (POW)
Power Corporation of Canada is a management company that focuses on delivering financial services, primarily insurance and wealth management. The company has a strong dividend yield of 6.14% and a payout ratio of 50.5% of earnings. Additionally, annualized five-year dividend growth has been steady at nearly 7.4%
Canadian Pacific (CP)
FILE PHOTO: A Canadian Pacific Railway crew works on their train at the CP Rail yards in Calgary, Alberta, April 29, 2014. REUTERS/Todd Korol/File Photo
Canadian Pacific is one of two Canada’s largest railway companies that transports products across the entire country and the mid-eastern United States. The current dividend yield is only 0.78%, but the payout ratio is very low at 22%. However, the company has nearly doubled its dividend in the past five years (5:1 split-adjusted data), which may be appealing to investors who are looking for dividend growth.
The Next Five
Two similar companies on this list, Suncor (SU) and Canadian Natural Resources (CNQ), both have payout ratios below 30% while providing a dividend yield of over 3.9% each. However, CNQ has outpaced Suncor’s dividend hikes with a five-year annualized growth rate of 21.4%.
Canadian Utilities (CU), a subsidiary of ATCO, manages a large portfolio of power generation assets. The company narrowly made this list because of its payout ratio of 74.1%, but nonetheless meets the criteria. The current dividend yield is a staggering 5.14%, with a five-year annualized growth rate of 4.87%.
Canadian National Railway (CNR), which scores below Canadian Pacific for dividend growth, has seen 11.7% annualized growth on its dividend with a payout ratio of nearly 41%. The dividend yield of almost 1.9% is enticing given the stability.
Lastly, Great-West Lifeco (GWO) is a Canadian insurance provider with a steady dividend track record. The dividend, which yields over 6.6%, has grown 6.2% per year in the past five years. However, the payout ratio is 53.2%, which is higher than some other stocks on this list.
TORONTO – Canada’s main stock index was up more than 100 points in late-morning trading, helped by strength in base metal and utility stocks, while U.S. stock markets were mixed.
The S&P/TSX composite index was up 103.40 points at 24,542.48.
In New York, the Dow Jones industrial average was up 192.31 points at 42,932.73. The S&P 500 index was up 7.14 points at 5,822.40, while the Nasdaq composite was down 9.03 points at 18,306.56.
The Canadian dollar traded for 72.61 cents US compared with 72.44 cents US on Tuesday.
The November crude oil contract was down 71 cents at US$69.87 per barrel and the November natural gas contract was down eight cents at US$2.42 per mmBTU.
The December gold contract was up US$7.20 at US$2,686.10 an ounce and the December copper contract was up a penny at US$4.35 a pound.
This report by The Canadian Press was first published Oct. 16, 2024.
TORONTO – Canada’s main stock index was up more than 200 points in late-morning trading, while U.S. stock markets were also headed higher.
The S&P/TSX composite index was up 205.86 points at 24,508.12.
In New York, the Dow Jones industrial average was up 336.62 points at 42,790.74. The S&P 500 index was up 34.19 points at 5,814.24, while the Nasdaq composite was up 60.27 points at 18.342.32.
The Canadian dollar traded for 72.61 cents US compared with 72.71 cents US on Thursday.
The November crude oil contract was down 15 cents at US$75.70 per barrel and the November natural gas contract was down two cents at US$2.65 per mmBTU.
The December gold contract was down US$29.60 at US$2,668.90 an ounce and the December copper contract was up four cents at US$4.47 a pound.
This report by The Canadian Press was first published Oct. 11, 2024.
TORONTO – Canada’s main stock index was little changed in late-morning trading as the financial sector fell, but energy and base metal stocks moved higher.
The S&P/TSX composite index was up 0.05 of a point at 24,224.95.
In New York, the Dow Jones industrial average was down 94.31 points at 42,417.69. The S&P 500 index was down 10.91 points at 5,781.13, while the Nasdaq composite was down 29.59 points at 18,262.03.
The Canadian dollar traded for 72.71 cents US compared with 73.05 cents US on Wednesday.
The November crude oil contract was up US$1.69 at US$74.93 per barrel and the November natural gas contract was up a penny at US$2.67 per mmBTU.
The December gold contract was up US$14.70 at US$2,640.70 an ounce and the December copper contract was up two cents at US$4.42 a pound.
This report by The Canadian Press was first published Oct. 10, 2024.
