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Top 10 Canadian Dividend Stocks for the Fourth Quarter 2022

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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.

 

Sources:

All dividend-related data: https://seekingalpha.com/

 

 

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Tesla shares soar more than 14% as Trump win is seen boosting Elon Musk’s electric vehicle company

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NEW YORK (AP) — Shares of Tesla soared Wednesday as investors bet that the electric vehicle maker and its CEO Elon Musk will benefit from Donald Trump’s return to the White House.

Tesla stands to make significant gains under a Trump administration with the threat of diminished subsidies for alternative energy and electric vehicles doing the most harm to smaller competitors. Trump’s plans for extensive tariffs on Chinese imports make it less likely that Chinese EVs will be sold in bulk in the U.S. anytime soon.

“Tesla has the scale and scope that is unmatched,” said Wedbush analyst Dan Ives, in a note to investors. “This dynamic could give Musk and Tesla a clear competitive advantage in a non-EV subsidy environment, coupled by likely higher China tariffs that would continue to push away cheaper Chinese EV players.”

Tesla shares jumped 14.8% Wednesday while shares of rival electric vehicle makers tumbled. Nio, based in Shanghai, fell 5.3%. Shares of electric truck maker Rivian dropped 8.3% and Lucid Group fell 5.3%.

Tesla dominates sales of electric vehicles in the U.S, with 48.9% in market share through the middle of 2024, according to the U.S. Energy Information Administration.

Subsidies for clean energy are part of the Inflation Reduction Act, signed into law by President Joe Biden in 2022. It included tax credits for manufacturing, along with tax credits for consumers of electric vehicles.

Musk was one of Trump’s biggest donors, spending at least $119 million mobilizing Trump’s supporters to back the Republican nominee. He also pledged to give away $1 million a day to voters signing a petition for his political action committee.

In some ways, it has been a rocky year for Tesla, with sales and profit declining through the first half of the year. Profit did rise 17.3% in the third quarter.

The U.S. opened an investigation into the company’s “Full Self-Driving” system after reports of crashes in low-visibility conditions, including one that killed a pedestrian. The investigation covers roughly 2.4 million Teslas from the 2016 through 2024 model years.

And investors sent company shares tumbling last month after Tesla unveiled its long-awaited robotaxi at a Hollywood studio Thursday night, seeing not much progress at Tesla on autonomous vehicles while other companies have been making notable progress.

Tesla began selling the software, which is called “Full Self-Driving,” nine years ago. But there are doubts about its reliability.

The stock is now showing a 16.1% gain for the year after rising the past two days.

The Canadian Press. All rights reserved.

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S&P/TSX composite up more than 100 points, U.S. stock markets mixed

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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.

Companies in this story: (TSX:GSPTSE, TSX:CADUSD)

The Canadian Press. All rights reserved.

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S&P/TSX up more than 200 points, U.S. markets also higher

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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.

Companies in this story: (TSX:GSPTSE, TSX:CADUSD)

The Canadian Press. All rights reserved.

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