A popular investing strategy is investing in stable dividend paying companies and setting up a DRIP program. Dividends make up a large part of the stock market return and dividend paying stocks tend to have less volatility. The Canadian Dividend Aristocrats is compromised of the most elite dividend paying stocks. These companies have consistently raised their dividends over the last few decades and are seen as the ultimate dividend payers.

Canadian Dividend Aristocrat Requirements

  1. The company’s security is a common stock or income trust listed on the Toronto Stock Exchange and a constituent of the S&P Canada BMI.
  2. The security has increased ordinary cash dividends every year for five years, but can maintain the same dividend for a maximum of two consecutive years within that five year period.
  3. The float-adjusted market capitalization of the security, at the time of the review, must be at least C$ 300 million.
  4. For index additions, the company must have increased dividend in the first year of the prior five years of review for dividend growth. This rule does not apply for current index constituents.

Canadian Dividend Aristocrats offers advantages that riskier growth stocks don’t. For instance:

  1. Dividend Aristocrats are stocks that you can buy, hold and collect dividends from. There is no need to check daily price movements.
  2. Dividend Aristocrats are generally blue chip companies with stable income streams.  These companies have a steady cash flow and have a record of returning profits to their shareholders.
  3. These firms generally exhibit lower stock price volatility, while delivering attractive and even superior returns.

Top 3 Canadian Aristocrats

These stocks pay high yield dividends, and have the potential for capital appreciation.

Bird Construction Inc. (BDT.TO) is a general contractor. The Company primarily builds industrial, commercial, and institutional projects.

Price Dividend Yield 52 week gain
$14.28 $0.20 4.20% 20.70%

 

Enbridge Inc. (ENB.TO) transports and distributes crude oil and natural gas primarily in North America.

Price Dividend Yield 52 week gain
$43.87 $1.12 2.54% 16%

 

Fortis Inc. (FTS.TO) operates as an electricity and natural gas distribution utility in Canada.

Price Dividend Yield 52 week gain
$34.66 $1.20 3.46% 8%

 

There are 57 stocks that qualify as Canadian Dividend Aristocrats:  See list below

Canadian Dividend Aristocrat

Company Name Ticker Price Dividend Yield Market Cap (B$) P/E
Ag Growth International Inc AFN.TO $35.19 $0.20 6.82% 0.44 18.52
AGF Management Ltd B Nvtg AGF.B $9.85 $0.27 10.96% 0.91 17.77
Atco Ltd I Nvtg ACO.X $84.34 $0.28 1.33% 4.85 12.9
Atlantic Power Corporation ATP.TO $12.42 $0.10 9.66% 1.48 #N/A
Bank of Nova Scotia Halifax BNS.TO $57.70 $0.52 3.60% 68.35 11.05
Barrick Gold Corp ABX.TO $34.03 $0.16 1.88% 34.05 10.32
Bird Construction Inc. BDT.TO $14.28 $0.05 4.20% 0.6 12.96
Cameco Corp CCO.TO $21.16 $0.10 1.89% 8.37 17.21
Canadian National Railways CNR.TO $93.63 $0.32 1.37% 40.4 15.53
Canadian Natural Resources CNQ.TO $29.09 $0.09 1.24% 31.84 13.5
Canadian Pacific Railway Ltd CP.TO $108.79 $0.30 1.10% 18.82 27.14
Canadian Real Estate Inv Trust REF.UN $43.70 $0.12 3.30% 2.97 42.02
Canadian Tire Corp Ltd A Nvtg CTC.A $68.85 $0.30 1.74% 5.61 11.21
Canadian Utilities Ltd A Nvtg CU.TO $73.99 $0.40 2.16% 9.48 17.32
Canadian Western Bank CWB.TO $29.63 $0.15 2.02% 2.33 13.33
CCL Industries Inc B CCL.B $45.51 $0.17 1.49% 1.54 16.13
Cineplex Inc. CGX.TO $32.18 $0.11 4.10% 1.99 19.88
Cogeco Cable Inc CCA.TO $38.90 $0.25 2.57% 1.9 11.23
Cogeco Inc CGO.TO $35.65 $0.18 2.02% 0.6 27.98
Computer Modelling Group Ltd CMG.TO $22.25 $0.11 1.98% 0.84 35.73
Constellation Software Inc. CSU.TO $126.36 $1.01 3.20% 2.68 37.83
Corus Entertainment Inc B Nvtg CJR.B $24.45 $0.07 3.44% 2.04 13.68
Dorel Industries B DII.B $36.79 $0.15 1.63% 1.16 11.22
Emera Inc EMA.TO $35.66 $0.34 3.81% 4.45 19.92
Empire Co Ltd A Nvtg EMP.A $59.43 $0.22 1.48% 4.04 10.83
Enbridge Inc ENB.TO $44.06 $0.28 2.54% 35.24 42.62
Enbridge Income Fund Holdings Inc. ENF.TO $24.80 $0.10 4.98% 0.99 14.03
Ensign Energy Services ESI.TO $15.88 $0.11 2.64% 2.42 10.96
Exchange Income Corporation EIF.TO $27.84 $0.14 6.03% 0.57 22.43
Fairfax Financial Hldgs Ltd FFH.TO $363.80 $10.12 2.78% 7.69 #N/A
Finning Intl Inc FTT.TO $26.06 $0.13 2.00% 4.48 14.83
Fortis Inc FTS.TO $34.66 $0.30 3.46% 6.61 21.11
Home Capital Group Inc HCG.TO $61.30 $0.20 1.31% 2.13 9.96
IGM Financial Inc IGM.TO $41.86 $0.54 5.16% 10.57 14.13
Imperial Oil Ltd IMO.TO $43.93 $0.11 1.00% 37.25 10.13
Intact Financial Corporation IFC.TO $64.70 $0.37 2.29% 8.63 18.23
Jean Coutu Group Inc A Subvtg PJC.A $15.40 $0.06 1.56% 3.32 5.95
Keyera Corp. KEY.TO $49.95 $0.17 1.36% 3.87 73.37
Methanex Corp MX.TO $31.48 $0.18 2.29% 2.96 23.15
Metro Inc A MRU $62.06 $0.19 1.22% 5.97 12.81
Northern Property REIT NPR.UN $31.60 $0.13 4.94% 1.01 #N/A
Pason Systems Inc PSI.TO $17.74 $0.20 4.51% 1.45 16.41
Reitmans Canada Ltd A RET.A $12.36 $0.20 6.47% 0.8 25.02
Ritchie Bros Auctioneers Inc RBA.TO $20.82 $0.12 2.31% 2.22 26.86
Rogers Communications Inc B RCI.B $44.92 $0.35 3.12% 23.14 15.55
Saputo Inc SAP.TO $49.65 $0.19 1.53% 9.78 26.47
Shaw Communications Inc B SJR.B $22.99 $0.08 4.18% 10.24 13.67
ShawCor Ltd A SCL.A $40.15 $0.08 0.80% 2.82 23.61
Shoppers Drug Mart Inc SC.TO $43.62 $0.25 2.29% 8.97 15.09
SNC – LAVALIN GROUP INC. SNC.TO $44.00 $0.21 1.91% 6.65 22.94
Suncor Energy Inc SU.TO $33.92 $0.11 1.30% 51.94 11.11
Talisman Energy Inc TLM.TO $11.96 $0.14 4.68% 12.26 #N/A
TELUS Corp T.TO $64.96 $0.58 3.57% 21.17 16.71
Thomson Reuters Corporation TRI.TO $29.69 $0.32 4.31% 24.54 #N/A
Tim Hortons THI.TO $48.90 $0.17 1.39% 7.55 18.94
Toronto-Dominion Bank TD.TO $82.01 $0.68 3.32% 75.13 12.12
TransCanada Corp TRP.TO $48.50 $0.42 3.46% 34.19 24.98
Transcontinental A Subvtg TCL.A $11.80 $0.14 4.75% 0.92 #N/A

 

The Canadian Dividend Aristocrat IndexA great way to start investing in the Canadian Dividend Aristocrat is through ETF’s. The iShares S&P/TSX Canadian Dividend (CDZ) tracks the S&P/TSX Canadian Dividend Aristocrat. The ETF has a low MER (0.67%) and provides excellent diversification.