While there are various dividend investing strategies, investors tend to choose between dividend growth investing, dividend income investing or a mix of both. At first, dividend growth should be prioritized to build the largest portfolio to retire from.
One key quality of the selected dividend stocks below is the blend of dividend yield and dividend growth. The blend is important, if not critical, as high-yield dividend stocks can be dangerous and detrimental to your portfolio down the road. Don’t make the mistake of focusing solely on the yield.
You will find some of the best Canadian stocks below. Based on market conditions, stocks will be prioritized monthly as the best buy opportunity. Keep that in mind, not seeing your favourite stock doesn’t mean it’s no longer good, it just means other options may be better valued.
Tips To Find The Best Dividend Stocks
The monthly top 10 rarely have the same ten stocks. The page is updated monthly. Be sure to return, or better yet, follow the top 10 with the Canadian Dividend Screener.
An important note is that the best Canadian dividend stocks are not meant to be the highest dividend yield stocks. Here is how I categorize yields.
- Over 6% is a risky yield (unless there is a market crash) or it comes from advanced investing instruments (think covered calls)
- Between 4% and 6% is high yield (company has consistent excess cash)
- Between 2% and 4% is normal yield
- Under 2% is low yield with higher stock growth
The list is not about finding a stock that pays income in retirement. It’s about building wealth with dividend growth during the accumulation years. Investing for retirement income is a little more complicated when withdrawal and taxes come into play.
As a note, REITs rarely make the top 10 as they have abysmal distribution growth. Rogers Sugar will also not make it to the top either, it behaves too much like a bond.
Note that you need access to specialized dividend data to screen dividend stocks. The number of consecutive years a dividend is increased isn’t a free data point, unlike the stock price or the dividend payout ratio. You should consider a screener such as Dividend Snapshot Screeners.
Dividend Earner’s Favorite Dividend Stocks
While the stock market changes daily, some stocks are core holdings from my perspective. These stocks tend to be operating in an oligopoly business, with strong and stable growing revenue to provide consistent dividend growth.
Can you stomach holding all your money in these top Canadian dividend stocks?
If you can find my favourite stocks in the top 10 below, the timing to buy them is perfect.
The Top 10 Canadian Dividend Stocks To Buy Now
Technically, you can consider the below as the best Canadian dividend stocks to buy NOW. The list represents potential opportunities to consider adding to your portfolio provided the companies match your investing criteria.
The table is updated monthly, and the Dividend Snapshot Screeners are used to build the table, and that’s what I used to build my portfolio! Some picks might fit the dividend income strategy, while others might fit the dividend growth strategy.
- A high dividend yield is not the priority in those rankings.
- Share price within its range plays a factor as an opportunity.
- Market capitalization plays a role in stability.
- Historical dividend growth highlights a strong track record.
- Other factors come into play for the score.
Below are more details on each of the stocks.
Cogeco Cable
tse:cca | Communication Services | Telecommunication Services
- Grade: A+
- Market Cap:2.74B (Mid Cap)
- P/E:7.19
- Dividend Yield:5.72%
- Dividend Aristocrat:YES
- Dividend Growth Fit: 8/10
- Dividend Income Fit:9/10
- Chowder Score: Members Only
- Revenue Growth: Members Only
- Dividend Growth: Members Only
First National Financial
tse:fn | Financial Services | Mortgage Finance
- Grade: A
- Market Cap:2.19B (Mid Cap)
- P/E:8.79
- Dividend Yield:6.71%
- Dividend Aristocrat:YES
- Dividend Growth Fit: 7/10
- Dividend Income Fit:9/10
- Chowder Score: Members Only
- Revenue Growth: Members Only
- Dividend Growth: Members Only
Canadian Natural Resources
tse:cnq | Energy | Oil & Gas E&P
- Grade: A
- Market Cap:103.63B (Large Cap)
- P/E:12.93
- Dividend Yield:4.34%
- Dividend Aristocrat:YES
- Dividend Growth Fit: 9/10
- Dividend Income Fit:7/10
- Chowder Score: Members Only
- Revenue Growth: Members Only
- Dividend Growth: Members Only
Imperial Oil
tse:imo | Energy | Oil & Gas Integrated
- Grade: A
- Market Cap:46.43B (Large Cap)
- P/E:10.18
- Dividend Yield:2.77%
- Dividend Aristocrat:YES
- Dividend Growth Fit: 8/10
- Dividend Income Fit:5/10
- Chowder Score: Members Only
- Revenue Growth: Members Only
- Dividend Growth: Members Only
Quebecor
tse:qbr.b | Communication Services | Telecommunication Services
- Grade: A
- Market Cap:7.22B (Mid Cap)
- P/E:11.34
- Dividend Yield:4.15%
- Dividend Aristocrat:YES
- Dividend Growth Fit: 7/10
- Dividend Income Fit:7/10
- Chowder Score: Members Only
- Revenue Growth: Members Only
- Dividend Growth: Members Only
CIBC
tse:cm | Financial Services | Banks - Diversified
- Grade: B
- Market Cap:62.36B (Large Cap)
- P/E:10.24
- Dividend Yield:5.38%
- Dividend Aristocrat:YES
- Dividend Growth Fit: 5/10
- Dividend Income Fit:8/10
- Chowder Score: Members Only
- Revenue Growth: Members Only
- Dividend Growth: Members Only
Bank of Montreal
tse:bmo | Financial Services | Banks - Diversified
- Grade: A
- Market Cap:92.06B (Large Cap)
- P/E:17.98
- Dividend Yield:4.76%
- Dividend Aristocrat:YES
- Dividend Growth Fit: 6/10
- Dividend Income Fit:7/10
- Chowder Score: Members Only
- Revenue Growth: Members Only
- Dividend Growth: Members Only
goeasy
tse:gsy | Financial Services | Credit Services
- Grade: A
- Market Cap:2.68B (Mid Cap)
- P/E:11.16
- Dividend Yield:2.90%
- Dividend Aristocrat:YES
- Dividend Growth Fit: 9/10
- Dividend Income Fit:5/10
- Chowder Score: Members Only
- Revenue Growth: Members Only
- Dividend Growth: Members Only
Telus
tse:t | Communication Services | Telecommunication Services
- Grade: A
- Market Cap:34.48B (Large Cap)
- P/E:40.49
- Dividend Yield:6.44%
- Dividend Aristocrat:YES
- Dividend Growth Fit: 7/10
- Dividend Income Fit:8/10
- Chowder Score: Members Only
- Revenue Growth: Members Only
- Dividend Growth: Members Only
Manulife
tse:mfc | Financial Services | Insurance - Life
- Grade: A
- Market Cap:57.86B (Large Cap)
- P/E:12.27
- Dividend Yield:4.99%
- Dividend Aristocrat:YES
- Dividend Growth Fit: 5/10
- Dividend Income Fit:8/10
- Chowder Score: Members Only
- Revenue Growth: Members Only
- Dividend Growth: Members Only
