Best Canadian Dividend Stocks for 2021 -My top 10

Since we plan to reach financial independence via dividends and ETF investing, I am always on the lookout for great dividend stocks to invest in. What are some of the best Canadian dividend stocks that a dividend investor can own?

For many investors, dividend stocks remain to be attractive due to the stable dividend payments. In today’s low interest rate environment, owning a handful of dividend paying stocks that pay stable and uninterrupted dividends is very attractive. Hence, living off dividends when we are financially independent is a very attractive idea. 

If you look at our dividend portfolio, you will notice that we own quite a bit of Canadian dividend stocks. While we have been trying to own more ex-Canada dividend stocks, the reason for owning so many Canadian dividend stocks is mostly due to the exchange rate.

Also, because the Top Five Canadian banks have been paying uninterrupted dividends since the 1800’s, it makes a lot of sense to invest in Canadian dividend stocks like the Canadian banks that will continue to pay out juicy dividends regardless of the market condition. This is one of the key reasons why we hold Canadian bank shares rather than buying one of the Canadian bank ETFs.

Purchasing Canadian dividend stocks does not involve exchanging currency, so it is way easier to pull the buy trigger.

Meanwhile, if we want to purchase US listed stocks, we either need to exchange CAD to USD using Norbert Gambit, or wait until we receive enough dividend income in US currency. Furthermore, we only want to own US dividend stocks in RRSP to avoid the 15% withholding tax on dividends. Because of RRSP contribution limits, we can’t simply add cash to our RRSPs and not consider the contribution limits. 

By now, you should all know that the stock market goes up and down daily. However, long-term, the stock market has a tendency to increase in value. That’s why time in the market is far more important than timing the market. I believe it is important to identify the 10 best Canadian dividend stocks so you can continue monitoring them and pull the buy trigger whenever there is a good buying opportunity.

Which 10 stocks made my best Canadian dividend stocks list?

Best Canadian Dividend Stocks – Top 10

Here is my top 10 list of best Canadian dividend stocks. One thing to note is that we own most of these stocks in our portfolio and have no plan to sell any of them. We plan to continue adding shares of these stocks as a way to increase our portfolio value. These picks are based on total growth – a combination of dividend growth and stock price appreciation.

Also check out the Best Canadian Dividend Stocks from the DGI community and see which stocks my fellow dividend bloggers picked out.

We typically add shares to dividend stocks that we already own whenever there’s a pullback. For example, if there’s a 10% or 15% pullback within a short period of time, it usually makes sense to buy these dividend stocks. Afterall, we are investing for the long term, not the short term.

For my selection criteria for the best Canadian dividend stocks, I focused on dividend yield, dividend growth, dividend safety, and stock price growth. 

1. Alimentation Couche-Tard (ATD.B)

Although we do not own ATD in our dividend portfolio currently, we have been monitoring this stock for a very long time. With around 14,000 stores in North America and Europe, Alimentation Couche-Tard is a fast-growing company with a huge presence in the convenience store industry. Just recently ATD submitted a non-binding offer letter to Carrefour SA for a friendly combination at a price of 20 Euro per Carrefour share to expand its portfolio. This offer was turned down by the French government, but I would not surprised to see ATD trying to acquire another company or two in the near future.

best Canadian dividend stocks - ATD.B
  • Sector: Consumer Defensive
  • Dividend Yield: 0.90%
  • Dividend Payout: 10.8%
  • PE Ratio: 12.02
  • 5 Year Dividend Growth Rate: 25.1%
  • Dividend Increase Streak: 10 years

ATD’s overall valuation has come down recently. The historical PE ratio is around 17 so at a PE ratio of around 12, ATD can be considered quite cheap from a historical point of view. While the initial dividend yield is extremely low, ATD has been growing its dividends at an impressive rate.

If you think gas station convenience stores are going away soon, think again. With the EV evolution in mind, Alimentation Couche-Tar is planning to add EV charging stations at its convenience store locations in the US and Canada. The company is doing the same in Norway as well. This kind of roll out wouldn’t be possible without a vast network of retail stores.

If you are looking for organic dividend growth, ATD.B is an excellent stock to consider.

2. National Bank (NA.TO)

National Bank is the sixth largest bank in Canada. National Bank’s key market is in Quebec as 62% of its revenues came from this province but the bank has expanded to the rest of the country in recent years. Being a smaller bank compared to the Big Five Banks, National Bank has grown by focusing on the capital market and wealth management. 

Best Canadian Dividend Stocks - National Bank

  • Sector: Financial Services
  • Dividend Yield: 3.90%
  • Dividend Payout Ratio: 49.8%
  • PE Ratio: 12.79
  • 5 Year Dividend Growth Rate: 7.2%
  • Dividend Increase Streak: 10 years

I picked National Bank as one of my top 10 Canadian dividend stocks mostly because it’s a smaller player compared to the Big Five Banks. Being a smaller bank, National Bank can adopt strategies and changes a bit quicker. For example, National Bank opened private banking branches in Western Canada to capture additional growth. The bank is also leaning on new technologies to serve the younger client base and improve company efficiency. Being a smaller bank allows National Bank to maneuver and implement changes at a fast pace than its competition and this can be viewed as a key advantage. 

One thing to be careful with National Bank is it is more vulnerable to Quebec’s economy. If Quebec’s economy isn’t doing well, National Bank’s revenues may be greatly impacted.

The COVID-19 global pandemic has created havoc within the Canadian and global economies. It forces many businesses to close for an extended period, some have even gone bankrupt. To protect themselves, National Bank has set aside billions in case any loans default. As a result, it is probably unlikely to see a dividend raise until early 2022. However, at an initial dividend yield of almost 4%, dividend investors can invest in National Bank and wait for an eventual dividend raise.

3. TD Bank (TD.TO)

Toronto-Dominion Bank is a Canada-based bank, which operates in North America. TD is one of the largest banks in Canada and the 5th largest bank in North America. It is an online financial services firm, with over 14 million online and mobile customers. Its segments include Canadian Retail, U.S. Retail, Wholesale Banking and Corporate. TD has also a large retail presence with more than 2,300 retail locations across North America. No wonder I see so many TD branches all over Vancouver!

Best Canadian dividend stocks - TD
  • Sector: Financial Services
  • Dividend Yield: 4.21%
  • Dividend Payout Ratio: 49.2%
  • PE Ratio: 11.69
  • 5 Year Dividend Growth Rate: 9.5%
  • Dividend Increase Streak: 9 years

I like TD as one of the best Canadian dividend stocks because of its readily available banking branches. You can easily spot TD branches walking around any major Canadian and US cities. Interestingly TD gets more than 30% of its net income from the American division, so the company does not rely on the Canadian division as heavily as some might have thought.

I became a TD customer when my parents opened up a chequing account for me with TD when I was a teenager. Since then I have opened TFSA with TD , used credit cards from TD Bank, and continued to use TD. Fortunately for TD, most people are like me. When they open an account with a particular bank, they tend to continue banking with this particular bank. More often than not, it’s not worth the hassle to switch your bank or closing your account. 

For banks, it’s usually easy to keep their customers. This is why I like the banking sector so much.

4. Royal Bank (RY.TO)

Royal Bank of Canada (RBC), is a diversified financial services company. The Company provides personal and commercial banking, wealth management services, insurance, investor services and capital markets products and services on a global basis. The Company serves personal, business, public sector and institutional clients in Canada, the United States and approximately 40 other countries. The Company’s business segments include Personal and Commercial Banking, Wealth Management, Insurance, Investor and Treasury Services, Capital Markets.

Best Canadian dividend stocks - RY

Royal Bank is the largest bank in Canada with mover than 620,000 clients. If we look at Royal Bank’s earnings, 45% came from personal & commercial banking, 24% came from capital markets, 19% came from wealth management, 7% came from insurance, and 5% came from investor & treasury services.

Best Canadian dividend stocks - RY2
  • Sector: Financial Services
  • Dividend Yield: 4.08%
  • Dividend Payout Ratio: 55.2%
  • PE Ratio: 13.54
  • 5 Year Dividend Growth Rate: 7.5%
  • Dividend Increase Streak: 9 years

Are you surprised to see yet another Canadian bank on our 10 best Canadian dividend stocks? Well, you shouldn’t because Canadian banks are pretty awesome! 

Royal Bank has been paying dividends since 1870 and has never missed a dividend payment since. Needless to say, the 150 years of dividend payment streak is pretty impressive. And dividend investors can count Royal Bank to continue paying dividends whether it’s a bull market or a bear market. 

Like the other Canadian banks on this Best Canadian dividend stocks list, I do not expect Royal Bank to raise its dividends until at least early 2022 because of the global pandemic. Like other Canadian banks, Royal Bank has put aside a huge amount of money in case of any loan defaults. We probably won’t see the full financial impact of the COVID-19 pandemic until mid or late 2021. However, considering the high initial yield of over 4%, one can afford to wait for a dividend increase.  

5. Intact Financial (IFC.TO)

Intact Financial is an insurance company. It offers a range of car, home and business insurance products, including personal auto, personal property, commercial P&C and commercial auto.

Intact Financial was the very first Canadian dividend paying stock that I purchased many years ago. Since my purchase, Intact Financial has managed to raise its dividend payments every year. Best of all, the stock price has increased significantly since, making me a happy shareholder.

  • Sector: Financial Services
  • Dividend Yield: 2.19%
  • Dividend Payout Ratio: 52.9%
  • PE Ratio: 24.17
  • 5 Year Dividend Growth Rate: 9.6%
  • Dividend Increase Streak: 15 years
Best Canadian Dividend Stocks - Intact Financial price chart

At a PE ratio of 24, Intact Financial may be a bit overpriced (typically dividend investors want to invest in a dividend stock with a PE ratio lower than 20). However, one needs to consider a few things. For one, I believe the high PE ratio is caused by the market putting a slight premium on this particular stock because of its historical performance. If we look at the historical price chart, we will see that Intact Financial stock price has been on quite a nice run-up since the financial crisis. In fact, in the last five years, Intact Financial has provided a return of 54.68%. The good stock price appreciation is one of the key reasons why I picked Intact Financial as one of the best Canadian dividend stocks. 

6. Algonquin Power & Utilities Corp (AQN.TO)

Algonquin Power & Utilities Corp. is a diversified Canadian renewable energy and regulated utility conglomerate with assets across North America. Algonquin actively invests in hydroelectric, wind and solar power facilities, and utility businesses (water, natural gas, electricity), through its two operating subsidiaries: Liberty Power and Liberty Utilities.

  • Sector: Utilities
  • Dividend Yield: 3.56% 
  • Dividend Payout Ratio:  74.4%
  • PE Ratio: 20.28
  • 5 Year Dividend Growth Rate: 9.8%
  • Dividend Increase Streak: 9 years
Best Canadian Dividend Stocks - AQN.TO

I picked AQN.TO as one of the best Canadian dividend stocks because renewable energy is becoming more and more prominent. I particularly like that Algonquin Power has been actively investing in renewable energy facilities and increasing its renewable capacity through active acquisitions.

Best Canadian Dividend Stocks - AQN.TO

7. Telus (T.TO)

Telus is one of the big three Canadian telecommunication companies based in Vancouver BC. The Company provides a range of telecommunications services and products, including wireless and wireline voice and data. Telus has around 11 million subscribers and they have increased its dividend nearly every year since 2002.

Best Canadian Dividend Stocks - Telus
  • Sector: Communication Services
  • Dividend Yield: 4.60%
  • Dividend Payout Ratio: 99.5%
  • PE Ratio: 25.82
  • 5 Year Dividend Growth Rate: 8.2%
  • Dividend Increase Streak: 16 years
Best Canadian Dividend Stocks - Telus
Telu’s 2020 Targets

Since the launch of smartphones and data plans, more and more Canadians are addicted to these smart devices. This addiction has helped Telus to continue making a massive amount of profit. The high payout ratio is a bit concerning though. This is an indication that Telus’ revenue growth has slowed compared to its dividend growth. It is highly possible that Telus’ dividend growth rate will slow down over the next few years, unless Telus can increase revenue growth. 

Having said that, Telus has been expanding outside of its core telecommunication services by offering services like telehealth, home security, and TV services. One thing I liked about Telus is that it has stayed true to its communication services core competency rather than trying to expand media services like radio and TV shows. 

With the recent IPO of Telus International, we can see that Telus is now spinning off some of its internal businesses as a way to generate more revenues. The success of Telus International so far pads a bright future for the eventual IPO of Telus Health.

Given that 5G is being rolled out globally, Telus is heavily investing money in the new 5G infrastructures. This is one of the reasons for the high payout ratio. As Telus’ 5G instractructures come online, it will allow Telus to improve its quality of service and hopefully add more subscribers. 

8. Fortis (FTS.TO)

Fortis Inc. is a Canada-based electric and gas utility holding company. The Company’s segments include Regulated Utilities and Non-Regulated Utilities. Fortis serves many different regions, including Arizona, BC, Alberta, New York, Newfoundland, Ontario, PEI, and the Caribbean’s.

Best Canadian dividend stocks - FTS
  • Sector: Utilities
  • Dividend Yield: 3.9%
  • Dividend Payout Ratio: 75.9%
  • PE Ratio: 19.48
  • 5 Year Dividend Growth Rate: 7.4%
  • Dividend Increase Streak: 46 years

I included Fortis as one of the top Canadian dividend stocks because of its long dividend increase streak and Fortis has consistently generated sustainable cash flow. Furthermore, I see Fortis’ dividend payments like bond interest payments. Many Canadians use natural gas or electricity to heat their home during winter, or use natural gas or electricity for cooking purposes, making Fortis a very stable stock to own.

Since Fortis has a big footprint in Canada already. I would expect Fortis to continue expanding by acquiring utility companies in the US. 

One thing I like about Fortis is that the company is trying to reduce its carbon footprint and increase its exposure to renewable energy. For example, Fortis has established a corporate-wide carbon emission reduction target of 75% by 2035 compared to 2019 levels. It also plans to increase its renewable energy assets to 7% by 2035. 

Best Canadian dividend stocks - FTS

9. Canadian National Railway (CNR.TO)

Canadian National Railway Company is engaged in the rail and related transportation business. The Company’s network of approximately 20,000 route miles of track spans Canada and mid-America, connecting approximately three coasts, including the Atlantic, the Pacific and the Gulf of Mexico and serving the cities and ports of Vancouver, Prince Rupert (British Columbia), Montreal, Halifax, New Orleans, and Mobile (Alabama), and the metropolitan areas of Toronto, Edmonton, Winnipeg, Calgary, Chicago, Memphis, Detroit, Duluth (Minnesota)/Superior (Wisconsin), and Jackson (Mississippi), with connections to all points in North America.

  • Sector: Industrials
  • Dividend Yield: 1.82%
  • Dividend Payout Ratio: 50.2%
  • PE Ratio: 28.21
  • 5 Year Dividend Growth Rate: 16.5%
  • Dividend Increase Streak: 25 years

What I like about CNR is that the company is very diversified. No one particular product line accounted for more than 25% of the total revenues. And the company has one of the lowest operation ratios of all American railway companies that are publicly traded.

Canadian National Railway has a pretty low dividend yield, but the company has had a relatively high dividend growth rate over the last 5 years. The dividend increase streak has been impressive to say the least. For example, on January 26 the company announced a dividend raise of 7%, marking the 25th consecutive year of dividend increase.

Although rail is not frequently used for passenger travels here in North America, rail is still the most efficient way for transporting goods. Canadian National Railway’s large rail network will allow the company to provide transportation services in North America and bring profits to shareholders.

Furthermore, with the stoppage of Keystone XL pipelines, transporting raw materials via rail now is more important than ever. CNR should benefit from this.

If we look at CNR’s 10-year dividend growth history, Canadian National Railway has raised dividends on average by 15.6%. This is an impressive feat. The overall stock dividend yield has been below 2% the last 10 years. This means, if you had purchased the stock 10 years ago, you would be looking at a heafy stock price appreciation as well as a solid yield on cost number.

As a dividend investor who cares both dividend growth and capital appreciate, I really like CNR has consistently outpaced the market.

Best Canadian dividend stocks - CNR

The PE ratio is extremely high for CNR. I think this mostly because investors like CNR’s stable revenues and the very wide moat the company has. So it definitely makes sense to monitor CNR’s stock price and purchase when there’s a dip in the price.

10. Brookfield Renewable Corp (BEPC.TO)

More than ever, I am convinced that renewable energy is the future. As society shifts from oil, natural gas, coal, and other forms of “dirty” energy sources to clean renewable energy sources, I think Brookfield Renewable Corp will greatly benefit. Why? Brookfield Renewable Corp happens to operate one of the world’s largest renewable power platforms with a portfolio consisting of 19,00 MW of installed capacity largely across Europe, North America, Latin America, and Asia. BEPC has a development pipeline of approximately 13,000 MW, and annualized long-term average generation on a proportionate basis of approximately 26,400 GWh.

Best Canadian dividend stocks - BEPC

Despite 2020’s tough economic environment, Brookfield Renewable Corp stock price increased over 45%. The consistent return is something BEPC’s board aimed for – to deliver long-term annualized total returns of 12-15%, including annual distribution increases of 5-9% from organic cash flow growth and project development. 

As an investor, you are definitely getting rewarded via the increase in share price!

  • Sector: Utilities
  • Dividend Yield: 2.61%
  • Dividend Payout Ratio: 63.4%
  • PE Ratio: 28.7
  • 5 Year Dividend Growth Rate: 7.7%
  • Dividend Increase Streak: 10 years

Although the dividend yield is low, Brookfield Renewable Corp has been consistently raising its dividend payouts at a good rate. Given the macro renewable energy shift and being a global leader in renewable power platforms, I think having BEPC as part of your dividend portfolio will definitely be beneficial in the long run.

Final Thoughts

Outside of the Canadian banks, most of these top Canadian dividend stocks have relatively high PE ratios. This indicates that some of these stocks are currently overvalued. It is worthwhile to wait for price pullbacks. Some of these best Canadian dividend stocks listed above have payout ratios higher than 70%. This is a sign that these companies’ future dividend growths may slow down.

Want to learn construct your own dividend investing portfolio and start investing in dividend paying stocks? I went through several methods on how I shortlist and screen dividend paying stocks.

The math behind this correlation of high payout ratios and future dividends is fairly straight forward. If a company fully matured, and it is unlikely to a high jump in the share price (likely to just rise with inflation), plus they are already paying out much of their free cash flow (instead of reinvesting it to create value), then it follows there will be much less fiscal room to reward investors going forward.  

Given the global pandemic, I expect the likes of Fortis, Intact Financial, Telus, Canadian National Railway, and Algonquin Power & Utilities Corp to continue raising their dividends. But I do not expect any of the Canadian banks to increase dividend payout until at least 2022. But since the Canadian banks have a higher than historical dividend yield currently, dividend investors like us can buy the stock and wait for a couple of years for dividend increase. 

The dividend-growth lovers over at Million Dollar Journey have their own list of Canada’s best dividend stocks, which focuses heavily on earnings-per-share, and forward earnings-per-share as their main dividend stock valuation metrics. This again, makes intuitive sense from a dividend-growth perspective, as companies that have a lot of free cash flow – plus a history of raising their dividends – should be ideally positioned to keep those dividends growing far into the future.

Is it better to purchase one of these top Canadian dividend stocks, or purchase lesser known Canadian dividend stocks with lower yield and higher dividend growth? This is a personal decision you need to make yourself. Personally I believe a mix of top Canadian dividend stocks listed above and some lesser known Canadian dividend stocks is a great strategy.

In case you’re curious, for diversification outside of Canada, we hold a handful of US dividend paying stocks. In addition, we utilize one of the low cost ex-Canada ETFs like XAW to diversify our portfolio internationally.

Do you already own dividend stocks and want to create a spreadsheet to track your portfolio? Take a look at my Google Spreadsheet Dividend Portfolio Template.

Want to learn more about how to analyze dividend stocks? Make sure you check out this comprehensive guide on how to read annual and quarterly reports.

Note: This blog post represents my opinion and not an advice/recommendation to purchase these stocks. Before you buy any stocks, please consult with a qualified financial planner.

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79 thoughts on “Best Canadian Dividend Stocks for 2021 -My top 10”

  1. Good list bob. Personally I would switch the suncor pick with enbridge. higher dividend and longer dividend increase streak. (Although i never realised suncors dividend growth rate was that high) The oil sands scare me as a investment because of how much it costs and the environmental impacts. Just my 5 cents…. haha either way great list. Cheers

    Reply
  2. Canada does offer many solid long term investing opportunities. I’m happy to own TD, BNS and RY in my retirement account and have CM on my watch list. Thanks for giving us your top 10!

    Reply
  3. I am concerned about enbridge as it has high debt and the stock price is at 54 weeks low. That said, the company seems to be well managed. Suncor to me is a better bet with EPS able to meet dividend payout.
    I have 7 out of your top 10 list. The outstanding 3 are definitely in my list to buy namely IFC, Saputo and Suncor.

    Cheers!

    Reply
  4. Always great to see these lists Tawcan. I’m pretty excited that I own the number 1 stock on the list. Love having a stake in Canadian Imperial. Quite frankly, all the major Canadian Banks that I have researched are strong performers. I am a little interested to see that only one of the stocks is considered a Dividend Aristocrat. I thought there would be more companies with consecutive increase streaks greater than 25.

    Thanks for taking the time to prepare this!

    Bert

    Reply
    • It’s interesting that most of the Canadian dividend stocks aren’t considered as dividend aristocrats. I guess continuing paying dividends is better than suspending dividend.

      Reply
  5. A list of solid companies indeed, we own 5 our out of 10. Some of the other are on the horizon too, but currently don’t have funds to start a new position (and considering we cannot contribute anymore, we have to wait until we have sufficient cash form existing dividend income streams).
    Thanks for the good write up Bob.

    Reply
  6. Does this top 10 come in an ETF 😛

    Interesting that Canadian banks seem to have a lower payout ratio compared to Australian banks at ~80% payout. Our top 4 bank stocks in Oz have slightly higher dividend yield due to this (around 5.0-5.5% yield) and higher PE ratio, around 14. I’m still waiting for them to reduce in price a little.

    Reply
  7. Tawcan, I’m with you on the exchange rate issue. Being from the US, I invest mostly in US based stocks. Being a dividend investor, I like to know how much I’m going to get paid and not have to worry about exchange rates influencing my payments. We also have to deal with the 15% tax on Canadian company dividends here in the US. For better or worse, those issues keep me mostly invested domestically, buy your list is a nice representation of good Canadian companies. Tom

    Reply
    • Hi Tom,

      We need to deal with the 15% withholding tax for US dividend stocks too. But don’t need to worry about that if we invest US dividend stocks in RRSP. I think it’s the same if you invest Canadian dividend stocks in 401(k) too.

      Reply
  8. The Reserve Bank (like the US Fed) sets the cash rate and it’s currently at 1.5%. That’s a pretty standard interest rate on a transaction acc and on an online savings account you can get 2.8-3%. We also have an investment culture geared heavily toward dividends, partly because of franking credits (tax credits for what tax was paid at the company tax rate) and partly just tradition. So banks pay a high dividend and are held by people who expect a high dividend. The share price often get bid up and down based on the yield. Results season for a few of our banks this coming few weeks so it’ll be interesting reading.

    Reply
    • That’s an interesting fact to know. Interestingly enough, Canadian banks seem to pay higher dividend yields than US counter parts. I’m not exactly sure why this is the case.

      Reply
  9. Canadian stock yields are awesome. But, they do seem concentrated in finance sector. I own TD. I have been thinking about buying iShares MSCI Canada ETF … I also have exposure to Canada through my VXUS (6.7%).

    Reply
  10. Thanks for the list Bob. Hey where do you get your payout ratios (and other values)? I seem to get different values from different websites.

    Plus, how do you know what a good PE is for various stocks? For financials, it seems that a low PE of 10-15 is the norm. But for other stocks, we seem to accept higher PE’s.

    Reply
    • I wrote the post over a span of a week so some of the numbers may have changed slightly.

      In terms of PE, obviously the lower the better but it also depends on the sector. Some sectors will have lower PE’s than other sectors.

      Reply
  11. I have 5 of your 10 in my top ten. Then instead of RY, I went LB and Suncor I exchanged for ENB. Now that Saputo made that new acquisition in Australia it’s on my watch list, too. Just waiting for a good entry.

    Reply
  12. I have been studying stock market since 2 months and to me all the share price are inflated. I have been thinking of buying Fortis and some banks’ shares but not sure if I should do it now or wait it out a bit till january, 2018.

    Reply
  13. Just discovered your blog. Really enjoying the content thus far. Well done! Do you think utilities (FTS, EMA, etc) and REITs will be impacted in this rising rate environment? Would you still acquire new shared in those interest sensitive sectors at this time?

    Thanks
    Stephan

    Reply
    • These dividend stocks will be negatively impacted by the rising interest rate, but we also need to remember all of these companies have survived the higher interest rate environment. I think in the long run they’ll come out just fine.

      Reply
  14. Hello Tawcan,

    First of all congratulations for your blog, I follow you from Spain!

    I was struck by the fact that you do not have the “Brookfield Infrastructure Partners” in your portfolio. I have read that it is considered a great share, and I would like to know your opinion if it is possible and why you do not have it in your portfolio.

    THANKS AND GREETINGS!

    Reply
  15. Hi Bob,

    Great selection of Canadian top 10 dividend stocks. I’ve only got Bank of Nova Scotia (BNS) on your selection. I’ve owned some of these lists in the past (TD, CNR, FTS and SAP) but sold and restructured my dividend portfolio to monthly dividend income. I have also narrowed down my lists to 6 for now from around 13-14 stocks and who knows may add again some dividend growth stocks in the future.

    Is Enbridge (ENB) in your radar and if not do we know why? Thanks.

    Reply
  16. I am already very overweight BNS and TD , especially since March of this year. I’ve been adding to both especially BNS because of the high yield. But I’ll be adding to existing utility positions going forward the next few months.

    Reply
  17. Thanks for the list and the exact data I look at: P/E, Ratio, Yield, Increase rate, and length of rises. Since the downturn this spring, I added debt/Capital ratio to what I look at.

    I put Royal Bank on my watch list now. I already own TD, Bank of Nova Scotia, Bank of Montreal, and Canadian Imperial.

    cheers!
    John

    Reply
  18. Thanks, tawcan. Great list. I would like a little more diversification. I think MRU is a pretty good dividend growth stock. Personally I would prefer MRU over SAP. SAP was a disappointment to me, especially when comparing to SYY in the US.

    Looks like you don’t like pipelines any more. ENB at $40 is pretty tempting to me.

    Reply
  19. Between BEPC and BEP, I will just buy BEP if I invest in RRSP as the dividend is the same but BEPC is more expensive. I sold my BEPC in my RRSP, obviously too early. LOL.

    Even BEP at this moment is overvalued I think. I might buy AQN instead if I need to invest in green energy at this moment.

    Reply
  20. I’ve always been a little scared of Brookfield Renewable because of their 64% reliance on hydroelectric. I don’t fully understand the impact of climate change on the supply of fresh water to hydroelectric dams. The renewable space also feels a little too popular these days, which is making it expensive. We do hold a couple hundred of their Series E preferred shares though, which currently yield 5.6%.

    Reply
  21. My preferred Canadian pick for the next decade is still Enbridge.
    Combination of the high sustainable dividend and mid-single digit DCF growth is an interesting opportunity.
    Also, if the stock returns to its historical valuation that further boosts total returns.

    Wish you successful investing!

    Reply
  22. XUT looks like a decent high-dividend utility ETF. It misses out on Banks, Oil, Telecomm, and CNR but I invest in those stocks individually (e.g., ENB, CP, CNR, Telus, BNS).

    Reply
    • XUT charges a 0.62% MER to hold only ten stocks. Three stocks make up 45% of the ETF. I have always used this ETF as the example of the situation where the fund company offers no value to the investor. My opinion would be different if the MER were 0.10%.

      What the ETF does offer is a tidy list of Canadian utility stocks from which to start one’s research. That’s a plus!

      Reply
      • Fair enough, those are good points. As you suggest, it provides a good list (as does ZUT) and convenient for the lazy investor.

        Reply
  23. Thanks for telling me about your thoughts that you think what the best top 10 stocks of your dividend investing in canada. I am South Korean. I was looking for someone who I can learn. I was doing dividends investing in South Korea like you. I am happy to find you from google internet.

    Reply
  24. Greetings from Europe (Denmark)
    Thanks for a great page, and your Canadian top 10 dividend stocks
    There was certainly some interesting Canadian dividend stocks that I didn’t have in my portfolio.
    keep up the great work 🙂

    Reply
  25. Hi Bob, thanks for giving us your thoughts.

    How would you adjust this Top 10 list in an inflationary environment? i.e. buy, hold or sell?

    Reply
  26. Great list. What are your thoughts on some REITs, especially those growing their dividends like CAR or AP? Also thoughts about JWEL, MG and ARE?

    Reply
    • REITs are good to hold but you need to personally determine the portfolio composition. My latest list doesn’t include any REITs because I think there are better dividend stocks to hold than REITs right now.

      Reply
  27. Hi Tawcan: I own Merck Stock, but hate the withholding tax ($100 in 2020). Can’t move it into an RRSP because I am 75. Should I sell Merck and buy some of your recommendations to hold in my TFSA, e.g., Alimentaire Couche-Tard, or IFC? I am looking for a high dividend because I need them to live on at my age. I hold all the Can. banks in my TFSA so am not looking for a bank stock. Love your blog. Lula in Toronto

    Reply

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