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As I stated in the first article of this series, I am on the hunt for broad based exposure to Canadian dividend payers. Preferably companies that continue to raise their dividend most years. But I also realize the value of consistent high yielders that don't necessarily raise their dividend. These companies (and yield) can certainly add to a portfolio's returns over the mid and long-term.

And in the end I will continue with an ETF strategy, perhaps sprinkling in a handful of companies that the dividend indexes have overlooked. I currently use the Canadian ETF XEI from ishares to boost my Canadian dividend exposure. I am considering directing much of the investment income in one of my accounts to XEI, as I outlined in this article entitled "Dividend Growth and Asset Allocation Together at Last". XEI has a yield near 5% and a dividend growth rate of 8% over 5 years. Not too bad as a dividend proxy, but of course it is certainly a yield chaser. I would love to balance that out with more dividend growth.

And as I pointed out in the first article, Canada provides some slim pickin's on the dividend growth front, especially compared to the U.S. Those looking for a well-rounded dividend growth portfolio should certainly build around those U.S. based dividend aristocrats and champions. I use the Dow Jones index (NYSEARCA:DIA) for my U.S. equity exposure, as I outlined in this article, but will also admit that provides a weak to mediocre dividend growth proxy.

And without further adieu here is part two of my Canadian dividend exploration. I have plotted the dividends and dividend growth rates (OTCPK:CAGR) and duration. I am not a dividend purist, given that true dividend aristocrats are hard to come by in Canada. Meaning, some of these dividend growth durations may have been temporarily interrupted by a dividend cut, or dividend stall.

From there I ran projections to estimate the total income each company would generate over a 15-year period with those dividends being reinvested at their current growth rate. I then ordered them by companies that would generate the highest yield over that 15 year period. Please note that there is no guarantee that a company can continue to pay, or maintain its dividend growth rate. Yields and growth rates have not been updated since I began this evaluation a few weeks ago. And I do invite your scrutiny with respect to these figures. Here's the next 49 Canadian dividend payers.

CompanyCurrent YieldDividend CAGRPeriod
Bird Construction5.1%10.0%5 years
CIBC4.6%10.0%10 years
PennWest Exploration10.6%Erraticna
TD Bank3.77%12.0%15 years
Mullen Group4.6%9.6%10 years
Dorel Industry3.3%13.5%6 years
Bell Canada5.4%7.4%10 years
Magna Int.2.1%18%5 years
BMO Financial4.6%8.9%10 years
Andrew Peller3.9%9.0%5 years
Petrobakken9.6%0%na
Ensign Energy2.8%14.4%13 years
Ag Growth Int6.7%4.2%7 years
Shaw Comm4.2%6.2%5 years
Exchange Income6.1%4.9%7 years
Accord Financial4.4%8.4%5 years
Pembina Pipeline5.5%5.5%8 years
Manitoba Tel5.3%5.9%15 years
Corus Entertainment4.0%8.9%5 years
Shoppers Drug Mart2.5%14.0%5 years
Great West Life5.0%6.2%17 years
Baytex Energy6.0%3.9%10 years
Transalta7.4%1%15 years
Easy Home Limited4.7%6.3%5 years
Canadian Western Bank2.3%16.5%10 years
Keyera4.3%7%10 years
Emera3.9%7.6%15 years
Pizza Pizza7.2%0%na
Artis REIT7.0%0%na
Interpipeline4.74%4.5%10 years
Club Link3.3%7%7 years
Enbridge2.9%9.5%17 years
Fortis Inc3.6%6.7%16 years
Northland Power5.72%0%na
Dundee REIT5.9%0%na
Finning Int2.2%12%8 years
Cineplex4.2%3.74%2 years
Petrominerales5.7%0%
Thomson Reuters4.4%3.0%6 years
RioCan REIT5.0%1.15%8 years
Pason Systems2.7%10.0%10 years
Calloway REIT5.2%0%na
First Capital4.4%2.1%10 years
TransCanada3.6%3.85%15 years
Boardwalk REIT3.0%6.0%8 years
Intact Insurance2.48%8.15%3 years
Canadian Utilities2.4%6.3%10 years
Corby Distilleries3.9%3.2%5 years

The first thing that struck me when I went through this exercise and "ranked" the companies, is that my individual company holdings are near the bottom of the list. I have been transitioning to an all index ETF portfolio over several years. I now only hold three companies - TransCanada Pipelines (NYSE:TRP), Enbridge (NYSE:ENB) and Tim Hortons (NYSE:THI). That said, those three companies have performed beyond expectations on total return. Over the last several years those companies have delivered in the area of 150% on total return.

They're great businesses but they certainly don't provide combination of yield and growth that many dividend growth investors are looking for. And I did not even put Tim Hortons on the list. Tim's yield is currently 2%, though they did raise their dividend by a healthy 24% just a few weeks ago. I bought Tim's many years ago when I worked on the business, hoping (or confident) that they would fill in Canada on every street corner and then return most of the cash to shareholders. That seems to be playing out. I will continue to hold Tim's and TRP and ENB. I think those three companies will pitch in and pay for a few weeks (every year) for my wife and I to sit on a beach in the French Riviera.

Enjoy the list. I will be back to analyze how these companies are distributed in the Canadian dividend ETFs. And I'll also offer some suggestions for U.S. readers on how to juice up their dividend growth portfolios. There's nothing like a little international diversification.

And I do invite your scrutiny with respect to this list. When researching dividends and especially dividend growth, one will find different numbers from almost every source. That's why it is crucial to use your own trusted source, and confirm your numbers with other sources. And then go to the company (site or investor relations) and find their dividend history. You will find a dividend growth (OTCPK:CAGR) calculator at investopedia.com.

And better yet, and in the end, buy an ETF or two. I'm guessing that I will be almost completely covered by XEI, Vanguard's Canadian Dividend ETF - VDY and my REIT ETF.

For my American friends (and with the help of a notable SA Dividend Growth investor or two who reside State-side) we'll put together a Canadian list of companies worth considering.

Source: In Search Of Canadian Dividends: Part II

Additional disclosure: Dale Roberts aka cranky is a Streetwise Coach at ING Direct Mutual Funds. Streetwise Portfolios offer Canadians low-fee, complete, index-based portfolio options. Dale’s commentary does not constitute investment advice. The opinions and information should only be factored into an investor's overall opinion forming process.