10 Canadian High Yielding Dividend Growth Stocks

Investors looking for consistent dividend-paying foreign stocks are attracted to Canadian equities. There are many Canada-based companies that pay decent dividends and have excellent dividend growth rates too.

In order to identify some of the high dividend growth Canadian stocks, we shall use the Canadian High Yield Dividend Growth 30 Portfolio Index created by Mergent, the creator of the Dividend Achievers family of indices.

Description of the Index:

“The Canadian High Yield Dividend Growth 30 Portfolio is comprised of Canadian companies that trade on a major Canadian exchange and have five or more years of equal or increasing regular annual dividend payments. Companies must have a minimum average daily cash volume of US $3,000,000 and a current dividend yield of 1% prior to each Annual Reconstitution Date.”

The National Bank of Canada and all Canadian companies that are income trusts or REITs are excluded from this index.

The top 10 Holdings in the Canadian High Yield Dividend Growth 30 Portfolio are:

No.	Company Name	Ticker	Current Dividend Yield	Industry
1	Bank of Montreal	BMO	5.39%	Commercial banks
2	Canadian Imperial Bank of Commerce	CM	5.11%	Commercial banks
3	Great-West Lifeco Inc.	GWLOF.PK		Life insurance
4	IGM Financial Inc	IGIFF.PK		Investment advice
5	Power Financial Corp	PWF-PO.TO		Life insurance
6	Royal Bank of Canada	RY	3.47%	National commercial banks
7	Shaw Communications Inc	SJR	4.26%	Cable and other pay TV services
8	TELUS Corp	TU	6.11%	Telephone communications
9	TransAlta Corp.	TAC	5.61%	Power transmission equipment
10	TransCanada Corp	TRP	4.71%	Natural gas transmission

Note: Current dividend yield is noted if the stock trades on the US exchanges

The average return of equity for index constituents is 11.65% and the dividend yield is 3.91%. As of September 30, 2009 the total return for the index was about 47%. The average 5-year dividend growth rate is 7.43%.

Note: All index calculations are in Canadian dollars

Growth of C$10,000 from 1999 through the end of 2008:

click to enlarge

To download the full listing of the Canadian High Yield Dividend Growth 30 Portfolio, click here (excel file).

To download the latest fact sheet, click here (pdf).

Comments

[Uncle Pie:]

This list just scratches the surface! Why no energy shares? There are a quite a few with various yields, some into double digits. Canada is the largest supplier of petroleum to the United States.

Nov 16 03:28 PM

[bob adamson:]

Mr. Hunkar, can you tell us why The National Bank of Canada is excluded from the Canadian High Yield Dividend Growth 30 Portfolio Index ? If not, how can we find out?

I don’t hold any shares in that bank and am simply curious?

Nov 18 01:29 AM