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Since the United States is suffering from the credit rating crisis, it might be a good idea to look outside of the U.S. for stocks with enjoyable dividends. Therefore, I have made a list of five highest-yielding Canadian companies that are priced with admirably low P/E ratios. All of the companies offer a minimum 5% dividend yield. I have added my O-Metrix grading system where applicable. Here is a fundamental analysis on the top five Canadian companies. (Data obtained from Finviz/Morningstar, and is current as of Aug. 19):

Bank of Montreal (NYSE:BMO): Bank of Montreal has announced that shareholders will receive their monthly cash distributions on Sept. 9. The company was trading at a P/E ratio of 10.9, and a forward P/E ratio of 9.7, as of the Aug. 19 close. Analysts estimate a 5.5% annual EPS growth for the next five years. Profit margin in 2010 was 22.4%, while shareholders enjoyed a 5.07% dividend.

The company has a 5.13 O-Metrix score, and it returned 3.1% in the last 12 months. Target price is $66.86, which implies a 15.5% upside movement potential. ROE is 15.22%, whereas earnings increased by 52.46% this year. Debts and assets are unstable. Ten out of 17 analysts recommend holding. P/S is 2.6, slightly better than the industry average of 2.7. The stock is currently trading 11.39% lower than its 52-week high. Waiting for a pullback should do all right. Here are the recent dividend payments of Bank of Montreal per share:

Jul 29, 2011

$0.739

Apr 28, 2011

$0.70

Jan 28, 2011

$0.70

Oct 28, 2010

$0.70

BCE Inc. (NYSE:BCE): BCE has increased its earnings by 11.4% and its consolidated revenue by 11.6% from the year-ago quarter. Verdun (Quebec), Canada-based BCE, as of Aug. 19, shows a trailing P/E ratio of 14.0, and a forward P/E ratio of 11.8. Estimated annualized EPS growth for the next five years is 7.0%, which is reasonable given the 4.32% EPS growth of last five years. It offered a 5.44% dividend, while the profit margin was 10.5% last year.

O-Metrix score of the company is 4.82, whereas it is trading only 4.00% off its 52-week high. Debt-to-equity ratio is 1.2, far better than the industry average of 3.3. Target price implies a 0.5% upside potential, and it returned 21.3% in the last 12 months. Debt-to-assets ratio is slightly decreasing since 2006; yields seem alright. The company has a joyful momentum since its dip in December 2008; I believe it will continue for awhile. However, you should wait for a pullback. Recent dividend history is as follows:

Jun 13, 2011

$0.518

Mar 11, 2011

$0.493

Dec 13, 2010

$0.459

Sep 13, 2010

$0.444

Canadian Imperial Bank of Commerce (NYSE:CM): Canadian Imperial operated about 4,000 automated bank machines and 1,100 branches in Canada, as of June 2011. It was trading at a P/E ratio of 10.4, and a forward P/E ratio of 8.6, as of the Friday close. Analysts expect the company to have an annual EPS growth of 5.5% in the next five years, which is truly conservative given the outstanding EPS growth of 169.36% of past five years. With a profit margin of 20.3%, and a dividend yield of 5.04%, Canadian Imperial Bank is an attractive stock for dividend lovers.

The company returned 8.3% in a year, while it is currently trading 20.09% lower than its 52-week high. Earnings increased by 119.47% this year, and it has an O-Metrix score of 5.54. Institutions own 71.67% of the stock. Target price is $88.60, indicating an about 26.3% increase potential. Debts are decreasing for the last three years. P/S is 2.3, better than the industry average of 2.7; moreover, the company has a four-star rating from Morningstar. Canadian Imperial can enter portfolios as a long-term investment. Recent dividend payments are as follows:

Jun 24, 2011

$0.87

Mar 24, 2011

$0.87

Dec 27, 2010

$0.87

Sep 24, 2010

$0.841

Sun Life Financial (NYSE:SLF): Sun Life will yield $0.36 per share on Aug. 24. The Toronto-based Sun Life, as of Aug. 19, has a P/E ratio of 7.1 and a forward P/E ratio of 8.4. Five-year annualized growth forecast is 9.1%. Profit margin in 2010 was 9.2%, while it offered a 5.71% dividend yield.

Earnings increased by 437.82% this quarter, and institutions own 54.65% of the stock. Target price indicates a 23.8% upside movement potential, while it has a remarkable O-Metrix score of 9.55. The company returned 6.9% in a year. Debts are going down for the last three years, while assets are increasing. Operating margin is 12.1%, above the industry average of 8.9. P/B and P/S are 1.0 and 0.7, respectively. I would not ignore this stock. Following are the recent dividend payments of Sun Life per share.

Aug. 22, 2011

$0.36

May 23, 2011

$0.36

Feb 28, 2011

$0.36

Nov 22, 2010

$0.36

Enerplus Corp. (ERF): Along with western Canada, Enerplus operates in North Dakota, Montana, Maryland, and Delaware in the U.S. The oil and gas producer shows a trailing P/E ratio of 9.1, as of the Aug. 19 close. With the highest dividend yield of this list (8.02%), and a net profit margin of 42.6%, Enerplus is an outstanding stock for dividend lovers. Note that the industry average of profit margin is 10.3%.

The company had a gorgeous EPS growth of 245.82% this quarter. Institutions hold 28.31% of Enerplus, and it is currently trading 15.19% lower than its 52-week high. Target price is $32.51, which indicates an about 19.6% increase potential. The company returned approximately 20.0% in the last 12 months. Debt-to-assets ratio is around 15% for the last five quarters. Debt-to-equity ratio is 0.1, far better than the industry average of 1.0. Gross margin and operating margin are 58.2% and 44.5%, respectively. Moreover, it has a 4-star rating from Morningstar. What is creditable for this company is that it yielded seven dividends just from the beginning of 2011. Recent dividend history is:

Aug. 8, 2011

$0.18

Jul 6, 2011

$0.18

Jun 8, 2011

$0.18

May 6, 2011

$0.18

Read more information on O-Metrix Grading System here.

Source: Five Highest-Dividend Canadian Stocks