32 Top Canadian Dividend Stocks For 2012

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Includes: ACCFF, ADWPF, BCE, BIRDF, BMO, BNS, CBYDF, CJREF, CLNFF, CM, CSQPF, EHMEF, GHIFF, LEFUF, LRCDF, MAMTF, MEOH, MGA, MODVF, NDN, NTIOF, RCI, RY, SJR, TD, TU
by: The Dividend Guy

Last Monday, I pulled out the Best U.S. Stocks for 2012 with 182 companies listed in this post. As mentioned previously, I wanted to do the same thing on the Canadian stock market to be fair and to show you which companies are interesting to own in Canada even if you are a U.S. citizen. You know this by now; I’m a big fan of some Canadian stocks as I think that the banking industry in Canada along with the resources sector can bring a lot to one’s portfolio.

While I was surprised to pull out 182 stocks on the U.S. stock market, I was even more surprised to pull out… 32 stocks on the Canadian market with the same metrics!

Canadian vs US

As a Canadian myself, it is obviously easier to buy Canadian stocks as I avoid currency risk and tax complications (depending on the type of account you are trading in). However, in the light of this chart showing a pitiful 32 stocks (of which seven are banks, six others related to financial services and four telecoms), as Canadians you have no other choice but to consider U.S. stocks as well. Just for the sake of diversification, you need to look elsewhere if you want to build a strong dividend portfolio. This was also the reason why I’ve put only nine Canadian stocks in my Best Dividend Stocks for 2012 eBook.

Best Dividend Stocks for 2012

The chart is based on the same filters:

  • Dividend Yield over 3%

  • Dividend Payout Ratio under 75%

  • 5 Years Dividend Growth positive

[Note that stock tickers are U.S.-traded symbols where applicable- Ed.]

Ticker Name INDUSTRY_SUBGROUP Price Dividend Yield Payout Ratio Dividend Growth 5 Years
IGM IGM Financial Inc Invest Mgmnt/Advis Serv 44.79 4.8 73.99 6.96
SJR/B Shaw Communications Inc Cable/Satellite TV 19.79 4.65 72.56 26.15
CLK ClubLink Enterprises Ltd Diversified Operations 6.41 4.55 70.88 4.56
GWO Great-West Lifeco Inc Life/Health Insurance 19.53 6.3 70.37 5.81
CFN-U Carfinco Income Fund Finance-Consumer Loans 6.92 5.2 68.99 2.73
OTC:MAMTF MCAN Mortgage Corp Finance-Mtge Loan/Banker 13.1 8.24 67.51 11.76
BCE BCE Inc Telecom Services 41.14 5.27 62.45 8.16
TU TELUS Corp Telecom Services 56.95 4.07 62.09 12.94
X TMX Group Inc Finance-Other Services 41.5 3.85 58.15 3.92
OTC:CBYDF Corby Distilleries Ltd Beverages-Wine/Spirits 15.33 3.92 58.14 3.35
OTC:CSQPF Cervus Equipment Corp Retail-Gardening Prod 15 4.8 57.81 6.72
OTC:CLNFF Calian Technologies Ltd Consulting Services 17.19 6.06 56.69 23.61
MEOH Methanex Corp Chemicals-Specialty 22.8 3.1 56.23 3.76
BMO Bank of Montreal Commer Banks Non-US 54.94 5.1 54.13 4.38
CEU Canadian Energy Services & Technology Corp Oil-Field Services 11.41 4.73 53.47 14.37
OTC:BIRDF Bird Construction Inc Building&Construct-Misc 11.49 5.76 53.45 17.6
OTC:EHMEF easyhome Ltd Rental Auto/Equipment 6.78 5.01 51.91 7.21
RCI/B Rogers Communications Inc Cellular Telecom 38.81 3.65 48.3 70
CM Canadian Imperial Bank of Commerce/Canada Commer Banks Non-US 73.6 4.89 47.74 4.93
RY Royal Bank of Canada Commer Banks Non-US 48.95 4.41 46.61 7.63
OTCPK:CJREF Corus Entertainment Inc Multimedia 20.38 4.26 45.32 20.49
NDN Nordion Inc Medical Products 8.34 4.92 44.63 25.14
BNS Bank of Nova Scotia Commer Banks Non-US 49.48 4.21 44.36 6.45
OTC:ADWPF Andrew Peller Ltd Beverages-Wine/Spirits 9.3 3.87 43.12 9
TD Toronto-Dominion Bank/The Commer Banks Non-US 73.45 3.7 40.57 13.93
OTC:GHIFF Gamehost Inc Casino Hotels 11.14 7.9 39.5 3.06
OTCPK:NTIOF National Bank of Canada Commer Banks Non-US 71.47 4.2 38.36 1.2
OTCPK:LEFUF Leon's Furniture Ltd Retail-Home Furnishings 12.2 3.28 35.54 6.76
OTCPK:LRCDF Laurentian Bank of Canada Commer Banks Non-US 47.39 3.8 33.69 6.91
OTC:ACCFF Accord Financial Corp Finance-Commercial 6.87 4.37 31.91 8.45
OTC:MODVF Melcor Developments Ltd Real Estate Oper/Develop 12.4 3.23 23.47 5.92
MGA Magna International Inc Auto/Trk Prts&Equip-Orig 32.89 3.15 10.48 2.95
Click to enlarge

Out of this list, I’ve published several dividend stock analyses over at Canadian Dividend Stock including the following: BCE, Telus, Great-West Lifeco, Corus, National Bank, TD Bank, Royal Bank, BMO, ScotiaBank, CIBC, Rogers, and Shaw Communications.

Another great option for Canadian investors that is not listed in this article is to consider Canadian REITs. But even then, this is not enough to cover all industries and have a well diversified portfolio. Unfortunately, when a sector is not doing so well or show some concerns from investors; all stocks related to this industry will go bad.

Therefore, you could think that building a “bank” portfolio along with a few other stocks and a few REITs may be good enough. In fact, such a portfolio would payout some healthy dividends and you could think it’s a good way to invest. However, being concentrated in a couple of sectors also means that you are dependent on their growth to perform over the long term. If you know which sectors are going to perform over the next 5 years, then, you are all set. But unfortunately, we don’t see such crystal ball on sale at Wal-Mart yet…