There are many stocks in the Canadian stock markets that have high dividend yields and/or dividend growth rates. The goal of this post is to identify those Canadian stocks that consistently raised dividends year over year and trade as ADRs in the US. We shall use the S&P TSX Canadian Dividend Aristocrats Index as the basis.
S&P TSX Canadian Dividend Aristocrats Index:
This index has a total of 37 companies. It includes companies which have followed a managed-dividend policy of increasing dividends every year for at least 7 years.
S&P created this index because dividends have played a major role in the returns of the S&P/TSE Composite Index. Since 1956 dividends alone have accounted for 30% of the total returns of the TSE Composite Index. So dividends account for almost 1/3rd of returns. The past 5 year return of the Dividend Aristocrats is 18.31% (using Canadian dollars).
Canadian Dividend Aristocrats Index - Components as ADRs in US:
Out of the 37 stocks in the index, 11 of them trade as ADRs in the NYSE. Hence an investor looking to add some Canadian dividend stocks can easily add them to their diversified portfolio. The following is a listing of those 11 ADRs:
1. Bank of Montreal (BMO)
Dividend Yield - 6.13%
2. Bank of Nova Scotia Halifax (BNS)
Dividend Yield - 4.11%
3. Brookfield Properties Corp (BPO)
Dividend Yield - 2.80%
4. Canadian National Railways (CNI)
Dividend Yield - 1.75%
5.Canadian Natural Resources Limited (CNQ)
Dividend Yield - 0.44%
6.Enbrdige Inc (ENB)
Dividend Yield - 2.98%
7.Imperial Oil Ltd (IMO)
Dividend Yield - 0.73%
8.Manulife Financial Corp (MFC)
Dividend Yield - 2.83%
9.Royal Bank of Canada (RY)
Dividend Yield - 4.41%
10.Sun Life Financial Serv Canada (SLF)
Dividend Yield - 3.63%
11.Toronto-Dominion Bank (TD)
Dividend Yield - 3.97%
Note: The above yield info. is as of Aug 29, 2008.
For a full listing of the Dividend Aristocrats Index click the link below: TSX-Dividend-Aristocrats-Index-Components
The latest factsheet of this index can be found by clicking the link below: TSX-Dividend-Aristocrats-Index-Factsheet
