2016 Canadian Dividend Aristocrats

by: Dividend Earner

Over the years, I have become fond of the dividend aristocrats. The US Dividend Aristocrats have the requirements of 25 years of consecutive dividend increases while the Canadian Dividend Aristocrats have 5 years with some other rules as outlined below. 5 years is not much compared with 25 years but it's a start.

When investing, it can be overwhelming to pick your first stock. Where do you start when there are thousands of stocks? The dividend aristocrats list give you a start by saying these companies have consistency over the others that pay dividends. If you wish to go further, you can look at stocks with 10 years of dividend growth or any number that matters to you. I have settled on 10 years and you can get the list by subscribing to the mailing list.

My hypothesis on the 5-year requirements is that you need a certain number of stocks to generate an index, which is what the dividend aristocrat list becomes. It is managed by the Standard & Poor's and ETFs are setup to follow it. In order to have an index, you need a certain number of stocks as ETFs will start buying shares of the companies listed. If you raise the requirements to 10 years, the amount of stocks in the list is cut by over 65% and the amount of exposure to each stock in the index becomes greater. Not only that, the sector representation becomes ineffective. In fact, back in 2009, the requirements changed to allow one year of no increase to retain the banks in the list.

Canadian Dividend Aristocrats Requirements

  1. The company's security is a common stock or income trust listed on the Toronto Stock Exchange and a constituent of the S&P Canada BMI.
  2. The security has increased ordinary cash dividends every year for five years, but can maintain the same dividend for a maximum of two consecutive years within that 5-year period.
  3. The float-adjusted market capitalization of the security, at the time of the review, must be at least C$ 300 million.
  4. For index additions, the company must have increased dividend in the first year of the prior five years of review for dividend growth. This rule does not apply for current index constituents.

For more details on the index, see the S&P Dow Jones Indices by McGraw Hill Financial.

Canadian Dividend Aristocrats Performance

IF you are not yet ready to buy individual stocks, you can buy into the index ETF tracking the Canadian dividend aristocrats. CDZ is the ETF ticker representing the iShares S&P/TSX Canadian Dividend Aristocrats Index ETF (a.k.a Claymore S&P/TSX Canadian Dividend ETF). It's a good pick for a RESP investment as well since it's hard to grow that account really fast.

If you like ETFs, you should know that Questrade offers free ETF transactions. That's perfect for investing a small amount at a time when you get started.

Canadian Dividend Aristocrats List

Below is the list for 2016 sorted by market capitalization - data taken from the January 9, 2016 update. While I try to keep it updated, the Canadian dividend aristocrats list is subject to change during the year and goes through monthly updates.

By the sector, the list looks as follows.

2016 Dividend Aristocrats Sector

Ticker Company Sector Market Cap Annual Yield Trend
TD TD Bank Financial Services 94.76 4.00% Trend
BNS Scotia Bank Financial Services 65.64 5.13% Trend
CNR Canadian National Railway Industrials 57.48 1.72% Trend
SU Suncor Energy 48.06 3.49% Trend
BCE BCE Communication Services 46.04 4.80% Trend
ENB Enbridge Energy 38.77 4.72% Trend
TRI Thomson Reuters Consumer Cyclical 38.63 3.78% Trend
IMO Imperial Oil Energy 35.92 1.32% Trend
TRP TransCanada Pipelines Energy 30.82 4.78% Trend
CNQ Canadian Natural Resources Energy 29.88 3.37% Trend
ATD.B Alimentation Couche Tard Consumer Defensive 25.01 0.45%
RCI.B Rogers Communication Services 24.81 4.00%
CP Canadian Pacific Railway Industrials 24.39 0.88% Trend
T Telus Communication Services 22.66 4.70% Trend
MG Magna International Inc Consumer Cyclical 20.24 2.49% Trend
NA National Bank Financial Services 13.07 5.57% Trend
SAP Saputo Consumer Defensive 12.83 1.65% Trend
IFC Intact Financial Financial Services 11.44 2.44% Trend
SJR.B Shaw Communications Communication Services 11.24 5.08%
FNV Franco-Nevada Corp. Basic Materials 10.85 1.72% Trend
FTS Fortis Utilities 10.43 4.03% Trend
MRU Metro Consumer Defensive 9.23 1.21% Trend
QSR Restaurants Brands International Consumer Cyclical 9.12 1.53%
CTC.A Canadian Tire Corporation, Limited Consumer Cyclical 8.55 2.09%
CU Canadian Utilities Utilities 8.51 3.69% Trend
IGM IGM Financial Financial Services 8.31 6.65% Trend
CIX CI Financial Financial Services 8.18 4.49% Trend
CCL.B CCL Industries Inc. Consumer Cyclical 7.80 0.67%
IPL Inter Pipeline Ltd. Energy 7.12 7.37% Trend
EMP.A Empire Co. Ltd A Nvtg Consumer Defensive 6.84 1.59%
KEY Keyera Corp. Energy 6.64 3.56% Trend
EMA Emera Utilities 6.22 4.44% Trend
SNC SNC - LAVALIN GROUP INC. Industrials 5.84 2.57% Trend
HR.UN H&R REIT Real Estate 5.42 6.96%
ACO.X Atco Utilities 4.08 2.80%
CAE CAE Inc. Industrials 4.07 1.97% Trend
MX Methanex Corp. Basic Materials 3.54 3.96% Trend
SJ Stella-Jones Inc. Basic Materials 3.40 0.65% Trend
PJC.A Jean Coutu Group Inc. Consumer Defensive 3.32 2.49%
RBA Ritchie Bros Auctioneers Inc. Industrials 3.32 2.07% Trend
FTT Finning Intl Inc. Industrials 3.01 4.10% Trend
REF.UN Canadian REITs Real Estate 2.97 4.42%
CGX Cineplex Galaxy Fund Consumer Cyclical 2.93 3.22% Trend
MIC Genworth MI Canada Inc. Financial Services 2.77 6.82% Trend
ENF Enbridge Income Fund Energy 2.64 6.25% Trend
WJA WestJet Airlines Ltd. Industrials 2.39 2.90% Trend
CCA Cogeco Cable Inc. Communication Services 2.05 2.56% Trend
ESL Enghouse Systems Limited Technology 1.82 0.70% Trend
SCL ShawCor Ltd. Energy 1.79 2.16% Trend
CG Centerra Gold Inc. Basic Materials 1.78 2.13% Trend
HCG Home Capital Group Inc. Financial Services 1.75 3.53% Trend
CWB Canadian Western Bank Financial Services 1.74 4.27% Trend
PSI Pason Systems Inc. Energy 1.51 3.77% Trend
LB Laurentian Bank Financial Services 1.37 4.94% Trend
TCL.A Transcontinental Inc. Consumer Cyclical 1.29 4.11%
MTL Mullen Group Ltd. Energy 1.25 8.83% Trend
BYD.UN Boyd Group Income Fund Consumer Cyclical 1.11 0.81%
ESI Ensign Energy Services Energy 1.01 7.27% Trend
CJR.B Corus Entertainment Consumer Cyclical 0.90 10.54%
AD Alaris Royalty Corp. Financial Services 0.84 6.96% Trend
EIF Exchange Income Fund Industrials 0.71 7.49% Trend
CMG Computer Modelling Group Ltd. Technology 0.70 4.52% Trend
GS Gluskin Sheff + Associates Financial Services 0.61 5.19% Trend
NVU.UN Northview Apartment REIT Real Estate 0.53 9.63%
BDT Bird Construction Inc. Industrials 0.52 6.23% Trend
DII.B Dorel Industries B Consumer Cyclical 0.34 6.43%
WIN Wi LAN Inc. Technology 0.18 3.33% Trend
NAL Newalta Corporation Industrials 0.16 8.99% Trend

Disclaimer: I do own some of the companies listed in the list. See my Dividend Income for my list of holdings.

Disclosure: View my holdings here.

Editor's Note: This article covers one or more stocks trading at less than $1 per share and/or with less than a $100 million market cap. Please be aware of the risks associated with these stocks.