2017 Canadian Dividend Aristocrats

by: Dividend Earner

Looking for the best of the best dividend stocks? The Canadian Dividend Aristocrats list is the perfect place to start. To be included in the Canadian Dividend Aristocrats list, a Canadian company must match the following criteria.

  • 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.
  • 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 five-year period.
  • The float-adjusted market capitalization of the security, at the time of the review, must be at least C$ 300 million.
  • 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.

The list currently has 75 Canadian dividend stocks listed with companies varying vastly in market capitalization.

The Dividend Aristocrats list can be a good list to start researching investments but the 5-year of dividend growth requirement is not a guarantee for dividend stability. Considering, a one cent dividend growth also qualifies any company, it’s important you look a little further narrow down the list but a good start nonetheless.

Canadian Dividend Aristocrats Performance

Are you looking to get average returns from the dividend aristocrats index or to find a gem in a haystack?

This is where it gets interesting. You can purchase the dividend ETF index tracking the Canadian dividend aristocrats to keep it simple. BlackRock (NYSE:BLK) offers the ISHARES SP TSX CDN DIVIDEND IDX FD (TSE:CDZ)(a.k.a Claymore S&P/TSX Canadian Dividend ETF) exchange-traded fund covering the S&P list. It can be a good choice for some accounts such as your RESP account.

Source: S&P Indices

On the other hand, would you really own all of the 75 stocks in your portfolio? Assuming you have some rules on how many stocks you hold, you will want to find the top dividend growth stocks and as such, the list is a great start to finding core blue chip stocks.

Source: Yahoo Finance Chart – CDZ ETF vs TSX Composite Index

Dividend Aristocrats Sector Representation

The sector diversification of the list is outlined below and just like the TSX, Financials and Energy lead the way. Would the breakdown below match the diversification you want for your stock portfolio? Nevertheless, you can find some solid dividend growth stocks in many of the sectors.

Source: S&P Indices

Canadian Dividend Aristocrats List

Below are the 75 securities listed in the index as per the rules outlined above. Before you go and agree or not with the index or the rules, indexes are put together to attempt at categorizing certain stocks and investment strategies such as monthly income investing, dividend investing or dividend growth investing. ETFs and mutual funds then use those to put products together to satisfy investor demand.

Disclaimer: I do own some of the companies listed in the list. See my Stock Portfolio for my current list of holdings.

Editor's Note: This article discusses one or more securities that do not trade on a major U.S. exchange. Please be aware of the risks associated with these stocks.