131 Monthly Pay Canadian Dividend Stocks Cast 0.45% To 20.41% Yields To August 2019

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Includes: AHOTF, ATGFF, CCAOF, CGIFF, CNDCF, CRIUF, CRLFF, DVSPF, EFRTF, FNCSF, GXOCF, MHIVF, TRSWF
by: Fredrik Arnold
Summary

Monthly Paying (MoPay) dividend equities make dividend payouts to shareholders twelve times a year instead of just once, twice, or four times.

Of 225 MoPay equities listed by YCharts yielding +0.25%, with Market Cap +$10M, as of 8/7/18, Canadian stock exchanges showed 131 to the US 94.

10 Top Canadian MoPay stocks ranged in estimated net gain from 17.57% to 110.25%. Top ten, RNW.TO; DF.TO; ALA.TO; IVQ.U.TO; NXR.UN.TO; HOT.UN.TO; CHE.UN.TO; CJ.TO; KWH.UN.TO; GXO.TO, averaged 38.97%.

Top ten yields estimated for SOT.UN.TO, BK.TO, DS.TO,  HOT.UN.TO, GXO.TO, FFN.TO, KWH.UN.TO, LCS.TO, OSP.TO, & DF.TO, averaged 13.17% per YCharts 8/7/18. Since June, Five former top-yield MoPay equities suspended payments or slacked-off to QPay: CBL.TO eliminated, while TZZ.TO, and TZS.TO suspended all, LFE.TO suspended class A dividends, and CJR.B.TO goes QPay in December.

$5k invested in the lowest-priced five August 7 top-yield Canadian MoPay stocks showed 52.35% more net gain than from $5k invested in all ten. All prices quoted in $CAD.

Actionable Conclusion (1-10): Analysts Projected 17.57% To 110.25% Net Gains For Ten Canadian MoPay Stocks By August 2019

Just four of ten top dividend-yielding stocks were identified as being among those top ten gainers for the coming year based on analyst 1-year target prices. So this month the yield strategy for the Canadian MoPay gains was graded by Wall St. (King St.) wizards as 40% accurate.

Projections based on estimated dividends from $1000 invested in each of the thirty highest yielding stocks and their aggregate one year analyst median target prices, as reported by YCharts, created the 2018-19 data points. Note: one year target prices by lone analysts were not applied. Ten probable profit-generating trades projected to August 7, 2019 were:

Granite Oil [GXO.TO] (OTCQX:GXOCF) was projected to net $1,102.48, based on dividends plus mean target price estimates from three analysts, less broker fees. The Beta number showed this estimate subject to volatility 30% less than the market as a whole.

Crius Energy [KWH.UN.TO] (OTC:CRIUF) was projected to net $744.89 based on a median target price estimate from six analysts, combined with projected annual dividend, less broker fees. The Beta number showed this estimate subject to volatility 95% less than the market as a whole

Cardinal Energy [CJ.TO] (OTC:CRLFF) netted $366.36 based on dividends plus mean target price estimates from eleven analysts, less broker fees. The Beta number showed this estimate subject to volatility 41% less than the market as a whole.

Chemtrade Logistics [CHE.UN.TO] (OTC:CGIFF) was projected to net $353.74, based on dividends, plus mean target price estimates from eleven analysts, less broker fees. The Beta number showed this estimate subject to volatility 57% more than the market as a whole.

American Hotel Income [HOT.UN.TO] (OTC:AHOTF) was projected to net $270.47, based on dividends, plus mean target price estimates from nine analysts, less broker fees. The Beta number showed this estimate subject to volatility 86% more than the market as a whole.

Nexus Real Estate Investment Trust [NXR.UN.TO] (OTC:EFRTF) was projected to net $266.41, based on dividends, plus mean target price estimates from four analysts, less broker fees. The Beta number showed this estimate subject to volatility 17% less than the market as a whole.

Invesque [IVQ.U.TO] (OTC:MHIVF) was projected to net $235.98, based on dividends, plus mean target price estimates from six analysts, less broker fees. No Beta number was available for IVQ.U.TO.

AltaGas [ALA.TO] (OTCPK:ATGFF) was projected to net $196.46, based on dividends, plus median target price estimates from thirteen analysts, less broker fees. The Beta number showed this estimate subject to volatility 5% less than the market as a whole.

Dividend 15 Split Corp II [DF.TO] (OTC:DVSPF) netted $184.08, based on dividends alone less broker fees. The Beta number showed this estimate subject to volatility 91% more than the market as a whole.

TransAlta Renewables [RNW.TO] (OTC:TRSWF) was projected to net $175.72, based on dividends, plus mean target price estimates from eleven analysts, less broker fees. The Beta number showed this estimate subject to volatility 10% less than the market as a whole.

Average net gain in dividend and price was estimated at 38.97% on $10k invested as $1k in each of these ten equities. This gain estimate was subject to average volatility 6% under the market as a whole.

The Dividend Dogs Rule

Stocks earned the "dog" moniker by exhibiting three traits: (1) paying reliable, repeating dividends, (2) their prices fell to where (3) yield (dividend/price) grew higher than their peers. Thus, the highest yielding stocks in any collection became known as "dogs." More precisely, these are, in fact, best called, "underdogs".

Top 131 Canada MoPays

Canada Dividend MoPays were ranked above by yield 8/7/18 to determine the top 131.

Actionable Conclusions (11-20): Yield Metrics Determined 10 Top Canada MoPay Stocks

Top ten Canadian MoPay Dividend dogs selected 8/7/18 represented four sectors in the Morningstar eleven sector scheme: (1) financial services [6 listed]; (2) utilities [1 listed]; (3) energy [1 listed]; (4) real estate [2 listed].

Top stock by yield was one of the six financial services representatives, Dividend 15 Split Corp II [DF.TO] (OTC:DVSPF).

Financial services stocks also placed second, third, fifth, eighth and ninth: Brompton Oil Split [OSP.TO] [2]; Brompton Lifeco Split [LCS.TO] (OTC:CCAOF) [3]; North American Financial 15 [FFN.TO] (OTC:FNCSF) [5]; Dividend Select 15 [DS.TO] [8]; Canadian Banc [BK.TO] (OTC:CNDCF) [9].

The lone utilities equity in the top ten by yield placed fourth, Crius Energy [KWH.UN.TO] (OTC:CRIUF) [4]. Then, a lone energy representative took the sixth slot, Granite Oil [GXO.TO] (OTCQX:GXOCF).

Finally, two real estate firms placed seventh, and tenth, American Hotel Income [HOT.UN.TO] (OTC:AHOTF) [7], and Slate Office REIT [SOT.UN.TO] (SLTTF) [10], to complete the top ten August Canadian MoPay top stocks by yield.

Actionable Conclusions (21-30): Ten Canadian MoPay Stocks Showed 9.8% To 101.55% Upsides, While (31) One Showed A -2.69% Downside To August, 2019

To quantify top dog rankings, analyst mean price target estimates provided a "market sentiment" gauge of upside potential. Added to the simple high-yield "dog" metrics, analyst mean price target estimates became another tool to dig out bargains.

Brokers Posited A 54.35% Advantage For 5 Highest Yield, Lowest Priced Canadian MoPay Stocks To August, 2019

Ten top Canadian MoPay Dividend stocks were culled by yield for their monthly update from here. Yield (dividend / price) results verified by YahooFinance did the ranking.

Yield Metrics Extracted Bargains

As noted above, top ten Dividend stocks selected 8/7/18 showing the highest dividend yields represented just four sectors in the Morningstar eleven sector scheme.

Actionable Conclusions: Analysts Estimated 5 Lowest-Priced of the Top Ten Highest-Yield MoPay Stocks (32) Delivering 46.5% Vs. (33) 30.12% Net Gains by All Ten by August, 2019

$5000 invested as $1k in each of the five lowest-priced stocks in the top ten Canada MoPay kennel by yield were predicted by analyst 1-year targets to deliver 54.35% more net gain than $5,000 invested as $.5k in each of all ten. The very lowest priced Canada MoPay dividend equity, Granite Oil [GXO.TO] (OTCQX:GXOCF), was projected to deliver the best net gain of 101.25%.

The five lowest-priced CDN MoPay dividend equities for August 7 were: Granite Oil [GXO.TO] (OTCQX:GXOCF); Dividend 15 Split Corp II [DF.TO] (OTC:DVSPF); Crius Energy [KWH.UN.TO] (OTC:CRIUF); Brompton Lifeco Split [LCS.TO]; Brompton Oil Split [OSP.TO], with prices ranging from $2.58 to $6.40.

Five higher-priced CDN MoPay dividend equities for August 7 were: Slate Office REIT [SOT.UN.TO] (SLTTF); Dividend Select 15 [DS.TO]; American Hotel Income [HOT.UN.TO] (OTC:AHOTF); North American Financial 15 [FFN.TO] (OTC:FNCSF); Canadian Banc [BK.TO] (OTC:CNDCF), whose prices ranged from $7.78 to $12.64.

The distinction between the five low-priced dividend stocks and the general field of ten reflected Michael B. O'Higgins' "basic method" for beating the Dow. A scale of projected gains based on analyst targets added a unique element of "market sentiment" gauging upside potential. It provided a here-and-now equivalent of waiting a year to find out what might happen in the market. Caution is advised, since analysts are historically only 20% to 80% accurate on the direction of change and just 0% to 20% accurate on the degree of change.

See my instablog for specific instructions about how to best apply the dividend dog data featured in this article, this glossary instablog to interpret my abbreviated headings, and this instablog to aid your safe investing. --Fredrik Arnold

The net gain/loss estimates above did not factor in any foreign or domestic tax problems resulting from distributions. Consult your tax advisor regarding the source and consequences of "dividends" from any investment.

Stocks listed above were suggested only as possible reference points for your Dividend dog stock purchase or sale research process. These were not recommendations.

Disclaimer: This article is for informational and educational purposes only and should not be construed to constitute investment advice. Nothing contained herein shall constitute a solicitation, recommendation or endorsement to buy or sell any security. Prices and returns on equities in this article except as noted are listed without consideration of fees, commissions, taxes, penalties, or interest payable due to purchasing, holding, or selling same.

Graphs and charts were compiled by Rydlun & Co., LLC from data derived from www.indexarb.com; YCharts.com; finance.yahoo.com; analyst mean target price by Thomson/First Call in YahooFinance. Dog photo: buzzfeed.com

Disclosure: I am/we are long MFCSF. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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.