Best Canadian Dividend Stocks for 2017




Best Canadian Dividend Stocks for 2017

Top Dividend Stocks for 2017 In Canada

One of the best ways to increase the value of your stock portfolio while protecting it from adverse market movements is to add dividend producing stocks that will provide you with income in any market environment. Stocks with robust dividends allow you to earn income when stock prices are moving sideways. Another benefit is it also acts as a hedge when the markets move south. Be careful though, stocks that have unusually high dividends need to pay these rich premiums to attract investors and most of the time these companies are unstable. Therefore it's prudent to build your dividend producing portfolio with stocks that are not overvalued but are likely to hold up in adverse market conditions.

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While the notional value of the dividend is important, the dividend yield will provide you with the best gauge of your return on investment. An investor can calculate dividend yield by dividing the capital needed to buy the stock by the value of the dividend. For example, if you paid 100 dollars for 1 share and the annual dividend is 5 dollars, then your dividend yield is 5%.

Using Canadian Dividend Stocks To Diversify Your Portfolio

You should also be diversifying your portfolio by adding shares of companies that are in different sectors. Ultimately if all your eggs are in one basket you run the risk of sector underperformance. While there is a multitude of sectors in the Canadian market the economy is dominated by oil and gas producers, oil and gas pipeline and storage companies, major financial institutions, and investment management trust companies. Still, each of these sectors has risks.

Therefore if you would like to avoid direct risk to oil and gas, you should avoid oil and gas producers and stick to pipeline and storage companies which produce income like toll operators. Banks and insurance companies along with real-estate investment have exposure to changes in interest rates, as well as swings in their riskier investment businesses.

Enough talk about what a dividend is. If you're searching for the best Canadian dividend stocks, you already know what a dividend is anyways. Here are Stocktrades top 10 Canadian dividend stocks for 2017. If you have a stock you believe should be on the list, or one that you think is overrated feel free to comment below. We review these multiple times a year. All prices and stock information are accurate as of June 6th 2017.

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#10 -- Bank of Montreal

best canadian dividend stocks for 2017 #10 BMO


Price as of June 6th 2017: $90.60
Ticker: BMO.TO
Sector: Financial Services
P/E:11.36
EPS: $7.98
Market Cap: 59.08 Billion
Net Revenue 2016: $19.19 Billion
Net Profit 2016: $5.16 Billion
Dividend Yield: 4%

Click here to see their chart and opinions

Coming in at number 10 on Stocktrades list of the top Canadian dividend stocks of 2017 is the Bank of Montreal. The Bank of Montreal is a financial services corporation and their headquarters are located in, you guessed it, Montreal. All things considered, the company is attractive as growth is poised to increase in Canada allowing yields to move higher which benefits the financial sector. As Canadian government yields rise, Bank of Montreal will be able to borrow from the government and lend to customers, locking in attractive spreads.

At this point, the company is one of the top 10-banks in North America and produced revenues of 19.19 billion in 2016. The organization focuses its banking efforts in the retail space but has three operating groups which include personal and commercial banking, wealth management, and capital markets sales and trading. Presently the Bank of Montreal has an attractive 4% dividend yield, which means that you will collect 4% on the capital you use to purchase the stock.

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#9 -- Sun Life Financial

Best Canadian Dividend Stocks 2017 #9 Sunlife

Price as of June 6th 2017 : $43.83
Ticker: SLF.TO
Sector: Financial Services/Insurance
P/E:10.83
EPS: $4.05
Market Cap: 26.9 Billion
Net Revenue 2016: $26.8 Billion
Net Profit 2016: $2.581 Billion
Dividend Yield: 3.9%
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In at number 9 is Sun Life Financial. Sun Life Financial is a holding company that has subsidiaries that are active in the financial service space. Through its subsidiaries, the company offers a range of insurance products along with wealth management instruments to individuals and corporations. The companies head office is in Toronto and had net income of 2.581 billion Canadian dollars in 2016.

Sun Life is a global organization and has operations in Asia, Europe, and North America. Of course, Sun Life performs better as interest rates begin to rise. This is because they have a difficult time generating enough revenue to cover insurance policies when interests rates are unusually low. At this time the organization boasts a solid 3.9% dividend yield, making this an attractive addition to your dividend portfolio.

#8 -- TransCanada Corp

Best Canadian Dividend Stocks 2017 TransCanada Corp. #8

Price as of June 6th 2017 : $64.00
Ticker: TRP.TO
Sector: Oil and Gas
P/E:100.05
EPS: $.16
Market Cap: 55.74 Billion
Net Revenue 2016: $13.39 Billion
Net Profit 2016: $515 Million
Dividend Yield: 4%
Click here to see their chart and opinions

Number 8 on our list of the best Canadian dividend stocks for 2017 is TransCanada Corp. TransCanada Corp is an oil and gas pipeline company that operates in three business segments including natural gas pipeline, oil pipeline, and natural gas storage. The company has it's headquarters in Calgary Alberta and operates throughout North America. Due to it being a pipeline company it operates like a toll operator, receiving compensation when it provides access to transport oil and gas to specific destinations. Presently pipeline transportation is booked months in advance. This means that cash flow pledged is exposed to changes due to interest rates.

The cash flows are stable, making this company an excellent dividend investment. TransCanada is an expert in power generation in Canada and the United States, as well as storage of natural gas. Therefore the price of natural gas has a large impact on the stock. Currently, the company boasts a robust 4% dividend yield.

#7 -- Hydro One

Best Canadian Dividend Stocks 2017 Hyrdro One  #7

Price as of June 6th 2017 : $23.69
Ticker: H.TO
Sector: Utilities
P/E:20.79
EPS: $1.14
Market Cap: 14.10 Billion
Net Revenue 2016: $6.538 Billion
Net Profit 2016: $721 Millon
Dividend Yield: 3.7%
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Lucky number 7 on our list is Hydro One. Hydro One operates electricity transmission throughout the Ontario electricity grid and has a dividend yield of 3.7%. The companies headquarters are located in Toronto and produced 6.538 billion dollars in revenue in 2016.

Hydro One does have exposure to electricity prices which can vary based on demand. In fact, through its subsidiary Hydro One Inc the company owns and operates nearly all of Ontario's electricity transmission network, concentrating on three business segments, which include the transmission business; distribution business; and telecommunications business.

#6 -- BCE

Best Canadian Dividend Stocks 2017 BCE  #6

Price as of June 6th 2017 : $61.03
Ticker: BCE.TO
Sector: Telecommunications
P/E:18.56
EPS: $3.29
Market Cap: 54.89 Billion
Net Revenue 2016: $16.05 Billion
Net Profit 2016: $2.159 Billion
Dividend Yield: 4.7%
Click here to see their chart and opinions

Number 6 on our list of top dividend stocks in Canada is BCE. BCE is a telecommunications and cable provider focusing on wireless, internet and television services to residential, business, and wholesale customers in Canada. The company was founded in 1983, and has its headquarters in Montreal Canada, and reported 2016 profits of 2.159 billion dollars.

BCE operates in 3-segments. First, there is Bell Wireless, which provides wireless voice and data services. Secondly, Bell Wireline which provides data and satellite television. Finally, they have Bell Media which provides pay TV along with digital media and radio broadcasting. As of right now the company has a dividend yield of 4.7%.





#5 -- H&R Real Estate Investment Trust

Best Canadian Dividend Stocks 2017 HR-REIT  #5

Price as of June 6th 2017 : $22.93
Ticker: HR.UN
Sector: Real Estate
P/E:19.44
EPS: $1.18
Market Cap: 6.16 Billion
Net Revenue 2016: $1.12 Billion
Net Profit 2016: $389 Million
Dividend Yield: 6%
Click here to see their chart and opinions

Number 5 on our list is the H&R Real Estate Investment Trust. H&R is a trust that distributes income from the leasing of commercial real-estate properties. Ultimately a real estate investment trust(REIT) is a landlord and provides stable income. Consequently, it is sensitive to interest rates, as higher rates erode the discounted value of the future cash flows generated by the investments. In any case, the investment objectives are to distribute the income received from real-estate holdings to their shareholders. H&R produced yield equity of 2.76% in 2016. Presently their dividend yield is 6%.

#4 -- Royal Bank Of Canada

Best Canadian Dividend Stocks 2017 RBC #4

View our analysis of TSE:RY here
Price as of June 6th 2017 : $92.81
Ticker: RY.TO
Sector: Financial Services
P/E:12.58
EPS: $7.38
Market Cap:135.25 Billion
Net Revenue 2016: $38.1 Billion
Net Profit 2016: $10.02 Billion
Dividend Yield: 3.7%
Click here to see their chart and opinions

Number 4 on our list of the best Canadian dividend stocks in 2017 is the Royal Bank of Canada. The financial services giant focusses on a range of products including banking, wealth management, insurance, and capital markets trading. At this point the company has institutional clients throughout Canada, the U.S. as well as in 37 other countries. The bank is headquartered in Toronto and had profits of 10.02 billion in 2016. Of course with RBC being a bank the stock price is sensitive to interest rates and will rise when yields begin to accelerate higher. At this time Royal Bank of Canada has a dividend yield of 3.7%.

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#3 -- Enbridge Income Fund Holdings

Best Canadian Dividend Stocks 2017 Enbridge #3

Price as of June 6th 2017 : $32.60
Ticker: ENF.TO
Sector: Oil and Gas
P/E:15.38
EPS: $2.12
Market Cap: 4.77 Billion
Net Revenue 2016: $270 Million
Net Profit 2016: $267 Million
Dividend Yield: 6.3%
Click here to see their chart and opinions

Number 3 is Enbridge Income Fund Holdings, which is a holdings company with subsidiaries that focuses on oil and gas transportation and storage. First and foremost the storage end of their business is focused on natural gas. Enbridge currently serves customers in Western Canada and North Dakota transporting crude oil and natural gas liquids.

Additionally, they also own the Alliance System's which is a natural gas pipeline beginning near Gordondale Alberta. At this point the fund has a dividend yield of 6.3%. Ultimately pipeline companies are more sensitive to interest rates rather than oil and gas prices. This is because they generate revenue from tolls that are being charged to move petroleum and gas through their pipeline system, and have exposure to changes in the future value of their cash flows.

#2 -- Canadian Imperial Bank of Commerce(CM)

Best Canadian Dividend Stocks 2017 CIBC #2

Price as of June 6th 2017 : $105.09
Ticker: CM.TO
Sector: Financial Services
P/E:8.75
EPS: $12.02
Market Cap: 42.21 Billion
Net Revenue 2016: $15 Billion
Net Profit 2016: $4.3 Billion
Dividend Yield: 4.8%

Click here to see their chart and opinions


The runner-up on our list of top Canadian dividend stocks is the Canadian Imperial Bank of Commerce. Above all, this giant financial institution focuses on service to individuals, small business, commercial and corporate banking. That being said, they also service institutional clients and are active in capital markets trading.

The capital markets unit trades products such as foreign exchange, bonds and equities around the globe. CIBC has a net income of 4.3 billion in 2016 and revenues of 15 billion. Being a bank, they obviously are effected by interest rates, and will generally perform better in a rising rate environment. Profits variation is usually predicted on revenues from the capital markets unit. At this time the company has a dividend yield of 4.8%.

#1 -- Toronto Dominion Bank

Best Canadian Dividend Stocks 2017 TD Bank #1

View our analysis of TSE:TD here
Price as of June 6th 2017 : $64.18
Ticker: TD.TO
Sector: Financial Services
P/E:12.66
EPS: $5.07
Market Cap: 118.55 Billion
Net Revenue 2016: $32.8 Billion
Net Profit 2016: $9.41 Billion
Dividend Yield: 3.7%
Click here to see their chart and opinions

The winner of our top dividend stocks in 2017 is Toronto Dominion Bank. The financial services giant focuses on several segments which include retail, commercial banking and credit cards. Additionally, TD bank covers insurance and wealth management.

The company has a large presence in the United States including branches that focus on personal and commercial businesses, U.S. credit cards, and Auto Finance as well the institutions investment its subsidiary TD Ameritrade Holding Corporation. The company is headquartered in Toronto and has 10.2 million online and mobile customers. The company boast a dividend yield of 3.7%.

Click Here To Read The Little Book Of Big Dividends

What's the biggest risk with these Canadian dividend stocks?

In conclusion, interest rate exposure is the largest risk these Canadian dividend stocks face. Recently, the Bank of Canada kept their monetary policy unchanged and is unlikely to alter rates until 2018. This is mainly because the central bank kept a modestly constructive outlook of economic growth and consumer inflation. Unfortunately, there has been subdued domestic growth. That being said, expectations of growth for Canada’s largest trading partner the United States is improving.

The Bank of Canada's cautious optimism is being supported by recent domestic economic data and global events. All things considered Canada's economy remains on the path towards sustainability, but ample uncertainties remain. Notably, ongoing political issues in the U.S. have further clouded the trade outlook as Trump's agenda is increasingly at risk. Given these risks, it is likely that rates remain unchanged, which should buoy REITS and pipeline and storage companies. Furthermore, large financial institutions will have difficulty making income on lending, but subdued revenue in this sector should be offset by solid gains in capital markets trading.

We hope you enjoyed this list of the best Canadian dividend stocks for 2017. If you're looking for a broker to start investing in these stocks, check out our broker review page. Don't forget to like, share and comment, we would love your input.

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