Canadian Dividend All-Stars – Week of Apr 26

Posted on April 28, 2021 by Dylan Callaghan

It has been a few weeks since our last update as we entered a seasonal lull for dividend growth announcements amongst Canadian dividend stocks. The good news is that investors looking to buy Canadian stocks should start to see the pace of dividend growth start to ramp up in the coming weeks as earnings begin to pile in.

Before we jump into that, we do have one update to share with you before we take a look at the lone Canadian Dividend All-Star that is scheduled to raise dividends.

Of note, all figures are in Canadian dollars unless otherwise noted.

Recent dividend updates

While we were not expecting any dividend raises to come since our last update, Dollarama (TSX:DOL) did come through with a raise for investors.

Company

EST DGR

EST Increase

Actual DGR

Actual Increase

New Div

DOL

N/A

N/A

7.02%

$0.033

$0.0503

The main reason why we were not expecting a raise out of Dollarama is because they had just announced a raise last quarter. However, it is important to note that last year Dollarama did not raise dividends in the midst of the pandemic.

It kept the dividend steady for 7 quarters before finally announcing their raise and keeping the dividend growth streak intact.

The 7% increase to the dividend announced on March 31 was simply a return to normal for Dollarama. Historically, the company had always raised the dividend along with first quarter results.

It will be something to watch over the coming months. Last year dozens of All-Stars deviated from their normal dividend raise patterns. Will they follow Dollarama’s lead and return to the norm or will a new pattern emerge? We’ll find out soon enough.

Upcoming dividend raises, cuts or suspensions

Imperial Oil (TSX:IMO)

Imperial Oil stock

Current Streak: 26 years

Current Yield: 2.83%

Earnings: Friday, April 30

What can investors expect: What a difference a year makes. At this time last year energy stocks were cutting the dividend at a record pace. Even some of the most notable Dividend All-Stars such as Imperial Oil (TSX:IMO) were at risk of cutting the dividend.

The good news is that Imperial Oil navigated record-low oil prices with the dividend intact. While the company did not raise dividends, Imperial Oil maintained its growth streak as it paid out more in 2020 than it did in 2019.

However, it has been now 8 consecutive quarters since the company last raised dividends. Now that the price of oil has rebounded significantly, the company is well positioned to resume dividend growth which it has historically done in the first quarter.  

While Imperial oil does have a double-digit average, I’d expect a more conservative raise this time around. There is still considerable volatility and while I believe a raise will be announced, it is likely to be shy of historical averages.

Market Cap: $24.4 billion
Forward P/E: 9.85
Yield: 2.83%
Dividend Growth Streak: 26 years
Payout Ratio (Earnings): -34.95%
Payout Ratio (Free Cash Flows): Premium Members Only
Payout Ratio (Operating Cash Flows): Premium Members Only
1 Yr Div Growth Rate: 3.53%
5 Yr Div Growth Rate: Premium Members Only
Stocktrades Growth Score: Premium Members Only
Stocktrades Dividend Safety Score: Premium Members Only

EST DGR

EST Increase

New Div

6.67%

$0.015

$0.24

*Dylan Callaghan has no positions in any of the companies mentioned.

Disclaimer: The writer of this article or employees of Stocktrades Ltd may have positions in securities listed in this article. Stocktrades Ltd may also be compensated via affiliate links in the post below.

Dylan Callaghan

About the author

Dylan is the co-founder of Stocktrades.ca and an avid self-directed investor. He holds a portfolio of Canadian growth and dividend growth stocks, and believes that anyone, regardless of financial status, stands to benefit from investing in the stock market. His ultimate goal with his writing and the continual development of Stocktrades.ca is to create a resource that helps Canadians, and investors from around the world, make more money and retire earlier.