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January 15, 2021

Canadian Dividend Aristocrats List

Disclaimer: The writer of this article may have positions in the securities mentioned in this article. The fact they hold positions in securities has had no impact on the production of this article

By Dan Kent

January 15, 2021

If you’re looking for the best dividend stocks to add to your portfolio today, you definitely need to look at Canadian Dividend Aristocrats.

Canadian Dividend aristocrats are popular, especially to newcomers looking to learn how to buy stocks.

In order for a Canadian company to become a Canadian Dividend Aristocrat, it needs to meet the following criteria:

  • A market cap of at least $300 million
  • The company has increased the dividend for 5 consecutive years
  • Must be listed on the Toronto Stock Exchange and a member of the S&P Canada BMI

Be careful not to confuse the Canadian aristocrats with the ones down south. It’s considerably harder to become a Dividend Aristocrat in the United States. To be considered an aristocrat, a US listed company must raised dividends for 25 straight years.

If we used this criteria to classify Canadian stocks as Dividend Aristocrats, the list below would be trimmed from 83 companies to 9.

And if we were to take it a step further to classify Dividend Kings, which are US listed companies that have raised dividends for 50 consecutive years, there wouldn’t be a single stock on this list that makes it. However, Fortis and Canadian Utilities, with growth streaks of 46 and 48 years respectively, are close to achieving that mark.

Who should invest in Canadian Dividend Aristocrats?

Because we’re talking about consecutive years of dividend increases, dividend growth investors will naturally gravitate towards aristocrat stocks. Of note, they also love monthly dividend payers.

A stock with a long growth streak has provided compounding dividend growth to those who’ve invested in it, and the longer the growth streak, the more likely the company is to continue its growth moving forward.

These growth streaks come into play heavily when making investment decisions, especially those who want a consistent and growing dividend payment in retirement.

If you’re looking at growth investing or even value investing, you may not find much use for this list.

However, there has been some strong dividend growth stocks that have also provided exponential growth in the form of stock appreciation to Canadian investors over the years, one in particular is Goeasy Limited (TSX:GSY).

Is there a Dividend Aristocrat ETF?

If you’re not into picking individual stocks but want exposure to some of the best Canadian dividend stocks, you’ll want to take a look at the iShares S&P TSX Canadian Aristocrats Index (TSX:CDZ). This aristocrat ETF has 84 holdings.

As of July 2020, TransAlta Renewables (TSX:RNW) is its biggest holding with a total weight of 2.52%. Although TransAlta may not be the best dividend stock in Canada, with its total weight being around 1/50th of the ETF, there’s plenty of other solid options. Lets have a look at the aristocrat ETFs top 10 holdings:

1Transalta Renewables (RNW)2.54
2Transcontinental Inc (TCL.A)2.48
3Fiera Capital (FSZ)2.46
4The North West Co (NWC)2.40
5Enbridge (ENB)2.26
6BCE (BCE)2.25
7Choice Properties REIT (CHP.UN)2.12
8CIBC (CM)2.09
9Capital Power Corp (CPX)2.05
10Granite Real Estate (GRT.UN)2.03

Canadian Dividend Aristocrat performance vs the Index

A lot of investors want to know if they purchase aristocrats will they outperform the market.

In order to compare whether or not dividend aristocrats here in Canada outperform the Toronto Stock Exchange, lets look at the overall returns since the inception of this TSX Canadian Dividend Aristocrats ETF and compare them to the index itself.

Compound Annual Growth Rate Of CDZ Since Sept 1st 2006: 1.27%

Compound Annual Growth Rate Of The TSX Since Sept 1st 2006: 2.46%

We can see there is a clear underperformance from the aristocrat ETF and in my opinion, you’d be much better off picking individual stocks off this Canadian aristocrats list to achieve the best return on investment and compounding dividend growth.

Aristocrat performance during the COVID-19 pandemic and 2020 market crash

We’ve had a lot of investors asking us what stocks are currently outperforming in this unprecedented economic time.

So, we thought it would be interesting to have a look at how the aristocrat ETF has performed vs the market since the Toronto Stock Exchange crashed.

CDZ.TO losses since Feb 20th 2020: -11.8%

TSX Index losses since Feb 20th 2020: -5.7%

It’s pretty clear that the aristocrats have underperformed the market severely since the crash. So why exactly is that? In order to understand why this is, we first have to have a look at where the Canadian Dividend Aristocrats come from in terms of sector and industry.

Canadian Dividend Aristocrats by sector

Energy and financial stocks make up the bulk of the TSX Index (over 50%.) As such, when you’re looking at this dividend aristocrats list, you’ll notice the bulk of the companies are in one of these two sectors.

As such, our question as to why these stocks have underperformed the markets in general is answered fairly easily.

Financials due to the poor economic outlook and low interest rates have been lagging the overall market in terms of recovery, and energy stocks have been held back by a slow recovery from a catastrophic drop in the demand for crude oil.

To make it even easier for you and provide you with the best dividend aristocrats list on the internet, we’ve gone the extra mile and made each sector separate in the list below. That way you can filter out sectors and companies you’d like to investigate further or leave behind.

We’ve also included the consecutive years of dividend growth the companies have achieved.

New Canadian Dividend Aristocrats On This List For 2020:

  • Goeasy Ltd (TSX:GSY)
  • Power Corporation of Canada (TSX:POW)
  • Great West Life-Co (TSX:GWO)
  • First Service Corp (TSX:FSV)
  • Quebecor (TSX:QBR)
  • Stingray Group (TSX:RAY.A)

List of Aristocrats that have cut or suspended dividends since last update:

  • AW-UN
  • NFI
  • IPL
  • CAE
  • UFS
  • MX
  • RCH
  • GIL
  • ZZZ
  • SU
  • LB
  • CGX

Canadian Dividend Aristocrats List

As always, if we’ve missed any companies on this Canadian Dividend Aristocrats list, feel free to comment below. In total, there are 82 stocks on this list.

Basic Material Dividend Aristocrats

Consumer Cyclical Dividend Aristocrats

Consumer Defensive Dividend Aristocrats

Energy Dividend Aristocrats

Financial Dividend Aristocrats

Industrial Dividend Aristocrats

Real Estate Dividend Aristocrats

Technology Dividend Aristocrats

Telecom Dividend Aristocrats

Utility Dividend Aristocrats


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Dan Kent

An active dividend and growth investor, Dan has been involved with the website since its inception. Dan is primarily a researcher and writer here at Stocktrades.ca, and his pieces have numerous mentions on the Globe and Mail, Forbes, Winnipeg Free Press, and other high authority financial websites. He has become an authority figure in the Canadian finance niche, primarily due to his attention to detail and overall dedication to achieving the highest returns on his investments. Investing on his own since he was 19 years old, Dan has compiled the experience and knowledge needed to be successful in the world of self-directed investing, and is always happy to bring that knowledge to Stocktrades.ca readers and any other publications that give him the opportunity to write. Dan manages his TFSA, RRSPs and a LIRA at Questrade, and has compiled a real estate portfolio of his primary residence and 2 rental properties, all before his 30th birthday.

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