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11 Canadian Dividend Stocks You Should Consider For Your Dividend Growth Portfolio

I'm a big fan of dividend growth stocks because they delivered me solid returns and a growing passive income over the recent years.

My main focus was on U.S. stocks, which is generally good because the American capitalism works fine but outside the US are also good stocks with a predictable business and stable growing dividends.

This week, I look at companies in Canada that have had a history of growing dividends, but more important have the capacity to continue to grow these dividends in the future.

You may likeTop Dividend Picks From Europe

A key measure of this sustainability can be observed through the payout ratio, which is the ratio of dividends paid to either cash flows or earnings.

A company paying out too high of a percentage in dividends is likely unable to continue to do so in the future. Attached are 11 of my top picks from the results.

I hope you can find there some new ideas. Please share your thoughts about the results. Thank you.

Here are some of my results...


Suncor Energy -- Yield: 3.02%

Suncor Energy (TSE:SU) employs 13,980 people, generates revenue of $40,490.00 million and has a net income of $2,699.00 million. The current market capitalization stands at $53.63 billion.

Suncor Energy’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $13,054.00 million. The EBITDA margin is 32.24% (the operating margin is 11.34% and the net profit margin 6.67%).

Financials: The total debt represents 16.73% of Suncor Energy assets and the total debt in relation to the equity amounts to 32.04%. Due to the financial situation, a return on equity of 6.52% was realized by Suncor Energy.

Twelve trailing months earnings per share reached a value of $1.83. Last fiscal year, Suncor Energy paid $1.02 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 20.31, the P/S ratio is 1.32 and the P/B ratio is finally 1.29. The dividend yield amounts to 3.02%.

Stock Charts:

Long-Term Stock Price Chart of Suncor Energy (SU)
Long-Term Stock Price Chart of Suncor Energy (SU)
Long-Term Dividend Payment History of Suncor Energy (SU)
Long-Term Dividend Payment History of Suncor Energy (SU)
Long-Term Dividend Yield History of Suncor Energy (SU)
Long-Term Dividend Yield History of Suncor Energy (SU)

Canadian Dividend Stocks You Should Consider

Agrium -- Yield: 2.79%

Agrium (TSE:AGU) employs 15,800 people, generates revenue of $20,026.83 million and has a net income of $996.22 million. The current market capitalization stands at $19.96 billion.

Agrium’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $2,106.05 million. The EBITDA margin is 10.52% (the operating margin is 7.23% and the net profit margin 4.97%).

Financials: The total debt represents 29.79% of Agrium assets and the total debt in relation to the equity amounts to 76.30%. Due to the financial situation, a return on equity of 11.76% was realized by Agrium.

Twelve trailing months earnings per share reached a value of $6.83. Last fiscal year, Agrium paid $3.75 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 20.44, the P/S ratio is 1.00 and the P/B ratio is finally 2.41. The dividend yield amounts to 2.79%.

Stock Charts:

Long-Term Stock Price Chart of Agrium (AGU)
Long-Term Stock Price Chart of Agrium (AGU)
Long-Term Dividend Payment History of Agrium (AGU)
Long-Term Dividend Payment History of Agrium (AGU)
Long-Term Dividend Yield History of Agrium (AGU)
Long-Term Dividend Yield History of Agrium (AGU)

Canadian Natural Resources -- Yield: 2.38%

Canadian Natural Resources (TSE:CNQ) employs 6,621 people, generates revenue of $16,145.00 million and has a net income of $2,270.00 million. The current market capitalization stands at $42.20 billion.

Canadian Natural Resources’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $8,084.00 million. The EBITDA margin is 50.07% (the operating margin is 18.80% and the net profit margin 14.06%).

Financials: The total debt represents 18.67% of Canadian Natural Resources assets and the total debt in relation to the equity amounts to 37.49%. Due to the financial situation, a return on equity of 9.07% was realized by Canadian Natural Resources.

Twelve trailing months earnings per share reached a value of $2.86. Last fiscal year, Canadian Natural Resources paid $0.58 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 13.51, the P/S ratio is 2.61 and the P/B ratio is finally 1.63. The dividend yield amounts to 2.38%.

Stock Charts:

Long-Term Stock Price Chart of Canadian Natural Resources (CNQ)
Long-Term Stock Price Chart of Canadian Natural Resources (CNQ)
Long-Term Dividend Payment History of Canadian Natural Resources (CNQ)
Long-Term Dividend Payment History of Canadian Natural Resources (CNQ)
Long-Term Dividend Yield History of Canadian Natural Resources (CNQ)
Long-Term Dividend Yield History of Canadian Natural Resources (CNQ)

Home Capital Group -- Yield: 2.04%

Home Capital Group (TSE:HCG) employs 783 people, generates revenue of $909.63 million and has a net income of $313.17 million. The current market capitalization stands at $3.02 billion.

Home Capital Group’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $566.49 million. The EBITDA margin is 95.55% (the operating margin is 70.42% and the net profit margin 52.82%).

Financials: The total debt represents 22.19% of Home Capital Group assets and the total debt in relation to the equity amounts to 307.57%. Due to the financial situation, a return on equity of 23.85% was realized by Home Capital Group.

Twelve trailing months earnings per share reached a value of $4.45. Last fiscal year, Home Capital Group paid $0.70 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 9.69, the P/S ratio is 5.09 and the P/B ratio is finally 2.08. The dividend yield amounts to 2.04%.

Stock Charts:

Long-Term Stock Price Chart of Home Capital Group (HCG)
Long-Term Stock Price Chart of Home Capital Group (HCG)
Long-Term Dividend Payment History of Home Capital Group (HCG)
Long-Term Dividend Payment History of Home Capital Group (HCG)
Long-Term Dividend Yield History of Home Capital Group (HCG)
Long-Term Dividend Yield History of Home Capital Group (HCG)

Cogeco Cable -- Yield: 1.93%

Cogeco Cable (TSE:CCA) employs 2,672 people, generates revenue of $1,947.59 million and has a net income of $209.44 million. The current market capitalization stands at $2.43 billion.

Cogeco Cable’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $893.36 million. The EBITDA margin is 45.87% (the operating margin is 20.17% and the net profit margin 10.75%).

Financials: The total debt represents 52.54% of Cogeco Cable assets and the total debt in relation to the equity amounts to 180.24%. Due to the financial situation, a return on equity of 14.69% was realized by Cogeco Cable.

Twelve trailing months earnings per share reached a value of $4.40. Last fiscal year, Cogeco Cable paid $1.16 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 16.48, the P/S ratio is 1.25 and the P/B ratio is finally 2.36. The dividend yield amounts to 1.93%.

Stock Charts:

Long-Term Stock Price Chart of Cogeco Cable (CCA)
Long-Term Stock Price Chart of Cogeco Cable (CCA)
Long-Term Dividend Payment History of Cogeco Cable (CCA)
Long-Term Dividend Payment History of Cogeco Cable (CCA)
Long-Term Dividend Yield History of Cogeco Cable (CCA)
Long-Term Dividend Yield History of Cogeco Cable (CCA)

CAE -- Yield: 1.90%

CAE (TSE:CAE) employs 7,000 people, generates revenue of $2,114.90 million and has a net income of $191.10 million. The current market capitalization stands at $3.89 billion.

CAE’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $417.20 million. The EBITDA margin is 19.73% (the operating margin is 13.80% and the net profit margin 9.04%).

Financials: The total debt represents 27.58% of CAE assets and the total debt in relation to the equity amounts to 81.06%. Due to the financial situation, a return on equity of 14.87% was realized by CAE.

Twelve trailing months earnings per share reached a value of $0.75. Last fiscal year, CAE paid $0.22 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 19.75, the P/S ratio is 1.84 and the P/B ratio is finally 2.70. The dividend yield amounts to 1.90%.

Stock Charts:

Long-Term Stock Price Chart of CAE (CAE)
Long-Term Stock Price Chart of CAE (CAE)
Long-Term Dividend Payment History of CAE (CAE)
Long-Term Dividend Payment History of CAE (CAE)
Long-Term Dividend Yield History of CAE (CAE)
Long-Term Dividend Yield History of CAE (CAE)

ShawCor -- Yield: 1.68%

ShawCor (TSE:SCL) employs 5,846 people, generates revenue of $1,847.55 million and has a net income of $222.59 million. The current market capitalization stands at $2.31 billion.

ShawCor’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $390.16 million. The EBITDA margin is 21.12% (the operating margin is 17.31% and the net profit margin 12.05%).

Financials: The total debt represents 23.86% of ShawCor assets and the total debt in relation to the equity amounts to 60.06%. Due to the financial situation, a return on equity of 26.73% was realized by ShawCor.

Twelve trailing months earnings per share reached a value of $2.27. Last fiscal year, ShawCor paid $0.10 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 15.80, the P/S ratio is 1.25 and the P/B ratio is finally 3.27. The dividend yield amounts to 1.68%.

Stock Charts:

Long-Term Stock Price Chart of ShawCor (SCL)
Long-Term Stock Price Chart of ShawCor (SCL)
Long-Term Dividend Payment History of ShawCor (SCL)
Long-Term Dividend Payment History of ShawCor (SCL)
Long-Term Dividend Yield History of ShawCor (SCL)
Long-Term Dividend Yield History of ShawCor (SCL)

Canadian National Railway -- Yield: 1.45%

Canadian National Railway (TSE:CNR) employs 25,530 people, generates revenue of $12,134.00 million and has a net income of $3,167.00 million. The current market capitalization stands at $69.73 billion.

Canadian National Railway’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $5,674.00 million. The EBITDA margin is 46.76% (the operating margin is 38.11% and the net profit margin 26.10%).

Financials: The total debt represents 26.45% of Canadian National Railway assets and the total debt in relation to the equity amounts to 62.43%. Due to the financial situation, a return on equity of 23.97% was realized by Canadian National Railway.

Twelve trailing months earnings per share reached a value of $3.85. Last fiscal year, Canadian National Railway paid $1.00 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 22.45, the P/S ratio is 5.75 and the P/B ratio is finally 5.19. The dividend yield amounts to 1.45%.

Stock Charts:

Long-Term Stock Price Chart of Canadian National Railway (CNR)
Long-Term Stock Price Chart of Canadian National Railway (CNR)
Long-Term Dividend Payment History of Canadian National Railway (CNR)
Long-Term Dividend Payment History of Canadian National Railway (CNR)
Long-Term Dividend Yield History of Canadian National Railway (CNR)
Long-Term Dividend Yield History of Canadian National Railway (CNR)

Metro -- Yield: 1.34%

Metro (TSE:MRU) employs 65,000 people, generates revenue of $11,590.40 million and has a net income of $456.20 million. The current market capitalization stands at $8.80 billion.

Metro’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $795.40 million. The EBITDA margin is 6.86% (the operating margin is 5.23% and the net profit margin 3.94%).

Financials: The total debt represents 20.05% of Metro assets and the total debt in relation to the equity amounts to 39.67%. Due to the financial situation, a return on equity of 16.36% was realized by Metro.

Twelve trailing months earnings per share reached a value of $1.77. Last fiscal year, Metro paid $1.00 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 19.72, the P/S ratio is 0.76 and the P/B ratio is finally 3.32. The dividend yield amounts to 1.34%.

Stock Charts:

Long-Term Stock Price Chart of Metro (MRU)
Long-Term Stock Price Chart of Metro (MRU)
Long-Term Dividend Payment History of Metro (MRU)
Long-Term Dividend Payment History of Metro (MRU)
Long-Term Dividend Yield History of Metro (MRU)
Long-Term Dividend Yield History of Metro (MRU)

Stella-Jones -- Yield: 0.74%

Stella-Jones (TSE:SJ) employs 1,525 people, generates revenue of $970.15 million and has a net income of $92.54 million. The current market capitalization stands at $2.59 billion.

Stella-Jones’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $156.49 million. The EBITDA margin is 16.13% (the operating margin is 14.30% and the net profit margin 9.54%).

Financials: The total debt represents 34.79% of Stella-Jones assets and the total debt in relation to the equity amounts to 65.17%. Due to the financial situation, a return on equity of 17.78% was realized by Stella-Jones.

Twelve trailing months earnings per share reached a value of $1.46. Last fiscal year, Stella-Jones paid $0.19 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 25.85, the P/S ratio is 2.67 and the P/B ratio is finally 4.52. The dividend yield amounts to 0.74%.

Stock Charts:

Long-Term Stock Price Chart of Stella-Jones (SJ)
Long-Term Stock Price Chart of Stella-Jones (SJ)
Long-Term Dividend Payment History of Stella-Jones (SJ)
Long-Term Dividend Payment History of Stella-Jones (SJ)
Long-Term Dividend Yield History of Stella-Jones (SJ)
Long-Term Dividend Yield History of Stella-Jones (SJ)

Linamar -- Yield: 0.54%

Linamar (TSE:LNR) employs 19,000 people, generates revenue of $3,595.49 million and has a net income of $229.79 million. The current market capitalization stands at $4.84 billion.

Linamar’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $540.31 million. The EBITDA margin is 15.03% (the operating margin is 8.90% and the net profit margin 6.39%).

Financials: The total debt represents 20.68% of Linamar assets and the total debt in relation to the equity amounts to 40.20%. Due to the financial situation, a return on equity of 19.13% was realized by Linamar.

Twelve trailing months earnings per share reached a value of $4.86. Last fiscal year, Linamar paid $0.32 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 15.28, the P/S ratio is 1.35 and the P/B ratio is finally 3.56. The dividend yield amounts to 0.54%.

Stock Charts:

Long-Term Stock Price Chart of Linamar (LNR)
Long-Term Stock Price Chart of Linamar (LNR)
Long-Term Dividend Payment History of Linamar (LNR)
Long-Term Dividend Payment History of Linamar (LNR)
Long-Term Dividend Yield History of Linamar (LNR)
Long-Term Dividend Yield History of Linamar (LNR)

Also check out: The Secret Guide to Stocks That Warren Buffett Targets

4 comments:

  1. Nice list you have there. I do, however, have to disagree with you about the 3 first ones because they are bulk producers of commodities. They can not set their own prices for their products and pretty much the only way they can differentiate themselves from competitors is by offering lower prices.

    ReplyDelete
  2. Yields are quite low. There are many stronger Canadian stocks in my opinion. Any minimum yield looking for? What about their growth rate?

    ReplyDelete
    Replies
    1. Anonymous3/15/2015

      Yes I do agree very low dividend on your pics EIF would be a much better pic

      Delete
    2. Anonymous3/15/2015

      And to boot EIF pays 7.4% .145 cents a share monthly and is 100% Canadian

      Delete

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