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 like: Top 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...

How To Invest $15,000 In The Stock Market

A reader of my blog asks me for help by investing 15k of his money. Here is his question:

“I am a Canadian beginner, 56 years old, 29 years with the Federal Govt. I want to retire next year. I have $15K to start, and I don't know where to start...what would you recommend? Right now I have $5K CP, $5K CNR, $1K Sprint...and they are just not doing much right now.

Another question: If Sprint is bought by DISH, will the stock go up, or cease to exist and I would loose my holding? I am holding approx $1000. at $7.15 per share. I don't want to loose my investment to stupidity...Thanks again for your time.”

My first thought is that 15k is enough to start investing. I also started to buy stocks with a similar amount in EUR. Ten years later my net worth developed to a six-figure amount and I’ve received a total dividend amount of more than 30k.

My second thought to your current holdings is that they are not really diversified. You have a strong focus on value. Canadian Railways stock could deliver a great stability for your portfolio but with only 3 holdings and 4k of cash it’s hard to make money if you have only two bets. $CNR has good fundamentals and the stock price follows. Canadian Pacific Railway $CP grows dividends but the earnings go down. The stock price explodes. Sprint Nextel $S received a bid from $DISH – They will be off. All have in common that they are infrastructure bets and deeply integrated within the economy and they all have a very low dividend yield. Infrastructure is a very capital intensive business and also very inflexible.

To your second question: You will receive cash in exchange for your Sprint shares if the deal passes through. DISH offers $7 per Sprint share.

I would recommend to increase your bets when the time is right to invest. If you have a cheap broker you can build a better portfolio by owing more stocks with a lower value. Some offer a $1 trade commission. It’s hard to make money and with 15k and a solid return of 8 percent coul result in $1,200 capital income per year of which $450 could be dividends, calculated on a 3% dividend yield. All you need is to be disciplined and diversified.

Below is a nice graphic about how to buy stocks and build a dividend portfolio with only $5,000.

How to Start a Dividend Portfolio Source: Intelligentspeculator.net

If you have any further questions, to not hesitate to contact me. If you like my answer, please give me a Facebook Like. You can also subscribe to my free e-mail list or follow me on Facebook or Twitter.

Happy Investing!

Tom Roberts