10 Canadian Dividend Stocks for Steady Income

Published on April 4, 2022 at 10:10 am by Hamna Asim in Hedge Funds, News

In this article, we discuss 10 Canadian dividend stocks for steady income. To check out more Canadian dividend payers, click 5 Canadian Dividend Stocks for Steady Income.

Statistics Canada observed that the Canadian economy gained traction in February, recording the ninth consecutive month of GDP growth. The 0.80% economic growth in February was driven by an increase in manufacturing and resources. Benjamin Reitzes, Canadian rates and macro strategist at BMO Capital Market Economics, noted that the first quarter of 2022 was well ahead of the Bank of Canada’s forecast, and will generate about 4% GDP at an annualized rate.

Canada Consumer Spending Outlook

In 2021, household consumption was the greatest contributor to the economic growth in Canada. The Bank of Canada expects the spending momentum to continue in 2022, although the higher inflationary prices usually impact consumer confidence and purchasing power. Canadians so far have ignored the surge in prices and are continuing their 2021 spending patterns. Rannella Billy-Ochieng, an economist at RBC Economics, observed that Canadians have plenty of savings and strong balance sheets that act as a hedge against inflation, which is why consumer confidence has not crashed yet.

Canadians hold about C$300 billion in personal savings, and the Bank of Canada forecasts that by 2023 at least C$40 billion of the excess savings will be spent. Consumer confidence and spending power will remain intact if the inflation rate, which currently stands at 5.7%, does not go higher and global politics assume stability.

2030 Emissions Reduction Plan: Canada’s Next Steps to Clean Air and a Strong Economy

Justin Trudeau, the Canadian prime minister, announced on March 29 that Canada’s next goal will be to achieve net-zero emissions by 2050. Since the public wants a clean environment, good employment opportunities, and a strong economy, Trudeau declared that investments of $9.1 billion will be made to realize these goals.

Under this initiative, the economy will receive a healthy boost of funding for multiple sectors including clean energy, architecture, oil and gas, agriculture, and clean technology. The idea is for businesses, governments, and individuals to work together to cut pollution and emissions from each sector. This will create many jobs in the process as well, further supporting the Canadian economy.

Canada is on the precipice of economic growth and there are many companies that offer steady income opportunities for investors. Investors usually seek out dividend payers like JPMorgan Chase & Co. (NYSE:JPM), Microsoft Corporation (NASDAQ:MSFT), and The Coca-Cola Company (NYSE:KO), but in this article, we focus on Canadian dividend stocks.

10 Canadian Dividend Stocks for Steady Income

Photo by Viacheslav Bublyk on Unsplash

Our Methodology

We chose Canadian dividend companies that offer strong balance sheets and positive analyst ratings to compile this list. We have ranked the securities according to the dividend yields, from lowest to highest.

Canadian Dividend Stocks for Steady Income

10. Parex Resources Inc. (OTC:PARXF)

Number of Hedge Fund Holders: N/A

Dividend Yield as of April 1: 2.17%

Parex Resources Inc. (OTC:PARXF) was incorporated in 2009 and is headquartered in Calgary, Canada. The company focuses on oil and gas production in Colombia, with reserves for oil exploration exceeding 2.3 million gross acres.

On February 4, Parex Resources Inc. (OTC:PARXF) announced the dividend for Q1 2022 of C$0.14 per share, which was paid on March 30 to shareholders of record on March 15. This represents a 12% increase from the company’s fourth quarter 2021 regular dividend. The stock yields 2.17% as of April 1.

Scotiabank analyst Gavin Wylie on March 8 maintained an Outperform rating on Parex Resources Inc. (OTC:PARXF) and raised the price target to C$36 from C$35.

The company announced 2021 full-year financial revenue of $900.2 million, up from $531.9 million in the previous year. The net income for 2021 came in at $303.1 million, a significant increase from its prior-year income of $99.3 million. Parex Resources Inc. (OTC:PARXF)’s net cash flows in 2021 increased to $378.3 million from $330.6 million in the last year, indicating sustainability of dividend payments in the foreseeable future.

In addition to JPMorgan Chase & Co. (NYSE:JPM), Microsoft Corporation (NASDAQ:MSFT), and The Coca-Cola Company (NYSE:KO), Parex Resources Inc. (OTC:PARXF) is a reliable dividend payer to look out for.

9. B2Gold Corp. (NYSE:BTG)

Number of Hedge Fund Holders: 20

Dividend Yield as of April 1: 3.38%

B2Gold Corp. (NYSE:BTG) is a Vancouver-based company that mines for gold across Mali, the Philippines, and Namibia. The company categorizes itself as a low-cost gold producer. The stock has gained over 23% year-to-date and more than 12% in the last month amid the rising demand for gold as a store of value in the current macro backdrop.

As of April 1, B2Gold Corp. (NYSE:BTG) delivers a dividend yield of 3.38%. The company declared on February 23 a $0.04 per share quarterly dividend, in line with previous. The dividend was distributed on March 17, to shareholders of record on March 9.

The company reported earnings for the fourth quarter of 2021 on February 23, posting an EPS of $0.13, in line with analysts’ predictions. Revenue for the period jumped 9.72% year-over-year to $526.11 million, topping market consensus estimates by $1.11 million.

On February 4, National Bank analyst Don DeMarco reiterated an Outperform rating on B2Gold Corp. (NYSE:BTG) but lowered the firm’s price target on the shares to C$7.75 from C$8.

According to the fourth quarter database of Insider Monkey, 20 hedge funds placed long bets on B2Gold Corp. (NYSE:BTG), holding stakes worth $243.4 million, compared to 16 funds in the earlier quarter, with stakes in B2Gold Corp. (NYSE:BTG) valued at $176.3 million. Renaissance Technologies owns the largest position in the company, with more than 33 million shares worth $130.3 million.

8. Canadian Natural Resources Limited (NYSE:CNQ)

Number of Hedge Fund Holders: 23

Dividend Yield as of April 1: 3.77%

Canadian Natural Resources Limited (NYSE:CNQ) is a Calgary-based producer of crude oil, natural gas, and natural gas liquids. The company also owns midstream and refining assets. In the current market, where oil and gas prices are surging, Canadian Natural Resources Limited (NYSE:CNQ) stock has gained 46.55% year-to-date.

Canadian Natural Resources Limited (NYSE:CNQ) published its fourth quarter results on March 3, posting earnings per share of $1.74, exceeding market estimates by $0.10. The company’s Q4 revenue jumped 83.40% from the prior-year quarter, surpassing consensus estimates by $484.66 million.

Canadian Natural Resources Limited (NYSE:CNQ) on March 3 declared a C$0.75 per share quarterly dividend, a 27.7% increase from its prior dividend of C$0.59. The dividend is payable on April 5, to shareholders of the company at the close of business on March 18.

On March 9, Canadian Natural Resources Limited (NYSE:CNQ) announced plans to buy back up to 101.57 million of its common shares, which makes up approximately 10% of the public float.

RBC Capital analyst Greg Pardy on March 31 kept an Outperform rating on Canadian Natural Resources Limited (NYSE:CNQ) and lifted the firm’s price target on the shares to C$85 from C$80.

Among the hedge funds tracked by Insider Monkey in the fourth quarter of 2021, 23 funds were bullish on Canadian Natural Resources Limited (NYSE:CNQ), compared to 27 funds in the earlier quarter. Yacktman Asset Management was the leading shareholder of the company in Q4, owning more than 17 million shares worth $719.4 million.

7. Suncor Energy Inc. (NYSE:SU)

Number of Hedge Fund Holders: 33

Dividend Yield as of April 1: 4.11%

Suncor Energy Inc. (NYSE:SU) is a Canadian energy company primarily focused on selling petroleum and crude oil in Canada and international markets. The company also deals in natural gas, byproducts, refined products, and power generation.

On February 2, Suncor Energy Inc. (NYSE:SU) declared a C$0.42 per share quarterly dividend. The dividend was distributed on March 25, to shareholders of the company as of March 4.

Scotiabank analyst Jason Bouvier on March 8 maintained an Outperform rating on Suncor Energy Inc. (NYSE:SU) and raised the price target on the shares to C$45 from C$38. The stock delivers a dividend yield of 4.11% as of April 1.

According to the fourth quarter database of Insider Monkey, 33 hedge funds held long positions in Suncor Energy Inc. (NYSE:SU), holding collective stakes worth $1.30 billion. Peter Rathjens, Bruce Clarke, and John Campbell’s Arrowstreet Capital held the largest position in the company, with 9.3 million shares valued at approximately $235 million.

6. Algonquin Power & Utilities Corp. (NYSE:AQN)

Number of Hedge Fund Holders: 16

Dividend Yield as of April 1: 4.38%

Algonquin Power & Utilities Corp. (NYSE:AQN) was incorporated in 1988 and is headquartered in Oakville, Canada. The company generates, distributes, and transmits non-regulated utility assets in Canada, the United States, Chile, and Bermuda. Algonquin Power & Utilities Corp. (NYSE:AQN) is focused on renewable and clean power generation facilities.

On March 3, Algonquin Power & Utilities Corp. (NYSE:AQN) reported earnings for the fourth quarter. The company posted a GAAP EPS of $0.27, beating estimates by $0.06. The revenue jumped 20.80% year-over-year to $594.80 million, exceeding market consensus by $73.25 million.

Algonquin Power & Utilities Corp. (NYSE:AQN) declared on March 4 a $0.1706 per share quarterly dividend. The dividend will be paid on April 14, to shareholders of the company as of the close of business on March 31. Algonquin Power & Utilities Corp. (NYSE:AQN)’s dividend yield on April 1 stood at 4.38%.

According to the fourth quarter database maintained by Insider Monkey, 16 hedge funds were bullish on Algonquin Power & Utilities Corp. (NYSE:AQN), compared to 15 funds in the prior quarter. Ken Griffin’s Citadel Investment Group is the biggest shareholder of the company, owning 1.20 million shares worth $56.5 million.

Just like JPMorgan Chase & Co. (NYSE:JPM), Microsoft Corporation (NASDAQ:MSFT), and The Coca-Cola Company (NYSE:KO), Algonquin Power & Utilities Corp. (NYSE:AQN) is a notable dividend stock to diversify an income portfolio.

Click to continue reading and see 5 Canadian Dividend Stocks for Steady Income.