12 Best Canadian Dividend Stocks For Income Investors

Published on January 30, 2024 at 3:57 pm by Vardah Gill in Dividend Stocks, Hedge Funds, News

In this article, we discuss 12 best Canadian dividend stocks for income investors. You can skip our detailed analysis of the Canadian stock market and the past performance of Canadian dividend stocks, and go directly to read 5 Best Canadian Dividend Stocks For Income Investors.

Canada’s primary stock index concluded the year 2023 on a positive note, driven by a surge in energy and financial stocks. Despite facing challenges from inflationary pressures, Canadian stocks rebounded from the declines experienced the previous year, posting an 8% gain for the year. For 2024, there is renewed optimism among investors for a potential interest rate cut by the Bank of Canada. Apart from the general performance of the stock market, Canadian dividend stocks also demonstrated robust results in the previous year. The S&P/TSX Canadian Dividend Aristocrats Index is crafted to assess the performance of companies listed in the S&P Canada BMI that adhere to a consistent dividend policy of either maintaining or increasing dividends annually for a minimum of five years. In the year 2023, this index recorded a positive growth of 5.07%. This indicates that the selected companies, renowned for their commitment to stable or rising dividend payouts, collectively experienced a favorable performance over the course of the year.

Analysts predict that the impressive performance of dividend stocks is poised to persist into 2024. They express confidence in the outlook for dividend stocks in Canada, asserting that the current opportunities are unparalleled in recent history. A key factor contributing to this optimistic outlook is the presence of stable, low-volatility blue-chip companies that are currently providing enticing yields. These companies, characterized by their reliability and strong market position, are seen as a driving force behind the continued appeal of dividend stocks, making them particularly attractive to investors seeking both stability and attractive returns. Noah Solomon, who serves as the Chief Investment Officer at Outcome Metric Asset Management, discussed Canadian dividend stocks in a recent interview with Wealth Professional, an online information resource catering to Canadian advice and planning professionals. Here are some comments from the analyst:

“Canadian dividend stocks are offering yields of between 6.5% and 7.5%, which are tax-preferred because they’re Canadian companies. That’s like a bond equivalent yield approaching 10%.”

Mr. Solomon’s perspective on Canadian dividend stocks aligns with that of seasoned fund manager Tom Czitron, who remains optimistic about dividend stocks as a sound long-term investment. Czitron mentioned that the era of inexpensive capital costs and malinvestment is coming to an end, signaling potential challenges for flashy growth stocks. In this shifting landscape, Czitron emphasizes the increasing significance of dividends, suggesting that they will play a more pivotal role than before. He even provides specific recommendations for purchase during the ongoing market downturn.

Canadian dividend stocks have not only demonstrated robust performance in the recent past but have also maintained consistency over the years. As highlighted in a report from RBC Global Asset Management, investors benefiting from dividends experienced a significant boost in their purchasing power. Over the last two decades, dividends in the Canadian market have shown an annual growth rate of approximately 7.9%. In contrast, inflation has averaged an annual rate of 2.2%. When compounded over time, this has resulted in a remarkable 361% growth in dividends, while inflation has led to a comparatively modest 53% increase in prices. This data underscores the enduring strength and value that Canadian dividend stocks have provided to investors.

Although U.S. dividend stocks such as The Procter & Gamble Company (NYSE:PG), Johnson & Johnson (NYSE:JNJ), and AbbVie Inc. (NYSE:ABBV) enjoy popularity among investors, Canadian dividend stocks are equally regarded as dependable choices for income-focused investors. In this article, we will explore some of the best dividend Canadian stocks.

Photo by Scott Graham on Unsplash

Our Methodology:

For this article, we scoured the list of S&P/TSX Canadian Dividend Aristocrats Index, which includes Canadian companies with at least five years of dividend growth track records. From that list, we selected stocks that are traded on American stock exchanges and sorted them by the number of hedge fund holders in our database that also had positions in those companies at the end of Q3 2023. This means that these Canadian companies are the most famous among hedge fund investors. The companies mentioned below also have strong dividend histories and healthy balance sheets, which make them reliable investment options for income investors. The stocks are ranked in ascending order of the number of funds that have stakes in them as of Q3. Hedge funds’ top 10 consensus stock picks outperformed the S&P 500 Index by more than 140 percentage points over the last 10 years (see the details here). That’s why we pay very close attention to this often-ignored indicator.

12. Pembina Pipeline Corporation (NYSE:PBA)

Number of Hedge Fund Holders: 11

Pembina Pipeline Corporation (NYSE:PBA) is a Canadian energy transportation and midstream service provider. The company operates in the energy infrastructure sector and is involved in the transportation, storage, and processing of energy-related products. The company currently pays a quarterly dividend of $0.6675 per share and has a dividend yield of 5.67%, as of January 30. It is among the best Canadian dividend stocks on our list.

Though American stocks such as The Procter & Gamble Company (NYSE:PG), Johnson & Johnson (NYSE:JNJ), and AbbVie Inc. (NYSE:ABBV) are all the rage among investors, Canadian stocks also offer reliable investment options for income investors.

At the end of Q3 2023, 11 hedge funds tracked by Insider Monkey reported having stakes in Pembina Pipeline Corporation (NYSE:PBA), compared with 15 in the previous quarter. The collective value of these stakes is over $91 million. With over 1.1 million shares, Millennium Management was the company’s leading stakeholder in Q3.

11. Fortis Inc. (NYSE:FTS)

Number of Hedge Fund Holders: 12

Fortis Inc. (NYSE:FTS) is a utility holding company with operations in the electric and gas utility sectors. The company owns and operates electric utilities that generate, transmit, and distribute electricity to residential, commercial, and industrial customers. In December 2023, the company declared a quarterly dividend of C$0.59 per share, which was in line with its previous dividend. Overall, it has been growing its dividends for the past 50 consecutive years, which makes FTS one of the best Canadian dividend stocks on our list. The stock’s dividend yield on January 30 came in at 4.39%.

As of the close of Q3 2023, 12 hedge funds in Insider Monkey’s database reported having stakes in Fortis Inc. (NYSE:FTS), the same as in the preceding quarter. The overall value of these stakes is more than $61.8 million.

10. Manulife Financial Corporation (NYSE:MFC)

Number of Hedge Fund Holders: 13

Manulife Financial Corporation (NYSE:MFC) is a Canadian multinational financial services company that operates in the insurance, wealth management, and financial services sectors. The company’s dividend growth streak currently spans over 10 years and it offers a quarterly dividend of C$0.365 per share. With a dividend yield of 4.82%, MFC is one of the best Canadian dividend stocks on our list.

Insider Monkey’s database of Q3 2023 indicated that 13 hedge funds owned stakes in Manulife Financial Corporation (NYSE:MFC), down from 18 in the previous quarter. The total value of these investments is over $106.4 million. Among these hedge funds, Galibier Capital Management was the company’s leading stakeholder in Q3.

9. The Toronto-Dominion Bank (NYSE:TD)

Number of Hedge Fund Holders: 14

The Toronto-Dominion Bank (NYSE:TD), commonly known as TD Bank, is a major Canadian multinational bank that provides a wide range of financial products and services to individuals, businesses, and institutional clients. In November 2023, the company declared a 6.3% hike in its quarterly dividend to C$1.02 per share. Through this increase, the company stretched its dividend growth streak to nine years, which makes TD one of the best Canadian dividend stocks on our list. As of January 30, the stock has a dividend yield of 4.94%.

With a collective stake value of roughly $70 million, 14 hedge funds tracked by Insider Monkey owned positions in The Toronto-Dominion Bank (NYSE:TD). In comparison, 17 hedge funds held stakes in the company in the previous quarter, worth over $311 million.

8. TELUS Corporation (NYSE:TU)

Number of Hedge Fund Holders: 14

A leading Canadian telecommunications company, TELUS Corporation (NYSE:TU) is next on our list of the best Canadian dividend stocks for income investors. The company provides a wide range of telecommunications and information technology services to consumers, businesses, and governments. It has raised its payouts every year since 2004 and currently offers a quarterly dividend of C$0.3761 per share. In addition to this, the company has returned nearly $19 billion to shareholders through dividends since 2004. As of January 30, the stock has a dividend yield of 6.11%.

At the end of September 2023, 14 hedge funds tracked by Insider Monkey owned stakes in TELUS Corporation (NYSE:TU), up from 13 in the previous quarter. The consolidated value of these stakes is over $54.4 million.

7. Thomson Reuters Corporation (NYSE:TRI)

Number of Hedge Fund Holders: 16

Thomson Reuters Corporation (NYSE:TRI) is a multinational information and media company that operates in the fields of news, information, data, and technology. The company offers a quarterly dividend of $0.49 per share, having raised it by 10% in 2023. This was the company’s 30th consecutive year of dividend growth, which makes TRI one of the best Canadian dividend stocks on our list. The stock’s dividend yield on January 30 came in at 1.30%.

As per Insider Monkey’s database of Q3 2023, 16 hedge funds owned stakes in Thomson Reuters Corporation (NYSE:TRI), up from 15 in the previous quarter. The collective value of these stakes is more than $108 million. Among these hedge funds, Balyasny Asset Management was the company’s leading stakeholder in Q3.

6. Royal Bank of Canada (NYSE:RY)

Number of Hedge Fund Holders: 19

Royal Bank of Canada (NYSE:RY) ranks sixth on our list of the best Canadian dividend stocks for income investors. The global financial services company has been growing its dividends since 2012 and currently offers a quarterly dividend of C$1.38 per share. The stock’s dividend yield on January 30 came in at 4.12%.

RY can be a good addition to dividend portfolios alongside some prominent US companies, such as The Procter & Gamble Company (NYSE:PG), Johnson & Johnson (NYSE:JNJ), and AbbVie Inc. (NYSE:ABBV).

At the end of Q3 2023, 19 hedge funds tracked by Insider Monkey reported having stakes in Royal Bank of Canada (NYSE:RY), down slightly from 20 in the previous quarter. The consolidated value of these stakes is over $193.6 million.

Click to continue reading and see 5 Best Canadian Dividend Stocks For Income Investors.

AI Fire Sale: Insider Monkey’s #1 AI Stock Pick Is On A Steep Discount

Published on May 1, 2024 at by Inan Dogan, PhD

Artificial intelligence is the greatest investment opportunity of our lifetime. The time to invest in groundbreaking AI is now, and this stock is a steal!

The whispers are turning into roars.

Artificial intelligence isn’t science fiction anymore.

It’s the revolution reshaping every industry on the planet.

From driverless cars to medical breakthroughs, AI is on the cusp of a global explosion, and savvy investors stand to reap the rewards.

Here’s why this is the prime moment to jump on the AI bandwagon:

Exponential Growth on the Horizon: Forget linear growth – AI is poised for a hockey stick trajectory.

Imagine every sector, from healthcare to finance, infused with superhuman intelligence.

We’re talking disease prediction, hyper-personalized marketing, and automated logistics that streamline everything.

This isn’t a maybe – it’s an inevitability.

Early investors will be the ones positioned to ride the wave of this technological tsunami.

Ground Floor Opportunity: Remember the early days of the internet?

Those who saw the potential of tech giants back then are sitting pretty today.

AI is at a similar inflection point.

We’re not talking about established players – we’re talking about nimble startups with groundbreaking ideas and the potential to become the next Google or Amazon.

This is your chance to get in before the rockets take off!

Disruption is the New Name of the Game: Let’s face it, complacency breeds stagnation.

AI is the ultimate disruptor, and it’s shaking the foundations of traditional industries.

The companies that embrace AI will thrive, while the dinosaurs clinging to outdated methods will be left in the dust.

As an investor, you want to be on the side of the winners, and AI is the winning ticket.

The Talent Pool is Overflowing: The world’s brightest minds are flocking to AI.

From computer scientists to mathematicians, the next generation of innovators is pouring its energy into this field.

This influx of talent guarantees a constant stream of groundbreaking ideas and rapid advancements.

By investing in AI, you’re essentially backing the future.

The future is powered by artificial intelligence, and the time to invest is NOW.

Don’t be a spectator in this technological revolution.

Dive into the AI gold rush and watch your portfolio soar alongside the brightest minds of our generation.

This isn’t just about making money – it’s about being part of the future.

So, buckle up and get ready for the ride of your investment life!

Act Now and Unlock a Potential 10,000% Return: This AI Stock is a Diamond in the Rough (But Our Help is Key!)

The AI revolution is upon us, and savvy investors stand to make a fortune.

But with so many choices, how do you find the hidden gem – the company poised for explosive growth?

That’s where our expertise comes in.

We’ve got the answer, but there’s a twist…

Imagine an AI company so groundbreaking, so far ahead of the curve, that even if its stock price quadrupled today, it would still be considered ridiculously cheap.

That’s the potential you’re looking at. This isn’t just about a decent return – we’re talking about a 10,000% gain over the next decade!

Our research team has identified a hidden gem – an AI company with cutting-edge technology, massive potential, and a current stock price that screams opportunity.

This company boasts the most advanced technology in the AI sector, putting them leagues ahead of competitors.

It’s like having a race car on a go-kart track.

They have a strong possibility of cornering entire markets, becoming the undisputed leader in their field.

Here’s the catch (it’s a good one): To uncover this sleeping giant, you’ll need our exclusive intel.

We want to make sure none of our valued readers miss out on this groundbreaking opportunity!

That’s why we’re slashing the price of our Premium Readership Newsletter by a whopping 75%.

For a ridiculously low price of just $24, you can unlock a year’s worth of in-depth investment research and exclusive insights – that’s less than a single restaurant meal!

Here’s why this is a deal you can’t afford to pass up:

The Name of the Game-Changing AI Stock: Our in-depth report dives deep into our #1 AI stock’s groundbreaking technology and massive growth potential.
Ad-Free Browsing: Enjoy a year of investment research free from distracting banner and pop-up ads, allowing you to focus on uncovering the next big opportunity.
Lifetime Money-Back Guarantee: If you’re not absolutely satisfied with our service, we’ll provide a full refund ANYTIME, no questions asked.

Space is Limited! Only 1000 spots are available for this exclusive offer. Don’t let this chance slip away – subscribe to our Premium Readership Newsletter today and unlock the potential for a life-changing investment.

Here’s what to do next:

Head over to our website and subscribe to our Premium Readership Newsletter for just $24.
Enjoy a year of ad-free browsing, exclusive access to our in-depth report on the revolutionary AI company, and the upcoming issues of our Premium Readership Newsletter over the next 12 months.
Sit back, relax, and know that you’re backed by our ironclad lifetime money-back guarantee.

Don’t miss out on this incredible opportunity! Subscribe now and take control of your AI investment future!

Subscribe Now!

A New Dawn is Coming to U.S. Stocks

Published on May 2, 2024 at by Insider Monkey Staff

I work for one of the largest independent financial publishers in the world – representing over 1 million people in 148 countries.

We’re independently funding today’s broadcast to address something on the mind of every investor in America right now…

Should I put my money in Artificial Intelligence?

Here to answer that for us… and give away his No. 1 free AI recommendation… is 50-year Wall Street titan, Marc Chaikin.

Marc’s been a trader, stockbroker, and analyst. He was the head of the options department at a major brokerage firm and is a sought-after expert for CNBC, Fox Business, Barron’s, and Yahoo! Finance…

But what Marc’s most known for is his award-winning stock-rating system. Which determines whether a stock could shoot sky-high in the next three to six months… or come crashing down.

That’s why Marc’s work appears in every Bloomberg and Reuters terminal on the planet…

And is still used by hundreds of banks, hedge funds, and brokerages to track the billions of dollars flowing in and out of stocks each day.

He’s used this system to survive nine bear markets… create three new indices for the Nasdaq… and even predict the brutal bear market of 2022, 90 days in advance.

Click to continue reading…

Insider Monkey Ads

Markets

Insider Trading

Hedge Funds

Retirement

Opinion

Log In

Sign Up