In this article, we will take a look at the 5 Best Canadian Dividend Stocks. To read our analysis of the Canadian economy as well as the risk/reward and methodology of this list, you can go to the 10 Best Canadian Dividend Stocks.
5. Enbridge Inc. (NYSE:ENB)
Dividend Yield as of September 23: 7.08%
Number of Hedge Fund Holders: 25
Calgary, Alberta-based Enbridge Inc. (NYSE:ENB) is a pipeline company operating nearly 18,000 miles of crude oil and liquids pipelines in the United States and Canada, and natural gas pipelines across North America, as well as natural gas utility serving customers in Ontario. The company is responsible for the transport of 30% of the crude oil produced in North America and 20% of the natural gas consumed in the United States.
Enbridge Inc. (NYSE:ENB) has paid dividends to its shareholders for over 67 years. In terms of Canadian dollars, it has steadily grown dividends over the course of its history, resulting in an average compound annual growth rate of 10% for dividends over the past 27 years. The latest increase came in December 2021, with 3% increase in dividends to C$0.86 per common share per quarter translating into C$3.44 per share on an annualized basis.
On September 8, Raymond James analyst Michael Shaw increased the price target on Enbridge Inc. (NYSE:ENB) shares to C$60 from C$57 and upgraded the rating to ‘Outperform’ from ‘Market Perform’.
As of Q2 2022, Enbridge Inc. (NYSE:ENB) shares were held by 25 of the 895 hedge funds tracked by Insider Monkey, valued at $2.4 billion GQG Partners was its biggest shareholder with ownership of 51.9 million shares valued at $2.2 billion.
4. Canadian Natural Resources Limited (NYSE:CNQ)
Dividend Yield as of September 23: 4.84%
Number of Hedge Fund Holders: 33
Calgary, Alberta-based Canadian Natural Resources Limited (NYSE:CNQ) is one of the largest independent crude oil and natural gas producers in the world, focused on natural gas, light oil, heavy oil, in situ oil sands production and oil sands mining
In August, Canadian Natural Resources Limited (NYSE:CNQ) released the financial results for Q2 2022. Its revenue increased by 69% y-o-y to $8.9 billion, while its net income surged by 117% y-o-y to $2.7 billion, for the three months ended June 30, 2022. It reported a normalized EPS of $2.54 for the quarter, beating the consensus by $0.21.
Canadian Natural Resources Limited (NYSE:CNQ) declared a regular quarterly cash dividend of C$0.75 per share, and a special dividend of C$1.50 per share.
As of Q2 2022, 33 hedge funds out of the 895 hedge funds tracked by Insider Monkey held shares of Canadian Natural Resources Limited (NYSE:CNQ), valued at $2.3 billion. Its largest shareholder was Yacktman Asset Management with ownership of 16.9 million shares valued at $907 million.
3. Canadian National Railway Company (NYSE:CNI)
Dividend Yield as of September 23: 2.01%
Number of Hedge Fund Holders: 41
Montreal, Quebec-based Canadian National Railway Company (NYSE:CNI) is a North American transportation and logistics leader offering integrated shipping solutions, including rail, intermodal, trucking, freight forwarding, warehousing and distribution. Its rail network comprises nearly 20,000 route-miles of track connecting three coasts: the Atlantic, the Pacific and the Gulf of Mexico.
In July, Canadian National Railway Company (NYSE:CNI) released the financial results for the quarter ended June 30, 2022. Its total revenue increased by 21% y-o-y to $3.4 billion, while its net income surged by 23% y-o-y to $1 billion, for the three months. It reported a normalized EPS of $1.50 for the quarter, beating the consensus by $0.12. It declared a cash dividend of C$0.7350 per share for the quarter.
On September 12, BofA analyst Ken Hoexter upgraded Canadian National Railway Company (NYSE:CNI) to ‘Buy’ rating from ‘Neutral’ and increased the price target on its shares to $135 from $128 as “hiring rebounds and that volumes have inflected positively.”
As of Q2 2022, 41 of the 895 hedge funds tracked by Insider Monkey owned shares of Canadian National Railway Company (NYSE:CNI), valued at $7.5 billion. Chris Hohn’s TCI Fund Management is its largest shareholder with ownership of 36.7 million shares valued at $4.1 billion.
2. Cenovus Energy Inc. (NYSE:CVE)
Dividend Yield as of September 23: 2.06%
Number of Hedge Fund Holders: 42
Cenovus Energy Inc. (NYSE:CVE) is an integrated oil and natural gas company based in Calgary, Alberta. Operations of Cenovus Energy Inc. (NYSE:CVE) include oil sands projects in Alberta, crude oil and natural gas projects across Western Canada, crude oil production offshore Newfoundland and Labrador and natural gas and liquids production offshore China and Indonesia, and downstream operations including upgrading, refining, and marketing operations in Canada and the United States.
In July, Cenovus Energy Inc. (NYSE:CVE) released its financial results for the quarter ended June 30, 2022. Its net revenues surged by 74% y-o-y to $14.9 billion, while it reported a net income of $1.9 billion, for the three months. The normalized EPS was recorded at $0.98 per share, exceeding the consensus by $0.11.
Cenovus Energy Inc. (NYSE:CVE) announced in August that it had agreed to acquire the remaining 50% stake in Toledo Refinery from bp for a total consideration of $300 million. Earlier in June, the energy company had announced an agreement to acquire remaining 50% stake in Sunrise oil sands project in northern Alberta from bp.
As of Q2 2022, 42 of the 895 hedge funds tracked by Insider Monkey owned shares of Cenovus Energy Inc. (NYSE:CVE), valued at $2.9 billion. Soroban Capital Partners is its largest shareholder with ownership of 50.3 million shares valued at $957 million.
1. Suncor Energy Inc. (NYSE:SU)
Dividend Yield as of September 23: 5.25%
Number of Hedge Fund Holders: 47
Calgary, Alberta-based Suncor Energy Inc. (NYSE:SU) is an integrated energy company with operations across oil sands development, production and upgrading, offshore oil and gas production, petroleum refining in Canada and the United States and its Petro-Canada retail and wholesale distribution networks.
In August, Suncor Energy Inc. (NYSE:SU) reported the financial results for the quarter ended July 31, 2022. Its revenue increased by 70% y-o-y to $12.5 billion, while it generated a net income of $3.1 billion, for the quarter. It reported a normalized EPS of $2.11 for the quarter, beating the consensus by $0.02.
On August 8, Credit Suisse analyst William Janela assumed coverage of Suncor Energy Inc. (NYSE:SU) with an ‘Outperform’ rating and unchanged price target of C$63.
Suncor Energy Inc. (NYSE:SU) shares currently yield around 5.25% as of September 23.
According to the Insider Monkey data on 895 leading hedge funds, 47 hedge funds were long Suncor Energy Inc. (NYSE:SU) shares as of Q2 2022, with the total shares held by hedge funds valued at $2.4 billion. Arrowstreet Capital was the largest shareholder on record with ownership of 16.6 million shares valued at $583 million.
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