In this article, we discuss 10 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.
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 $56.5 million.
Just like JPMorgan Chase & Co. (NYSE:JPM), Microsoft Corporation (NASDAQ:MSFT), and The Coca-Cola Company (NYSE:KO), Algonquin Power & Utilities Corp. (NYSE:AQN) is a notable dividend stock to diversify an income portfolio.
5. Russel Metals Inc. (OTC:RUSMF)
Number of Hedge Fund Holders: N/A
Dividend Yield as of April 1: 4.63%
Russel Metals Inc. (OTC:RUSMF) is a Mississauga-based metal distribution company operating in North America. The three segments at Russel Metals Inc. (OTC:RUSMF) include Metals Service Centers, Energy Products, and Steel Distributors. The company provides steel products to multiple industries including machinery and equipment manufacturing, construction, ship building, and natural resources.
On February 10, Russel Metals Inc. (OTC:RUSMF) declared a quarterly per share dividend of C$ 0.38, in line with previous. The dividend was paid to shareholders on March 15. The stock delivers a dividend yield of 4.63% as of April 1.
Stifel analyst Ian Gillies on March 30 maintained a Buy recommendation on Russel Metals Inc. (OTC:RUSMF) and raised the price target on the shares to C$37.25 from C$36.
4. Manulife Financial Corporation (NYSE:MFC)
Number of Hedge Fund Holders: 15
Dividend Yield as of April 1: 4.91%
Manulife Financial Corporation (NYSE:MFC) is headquartered in Toronto, Canada, providing financial products and services to customers in Asia, Canada, the United States, and international markets. The company specializes in asset management, insurance, commercial banking, mortgage, consumer banking, mutual funds, reinsurance, securities underwriting, and wealth management.
Manulife Financial Corporation (NYSE:MFC) delivers a dividend yield of 4.91% as of April 1. The company declared on February 9 a C$0.33 per share quarterly dividend, a 17.9% increase from its prior dividend of C$0.28. The dividend was paid on March 21, to shareholders of the company as of February 23.
On February 14, Desjardins analyst Doug Young maintained a Buy rating on Manulife Financial Corporation (NYSE:MFC) and raised the price target to C$30 from C$29.
Among the hedge funds tracked by Insider Monkey, 15 funds were long Manulife Financial Corporation (NYSE:MFC), compared to 18 funds in the previous quarter. GLG Partners is the largest shareholder of the company, with 8.7 million shares worth close to $168 million.
3. Corus Entertainment Inc. (OTC:CJREF)
Number of Hedge Fund Holders: N/A
Dividend Yield as of April 1: 4.91%
Corus Entertainment Inc. (OTC:CJREF) is a Toronto-based multinational mass media company that operates television networks and radio stations in Canada and internationally.
On January 13, Corus Entertainment Inc. (OTC:CJREF) announced a C$0.06 per share quarterly dividend, in line with previous. The company also declared a Class A quarterly dividend of $0.0588 per share, which was paid to shareholders on March 31. The stock delivers a dividend yield of 4.91% as of April 1.
National Bank analyst Adam Shine reiterated an Outperform recommendation on the shares but lowered the price target on Corus Entertainment Inc. (OTC:CJREF) to C$6.50 from C$8 on March 23.
2. BCE Inc. (NYSE:BCE)
Number of Hedge Fund Holders: 12
Dividend Yield as of April 1: 5.11%
BCE Inc. (NYSE:BCE) is a telecommunications and media company based in Verdun, Canada. The company is involved in providing fixed line and mobile telephony, digital television, radio broadcasting, print, and internet services.
On February 3, BCE Inc. (NYSE:BCE) declared a C$0.92 per share quarterly dividend, a 5.1% increase from its prior dividend of C$0.88. The dividend is payable on April 15, to shareholders of record on March 15. The stock delivers a dividend yield of 5.11% as of April 1.
The investment advisory Argus raised the price target on BCE Inc. (NYSE:BCE) to $60 from $54 and kept a Buy rating on the shares on March 23, citing the stock’s consistent returns and dividend growth. The firm believes these traits warrant a higher than industry average valuation for BCE Inc. (NYSE:BCE).
Among the hedge funds tracked by Insider Monkey, Renaissance Technologies held the largest stake in BCE Inc. (NYSE:BCE), with 789,371 shares worth over $41 million. Overall, 12 hedge funds were bullish on the stock at the end of December 2021.
1. Enbridge Inc. (NYSE:ENB)
Number of Hedge Fund Holders: 21
Dividend Yield as of April 1: 5.82%
Enbridge Inc. (NYSE:ENB) is a Canadian multinational pipeline and oil storage company that transports crude oil, natural gas, and natural gas liquids across the United States and Canada. Enbridge Inc. (NYSE:ENB)’s dividend yield on April 1 came in at 5.82%, making it one of the most notable Canadian dividend stocks for reliable income.
On December 7, Enbridge Inc. (NYSE:ENB) declared a C$0.860 per share quarterly dividend, a 3% increase from its previous dividend of C$0.835. The dividend was distributed to shareholders on March 1.
The company published its Q4 results on February 11, posting GAAP earnings per share of $0.71, exceeding estimates by $0.13. Revenue for the quarter increased 24.68% year-over-year to $9.82 billion, topping market consensus by $3.48 billion.
BMO Capital analyst Ben Pham on February 14 raised the price target on Enbridge Inc. (NYSE:ENB) to C$59 from C$57 and kept an Outperform rating on the shares.
According to the database of Insider Monkey, 21 hedge funds were bullish on Enbridge Inc. (NYSE:ENB) at the end of the fourth quarter of 2021, with collective stakes amounting to more than $550 million. Rajiv Jain’s GQG Partners held the biggest stake in the company, with 9.7 million shares worth $380.2 million.
Here is what ClearBridge Investments Dividend Strategy has to say about Enbridge Inc. (NYSE:ENB) in its Q3 2021 investor letter:
“We are meaningfully overweight energy, particularly within North American energy infrastructure. Enbridge and Williams, our two infrastructure holdings, possess crown jewel infrastructure assets. They each deliver meaningful proportions of the overall energy produced and consumed in North America. Their revenues are backed by long-term contracts with high-quality counterparties and have little direct commodity price exposure. Their growth has been driven by the increasing production of North American energy. The advent of unconventional oil and gas production (oil sand and shale) has made North America a low-cost competitor on a global basis. We expect strong North American production to be an enduring feature of global energy supply for decades to come.”
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Disclosure: None. 10 Canadian Dividend Stocks for Steady Income is originally published on Insider Monkey.
