In this post, we will go over Canadian dividend stocks that had the highest dividend growth in the past five years. For each stock, we will discuss the dividend yield, analysts’ recommendations, outlook, and performance.
Please always consult a financial advisor before making any investment decision.
Methodology
Below are the criteria used to select the best Canadian dividend stocks that exhibit growth characteristics:
- Have a minimum capitalization of 1 billion dollars;
- have recorded revenue growth of at least 10% over the past five years;
- offer a minimum dividend yield of 2%;
- have recorded a great performance over the past three years.
List of dividend aristocrats that pay monthly dividends
Full list of ‘Dividend Kings’ stocks by sector – 2022
Best dividend stocks to buy – Dividend aristocrats 2022
Why dividend growth matters?
Dividend growth is a feature highly sought after by investors. It is a sign of the good financial health of a company and of its capacity to grow its performance in a sustained manner. It’s also a great way to reduce the effect of inflation on your investment portfolio.
It is recommended in a dividend portfolio to have a mix of:
– large Canadian dividend stocks with stable dividends and low to moderate growth. Dividend aristocrats are a great place to start. Please click link for full list of Canadian dividend stocks who have earned the title of Dividend Aristocrats;
– small and medium-sized businesses that are starting to build a reputation in their industries. These businesses can both generate growth and grow their dividends at attractive rates;
Summary: Canadian dividend stocks for growth
| Symbol | Name | Div Yield | 5Y Div% |
|---|---|---|---|
| LIF | Labrador Iron Ore Royalty | 13.38% | 43.10% |
| GSY | Goeasy | 2.89% | 39.48% |
| AEM | Agnico Eagle Mines | 2.47% | 31.21% |
| SIS | Savaria | 3.12% | 17.76% |
| CNQ | Canadian Natural Resources | 3.61% | 16.27% |
| CG | Centerra Gold | 2.13% | 15.77% |
| CTC-A | Canadian Tire Corp Cl A NV | 2.67% | 15.37% |
| CAS | Cascades | 3.82% | 14.87% |
Canadian Dividend Stocks under 10$
US Stocks that pay monthly dividends (Full list by sector)
LIF – Labrador Iron Ore Royalty
Labrador Iron Ore Royalty Corporation, through its subsidiary Hollinger-Hanna Limited, owns a 15.10% interest in Iron Ore Company of Canada (IOC) which produces and processes iron ore in Labrador City, Newfoundland -and Labrador. IOC produces iron ore pellets transported by sea; and sells standard and low silica acid, flux and direct reduction pellets, as well as iron ore concentrate.
Labrador Iron is a great company, but analysts believe the stock is currently overvalued. Also, keep in mind that Labrador iron ore is a very cyclical stock, so it is subject to significant ups and downs.
Revenues grew by 19.46% in the past five years which is indicative of the growth potential of LIF.
| Symbol | LIF.TO |
| Name | Labrador Iron Ore Royalty Corp |
| Last | 41.1 |
| Market Cap | 2B |
| Div Yield | 13.38% |
| 5Y Rev% | 19.46% |
| 5Y Div% | 43.10% |
| 52W %Chg | 9.08% |
| 3Y %Chg | 29.37% |
GSY -Goeasy Ltd
goeasy Ltd. provides non-prime leasing and lending services to consumers in Canada. Their consumers typically were rejected by the big banks for low credit rating. The company operates through two segments:
– Easyfinancial: provides unsecured and real estate secured installment loans; personal, home equity, and auto loans…etc
– Easyhome: leases household furniture, appliances, electronics and computers to retail consumers.
Goeasy Ltd business model has benefited from the pandemic for two reasons:
- demand for their services increased;
- governement subsidies which have skyrocketed during the pandemic reduced the risk of loan losses.
GSY dividend yield is 2.89% at the writing of this post. Their dividend grew by 39.48% in the past five years.
Revenues grew by 18.93% in the past five years which is indicative of the growth potential of Goeasy.
| Symbol | GSY.TO |
| Name | Goeasy Ltd |
| Last | 126 |
| Market Cap | 2B |
| Div Yield | 2.89% |
| 5Y Rev% | 18.93% |
| 5Y Div% | 39.48% |
| 52W %Chg | -8.78% |
| 3Y %Chg | 173.20% |
AEM Stock – Agnico Eagle Mines
Agnico Eagle Mines Limited engages in the exploration, development, and production of mineral properties in Canada, Mexico, and Finland.
Summary
- Recent merger with Kirkland will improve operational efficiency and result in savings
- Recent share repurchases and dividend increases are in favor of shareholders
AEM dividend yield is 2.47% at the writing of this post. Their dividend grew by 31.21% in the past five years.
| Symbol | AEM.TO |
| Name | Agnico Eagle Mines Ltd |
| Last | 83.01 |
| Market Cap | 37B |
| Div Yield | 2.47% |
| 5Y Rev% | 12.33% |
| 5Y Div% | 31.21% |
| 52W %Chg | 9.04% |
| 3Y %Chg | 53.55% |
SIS – Savaria Corp
Savaria Corporation provides accessibility solutions for the elderly and physically disabled in Canada, the United States, Europe and abroad. The company operates in three segments: accessibility, adapted vehicles and patient care. Savaria Corporation was founded in 1979 and is headquartered in Laval, Canada.
Savaria Copr is a growing company that benefits from several factors:
– Aging demographics;
– Ambitious expansion plan;
– Great organic growth.
SIS dividend yield is 3.12% at the writing of this post. Their dividend grew by 17.76% in the past five years.
Revenues grew by 40.73% in the past five years which is indicative of the growth potential of Savaria.
| Symbol | SIS.TO |
| Name | Savaria Corp |
| Last | 16.02 |
| Market Cap | 1B |
| Div Yield | 3.12% |
| 5Y Rev% | 40.73% |
| 5Y Div% | 17.76% |
| 52W %Chg | -8.82% |
| 3Y %Chg | 22.57% |
CNQ Stock – Canadian Natural Resources
Canadian Natural Resources Limited acquires, explores for, develops, produces, markets, and sells crude oil, natural gas, and natural gas liquids (NGLs).
Summary
- Large energy holding company
- Well managed company
- Solid balance sheet
- Recent buyback and dividend increases favor shareholders
- Should continue to benefit for increased demand for its products
CNQ dividend yield is 3.61% at the writing of this post. Their dividend grew by 16.27% in the past five years.
Revenues grew by 22.31% in the past five years which is indicative of the growth potential of CNQ.
| Symbol | CNQ.TO |
| Name | Canadian Natural Resources Ltd. |
| Last | 83 |
| Market Cap | 96B |
| Div Yield | 3.61% |
| 5Y Rev% | 22.31% |
| 5Y Div% | 16.27% |
| 52W %Chg | 111.41% |
| 3Y %Chg | 97.90% |
CG Stock – Centerra Gold
Centerra Gold Inc., a gold mining company, engages in the acquisition, exploration, development, and operation of gold and copper properties in North America, Turkey, and internationally.
Summary
- The company probably trades at a discount due to its geographic location
CG dividend yield is 2.13% at the writing of this post. Their dividend grew by 31.21% in the past five years.
| Symbol | CG.TO |
| Name | Centerra Gold Inc |
| Last | 13.14 |
| Market Cap | 3B |
| Div Yield | 2.13% |
| 5Y Rev% | 3.50% |
| 5Y Div% | 15.77% |
| 52W %Chg | 17.11% |
| 3Y %Chg | 86.65% |
CTC-A Stock – Canadian Tire Corp Cl A NV
Canadian Tire Corporation, Limited provides a range of retail goods and services in Canada. It operates in three segments: Retail, CT REIT, and Financial Services.
Summary
- Did well during the pandemic (outdoor furniture)
- Great job with supply chain management
- Loyalty program allowed them to increase their cross-selling
- Dividends were raised (shareholders friendly)
- Weather was in their favor this past winter
CTC-A dividend yield is 2.67% at the writing of this post. Their dividend grew by 15.37% in the past five years.
| Symbol | CTC-A.TO |
| Name | Canadian Tire Corp Cl A NV |
| Last | 185.5 |
| Market Cap | 11B |
| Div Yield | 2.67% |
| 5Y Rev% | 5.14% |
| 5Y Div% | 15.37% |
| 52W %Chg | -2.17% |
| 3Y %Chg | 24.04% |
CAS Stock – Cascades
Cascades Inc. produces, converts, and markets packaging and tissue products in Canada and the United States.
Summary
- Management is committed to strengthening the balance sheet
- Shifting to cleaning tissues was a wise decision by management
- Tight margins
CAS dividend yield is 3.82% at the writing of this post. Their dividend grew by 14.87% in the past five years.
| Symbol | CAS.TO |
| Name | Cascades Inc |
| Last | 12.57 |
| Market Cap | 1B |
| Div Yield | 3.82% |
| 5Y Rev% | 5.96% |
| 5Y Div% | 14.87% |
| 52W %Chg | -12.59% |
| 3Y %Chg | 58.71% |
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Manulife Fin
Manulife Financial Corporation, together with its subsidiaries, provides financial products and services in Asia, Canada, the United States and abroad. The company operates through wealth and asset management businesses; Insurance and annuity products; And the Business and Other segments. Manulife Financial Corporation was incorporated in 1887 and is headquartered in Toronto, Canada.
MFC offers a 4.37% dividend yield with 11% growth over the past 5 years. The company’s Asian business segment is doing well and it should also benefit from upcoming interest rate hikes.
Quebecor Inc Cl.B Sv
Quebecor Inc. operates in telecommunications (primarily television distribution, Internet access, business solutions, wired and mobile telephony) and media (over-the-air television networks).
The company has limited expansion plans outside of Quebec, which could affect its long-term growth. Quebecor Inc. was incorporated in 1965 and its head office is located in Montreal, Canada. Its dividend yield is 3.77% and the stock has a very low volatility at 0.32 (Beta over 5 years). Quebecor’s dividends have increased 65% over the past five years, according to Barchart.com.
Restaurant Brands International Inc
Restaurant Brands International Inc. owns, operates and franchises quick service restaurants under the Tim Hortons (TH), Burger King (BK) and Popeyes (PLK) brands. The company was founded in 1954 and is headquartered in Toronto, Canada.
Catering companies were able to survive during the pandemic thanks to delivery services such as Uber-Eats. It can be assumed that lifting all restrictions related to the pandemic can only benefit the QSR title and will increase its profitability in the short term.
ZZZ – Sleep Country Canada
Sleep Country Canada Holdings Inc is engaged in the retail sale of mattresses and bedding products in Canada. As of June 11, 2021, it operated 285 stores. It also sells its products through an e-commerce platform. The company was founded in 1994 and is headquartered in Brampton, Canada.
ZZZ’s revenues have grown by 10% over the past 5 years. During the same period, the company increased its dividends by 24.5%!
The stock has performed well since the start of the year for two reasons:
– excellent financial results despite the pandemic;
– the dynamism of the real estate market also seems to have favored mattress sales.
However, some analysts think, at the current price level, the stock is over-priced. Thus they advise waiting for a good buy opportunity. ZZZ specializes in only one segment, which makes it a risky choice.
EFN – Element Fleet Management Corp
Element Fleet Management Corp. operates as a fleet management company in Canada, United States, Mexico, Australia and New Zealand. The company offers fleet management services including vehicle acquisition, financing, program management and several other services.
EFN is a North American leader in fleet management with a capitalization of over $ 5 billion. Its dividend yield rate is 2.50%.
The company offers these customers assistance in managing their vehicle fleets. The experience acquired by the company through its existence allows it to formulate attractive offers in terms of subcontracting thanks to scale savings. Over the past five years, the company’s revenues have grown by 27%. And dividends have increased by 51%.
POW – Power Corp of Canada
Power Corporation of Canada operates as an international management and holding company in North America, Europe and Asia. It operates through three segments: Lifeco, IGM Financial and GBL. The company was incorporated in 1925 and is headquartered in Montreal, Canada. Power Corporation of Canada is a subsidiary of Pansolo Holding Inc.
Power Corp is in good financial shape. Its dividend yield is 4.9% and the 5-year dividend growth was 12%. The insurance segment (through its subsidiary: Great West) should benefit from the upcoming interest hikes.