For this post, we will share the list of Canadian Dividend Stocks under 10$! All these stocks are Canadian companies listed on the TSX. Monthly dividend stocks are a great way to generate a regular passive income.
We limited ourselves to stocks with over five hundred millions market cap to avoid stocks with low liquidity. In addition, only stock with Dividend Payout Ratio under 125% were considered. For each company, we will provide the dividend yield, pertinent ratios and historical performance.
7 Best Dividend stocks to buy now (safe dividends and growth)
Best dividend stocks to buy – Dividend aristocrats
US Stocks that pay monthly dividends (Full list by sector)
How to select monthly dividend stocks?
Look at the payout ratio
The dividend payout ratio is the amount of dividend distributed by a company divided by the total earnings. For example, a company makes a profit of $ 100 and pays $ 40 in dividends. Its payout ratio is 40%.
If the ratio is high, the company pays almost all of its profits in dividends. There will be little money left in the coffers to innovate or expand to new markets;
It is preferable to invest in a company where the dividend payout ratio is low or medium. The reasoning is that these companies will have money set aside to invest in new projects and thus create growth;
Another variation of payout ratio (Trailing div / Earnings) is the payout ratio to cash (Div / Free cash flows). Earnings can be easily manipulated, so analysts use the payout ratio to cash to assess the safety of dividends better. The website ‘Marketbeat‘ provides the payout ratio to cash for Canadian stocks.
Focus on total return
When one wishes to invest in a dividend-paying stock, it is essential to pay attention to its performance and growth potential. The most common mistake is to invest in stocks with high dividend yields. This strategy is risky. Here’s why :
• A stock can pay a high dividend yield, but is it sustainable? Some companies have a payout ratio that is close to and even exceeds 100%. They manage to post desirable dividend yields, but if we look at the growth prospects, it’s almost nil;
• Investors sometimes shun companies for lack of growth potential or actual risk of lower revenues in the future. These companies experience a drop in the price of their shares, and this causes the dividend yield to become abnormally high. Sooner or later, these businesses will have to cut their dividend.
Dividend sustainability
I personally use the measures below to evaluate a company’s ability to sustain its dividends:
– Debt to Equity ratio: It’s the total debt of a company on shareholders equity. Companies with level of debt are forced to priories the payment of interest charges. This comes at the expense of creating value for shareholders, whether it’s through dividend payment or growth.
– Interest coverage ratio: It’s simply total earnings divided by interest charges. If the ratio is, for example, 4, we would say the company’s earning cover 4 times the interest charges. Business with low interest coverage ratio are at risk. Low ratio means the company’s debt is starting to take a toll on its earnings.
Canadian Dividend Stocks under 10$ -Full list
Last price and Dividend yield
| TICKER | PRICE Below 10 | DIV YIELD | MKT CAP |
|---|---|---|---|
 FSZFIERA CAPITAL CORP | 6.13CAD | 14.45% | 613.024MCAD |
 TALPETROTAL CORP | 0.74CAD | 13.51% | 678.915MCAD |
 TFTIMBERCREEK FINANCIAL CORP | 6.60CAD | 10.63% | 540.89MCAD |
 BIRBIRCHCLIFF ENERGY LTD. | 7.93CAD | 10.13% | 2.104BCAD |
 CJCARDINAL ENERGY LTD | 7.74CAD | 9.60% | 1.189BCAD |
 FCFIRM CAPITAL MORTGAGE INV. CORP. | 9.88CAD | 9.54% | 338.322MCAD |
 DIVDDIVERSIFIED RTY CORP | 2.57CAD | 9.34% | 368.186MCAD |
 PNEPINE CLIFF ENERGY LTD | 1.52CAD | 8.66% | 533.615MCAD |
 PHXPHX ENERGY SERVICES CORP. | 7.62CAD | 8.00% | 371.718MCAD |
 EXEEXTENDICARE INC | 6.12CAD | 7.74% | 522.53MCAD |
 DBMDOMAN BUILDING MATERIALS GROUP LTD | 7.41CAD | 7.50% | 650.077MCAD |
 AQNALGONQUIN POWER AND UTILITIES CORP. | 7.57CAD | 7.48% | 5.393BCAD |
 INEINNERGEX RENEWABLE ENERGY INC. | 9.61CAD | 7.48% | 1.967BCAD |
 ECORECORA RESOURCES PLC | 1.65CAD | 7.30% | 409.115MCAD |
 AFMALPHAMIN RESOURCES CORP. | 0.89CAD | 6.74% | 1.135BCAD |
 RAY.BSTINGRAY GROUP INC VARIABLE SV | 4.50CAD | 6.73% | 312.886MCAD |
 RSIROGERS SUGAR INC | 5.36CAD | 6.65% | 567.231MCAD |
| RAY.ASTINGRAY GROUP INC SV | 4.58CAD | 6.64% | 312.886MCAD |
 AGF.BDAGF MANAGEMENT LTD | 6.86CAD | 6.45% | 441.595MCAD |
| AGF.BAGF MANAGEMENT LTD., CL.B, NV | 6.84CAD | 6.45% | 441.595MCAD |
 DXTDEXTERRA GROUP INC | 5.82CAD | 6.04% | 376.07MCAD |
| SSFCSAGICOR FINANCIAL COMPANY LTD | 5.27CAD | 5.73% | 750.057MCAD |
Dividend Sustainability ratios
| TICKER | DEBT/EQUITY | CURRENT RATIO | P/E |
|---|---|---|---|
| FSZFIERA CAPITAL CORP | 2.77 | — | 36.55 |
| TALPETROTAL CORP | 0.08 | 2.90 | 4.84 |
| TFTIMBERCREEK FINANCIAL CORP | 1.53 | — | 8.85 |
| BIRBIRCHCLIFF ENERGY LTD. | 0.13 | 0.99 | 6.95 |
| CJCARDINAL ENERGY LTD | 0.06 | 0.69 | 6.47 |
| FCFIRM CAPITAL MORTGAGE INV. CORP. | 0.51 | — | 10.51 |
| DIVDIVERSIFIED ROYALTY CORP | 0.86 | 5.27 | 20.24 |
| PNEPINE CLIFF ENERGY LTD | 0.03 | 2.05 | 11.41 |
| PHXPHX ENERGY SERVICES CORP. | 0.34 | 2.10 | 5.34 |
| EXEEXTENDICARE INC | 4.37 | 0.78 | 15300.00 |
| DBMDOMAN BUILDING MATERIALS GROUP LTD | 1.28 | 3.19 | 10.73 |
| AQNALGONQUIN POWER AND UTILITIES CORP. | 1.56 | 0.71 | — |
| INEINNERGEX RENEWABLE ENERGY INC. | 4.89 | 0.99 | — |
| ECORECORA RESOURCES PLC | 0.10 | 0.49 | — |
| AFMALPHAMIN RESOURCES CORP. | 0.12 | 2.19 | 14.29 |
| RAY.BSTINGRAY GROUP INC VARIABLE SV | 1.43 | 1.09 | 8.99 |
| RSIROGERS SUGAR INC | 1.52 | 1.70 | — |
| RSIDROGERS SUGAR INC | 1.52 | 1.70 | — |
| RAY.ADSTINGRAY GROUP INC | 1.43 | 1.09 | 9.21 |
| RAY.ASTINGRAY GROUP INC SV | 1.43 | 1.09 | 9.15 |
| AGF.BAGF MANAGEMENT LTD., CL.B, NV | 0.08 | — | 4.97 |
| DXTDDEXTERRA GROUP INC | 0.54 | 1.44 | 24.96 |
| SSFCSAGICOR FINANCIAL COMPANY LTD | 1.46 | 0.14 | 6.41 |
Historical performance
| TICKER | 3-MONTH PERF | YTD PERF | 5Y PERF |
|---|---|---|---|
| FSZFIERA CAPITAL CORP | −8.92% | −30.10% | −50.96% |
| TALPETROTAL CORP | 2.78% | 7.25% | 146.67% |
| TFTIMBERCREEK FINANCIAL CORP | −12.23% | −8.21% | −28.57% |
| BIRBIRCHCLIFF ENERGY LTD. | 3.66% | −13.90% | 65.21% |
| CJCARDINAL ENERGY LTD | 8.86% | 3.06% | 79.17% |
| FCFIRM CAPITAL MORTGAGE INV. CORP. | −6.79% | −8.01% | −23.88% |
| DIVDIVERSIFIED ROYALTY CORP | −11.11% | −14.95% | −9.86% |
| PNEPINE CLIFF ENERGY LTD | −1.94% | −8.43% | 406.67% |
| PHXPHX ENERGY SERVICES CORP. | 7.93% | 2.56% | 154.85% |
| EXEEXTENDICARE INC | −17.41% | −7.55% | −16.73% |
| DBMDOMAN BUILDING MATERIALS GROUP LTD | 16.33% | 26.24% | −17.30% |
| AQNALGONQUIN POWER AND UTILITIES CORP. | −29.78% | −14.94% | −41.14% |
| INEINNERGEX RENEWABLE ENERGY INC. | −26.25% | −41.62% | −19.72% |
| ECORECORA RESOURCES PLC | −17.50% | −30.38% | −60.53% |
| AFMALPHAMIN RESOURCES CORP. | −13.59% | −1.11% | 256.00% |
| RAY.BSTINGRAY GROUP INC VARIABLE SV | −19.35% | −10.00% | −46.43% |
| RSIROGERS SUGAR INC | −6.29% | −5.47% | −1.83% |
| RAY.ASTINGRAY GROUP INC SV | −11.92% | −4.58% | −45.61% |
| RAY.ADSTINGRAY GROUP INC | −13.67% | −5.53% | −45.44% |
| AGF.BAGF MANAGEMENT LTD., CL.B, NV | −12.76% | −5.13% | 21.93% |
| DXTDEXTERRA GROUP INC | 4.68% | 11.92% | −58.87% |
| SSFCSAGICOR FINANCIAL COMPANY LTD | 18.43% | −4.53% | −46.71% |