Canadian Monthly Dividend Stocks under 10$

Canadian Dividend Stocks under 10$

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.

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cibc investors' edge

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

TICKERPRICE
Below 10
DIV YIELDMKT CAP
FSZFIERA CAPITAL CORP6.13CAD14.45%613.024MCAD
TALPETROTAL CORP0.74CAD13.51%678.915MCAD
TFTIMBERCREEK FINANCIAL CORP6.60CAD10.63%540.89MCAD
BIRBIRCHCLIFF ENERGY LTD.7.93CAD10.13%2.104BCAD
CJCARDINAL ENERGY LTD7.74CAD9.60%1.189BCAD
FCFIRM CAPITAL MORTGAGE INV. CORP.9.88CAD9.54%338.322MCAD
DIVDDIVERSIFIED RTY CORP2.57CAD9.34%368.186MCAD
PNEPINE CLIFF ENERGY LTD1.52CAD8.66%533.615MCAD
PHXPHX ENERGY SERVICES CORP.7.62CAD8.00%371.718MCAD
EXEEXTENDICARE INC6.12CAD7.74%522.53MCAD
DBMDOMAN BUILDING MATERIALS GROUP LTD7.41CAD7.50%650.077MCAD
AQNALGONQUIN POWER AND UTILITIES CORP.7.57CAD7.48%5.393BCAD
INEINNERGEX RENEWABLE ENERGY INC.9.61CAD7.48%1.967BCAD
ECORECORA RESOURCES PLC1.65CAD7.30%409.115MCAD
AFMALPHAMIN RESOURCES CORP.0.89CAD6.74%1.135BCAD
RAY.BSTINGRAY GROUP INC VARIABLE SV4.50CAD6.73%312.886MCAD
RSIROGERS SUGAR INC5.36CAD6.65%567.231MCAD
RAY.ASTINGRAY GROUP INC SV4.58CAD6.64%312.886MCAD
AGF.BDAGF MANAGEMENT LTD6.86CAD6.45%441.595MCAD
AGF.BAGF MANAGEMENT LTD., CL.B, NV6.84CAD6.45%441.595MCAD
DXTDEXTERRA GROUP INC5.82CAD6.04%376.07MCAD
SSFCSAGICOR FINANCIAL COMPANY LTD5.27CAD5.73%750.057MCAD

Dividend Sustainability ratios

TICKERDEBT/EQUITYCURRENT
RATIO
P/E
FSZFIERA CAPITAL CORP2.7736.55
TALPETROTAL CORP0.082.904.84
TFTIMBERCREEK FINANCIAL CORP1.538.85
BIRBIRCHCLIFF ENERGY LTD.0.130.996.95
CJCARDINAL ENERGY LTD0.060.696.47
FCFIRM CAPITAL MORTGAGE INV. CORP.0.5110.51
DIVDIVERSIFIED ROYALTY CORP0.865.2720.24
PNEPINE CLIFF ENERGY LTD0.032.0511.41
PHXPHX ENERGY SERVICES CORP.0.342.105.34
EXEEXTENDICARE INC4.370.7815300.00
DBMDOMAN BUILDING MATERIALS GROUP LTD1.283.1910.73
AQNALGONQUIN POWER AND UTILITIES CORP.1.560.71
INEINNERGEX RENEWABLE ENERGY INC.4.890.99
ECORECORA RESOURCES PLC0.100.49
AFMALPHAMIN RESOURCES CORP.0.122.1914.29
RAY.BSTINGRAY GROUP INC VARIABLE SV1.431.098.99
RSIROGERS SUGAR INC1.521.70
RSIDROGERS SUGAR INC1.521.70
RAY.ADSTINGRAY GROUP INC1.431.099.21
RAY.ASTINGRAY GROUP INC SV1.431.099.15
AGF.BAGF MANAGEMENT LTD., CL.B, NV0.084.97
DXTDDEXTERRA GROUP INC0.541.4424.96
SSFCSAGICOR FINANCIAL COMPANY LTD1.460.146.41

Historical performance

cibc investors' edge
TICKER3-MONTH
PERF
YTD PERF5Y PERF
FSZFIERA CAPITAL CORP−8.92%−30.10%−50.96%
TALPETROTAL CORP2.78%7.25%146.67%
TFTIMBERCREEK FINANCIAL CORP−12.23%−8.21%−28.57%
BIRBIRCHCLIFF ENERGY LTD.3.66%−13.90%65.21%
CJCARDINAL ENERGY LTD8.86%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 LTD16.33%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 INC4.68%11.92%−58.87%
SSFCSAGICOR FINANCIAL COMPANY LTD18.43%−4.53%−46.71%