Canadian Dividend Aristocrats

The Winners

What are Dividend Aristocrats?

Dividend aristocrats, as defined by Standard and Poor’s, are stocks that meet certain size and liquidity standards that “have followed a policy of consistently increasing dividends every year for at least five years.”  (Although if you dig a little deeper, they allow a company to go up to two years without increasing its dividend before it is excluded from the list.  Follow above link, click on “Methodology”.)

Basically, these are the large, well-entrenched steady-eddies that chug along relatively well, no matter what the rest of the economy is doing.  They are of course affected by the economy, and they have ups and downs, but their highs are lower, and their lows are higher.  If you’re a high-flyer who wants to double your money in six months, you’re wasting your time with these stocks.  If, however, you’re looking for reliable, slow-but-steady growth from your dividend-paying stocks, these are the companies you want to check out.  The nickname for this kind of stock pretty-much says it all.  Because of their high degree of reliability, these are often referred to as “Widow and Orphan” stocks.

Dividend “Aristocrat” or Dividend “Achiever”?

“Aristocrat” or “Achiever”?  Depends who you ask.  Generally, to be considered a dividend aristocrat, a company must have increased its dividend in each of the past 25 years.  There are many such companies in the US.  Canada has a much smaller universe of companies, and so the proverbial bar has been lowered to five years.  Many people north of the 49th refer to this list of companies as dividend “achievers”, a practice I agree with, since it differentiates the five-year bar from the much more impressive 25-year standard.

That distinction now having been made clear, Standard and Poor’s refers to its list of Canadian companies with a five-year history of dividend increases as “aristocrats” so who am I to change it?  It’s their list, so I guess they can call it whatever they want.  As long as you are aware of the standard used to create the list, which you now are, the name doesn’t really matter.

Is this all I need to know to pick stocks?

I really wish it were that easy.  This list is a big piece of the puzzle, but it’s certainly not the only piece.  For one thing, companies’ –even these companies’ — fortunes change; this list is regularly amended with both additions and deletions.  This list is not the end-all and be-all, but it is a great starting point.  I will be updating this list regularly.

 

S&P’s Canadian Dividend Aristocrats List (as of May, 2016)

Constituent Name Symbol
ATCO Ltd. Class I Non-voting Shares ACO.X
Agrium Inc. AGU
Aimia Inc. AIM
Alaris Royalty Corp. AD
Algonquin Power & Utilities Corp. AQN
Alimentation Couche-Tard Inc. Class B Subordinate Voting Shares ATD.B
AutoCanada Inc. ACQ
BCE Inc. BCE
Bank of Nova Scotia (The) BNS
Bird Construction Inc. BDT
Boyd Group Income Fund BYD.UN
CAE Inc. CAE
CCL Industries Inc. CCL.B
CI Financial Corp. CIX
Canadian Imperial Bank Of Commerce CM
Canadian National Railway Company CNR
Canadian Natural Resources Limited CNQ
Canadian Real Estate Investment Trust REF.UN
Canadian Tire Corporation Limited Class A Non-Voting Shares CTC.A
Canadian Utilities Limited Class A Non-Voting Shares CU
Canadian Western Bank CWB
Cineplex Inc. CGX
Cogeco Communications Inc. Subordinate Voting Shares CCA
Computer Modelling Group Ltd. CMG
Corus Entertainment Inc. Class B Non-Voting Shares CJR.B
Dollarama Inc. DOL
Emera Incorporated EMA
Empire Company Limited Non-Voting Class A Shares EMP.A
Enbridge Inc. ENB
Enbridge Income Fund Holdings Inc. ENF
EnerCare Inc. ECI
Enerflex Ltd. EFX
Enghouse Systems Limited ESL
Ensign Energy Services Inc. ESI
Exchange Income Corporation EIF
Finning International Inc. FTT
Fortis Inc. FTS
Franco-Nevada Corporation FNV
Genworth MI Canada Inc. MIC
Gibson Energy Inc. GEI
Gildan Activewear Inc. GIL
Gluskin Sheff + Associates Inc. GS
Granite Real Estate Investment Trust GRT.UN
Home Capital Group Inc. HCG
IGM Financial Inc. IGM
Imperial Oil Limited IMO
Intact Financial Corporation IFC
Inter Pipeline Ltd. IPL
Jean Coutu Group (PJC) Inc. (The) PJC.A
Keyera Corp. KEY
Laurentian Bank of Canada LB
Magna International Inc. MG
Methanex Corporation MX
Metro Inc. MRU
National Bank of Canada NA
Nevsun Resources Ltd. NSU
Northview Apartment Real Estate Investment Trust NVU.UN
Pason Systems Inc. PSI
Ritchie Bros. Auctioneers Incorporated RBA
Rogers Communications Inc. Class B Non-voting Shares RCI.B
Royal Bank of Canada RY
Russel Metals Inc. RUS
SNC-Lavalin Group Inc. SNC
Saputo Inc. SAP
Shaw Communications Inc. Class B Non-voting Shares SJR.B
ShawCor Ltd. SCL
Stella-Jones Inc. SJ
Suncor Energy Inc. SU
TELUS Corporation T
Thomson Reuters Corporation TRI
Toronto-Dominion Bank (The) TD
TransCanada Corporation TRP
TransForce Inc. TFI
Transcontinental Inc. Class A Subordinate Voting Shares TCL.A
Uni-Select Inc. UNS
WestJet Airlines Ltd. variable voting and common voting shares WJA