For years, dividend investing has been a popular strategy among Canadian investors. For a dividend investor, the focus is on stable companies that consistently return a share of profits in the form of dividends. Not only do dividends make up a large part of the stock market return, but the companies that pay consistent dividends also tend to experience less volatility.
In Canada, the top dividend-paying stocks have their own index, the Canadian Dividend Aristocrats. Investors can use this index to select individual stocks for their dividend portfolio, or they can purchase the entire index using an ETF, specifically the iShares S&P/TSX Canadian Dividend Aristocrats Index ETF (CDZ). The companies in the Dividend Aristocrats Index have consistently raised their dividends for years, and here at MapleMoney, it serves as a primary source for our list of Top 100 Canadian Dividend Stocks for 2020.
About the Canadian Dividends Aristocrats Index
Before revealing this list of top Canadian dividend stocks across all sectors, let’s take a closer look at how the list is compiled and managed by reviewing the index objective, eligibility, as well as the annual rebalancing process.
Index Objective
According to the S&P, the Canadian Dividend Aristocrats Index is designed to measure the performance of companies included in the S&P Canada Broad Market Index (BMI) that follows a “managed-dividends policy of increasing dividends”. The index is reviewed and rebalanced every January.
Index Eligibility
The following criteria must be satisfied in order for a company to be considered a Dividend Aristocrat, and be included in the DA Index.
- Must be a common stock or income trust listed on the Toronto Stock Exchange and also a constituent of the S&P BMI Canada.
- Must have increased its regular cash dividend every year for five years, although it can maintain the same dividend for no more than two consecutive years within the five year period.
- The float-adjusted market capitalization of the security must be at least $300 million at the time of review (January).
- For new additions to the index, companies must have increased their dividend in the first year of the prior five years. This does not apply to current members of the index.
Annual Rebalancing
Every January, the index is rebalanced, using a reference date of the last trading date in December. Changes to the index membership take place after the close of the last business day in January, based on the rebalancing done during the month. A company is added to the index during the rebalancing period providing that it meets the criteria outlined above. There is no cap on the maximum number of companies in the index, ensuring that all qualify. If a company fails to meet one or all of the above eligibility guidelines during the annual rebalancing period, they are deleted from the list. The index methodology includes concentration limits. During rebalancing, modifications ensure that no individual stock comprises more than 8% of the overall index weight.
Why Should I Hold Dividend Aristocrat Stocks In My Portfolio?
Canadian Dividend Aristocrats offers advantages that riskier growth stocks don’t. For instance:
- Dividend Aristocrats are stocks that you can buy, hold and collect dividends from. There is no need to check daily price movements.
- Dividend Aristocrats are generally blue chip stocks with stable income streams. These companies have a steady cash flow and have a record of returning profits to their shareholders.
- These firms generally exhibit lower stock price volatility while delivering attractive and even superior returns.
Without further ado, here is the Canadian Dividend Aristocrat list for 2020, in alphabetical order:
Canadian Dividend Aristocrats (TXDV Index)
| Name | Symbol | Price | P/E (ttm) | EPS (ttm) | Trailing Annual Dividend | Dividend Yield |
|---|---|---|---|---|---|---|
| Aecon Group Inc | ARE | 11.7 | 10.45 | 1.12 | 0.58 | 4.96% |
| Alaris Royalty Corp | AD | 7.52 | 7.67 | 0.98 | 1.65 | 21.94% |
| Algonquin Power and Utilities Corp | AQN | 17.64 | 12 | 1.04 | 0.55 | 3.12% |
| Alimentation Couche-Tard Inc Cl B Sv | ATD.B | 32.84 | N/A | 1.84 | 0.51 | 1.55% |
| Allied Properties Real Estate Inv Trust | AP.UN | 42.34 | 7.59 | 5.58 | 1.6 | 3.78% |
| Atco Ltd Cl.I NV | ACO.X | 35.34 | 7.91 | 4.47 | 1.62 | 4.58% |
| Bank of Montreal | BMO | 66.95 | 7.65 | 8.75 | 4.12 | 6.15% |
| Bank of Nova Scotia | BNS | 54.59 | 8.02 | 6.81 | 3.54 | 6.48% |
| BCE Inc | BCE | 56.73 | 16.83 | 3.37 | 3.17 | 5.59% |
| Boralex Inc | BLX | 24.09 | N/A | -0.43 | 0.66 | 2.74% |
| Boyd Group Services Inc | BYD | 137.28 | 36.17 | 3.8 | 0.54 | 0.39% |
| Brookfield Asset Management Inc Cl.A Lv | BAM.A | 40.9 | 24.92 | 1.16 | 0.43 | 1.05% |
| Cae Inc | CAE | 15.87 | 11.93 | 1.33 | 0.42 | 2.65% |
| Canadian Imperial Bank of Commerce | CM | 76.62 | 6.83 | 11.22 | 5.68 | 7.41% |
| Canadian National Railway Co. | CNR | 107.73 | 18.48 | 5.83 | 2.15 | 2.00% |
| Canadian Tire Corporation Cl A NV | CTC.A | 81.59 | 7.33 | 11.13 | 4.01 | 4.91% |
| Canadian Utilities Ltd Cl.A NV | CU | 31.62 | 9.76 | 3.24 | 1.69 | 5.34% |
| Capital Power Corp | CPX | 23.92 | 33.22 | 0.72 | 1.86 | 7.78% |
| Ccl Industries Inc Cl B NV | CCL.B | 40.26 | 15.14 | 2.66 | 0.68 | 1.69% |
| CDN Apartment Un | CAR.UN | 41.23 | 5.49 | 7.51 | 1.37 | 3.32% |
| CDN Natural Res | CNQ | 18.78 | 4.14 | 4.54 | 1.5 | 7.99% |
| CDN Western Bank | CWB | 17.87 | N/A | 3.11 | 1.12 | 6.27% |
| Chartwell Retirement Residences | CSH.UN | 8.54 | 1705.27 | 0.01 | 0.6 | 7.03% |
| Choice Properties REIT | CHP.UN | 12.65 | N/A | -1.87 | 0.74 | 5.85% |
| Cogeco Communications Inc | CCA | 94.15 | 13.37 | 8.64 | 2.16 | 2.29% |
| Cogeco Inc Sv | CGO | 83.6 | 11.24 | 9.13 | 1.77 | 2.12% |
| CT Real Estate Investment Trust | CRT.UN | 11.64 | 9.76 | 1.19 | 0.76 | 6.53% |
| Dollarama Inc | DOL | 38.51 | 21.63 | 1.78 | 0.18 | 0.47% |
| Emera Incorporated | EMA | 52.03 | 18.85 | 2.76 | 2.38 | 4.57% |
| Empire Company Limited | EMP.A | 27.8 | 14.33 | N/A | 0.47 | 1.69% |
| Enbridge Inc | ENB | 39.6 | 15.06 | 2.63 | 2.95 | 7.45% |
| Enerflex Ltd | EFX | 5.98 | 3.54 | 1.69 | 0.43 | 7.19% |
| Enghouse Systems Limited | ENGH | 42.3 | 32.29 | 1.31 | 0.51 | 1.21% |
| Equitable Group Inc | EQB | 49.87 | 4.17 | 11.97 | 1.29 | 2.59% |
| Exchange Income Corp | EIF | 16.56 | 6.65 | 2.49 | 2.23 | 13.47% |
| Fiera Capital Corp | FSZ | 5.55 | N/A | -0.14 | 0.84 | 15.14% |
| Finning Intl | FTT | 14.94 | 10.09 | 1.48 | 0.82 | 5.49% |
| Firstservice Corp | FSV | 99.5 | N/A | -6.58 | 0.6 | 0.60% |
| Fortis Inc | FTS | 51.08 | 13.51 | 3.78 | 1.83 | 3.58% |
| Franco-Nevada Corp | FNV | 152.84 | 59.1 | 1.83 | 0.99 | 0.65% |
| Genworth MI Canada Inc | MIC | 26.86 | 5.46 | 4.92 | 2.07 | 7.71% |
| Gildan Activewear Inc | GIL | 17.77 | 9.9 | 1.27 | 0.54 | 3.04% |
| Goeasy Ltd | GSY | 30.05 | 7.21 | 4.17 | 1.24 | 4.13% |
| Granite Real Estate Investment Trust | GRT.UN | 55.14 | 7.8 | 7.07 | 2.81 | 5.10% |
| Great-West Lifeco Inc | GWO | 21.67 | 8.69 | 2.49 | 1.65 | 7.61% |
| Imperial Oil | IMO | 16.97 | 5.89 | 2.88 | 0.85 | 5.01% |
| Industrial Alliance Ins & Fin Srv Inc | IAG | 38.94 | 6.08 | 6.4 | 1.77 | 4.55% |
| Innergex Renewable Energy Inc | INE | 17.93 | N/A | -0.25 | 0.7 | 3.90% |
| Intact Financial Corp | IFC | 128.12 | 25.22 | 5.08 | 3.04 | 2.37% |
| Inter Pipeline Ltd | IPL | 8.19 | 6.25 | 1.31 | 1.71 | 20.88% |
| Interrent Real Estate Investment Trust | IIP.UN | 12.61 | 3.98 | 3.17 | 0.29 | 2.30% |
| Intertape Polymer | ITP | 9.48 | 9.58 | 0.7 | 0.58 | 6.12% |
| Keyera Corp | KEY | 13.07 | 6.31 | 2.07 | 1.85 | 14.15% |
| Laurentian Bank | LB | 28.25 | 7.91 | 3.57 | 2.64 | 9.35% |
| Loblaw CO | L | 72.48 | 24.99 | 2.9 | 1.24 | 1.71% |
| Magna International Inc | MG | 41.06 | 5.2 | 5.59 | 1.46 | 3.56% |
| Manulife Fin | MFC | 16.04 | 5.79 | 2.77 | 1 | 6.23% |
| Maple Leaf Foods | MFI | 24.97 | 41.62 | 0.6 | 0.58 | 2.32% |
| Methanex Corp | MX | 18.51 | 12.97 | 1.01 | 1.41 | 7.62% |
| Metro Inc | MRU | 57.71 | 21.7 | 2.66 | 0.8 | 1.39% |
| Mty Food Group Inc | MTY | 17.54 | 5.69 | 3.08 | 0.66 | 3.76% |
| National Bank of Canada | NA | 50.82 | 7.81 | 6.51 | 2.72 | 5.35% |
| New Flyer Industries Inc | NFI | 14 | 10.65 | 0.93 | 1.29 | 9.21% |
| Onex Corp | ONEX | 48.81 | 0.81 | 42.74 | 0.28 | 0.57% |
| Open Text Corp | OTEX | 48.13 | 28.15 | 1.21 | 0.68 | 1.41% |
| Osisko Gold Royalties Ltd | OR | 10.67 | N/A | -1.55 | 0.2 | 1.87% |
| Parkland Fuel Corp | PKI | 24.36 | 9.55 | 2.55 | 1.19 | 4.89% |
| Pembina Pipeline Corp | PPL | 24.62 | 9.62 | 2.65 | 2.36 | 9.59% |
| Power Corporation of Canada Sv | POW | 20.1 | 7.94 | 2.53 | 1.6 | 7.96% |
| Premium Brands Holdings Corp | PBH | 72.69 | 31.06 | 2.34 | 2.1 | 2.89% |
| Quebecor Inc Cl.B Sv | QBR.B | 30.11 | 13.88 | 2.55 | 0.39 | 1.30% |
| Richelieu Hardware Ltd | RCH | 21.61 | 18.31 | 1.18 | 0.25 | 1.16% |
| Ritchie Bros Auctioneers Inc | RBA | 49.51 | 25.76 | 1.36 | 0.76 | 1.54% |
| Royal Bank of Canada | RY | 82.08 | 9.12 | 9 | 4.14 | 5.04% |
| Saputo Inc | SAP | 34.57 | 22.3 | 1.55 | 0.67 | 1.94% |
| Savaria Corp | SIS | 10.02 | 18.91 | 0.53 | 0.43 | 4.29% |
| Secure Energy Services Inc | SES | 1.17 | 118.33 | 0.01 | 0.27 | 23.08% |
| Sleep Country Canada Holdings Inc | ZZZ | 9.49 | 6.37 | 1.49 | 0.77 | 8.11% |
| Smartcentres Real Estate Investment Trust | SRU.UN | 17.96 | 9.68 | 1.86 | 1.81 | 10.08% |
| Stantec Inc | STN | 36.92 | 21.22 | 1.74 | 0.58 | 1.57% |
| Stella Jones Inc | SJ | 29.82 | 12.58 | 2.37 | 0.56 | 1.88% |
| Summit Industrial Income REIT | SMU.UN | 8.05 | 6.3 | 1.28 | 0.53 | 6.58% |
| Sun Life Financial Inc | SLF | 42.43 | 9.64 | 4.4 | 2.1 | 4.95% |
| Suncor Energy Inc | SU | 22.98 | 12.35 | 1.86 | 1.68 | 7.31% |
| Tc Energy Corp | TRP | 60.65 | 14.2 | 4.27 | 3 | 4.95% |
| Telus Corp | T | 22.28 | 15.37 | 1.45 | 1.13 | 5.07% |
| Tfi International Inc | TFII | 29.18 | 7.68 | 3.63 | 0.98 | 3.36% |
| The North West Company Inc | NWC | 21.43 | 13.23 | 1.62 | 1.31 | 6.11% |
| Thomson Reuters Corp | TRI | 93.79 | 21.27 | 3.11 | 1.44 | 1.54% |
| Toromont Ind | TIH | 59.24 | 16.97 | 3.49 | 1.08 | 1.82% |
| Toronto-Dominion Bank | TD | 55.79 | 8.47 | 6.59 | 2.96 | 5.31% |
| Transalta Renewables Inc | RNW | 13.86 | 20.38 | 0.68 | 0.94 | 6.78% |
| Transcontinental Inc Cl A Sv | TCL.A | 11.79 | 7.21 | 1.65 | 0.89 | 7.55% |
| Uni Select Inc | UNS | 4.54 | N/A | -0.47 | 0.28 | 6.17% |
| Weston George | WN | 101.22 | 80.33 | 1.26 | 2.09 | 2.06% |
*Data as of April 3, 2020
Dividend Aristocrats ETF
Instead of purchasing individual stocks from the Canadian Dividend Aristocrat Index, you can purchase the entire index with an ETF. The iShares S&P/TSX Canadian Dividend Aristocrats Index ETF (CDZ) is meant to mirror the overall Canadian DA Index, less any fees and expenses. The MER is .66%, very reasonable and much lower than your typical actively managed Canadian dividend fund. The ETF is ideal for anyone looking to match the average return, and who prefers an automatic, hands-off approach to investing. It’s also good for smaller portfolios, in that it achieves diversification regardless of the purchase amount.
Final Thoughts on Dividend Investing in 2020
Whether you prefer individual stocks or ETF investing, the Canadian Dividend Aristocrats Index makes it easy to hold the highest-quality dividend companies that Canada can offer. For additional reading, make sure you check out our list of the Top 100 Canadian Dividend Stocks for 2020, which is made up of stocks from the DA Index, as well as the Simply Investing Report.
