The Cheapest Canadian Dividend Aristocrats

Every now and again, the cost of a share appears to be a blocker for many investors. For example, we have a Berkshire Hathaway class A share at over USD $200,000 per share which is very prohibitive to buy. However, one of the reasons why some companies split their stocks is to make it accessible to more investors. More importantly, it’s accessible for regular purchases through no-fee (or small fee) discount brokers. With new discount brokers and fintech startups, the landscape is changing and the price matters even though it doesn’t change the company valuation.

Take WealthSimple Trade for example, you can scoop up shares monthly with just a $50 savings. Now, what if all you can invest is $20 a week and every week you wanted to buy a solid Canadian Dividend Aristocrat stock. In the early 2000, you could not have invested. Someone would have told you to buy mutual funds and that would have been a mistake. Now you can buy 1 share per week and dollar cost average your way to financial independence.

Aristocrats under $20

Here are your cheap Canadian Dividend Aristocrats stocks but don’t forget to do your due diligence.

Algonquin Power & Utilities Corp

AQN - Algoquin Power & Utilities CorpAlgonquin Power & Utilities is a diversified utility company in North America with $10 billion in total assets. The company engages in the generation, transmission, and distribution of water, gas, and electricity to communities across the U.S. It also has renewable energy business. As a growing renewable energy company, Algonquin Power owns a strong portfolio of long term contracted wind, solar and hydroelectric assets with 1.5 GW of total installed capacity. The company through its subsidiaries owns an equity interest in more than 39 clean energy facilities. Algonquin Power operates through two subsidiaries: Liberty Utilities (64% of 2018 earnings) and Liberty Power (36%). The company has more than 50 power generation facilities and 20 utilities across North America. Algonquin’s utility business serves nearly 770,000 customers in twelve states across the U.S., through 1,200 miles of electrical transmission lines and 100 miles of natural gas transmission pipelines.

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Manulife

MFC - ManulifeManulife Financial Corporation is a leading international financial services company in Canada. The company provides financial advice, insurance, as well as wealth and asset management solutions for individuals, groups, and institutions. As of March 2018, Manulife had $1.1 trillion assets under management making it one of the largest life insurance companies in the world. More than 80% of its assets are fixed income, of which 98% is investment grade. Manulife offers unique product offerings for different markets it serves. The company provides a suite of financial protection and wealth management solutions to meet the current and future needs of individual and group customers. The company also owns reputed brands like Manulife and John Hancock in the USA. Manulife serves 26 million customers in the USA, Canada, and Asia. With more than 125 years of experience, the company has developed strong customer relations and a deep understanding of their financial needs. Clients look to Manulife for reliable and intelligent financial solutions.

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Transcontinental Inc

TCL.A - Transcontinental IncTranscontinental is a leader in flexible packaging in North America. It is Canada’s largest printer and a leader in specialty media segments. The company provides innovative solutions in both printing and packaging segments. It specializes in flexographic printing, lamination of plastic films, and offers print solutions for flyers, newspapers, magazines, and mass marketing products. With over four decades of experience, the company has developed deep expertise in manufacturing and distribution of print and digital content. Transcontinental has operations in Canada, the United States and Latin America. The company completed the acquisition of Coveris Americas in 2018, which further strengthened its market share in the flexible packaging sector. As a result, Transcontinental is expecting its consolidated revenues to comprise 45% of printing revenues, 52% of packaging revenues and 3% of media revenues going forward.

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Savaria

Savaria is one of the global leaders in the accessibility industry. The company manufactures products that help people maintain their personal mobility. Its large product portfolio includes home elevators, commercial lifts, stairlifts, ceiling lifts and adapted vehicles. Savaria also offers medical beds and therapeutic surfaces. The company has manufacturing facilities in North America, Europe and China. It operates a sales network of dealers worldwide.

Savaria operates through Savaria Concord Lifts Inc., Savaria Huizhou, Span America/ Span Medical Products and Garaventa Lift divisions. The company manages its operations under three reportable segments, Accessibility (accounting for more than 70% of total six months’ revenue in 2020), Patient Handling (24%) and Adapted Vehicles (~5%). By region, the US is the largest and accounted for ~58% of total six-months’ revenue, followed by Canada (22%), the EU region (15%) and others (4%).

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Imperial Oil

Imperial (TSE:IMO) is Canada's largest refiner of petroleum products. Imperial refines raw hydrocarbons into about 650 petroleum products essential to consumers and businesses: gasoline, diesel, heating oil, natural gas, lubricants, and chemicals used to make plastics. It’s hard to imagine life without the products manufactured from hydrocarbons. They fuel our economies, heat our homes and make our lives easier and more enjoyable. Like you, Imperial is concerned about the effects of chemicals on health and the environment and we have integrated Responsible Care® into our business practices. Imperial offers products and services to consumers across Canada as well as in export markets.  In total, we manufacture and sell about a quarter of the petroleum products used every day by Canadians.  We are a leading marketer of fuels, lubricants, asphalts and specialty products.

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TransAlta Renewables Inc.

RNW - TransAlta RenewablesTransAlta Renewables is a renewable energy company and one of the largest generators of wind power in Canada. It is a sponsored vehicle of TransAlta Corporation. With more than a century’s experience under its belt, TransAlta Renewables has developed a rich experience of owning, operating, and maintaining a large fleet of power generation assets. TransAlta Renewables owns and operates 21 wind farms, 13 hydroelectric facilities, seven natural gas plant, one solar facility and one natural gas pipeline in the US, Canada, and Australia. Highly contracted renewable and natural gas power generation assets, and long-term contracts with strong counterparties ensure stable cash flows for the company. Most of its wind, hydro and gas facilities have an established track record of operating history and performance. TransAlta Renewables owns renewable energy facilities across different regions and multiple technologies. The company owns directly or through economic interests more than 2,400 MW of net generating capacity and are strategically located to supply growing industrial regions.

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Fiera Capital Corp

Fiera Capital Corporation is a global independent asset management firm with over C$164.7 billion in AUM as at September 30, 2019. The company delivers customized multi-asset solutions across traditional and alternative asset classes to institutional, retail and private wealth clients across North America, Europe and key markets in Asia.

The company strives to be at the forefront of investment-management science and we are passionate about creating sustainable wealth for clients. Fiera Capital recognizes that the investment landscape is constantly evolving and seeks to draw on the global industry’s most innovative and diverse offerings to craft strategies that meet the needs of any client, anywhere they are located. 

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Intertape Polymer Group Inc.

Intertape Polymer Group Inc. is a leading developer and marketer of packaging and protective solutions for industrial and retail use. The company has operations in 30 locations, including 22 manufacturing facilities in North America, three in Asia and one in Europe. The company provides a variety of paper and film based pressure sensitive and water activated tapes, polyethylene and specialized polyolefin films, protective packaging, and engineered coated products. Over the years, Intertape Polymer has built extensive manufacturing and research and development facilities developing a comprehensive range of packaging, protective and industrial product solutions. Its global sourcing expertise and impressive product line allow it to cater to the customized needs of a huge base of customers. Intertape polymer serves a wide spectrum of end markets ranging from food processing, general manufacturing to transportation, construction, oil and gas, agriculture, and aerospace, marine and medical applications.

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Aecon Group Inc

Aecon Group Inc is a construction and infrastructure development company in Canada. The company has operations in infrastructure, industrial and concessions and provides a wide range of integrated services including project financing, design, construction, materials supply, engineering, procurement, and fabrication. Aecon enjoys a recurring and diversified revenue stream across various construction sectors and attractive concessions portfolio. The company has a strong pipeline of public and private opportunities and good visibility from long-dated backlog. For more than a century, the company has become an integral part of Canada’s infrastructural success story, building hundreds of factories, roads, sewer systems, power plants, mine sites, offices, hotels, casinos, etc. in the country. Given its large scale, diversification and past performance, Aecon has become a partner of choice on major projects across Canada. Significant infrastructure investment opportunities across Canada and solid bidding activity in 2019 act as strong tailwinds for the company.

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DISCLOSURE: Please note that I may have a position in one or many of the holdings listed. For a complete list of my holdings, please see my Dividend Portfolio.

DISCLAIMER: Please note that this blog post represents my opinion and not an advice/recommendation. I am not a financial adviser, I am not qualified to give financial advice. Before you buy any stocks/funds consult with a qualified financial planner. Make your investment decisions at your own risk – see my full disclaimer for more details.