Finding safe dividend stocks is sort of a conundrum … The stock market by definition is not safe. It’s the riskiest investment vehicle which implies that finding a safe dividend stock is a challenging feat to start with.
Dividend safety ratings is also requiring investors to look at the company from a quantitative and qualitative perspective. No company can guarantee a dividend but what successful investors like Warren Buffett say is to focus on high quality businesses with a dominant lead in the business.
Along the quantitative perspective, even if the dividend is considered safe by any metrics but the stock goes down or stays flat, the investor is also disappointed. So it’s not just about a safe payout ratio in the end.
The next challenge is that many investors are looking for a safe high-yield dividend stock and in the investment world, safe and high-yield cannot easily co-exist. So what is a safe dividend stock?
A safe dividend stock is a company that can safely cover the dividend regardless of the economic environment we are in. The safest dividend stocks would also provide dividend growth along with a tollbooth-like business which means cash is continuously flowing.
Here is what a safe dividend growth looks like from TD Bank. What you see below is dividend growth and stock appreciation. A win-win situation. The next figure shows a growing dividend with a stable yield and payout ratio also highlighting a strong dividend triangle for safety.
The lists below match the most stringent of all requirements:
- 10 years of consecutive dividend growth
- 10% annual dividend growth
- Tollbooth-like business for guaranteed ongoing cash-flow
Note that there can always be a situation where the dividend could be impacted. There is no such thing as guaranteed dividend with the stock market.
Another note is that energy pipeline are currently safe but probably the most at risk from the safe lists below.
Safest Canadian Dividend Stocks
Ticker | Company | Sector | Market Cap | P/E | Graph |
---|---|---|---|---|---|
CNR | Canadian National Railway | Industrials | 101.84 | 21.34 | 1 |
ENB | Enbridge | Energy | 98.99 | 31.08 | 1 |
CNQ | Canadian Natural Resources | Energy | 97.35 | 13.89 | 1 |
ATD | Alimentation Couche-Tard | Consumer Defensive | 76.33 | 18.92 | 1 |
WCN | Waste Connections | Industrials | 46.84 | 41.26 | 1 |
IMO | Imperial Oil | Energy | 43.77 | 8.85 | 1 |
DOL | Dollarama Inc | Consumer Defensive | 27.63 | 31.75 | 1 |
MRU | Metro | Consumer Defensive | 15.96 | 16.03 | 1 |
CCL.B | CCL Industries | Consumer Cyclical | 10.29 | 16.22 | 1 |
TIH | Toromont Industries | Industrials | 9.30 | 17.51 | 1 |
CTC.A | Canadian Tire Corporation | Consumer Cyclical | 8.18 | 14.25 | 1 |
SJ | Stella-Jones | Basic Materials | 4.54 | 15.14 | 1 |
ACO.X | Atco | Utilities | 4.27 | 10.26 | 1 |
EQB | Equitable Group | Financial Services | 2.81 | 7.97 | 1 |
CCA | Cogeco Cable | Communication Services | 2.31 | 5.93 | 1 |
ENGH | Enghouse Systems | Technology | 1.90 | 22.73 | 1 |
CRT.UN | CT REIT | Real Estate | 1.49 | 36.78 | 1 |
CGO | Cogeco | Communication Services | 0.66 | 10.46 | 1 |
HDI | Hardwoods Distribution | Industrials | 0.62 | 3.20 | 1 |
ADEN | ADENTRA | Industrials | 0.58 | 10.59 | 1 |
TCS | Tecsys | Technology | 0.45 | 141.97 | 1 |
XTC | Exco Technologies | Consumer Cyclical | 0.28 | 12.21 | 1 |
FCD.UN | Firm Capital Property Trust | Real Estate | 0.18 | 10.51 | 1 |
Safe Canadian Dividend Stock
The stringent requirements for safe dividend stocks are making the picking thin so I have put together a safe dividend stock list lowering the requirement.
- Be a Canadian Dividend Aristocrat
- Tollbooth-like business for guaranteed ongoing cash-flow
TickerKey | Ticker | Company | Sector | Industry | Score | Quote | Market Cap | P/E | FPE | EPS | Yield Raw | Payout Ratio Raw | Payments | Dividend | Chowder | GrowthRating | IncomeRating | Tollbooth | Ambassador | Achiever | Aristocrat | King | Country | Graph |
---|
Safest US Dividend Stocks
Ticker | Company | Sector | Market Cap | P/E | Graph |
---|---|---|---|---|---|
AAPL | Apple | Technology | 2,954.56 | 30.99 | 1 |
MSFT | Microsoft | Technology | 2,805.16 | 36.55 | 1 |
V | Visa | Financial Services | 510.70 | 30.68 | 1 |
UNH | UnitedHealth Group Incorporated | Healthcare | 506.03 | 23.74 | 1 |
JPM | JP Morgan Chase | Financial Services | 446.20 | 9.17 | 1 |
AVGO | Broadcom Inc. | Technology | 404.01 | 29.92 | 1 |
MA | Master Card | Financial Services | 386.83 | 35.92 | 1 |
HD | Home Depot Inc. | Industrials | 309.23 | 19.93 | 1 |
COST | Costco | Consumer Defensive | 261.82 | 41.77 | 1 |
ACN | Accenture plc | Technology | 222.07 | 31.01 | 1 |
CSCO | Cisco Systems Inc. | Technology | 196.51 | 14.59 | 1 |
CMCSA | Comcast Corporation | Communication Services | 171.39 | 11.81 | 1 |
NKE | NIKE, Inc. | Consumer Cyclical | 163.82 | 33.21 | 1 |
QCOM | Qualcomm | Technology | 142.57 | 19.61 | 1 |
AMGN | Amgen Inc. | Healthcare | 142.07 | 18.87 | 1 |
TXN | Texas Instrument | Technology | 139.49 | 19.92 | 1 |
UNP | Union Pacific Corp. | Industrials | 136.72 | 21.54 | 1 |
SPGI | S&P Global Inc | Financial Services | 131.50 | 53.74 | 1 |
UPS | United Parcel Service Inc. | Industrials | 129.90 | 15.39 | 1 |
HON | Honeywell International Inc. | Industrials | 127.51 | 23.98 | 1 |
NEE | NextEra Energy, Inc. | Utilities | 118.08 | 15.22 | 1 |
SBUX | Starbucks Corporation | Consumer Cyclical | 116.83 | 28.68 | 1 |
LOW | Lowe's Companies, Inc. | Consumer Cyclical | 114.89 | 15.33 | 1 |
ELV | Elevance Health | Healthcare | 112.48 | 18.79 | 1 |
LMT | Lockheed Martin Corporation | Industrials | 112.14 | 16.51 | 1 |
SYK | Stryker Corporation | Healthcare | 111.55 | 43.55 | 1 |
GS | Goldman Sachs Group Inc. | Financial Services | 110.60 | 16.41 | 1 |
BLK | BlackRock | Financial Services | 108.61 | 20.48 | 1 |
MDT | Medtronics | Healthcare | 105.07 | 29.06 | 1 |
ADP | Automatic Data Processing | Industrials | 94.87 | 27.40 | 1 |
AMT | American Tower Corporation | Real Estate | 92.92 | 130.63 | 1 |
ADI | Analog Devices, Inc. | Technology | 90.84 | 28.70 | 1 |
ITW | Illinois Tool Works | Industrials | 72.77 | 23.47 | 1 |
NOC | Northrop Grumman Corporation | Industrials | 71.10 | 15.48 | 1 |
SHW | The Sherwin-Williams Company | Basic Materials | 70.60 | 29.55 | 1 |
MCO | Moody's Corporation | Financial Services | 66.32 | 42.73 | 1 |
APD | Air Products & Chemicals | Basic Materials | 61.00 | 26.66 | 1 |
TGT | Target | Consumer Defensive | 60.69 | 16.75 | 1 |
CTAS | Cintas Corp | Industrials | 56.52 | 41.73 | 1 |
ROP | Roper Technologies, Inc. | Industrials | 56.14 | 45.52 | 1 |
PH | Parker-Hannifin Corporation | Industrials | 55.72 | 24.05 | 1 |
COR | Cencora | Healthcare | 40.40 | 23.61 | 1 |
ABC | AmerisourceBergen Corporation | Healthcare | 36.47 | 21.98 | 1 |
BK | Bank of New York Mellon Corporation | Financial Services | 36.42 | 11.09 | 1 |
AMP | Ameriprise Financial, Inc. | Financial Services | 35.56 | 14.30 | 1 |
FAST | Fastenal Company | Industrials | 34.84 | 30.79 | 1 |
PRU | Prudential Financial | Financial Services | 34.56 | 58.90 | 1 |
CMI | Cummins Inc. | Industrials | 31.96 | 11.49 | 1 |
KR | Kroger Co | Consumer Defensive | 31.78 | 19.81 | 1 |
TROW | T. Rowe Price Group, Inc. | Financial Services | 21.96 | 14.01 | 1 |
JBHT | JB Hunt Transport Services Inc. | Industrials | 18.88 | 24.67 | 1 |
HRL | Hormel Foods Corporation | Consumer Defensive | 17.88 | 20.49 | 1 |
PFG | Principal Financial Group Inc. | Financial Services | 17.32 | 11.97 | 1 |
NDSN | Nordson Corporation | Industrials | 13.41 | 27.09 | 1 |
BEN | Franklin Resources, Inc. | Financial Services | 11.78 | 13.84 | 1 |
AOS | AO Smith Corp. | Industrials | 11.30 | 38.43 | 1 |
AIZ | Assurant Inc. | Financial Services | 8.72 | 16.88 | 1 |
RHI | Robert Half International Inc. | Industrials | 8.61 | 18.42 | 1 |
PRGO | Perrigo Company plc | Healthcare | 4.18 | 410.07 | 1 |