10 Best Canadian Dividend Stocks: June 2022 Update

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Dividend Earner

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While there are various dividend investing strategies, investors tend to choose between dividend growth investing, dividend income investing or a mix of both.

One key quality of the selected dividend stocks below is the blend of dividend yield and dividend growth. The blend is important, if not critical, as high yield dividend stocks can be dangerous and detrimental to your portfolio down the road. Don’t make the mistake.

You should consider these dividend stocks for a core dividend income portfolio to generate retirement income or as a foundation for your dividend growth portfolio. You can find many present in my portfolio.

Top 10 Canadian Dividend Stocks

The monthly top 10 rarely have the same 10 stocks. The page is updated monthly. Be sure to come back, or better yet, follow the top 10 with the Canadian Dividend Screener.

You can see the dividend yield of a stock anywhere but the dividend growth for a company is rarely free and yet critical to make the best investment decision for maximum profit down the road.

As a cautionary tale, the companies listed below look past the Canadian Dividend Aristocrats and focus on 10 years of dividend increases – more like the Canadian Dividend Achievers.

One other criteria is to have at least a yield of 3%. Coupled with 10 years of dividend increases, you get a solid blend of dividend growth and dividend income investments.

Below is the list of Canadian dividend stocks meeting the 2 criteria.

1. Canadian Natural Resources

Canadian Natural Resources is a diversified and independent energy producer in the world. It is the largest independent natural gas and heavy crude oil producer in Canada.  It operates a balanced mix of natural gas, light crude oil, heavy crude oil, and oil sands. The company holds some of the best oil sand assets in North America, particularly thermal in situ properties, having tremendous growth potential.

The company’s business can be broadly classified into Exploration and Production (North America, North Sea, offshore Africa), Oil Sands Mining and Upgrading, and Midstream and Refining segments. The Exploration and Production segment is Canadian Natural’s core business, while the other two businesses provide a nice diversification.

Canadian Natural has a balanced mix of natural gas, light crude oil, heavy crude oil, bitumen, and SCO. The company also owns midstream assets consisting of two crude oil pipeline systems and cogeneration plants, which enables the transportation of heavy crude oil in international markets.

Key Investment Data

  • Ticker: TSE:cnq
  • Sector: Energy
  • Industry: Oil & Gas E&P
  • Market Cap: 76.04B
  • Market Cap Group: Large Cap
  • P/E: 8.22
  • Dividend Yield: 4.61%

2. Algonquin Power & Utilitties Corp

Algonquin 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. 

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 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.

Key Investment Data

  • Ticker: TSE:aqn
  • Sector: Utilities
  • Industry: Utilities - Renewable
  • Market Cap: 12.07B
  • Market Cap Group: Large Cap
  • P/E: 27.20
  • Dividend Yield: 5.22%

3. Telus

TELUS Corporation is the second-largest telecom company in Canada, providing a wide range of communications products and services such as data, IP, voice, television, entertainment, and video. 

The company has ~16 million customer connections, including 10.6 million wireless subscribers, 2.2 million Internet subscribers, 1.2 million residential network access lines, and 1.2 million TELUS TV customers. It is also Canada’s largest digital healthcare provider and has been a major telehealth player for over a decade. 

The telecom has a strong presence in the wireless segment which accounts for 55% of total revenue while the wireline segment constitutes the remaining 45%. Nearly 70% of the total earnings is derived from the wireless segment. The wireline segment comprises data, voice, and other services and equipment. 

Key Investment Data

  • Ticker: TSE:T
  • Sector: Communication Services
  • Industry: Telecommunication Services
  • Market Cap: 39.89B
  • Market Cap Group: Large Cap
  • P/E: 23.18
  • Dividend Yield: 4.69%

4. Canadian Tire Corporation

Canadian Tire Corporation is a leading retail company in Canada having a presence in the retail, finance and real estate businesses.

The company’s retail and financial services businesses include Canadian Tire, PartSource, Petroleum, SportChek, Mark’s, Helly Hansen, CT REIT, and a Financial Services division. Retail is the larger segment accounting for more than 90% of total revenues, while financial services segment constitutes the remainder. The financial services segment offers credit cards and other financial products.

Canadian Tire is one of Canada’s most shopped general merchandise retailers. The company operates through a huge network of 1700 retail outlets and gas bars. It provides a wide range of products in the automotive, tools & hardware, home & essentials, sports and outdoor living categories.

Canadian Tire also has a 76% interest in CT REIT, a closed end real estate investment trust in Canada, of which it is the primary tenant. Customers trust the Canadian Tire brand for its product quality and leading reputation.

Key Investment Data

  • Ticker: TSE:CTC.A
  • Sector: Consumer Cyclical
  • Industry: Specialty Retail
  • Market Cap: 10.41B
  • Market Cap Group: Large Cap
  • P/E: 8.77
  • Dividend Yield: 3.91%

5. Canadian Western Bank

Canadian Western Bank is a leading bank in Canada. It is a part of the CWB Financial group and was formed by the amalgamation of Bank of Alberta and Western & Pacific Bank of Canada. The bank provides specialized financial services in business and personal banking, and wealth management services to small and medium-sized companies.

It operates through an extensive network of branches, business offices, mobile relationship teams, and financial experts. Canadian Western Bank has a huge presence in western parts of Canada.

It focuses on general commercial, equipment financing; and construction and real estate project financing. Canadian Western Bank offers a wide range of services including chequing and savings accounts, mortgages, loans and investment products in the personal banking segment through a network of 42 branches.

Key Investment Data

  • Ticker: TSE:cwb
  • Sector: Financial Services
  • Industry: Banks - Regional
  • Market Cap: 2.37B
  • Market Cap Group: Mid Cap
  • P/E: 6.84
  • Dividend Yield: 4.79%

6. Cogeco

Cogeco Inc. is a leading telecommunication and media company based in North America. The company provides cable TV, telephone, and Internet to customers in Ontario, Quebec, and some parts of the US.

The company operates through two subsidiaries - Cogeco Communications (cable, broadband services) and Cogeco Media (radio) and  reports its results through two operating segments: Communications (95% of 2017 revenues) and Other (5%). By geography, Canada accounts for 76% of the company’s revenues while the US constitutes the balance 24%.

Cogeco owns an extensive and advanced network of communication infrastructure consisting of long distance fibre optic systems, advanced hybrid fibre-coaxial broadband distribution networks, point-to-point fibre networks and fibre-to-the-home network technologies. It also owns and operates 13 radio stations across Quebec.

Key Investment Data

  • Ticker: TSE:cgo
  • Sector: Communication Services
  • Industry: Telecommunication Services
  • Market Cap: 1.01B
  • Market Cap Group: Small Cap
  • P/E: 7.95
  • Dividend Yield: 3.52%

7. Atco

ATCO is a diversified company providing services and business solutions globally. It is Alberta’s largest natural gas distribution company, serving approximately 1.2 million customers in nearly 300 communities.

ATCO has manufacturing facilities in Canada, the US, Chile, and Australia. The company serves more than two million customers in over 100 countries around the world. It provides integrated solutions in structures & logistics, electricity, pipelines & liquids, commercial real estate and retail energy.

ATCO owns an impressive asset base comprising of 21 power plants with a generation capacity of 2500+ MW, 87,000 km electric power lines, huge hydrocarbon storage capacity, 64,500 km natural gas pipelines, etc. Its regulated earnings have doubled to 93% in 2017 from 45% in 2012.

Key Investment Data

  • Ticker: TSE:aco.x
  • Sector: Utilities
  • Industry: Utilities - Diversified
  • Market Cap: 4.89B
  • Market Cap Group: Mid Cap
  • P/E: 16.82
  • Dividend Yield: 4.32%

8. Bank of Montreal

Bank of Montreal is the eighth largest bank in North America by assets. The bank has a strong presence across regional economies and markets around the world and is in a good position to address the growing cross border needs of corporate customers.

It provides diversified financial services and products in personal and commercial banking, wealth management and investment banking segments, to a wide range of customers including more than 12 million individuals, businesses, governments and corporate customers across Canada and the U.S.

By geography, Canada is its largest market accounting for over 60% of net income, followed by the US (28%) and other countries (9%) like Europe, Asia, the Middle East and South America.

Key Investment Data

  • Ticker: TSE:bmo
  • Sector: Financial Services
  • Industry: Banks - Diversified
  • Market Cap: 82.72B
  • Market Cap Group: Large Cap
  • P/E: 6.77
  • Dividend Yield: 4.51%

9. CIBC

CIBC or Canadian Imperial Bank of Commerce is a leading North American financial institution, formed as a result of the merger between the Canadian Bank of Commerce and the Imperial Bank of Canada in 1961. The bank caters to 11 million individual, small business, commercial, corporate and institutional clients in Canada, the U.S. and around the world.

The bank operates through its four strategic business units Canadian Personal and Small Business Banking (48% of latest net income), Canadian Commercial Banking and Wealth Management (24%), U.S. Commercial Banking and Wealth Management (13%), and Capital Markets (15%).

The bank caters to 11 million individual, small business, commercial, corporate and institutional clients in Canada, the U.S. and around the world. CIBC has a strong client focused culture and operational efficiencies which drive shareholder value and aid growth across different platforms.

Key Investment Data

  • Ticker: TSE:cm
  • Sector: Financial Services
  • Industry: Banks - Diversified
  • Market Cap: 57.13B
  • Market Cap Group: Large Cap
  • P/E: 8.96
  • Dividend Yield: 5.25%

10. Fortis

Fortis is a leading utility company engaging in regulated power generation, electric transmission, and energy distribution across North America.

The US accounts for about 60% of Fortis’ business while Canada constitutes the remaining 40%. About 99% of the company’s utility assets are regulated and it operates through regulated independent electric transmission (32% of 2018 earnings), regulated US electric & gas (33%), regulated Canadian & Caribbean electric & gas (40%), and non-regulated energy infrastructure (-5%) business segments.

Fortis’ assets can be divided into electric (~80% of asset mix), gas, and non-regulated energy infrastructure. It operates through 10 utility companies such as ITC, UNS Energy, Fortis Alberta, Fortis BC, etc. and serves utility customers in five Canadian provinces, nine U.S. states and three Caribbean countries.

Key Investment Data

  • Ticker: TSE:fts
  • Sector: Utilities
  • Industry: Utilities - Regulated Electric
  • Market Cap: 28.50B
  • Market Cap Group: Large Cap
  • P/E: 23.09
  • Dividend Yield: 3.58%

Build Your OWN Top List

My portfolio is generating over 12% annual returns since 2009. It's not from the beginning of the year or from 2019, it's from 2009 !!! That's a consistent return which means using the rule of 72, I double my portfolio every 6 years.

My approach is simple but you need key data that I have cultivated with the Dividend Snapshot Screeners. No other investment services provide you with easy to understand data but also actionable data. No hidden magic.

In fact, I have tried all of the investment services for dividend investors like a crash test dummy of investment services. Just ask me, and you'll learn why there was nothing I could use out there and build the Dividend Snapshot Screeners.

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.