10 Best Canadian Dividend Stocks for June 2021

No hype. No magic. The best stocks to buy right now are outlined below.

The best Canadian dividend stocks are always changing from an entry point perspective. We know that the stock market will grow over time, but on any day, stock prices will fluctuate and provide opportunities to invest.

The opportunities will vary every month and that’s why it’s important to have a systematic approach to understanding which dividend stocks are an opportunity. An opportunity can be for a stock you already own or simply for a new addition to your portfolio.

It is important to note that the rankings below do not assess the viability of the business. Some of the companies are strong blue chip stocks while others are smaller companies with growth or just simply beaten down.

Before heading over to the Top 10 Canadian stocks, here are some questions often asked to put the list in perspective.

Best Canadian Stocks FAQ

What is the best dividend stock to buy in Canada?

For income, look for a dividend stock with a dividend yield near 4% and a dividend growth of 6% with at least 5 years of dividend increases (that’s a Canadian Dividend Artistocrat).

For growht, look for a dividend sotck wih a lower dividend yield but with 10 years of dividend increases (that’s a Dividend Achiever) and a dividend growth of 12%.

What are the largest Canadian dividend stocks?

TickerKeyTickerCompanySectorIndustryScoreQuoteMarket CapP/EFPEEPSYieldYieldPayoutRatioPaymentsDividendChowderGrowthRatingIncomeRatingTollboothAmbassadorAchieverAristocratKingCountryGraph
TSE:RYRYRoyal BankFinancial ServicesBanks - Diversified0.61125.96181.1012.8012.809.980.033.430.438344.320.102867Tollbooth - UnregulatedNOYESYESNOCanada1
TSE:TDTDTD BankFinancial ServicesBanks - Diversified0.6887.09159.2211.2211.226.720.043.630.406243.160.128677Tollbooth - UnregulatedNOYESYESNOCanada1
TSE:ENBENBEnbridgeEnergyOil & Gas Midstream0.6549.43101.2215.8315.832.410.076.761.045143.340.1708610Tollbooth - UnregulatedYESYESYESNOCanada1
TSE:BNSBNSScotia BankFinancial ServicesBanks - Diversified0.6979.3797.9012.7912.796.270.054.540.428943.600.102268Tollbooth - UnregulatedNOYESYESNOCanada1
TSE:BAM.ABAM.ABrookfield Asset ManagementFinancial ServicesAsset Management0.4760.5596.1259.3359.331.020.011.070.633740.520.086575Tollbooth - UnregulatedNONOYESNOCanada1

What are the highest dividend paying Canadian stocks?

TickerKeyTickerCompanySectorIndustryScoreQuoteMarket CapP/EFPEEPSYieldYieldPayoutRatioPaymentsDividendChowderGrowthRatingIncomeRatingTollboothAmbassadorAchieverAristocratKingCountryGraph
TSE:CHE.UNCHE.UNChemtrade LogisticsBasic MaterialsSpecialty Chemicals0.287.050.750.000.00-0.960.098.510.0000120.600.085123IntermediateNONONONOCanada1
TSE:INO.UNINO.UNInovalis REITReal EstateREIT - Office0.419.990.320.000.00-0.270.088.260.0000120.830.083618Tollbooth - UnregulatedNONONONOCanada1
TSE:FSZFSZFiera Capital CorpFinancial ServicesAsset Management0.3810.450.86133.73133.731.520.088.047.936540.840.143053Consumable - DiscretionaryNONOYESNOCanada1
TSE:TNT.UNTNT.UNTrue North Commercial REITReal EstateREIT - Diversified0.407.490.6520.3820.380.370.087.931.6162120.590.079318Tollbooth - UnregulatedNONONONOCanada1
TSE:AD.UNAD.UNAlaris Royalty CorpIndustrialsConglomerates0.5116.150.757.167.162.050.087.680.589641.240.082946IntermediateNONONONOCanada1

June’s Top 10 Canadian Dividend Stocks

Here are the top 10 Canadian dividend stocks for this month, see below for the details. This is obviously a snapshot in time at the time of writing, many factors could change the rankings.

Here is a quick excerpt on the top 10 dividend growth stocks opportunities identified through the Canadian Dividend Stock Screener.

Stay on top of your next investment decision with the Dividend Snapshot Canadian Dividend Screener. Review the Chowder Rule along with the 3, 5, and 10 year ratios for dividend growth, EPS growth and the payout ratio to pick a solid investment for your portfolio.

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

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#1 – Algonquin Power & Utilities Corp

AQN - Algoquin Power & Utilities 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. 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.

Investment Data
 

#2 – Manulife

MFC - Manulife Manulife 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.

Investment Data
 

#3 – Enbridge

ENB - Enbridge Enbridge Inc. is the largest energy infrastructure company in North America. It is Canada’s largest natural gas distributor engaging in the collection, transportation, processing and storage of oil and gas. Enbridge caters to 3.7 million customers in Ontario, Quebec, New Brunswick, and New York.

It owns an extensive network of about 192,000 miles of natural gas and NGL pipelines across North America and the Gulf of Mexico.

Its crude oil and liquids transportation systems are huge comprising of more than 17,000 miles of active pipelines.

The company is known for its high quality liquids and natural gas infrastructure assets. In addition, Enbridge has 3.1 Bcf/d of processing capacity and 438 Bcf of net natural gas storage capacity. It also owns interests in nearly 3,000 MW of renewable generation capacity.

Enbridge operates through five reporting segments - Liquids Pipelines (52% of 2018 earnings), Gas transmission and midstream (22%), Gas Distribution (17%), Green Power and Transmission (4%), and Energy Services (5%).

Investment Data
 

#4 – Stella-Jones Inc.

SJ Stella Jones Stella-Jones is a North America’s premier provider of pressure treated wood products. The company enjoys a strong reputation for providing reliable high quality wood products in the North American market.

Stella-Jones operates through two business segments, the production and sale of pressure treated wood, and logs and lumber.

The company’s product mix consists of railway ties (30%), residential lumber (25%), utility poles (32%), logs and lumber (8%), and industrial products (5%). The company owns 37 wood treating facilities spread across sixteen U.S. states and five Canadian provinces, and a huge distribution network across North America.

By geography, the US is Stella-Jones’ largest market accounting for nearly 70% of its total sales, while Canada constitutes the remaining 30%. The company also has a small presence in Latin and South American markets.

Leading railroad companies, telecom providers, and electrical transmission utilities are Stella-Jones biggest customers.

Investment Data
 

#5 – Alimentation Couche-Tard Inc.

ATD.B - Alimentation Couche-Tard Inc. Alimentation Couche-Tard is one of the largest Canadian companies and the owner of several Canadian convenience stores. The company also supplies road transportation fuel to approximately 1,300 locations in the U.S. and offers stationary energy and aviation fuel.

Couche-Tard caters to more than 9 million global customers daily, offering them merchandise and services (55% of 2018 revenues), motor fuel (43%) and other (2%).

As a leading independent convenience store operator, Couche-Tard owns a network of nearly 10,000 convenience stores in 48 states in the U.S., ten provinces in Canada, as well as other countries.

It operates more than 16,000 stores worldwide. By geography, the US is its largest market accounting for 67% of 2018 revenues, followed by Europe (20%) and Canada (13%). The company operates through Couche-Tard and Mac’s brands in Canada and Circle K globally.

With nearly four decades of experience, Couche-Tard has adapted to the changing customer habits and preferences and has a sound track record of successful acquisitions over the last decade.

Investment Data
 

#6 – Enghouse Systems Limited

ENGH - Enghouse Systems Limited Enghouse Systems is a software and services company engaging in developing and selling enterprise oriented applications software. Enghouse is headquartered in Canada and has offices in over 20 countries.

The company operates through three divisions, interactive, networks and transportation to address the different vertical markets. It has two business segments, Interactive management group which provides customer interaction software (55% of 2018 revenues) and Asset management group that offers operations support systems, mobile value-added services systems and data conversion systems (45%).

Enghouse’s solutions cater to enhance customer service, increase efficiency and improve communications for banks, insurance, utility, technology, hospitality companies, etc. By geography, the U.S. accounted for 30% of total revenues in 2018, followed by 19% from the U.K., Europe (18%), Scandinavia (24%), Asia-Pacific (6%), and Canada (3%).

Enghouse Systems’ revenue comprises of hosted and maintenance services (accounting for 51% of 2018 revenues), licenses (30%), services (17%) and hardware (2%).

Investment Data
 

#7 – TD Bank

TD - Small Toronto Dominion Bank is a leading Canadian bank providing banking products and services in Canada and the US. It is the fifth largest bank in North America by total assets.

The bank was formed as a result of amalgamation of The Bank of Toronto and The Dominion Bank in 1955. Retail earnings accounts for more than 90% of TD Bank’s total earnings.

The bank operates through three business segments: Canadian retail banking (53% of latest income), U.S. retail banking (47%) and wholesale banking. TD Bank offers a wide range of retail, small business and commercial banking products and services to more than 25 million customers worldwide and almost 13 million digital customers.

Toronto Dominion bank operates through more than 1,250 locations along the Northeast, Mid-Atlantic, Metro DC, the Carolinas and Florida. It enjoys #1 or #2 market share positions for most of its retail products in Canada. The bank operates in four of the top ten metropolitan areas and seven of the ten wealthiest states in the U.S.

Investment Data
 

#8 – Cogeco

CGO - 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.

Cogeco has been in business since the last six decades and is known for its diversified range of telecommunications and media products and services.

Investment Data
 

#9 – Cogeco Cable Inc

CCA - Cogeco Cable Inc Cogeco Communications is a leading North American communications company. It engages in providing internet, video and telephony services to residential and business customers. Cogeco Communications is a subsidiary of Cogeco Inc.

The company operates as Cogeco Connexion in Canada, and Atlantic Broadband in 11 US states. Cogeco Communications Inc. provides a suite of information technology services to its business customers.

It is also the eighth largest cable operator in North America and operates 13 radio stations across Quebec through its subsidiary Cogeco Media. Cogeco

Communications has three business segments: Canadian broadband services (60% of earnings), American broadband services (33%) and Business information and communications technology services (7%).

It has a strong presence in North America. Cogeco Communications owns extensive two-way broadband fiber networks, 16 data centers, and spectrum licenses of significant capacity. The company is known for providing superior internet speeds and video services and has developed sticky customer relationships in the last six decades of existence.

The company is favorably placed to cross sell its services to existing customers and attract new customers. As one of the leading communications company, Cogeco should benefit from increasing demand for data and communication services.

Investment Data
 

#10 – Metro

Metro Metro is a leading food and pharmaceutical company having operations in Quebec and Ontario. The company is one of the largest food retailers in Canada.

The company operates through more than 600 food stores operating under the banners Metro, Metro Plus, Super C, Food Basics and Adonis. Its drug business is conducted through 650 drugstores and pharmacies operating under the banners Jean Coutu, Brunet, Metro Pharmacy and Drug Basics.

Its two business segments, food operations and pharmaceutical operations are combined into one reportable operating segment.

Metro has developed a successful market segmentation strategy with its different grocery banners catering to three different market segments. For example, Metro, Super C and Adonis all target unique markets and customers. Metro and Metro Plus are leading supermarket chains in Quebec and Ontario.

Metro’s largest acquisition of Jean Coutu group that has resulted in the creation of a $16-billion retail leader.

Investment Data
 

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Ranking Methodology

The top 10 stocks identified above are based on a score calculated using a number of financial data points from the companies. In the end, the score is generated from following five key indicators:

  • 52-Week Range: Trend over the past 52 weeks. Is the stock pulling back from a 52 week high?
  • P/E Ratio: Is the stock price running away from its earnings?
  • Revenue Growth: Is the revenue growing? Growing revenue is important. We don't want to be fooled by share buybacks and cost management only.
  • Dividend Yield: Is the yield attractive? Usually could identify a pullback if the yield starts to go up or major trouble if it goes too high.
  • Dividend Growth: Uses dividend growth and the Chowder Rule. Is the company capable of growing the dividend consistently?
  • Dividend Payout Ratio: Uses historical averages to put today's ratio in perspective. Is the company able to grow the dividend at the same rate it increases its earnings?

The generated score is meant to assess an entry point opportunity based on historical and today's numbers. It completely ignores the business quality, the quality of the company is for every investor to assess. My stock selection process breaks down the quantitative and qualitative assessments investors should establish to pull the trigger before buying.

If you are interested in more details, the Canadian Dividend Screener provides many more data points to help make your investment decision.

Dividend growth investing works and you can generate a healthy retirement income but you have to buy individual stocks. If you are not comfortable with holding individual stocks, you can always buy dividend ETFs or consider different passive income ideas to generate a retirement income.

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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.

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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.