Best 10 Canadian Dividend Stocks for April 2021

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

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.

The stocks below are starting to represent some opportunities in a post-Covid economy.

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.

Get your list of STRONG Dividend Growth Stocks

#1 – 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.

Investment Data
 

#2 – 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
 

#3 – Telus

TSE:TTELUS Corp. is a leading telecom company in Canada. It is the second largest in Canada and provides a wide range of communications products and services such as data, IP, voice, television, entertainment, and video.

It is Canada's largest healthcare IT provider. TELUS has a strong presence in the personal, business and healthcare segments which provides a diversified stream of income.

Wireless is the larger segment accounting for 57% of total revenue while the wireline segment constitutes the remaining 43%.

The company has industry leading wireless churn rates of below 1%. TELUS serves more than 13 million customer connections, including 8.9 million wireless subscribers, 1.7 million Internet subscribers, 1.3 million residential network access lines and 1.1 million TELUS TV customers.

TELUS Corporation is a leading network provider catering to 99% of Canadians. The company generates recurring monthly fees from its subscribers, which are growing in number, and is well positioned to benefit from a growing appetite for data.

Investment Data
 

#4 – TC Energy

TRP - TransCanada PipelineTC Energy is a leading North American infrastructure company. It supplies more than 25% of natural gas consumed daily across North America.

The company has a strong portfolio of diversified assets, storage facilities and power generation plants and operates one of North America’s largest natural gas pipelines networks extending to more than 57,500 miles.

TC Energy operates three complementary energy infrastructure businesses across three major geographies in North America. By generation type, TC’s assets can be divided into nuclear, natural gas and wind.

The USA, Canada and Mexico are its core geographies and the company has access to North America’s two most prolific natural gas supply basins.

With more than 65 years of service, TC Energy is known for delivering energy in a safe and sustainable manner. Ownership of low-risk regulated cost-of-service businesses and long-term contracted energy infrastructure assets differentiate TC Energy from its peers.

Investment Data
 

#5 – Emera

EMA - EmeraEmera Inc. is a leading North American diversified energy and services company with assets worth $30 billion. The company engages in the generation, transmission, and distribution of electricity and gas, and provides other utility energy services.

Emera Inc. has operations in Canada, the USA and in four Caribbean countries. The company serves a diverse base of residential, commercial as well as industrial customers.

It operates a balanced and diversified portfolio consisting of ~90% regulated assets in electric utilities, gas LDCs; and unregulated gas-fired generation across North America. Emera reports its results in six operating segments: Emera Florida and New Mexico, Nova Scotia Power Inc., Emera Maine, Emera Caribbean, Emera Energy, and corporate & other.

The company invests in electricity generation, transmission and distribution, gas transmission and distribution, and utility energy services. It also has investments in renewable energy assets.

Investment Data
 

#6 – Enbridge

ENB - EnbridgeEnbridge 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
 

#7 – 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
 

#8 – Genworth MI Canada Inc.

MIC - GenworthGenworth is the largest private residential mortgage insurer in Canada providing mortgage default insurance to Canadian residential mortgage lenders.

The company offers both transactional and portfolio mortgage insurance. Genworth is known for delivering value at every stage of the mortgage process. The company operates through its subsidiary, Genworth Financial Mortgage Insurance Company Canada (Genworth Canada).

With more than two decades of experience, Genworth has developed deep relations with lenders, brokers, realtors, etc. and has built a broad underwriting and distribution platform across Canada.

Genworth provides tailored mortgage insurance products which help customers buy homes with a minimum 5% down payment. The company has helped more than 1.5 million families buy their own homes.

Genworth has a strong capital position with a track record of annual dividend increases and share buybacks. Superior customer service, a robust risk management framework and innovative processing technology form a deep moat around Genworth’s business.

Investment Data
 

#9 – Equitable Group Inc.

Equitable Group Inc. is a leading financial services provider in Canada. It operates through its wholly owned subsidiary, Equitable Bank, which is the ninth largest Schedule I bank, and a Challenger Bank in Canada.

The bank offers a wide range of residential and commercial lending and savings solutions to its wide range of clients including self borrowers, commercial real estate investors, and newcomers to Canada.

Equitable operates through a network of independent mortgage brokers and other business partners across Canada. The bank serves its clients from coast to coast through its branchless banking model and customer first approach.

The bank’s operations can be organized into single family lending services, commercial lending services, securitization financing, EQ Bank and brokered deposits. Equitable Bank has approximately $27.5 billion in assets under management.

The bank has been diversifying into adjacent business such as reverse mortgages and cash surrender value LoC through its commercial lending platform, since 2018.

Investment Data
 

#10 – 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.

Investment Data
 

Get your list of STRONG Dividend Growth Stocks

Questrade offers the cheapest trades!
The best broker for small accounts and new investors.
Quickly create your account online and get started with $50 in Free Trades.


Opportunity Score Formula

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.

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.

Join 128,000+ Monthly Investors & Build a Winning Portfolio

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.