Last Monday, I pulled out the Best US Stocks for 2012 with 182 companies listed in this post. As mentioned previously, I wanted to do the same thing on the Canadian stock market to be fair and to show you which companies are interesting to own in Canada even if you are a US citizen. You know this by now; I’m a big fan of some Canadian stocks as I think that the banking industry in Canada along with the resources sector can bring a lot to one’s portfolio.

 

While I was surprised to pull out 182 stocks on the US stock market, I was even more surprised to pull out…32 stocks on the Canadian market with the same metrics!

 

Canadian vs US

As a Canadian myself, it is obviously easier to buy Canadian stocks as I avoid currency risk and tax complications (depending on the type of account you are trading in). However, in the light of this chart showing a pitiful 32 stocks (of which 7 are banks + 6 others related to financial services and 4 telecoms), as Canadians you have no other choice but to consider US stocks as well. Just for the sake of diversification, you need to look elsewhere if you want to build a strong dividend portfolio. This was also the reason why I’ve put only 9 Canadian stocks in my Best Dividend Stocks for 2012 eBook.

 

Best Dividend Stocks for 2012

The chart is based on the same filters:

Dividend Yield over 3%

Dividend Payout Ratio under 75%

5 Years Dividend Growth positive

 

Ticker
Name
INDUSTRY_SUBGROUP
Price
Dividend Yield
Payout Ratio
Dividend Growth 5 Years
IGMIGM Financial IncInvest Mgmnt/Advis Serv44.794.873.996.96
SJR/BShaw Communications IncCable/Satellite TV19.794.6572.5626.15
CLKClubLink Enterprises LtdDiversified Operations6.414.5570.884.56
GWOGreat-West Lifeco IncLife/Health Insurance19.536.370.375.81
CFN-UCarfinco Income FundFinance-Consumer Loans6.925.268.992.73
MKPMCAN Mortgage CorpFinance-Mtge Loan/Banker13.18.2467.5111.76
BCEBCE IncTelecom Services41.145.2762.458.16
TTELUS CorpTelecom Services56.954.0762.0912.94
XTMX Group IncFinance-Other Services41.53.8558.153.92
CDL/ACorby Distilleries LtdBeverages-Wine/Spirits15.333.9258.143.35
CVLCervus Equipment CorpRetail-Gardening Prod154.857.816.72
CTYCalian Technologies LtdConsulting Services17.196.0656.6923.61
MXMethanex CorpChemicals-Specialty22.83.156.233.76
BMOBank of MontrealCommer Banks Non-US54.945.154.134.38
CEUCanadian Energy Services & Technology CorpOil-Field Services11.414.7353.4714.37
BDTBird Construction IncBuilding&Construct-Misc11.495.7653.4517.6
EHeasyhome LtdRental Auto/Equipment6.785.0151.917.21
RCI/BRogers Communications IncCellular Telecom38.813.6548.370
CMCanadian Imperial Bank of Commerce/CanadaCommer Banks Non-US73.64.8947.744.93
RYRoyal Bank of CanadaCommer Banks Non-US48.954.4146.617.63
CJR/BCorus Entertainment IncMultimedia20.384.2645.3220.49
NDNNordion IncMedical Products8.344.9244.6325.14
BNSBank of Nova ScotiaCommer Banks Non-US49.484.2144.366.45
ADW/AAndrew Peller LtdBeverages-Wine/Spirits9.33.8743.129
TDToronto-Dominion Bank/TheCommer Banks Non-US73.453.740.5713.93
GHGamehost IncCasino Hotels11.147.939.53.06
NANational Bank of CanadaCommer Banks Non-US71.474.238.361.2
LNFLeon's Furniture LtdRetail-Home Furnishings12.23.2835.546.76
LBLaurentian Bank of CanadaCommer Banks Non-US47.393.833.696.91
ACDAccord Financial CorpFinance-Commercial6.874.3731.918.45
MRDMelcor Developments LtdReal Estate Oper/Develop12.43.2323.475.92
MGMagna International IncAuto/Trk Prts&Equip-Orig32.893.1510.482.95

 

Out of this list, I’ve published several dividend stock analyses over at Canadian Dividend Stock including the following:

BCE

Telus – T

Great-West Lifeco – GWO

Corus – CJR.B

National Bank – NA

TD Bank – TD

Royal Bank – RBC

BMO – BMO

ScotiaBank – BNS

CIBC – CM

Rogers – RCI.B

Shaw Communications – SJR.B

 

 

Another great option for Canadian investors that is not listed in this article is to consider Canadian REITs. But even then, this is not enough to cover all industries and have a well diversified portfolio. Unfortunately, when a sector is not doing so well or show some concerns from investors; all stocks related to this industry will go bad.

 

Therefore, you could think that building a “bank” portfolio along with a few other stocks and a few REITs may be good enough. In fact, such a portfolio would payout some healthy dividends and you could think it’s a good way to invest. However, being concentrated in a couple of sectors also means that you are dependent on their growth to perform over the long term. If you know which sectors are going to perform over the next 5 years, then, you are all set. But unfortunately, we don’t see such crystal ball on sale at Wal-Mart yet…

 

If You Are Looking For The First Canadian Dividend Book – Here it Is:

 

Dividend Growth Cover

click here to download

In this book, we cover 3 majors issues:

#1 Invest In Foreign Stocks Without Paying Tons of Taxes

#2 Find Triggers To Buy And Sell Stocks and Make Money Out of it!

#3 Generate Impressive Dividend Growth by Managing Your Portfolio as a Whole

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18 Comments   |  

18 Comments

clocks
January 11, 2012, 12:14 pm

I picked up BCE & RCI recently. I hate giving up that tax withholding on the dividends, but I needed some more non-USA exposure.

January 11, 2012, 5:49 pm

You sure go to a lot of trouble dredging up all this good stuff, and I appreciate and always read yours and the other related 2 blogs. But a question:
This morning Shirley Won of the G&M featured an article about a Harry Dent, who is the latest of the numerous opiners of a coming crash, and he in particular has advised his clients to go all cash by summer. So far as I can tell this Dent guy gets listened to by the “big guys”. And I sense he expecting the worse from Europe. That said,do you ever factor in such black swan events or so-called tail risks when you think macroeconomically? I gather youre pretty young, and the writer is a late septuagenerian, so I appreciate our perspectives must diverge. Anyway I’d like your take on this variety of punditry that has gained much currency of late. All the best.
Harry.

Mike
January 12, 2012, 8:24 am

@Harry,

You ask a very good question about “should we factor the black swan events or not”.

I never factor those “big guys” that announce the apocalypse. Unfortunately, there are absolutely no accountability for those big guys who claim that this is the end of the world. Sadly enough, all the “big guys” who predicted the end of capitalism in 2008 were never brought back to Oprah in 2009 or 2010 to explain why the end of the world has not arrived yet. Every single year, you will have one of those guys who will go out publicly and claim that we should cash all our investment. Once in a while (like it was the case in 2008), they hit the jack pot and they become famous (and also filthy rich). And if they are not right, well, everybody forgets about them any way and they continue their life waiting for that 15 minutes of fame. This is why I don’t listen to the “noise” and I rather concentrate on what really counts: do companies make money or not?

And for the record, I’m 30, so yup, I’m young ;-).

Cheers,

Mike

Bernie
January 12, 2012, 12:30 pm

Excellent work, thanks much for putting the list together! Which site did you use for your screening?

Michel
January 13, 2012, 5:30 am

Way to go Mike. Let’s come back to picking a portfolio of solid good dividend producing companies for the very long term! The magic of compounding is alive and well. Thanks for your lists.

If you had to pick 5 or so of the best (combination of growth and yield), in each of the sectors, right now, in 2012, what would they be? The results would give you a portfolio of about 30-35 stocks. Let’s say a portfolio for the next decade.

January 14, 2012, 1:59 pm

[…] Dividend Guy shares the Best Canadian Dividend Stocks for 2012 and also the Best U.S. Dividend Stocks for […]

January 14, 2012, 3:22 pm

[…] Best Canadian Dividend Stocks for 2012 The Dividend Guy provided a large set of moderate and high yielding Canadian companies. […]

January 16, 2012, 10:04 am

[…] you know what the Best Canadian Dividend Stocks for 2012 are?  Div Guy at The Dividend Guy blog thinks he knows the best Canadian dividend stocks. Check […]

January 21, 2012, 2:42 pm

I have been reading your posts for a while. I think it was you that finally convinced me to buy some dividend paying investments. I now have an RRSP set up with a dividend paying mutual fund, a TFSA account with a dividend paying mutual fund and a TFSA trading account where I hold shares of CPD. I am just starting out in the dividend game but I am still a student and time is on my side, hopefully more so than inexperience is against me.

February 1, 2012, 5:47 am

[…] 11 stocks from the TSX60 made the cut to my Best Canadian Stocks […]

Sheila
March 20, 2012, 12:07 pm

Is your newsletter via email free?

Sheila
March 20, 2012, 12:10 pm

I am shocked that you published my full name when previous people only had their first names published. Very unfair.

Mike
March 20, 2012, 6:36 pm

Hello Sheila,

the newsletter is free.

visitors write their name or full name. it’s up to you, not me. Your name is being published automatically by wordpress.

Mike
March 20, 2012, 6:37 pm

I’ve just corrected it :-)

MATT
August 6, 2012, 8:04 pm

ARE THERE ANY MLP’S THAT YOU RECOMMEND?

Mike
September 6, 2012, 6:39 am

Hey Matt,

sorry, I don’t do any recommendation. Unfortunately, I don’t follow MLP’s right now.

Manny
October 25, 2012, 2:36 pm

Interesting read. I am very unfamiliar with Stocks/dividents and all the values on your chart. Is there a good place for me to start learning what this game is all about? I’m in my mid 30s and have no debt and my house is almost paid off. I’m looking for simple ways to invest for the future!
Any suggestions where I can start?

Mike
October 27, 2012, 9:47 am

Hey Manny,

I suggest you start with my free eBook :-)go at the top of the site, you’ll find the book on the right side.

cheers,

Mike

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