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Best Canadian Dividend Stocks for 2012


 

Last Monday, I pulled out the Best US Stocks for 2012 [1] 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 [2] 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

 

TickerNameINDUSTRY_SUBGROUPPriceDividend YieldPayout RatioDividend 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 [3] including the following:

BCE [4]

Telus – T [5]

Great-West Lifeco – GWO [6]

Corus – CJR.B [7]

National Bank – NA [8]

TD Bank – TD [9]

Royal Bank – RBC [10]

BMO – BMO [11]

ScotiaBank – BNS [8]

CIBC – CM [6]

Rogers – RCI.B [12]

Shaw Communications – SJR.B [13]

 

 

Another great option for Canadian investors that is not listed in this article is to consider Canadian REITs [14]. 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 [15]

click here to download [15]

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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