For the beginning of the year, I did some research on a lot of stocks and wrote the Best Dividend Stocks for 2013 [1] eBook (you can download it for only $2.99 here [1]). This eBook includes 30 Dividend Growth Stocks (20 US and 10 Canadian) that have been showing very solid dividend metrics.
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Last week, I pulled out the Best 2013 US dividend stocks with an impressive list of 96 stocks. This is a lot more than the 20 picks I selected for the best 2013 dividend stocks (30 stock analyses in this book). Unfortunately, the Canadian market is not as deep nor diversified. I have applied the same specific metrics described in Dividend Growth Freedom Through Passive Income. These metrics have been proven to combine both dividend and capital growth for each company. While I pulled 96 US stocks, only 22 made the list from the Canadian market.
Here’s the list of the filters I’ve used to create my list.
Dividend yield over 3%
5 year positive dividend growth
Dividend payout ratio under 75%
Return on equity (ROE) over 10%
5 year positive annual income growth rate
Current price / earnings ratio (PE) under 20
Top 2013 Canadian Stocks
| Ticker | Name | Dvd Yield | Dvd 5Y Growth | EPS 5Y Growth | Payout Ratio | P/E | ROE | Industry |
|---|---|---|---|---|---|---|---|---|
| ADW/A | Andrew Peller Ltd | 3,61 | 5,42 | 12,18 | 39,59 | 10,36 | 11,44 | Beverages-Wine/Spirits |
| SJR/B | Shaw Communications Inc | 4,56 | 12,67 | 1,99 | 47,84 | 13,12 | 22,33 | Cable/Satellite TV |
| RCI/B | Rogers Communications Inc | 3,6 | 36,08 | 21,16 | 49,01 | 14,57 | 40,17 | Cellular Telecom |
| RY | Royal Bank of Canada | 4,17 | 4,61 | 11,37 | 46,61 | 12,23 | 19,21 | Commer Banks Non-US |
| TD | Toronto-Dominion Bank/The | 3,76 | 6,49 | 5,29 | 40,57 | 11,03 | 14,85 | Commer Banks Non-US |
| BNS | Bank of Nova Scotia | 4,18 | 4,71 | 12,68 | 44,36 | 11,83 | 19,38 | Commer Banks Non-US |
| CM | Canadian Imperial Bank of Commerce/Canada | 4,74 | 3,2 | 163,87 | 47,74 | 10,26 | 22,58 | Commer Banks Non-US |
| NA | National Bank of Canada | 4,09 | 6,2 | 8,35 | 38,36 | 8,67 | 22,46 | Commer Banks Non-US |
| LB | Laurentian Bank of Canada | 4,24 | 9,67 | 5,66 | 33,69 | 8,7 | 10,7 | Commer Banks Non-US |
| CTY | Calian Technologies Ltd | 5,42 | 20,34 | 10,93 | 56,69 | 11,28 | 21,61 | Consulting Services |
| EMA | Emera Inc | 4,01 | 8,65 | 15,22 | 65,82 | 18,5 | 14,44 | Electric-Integrated |
| ACD | Accord Financial Corp | 4,6 | 6,75 | 22,4 | 35,19 | 9,52 | 14,67 | Finance-Commercial |
| ET | Evertz Technologies Ltd | 3,75 | 60,95 | 5,54 | 62,58 | 16,41 | 17,56 | Industr Audio&Video Prod |
| GWO | Great-West Lifeco Inc | 5,32 | 3,71 | 14,57 | 57,81 | 10,96 | 17,24 | Life/Health Insurance |
| PWF | Power Financial Corp | 5,34 | 4,66 | 6,79 | 59,73 | 11,19 | 15,16 | Life/Health Insurance |
| POW | Power Corp of Canada | 4,7 | 5,74 | 16,61 | 52,67 | 11,44 | 11,62 | Life/Health Insurance |
| CJR/B | Corus Entertainment Inc | 4,2 | 13,4 | 50,17 | 52,56 | 12,7 | 13,68 | Multimedia |
| CUF-U | Cominar Real Estate Investment Trust | 6,16 | 2,59 | 29,58 | 52,64 | 9,68 | 12,12 | REITS-Diversified |
| AP-U | Allied Properties Real Estate Investment Trust | 4,15 | 1,15 | 86,96 | 39,19 | 10,47 | 14,07 | REITS-Office Property |
| BDI | Black Diamond Group Ltd | 3,52 | 6,19 | 81,16 | 49,85 | 16,66 | 16,96 | Rental Auto/Equipment |
| BCE | BCE Inc | 5,29 | 8,77 | 22,05 | 71,03 | 13,58 | 23,1 | Telecom Services |
| T | TELUS Corp | 3,79 | 9,67 | 6,36 | 58,65 | 16,98 | 15,73 | Telecom Services |
Out of 22 stocks, 45% come from the financial services sector (6 Canadian Banks and 4 Insurance/Investment holding companies). Let’s just say that you can’t really build a complete dividend portfolio by using this list! Choosing Canadian banks seems like a no brainer but while they pay a healthy dividend, the Canadian housing market should remain a concern for 2013. I also found some interesting picks with Andrew Peller and Emera (which I recently covered on The Dividend Guy Blog).
They Are Not Stock Pick Recommendations
I have done a lot of research to produce this list of stocks (and even more to write my book for 2013!) but they cannot be used as stock recommendations alone. I truly believe in creating a proper mix of asset allocation for your own portfolio. The other thing is when I look at my 2012 results, I had 1 stock that didn’t do well out of 9 (IMG). I know that my Canadian portfolio beat the index by more than 6% but still, I’m not a professional and I am not giving stock picking recommendations.
Among the 22 stocks on this list, I’ve picked 10 companies for my Best Dividend Stocks for 2013:
Andrew Peller – ADW.A
Black Diamond Group – BDI
Calian Technologies – CTY
Emera – EMA
Evertz Technologies – ET
National Bank – NA
Rogers Communications –RCI.B
Power Corporation – POW
Royal Bank – RY
Telus – T
I hope to beat the market by 6% again this year ;-D
If You Are Looking For The First Canadian Dividend Book – Here it Is:
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Disclaimer: I hold NA & T
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