Each year, the Aristocrats lists are updated. The dividend aristocrats are a group of US companies showing 25 consecutive years of dividend increases. When you think about it, only the strongest companies can make this list. In order to be part of this elite group, a company must be in a good position to increase both their sales and earnings year after year on a very consistent basis. If one fails to do so, it will quickly become impossible to raise its dividend. Canadians also have their dividend aristocrats, but the criteria used for selection is fairly different.
Canadian Aristocrat Requirements
In order to be considered a S&P Canadian Dividend Aristocrat, the company must have increased its dividend payout every year for five years but have a free pass and is still eligible if the company maintains the same dividend payout for a maximum of 2 years. Therefore, we are looking at stocks that have a good potential for raising its dividend but still pretty far away from 25 consecutive years.
The Most Important Rule
Along with the main rule, the stock must also have a minimum market capitalization of $300M and have increased its dividend in the first year of the prior five years reviewed for dividend growth.
As you can see, it’s not “that difficult” to qualify for the Canadian Aristocrats list. But the Canadian stock market is less diversified and we don’t have an economy promoting behemoths such as Colgate-Palmolive (CL) or Procter & Gamble (PG). Still, they are pretty solid dividend payers.
Here’s the current list of Canadian Aristocrats:
*The list is provided by Dividend Stocks Rock [1]
| Symbol | Name | Market Cap | DVD Yield | P/E | Payout | EPS Basic | Rev | DVD Growth |
|---|---|---|---|---|---|---|---|---|
| AGF.B.TO | AGF Management Limited | 1$B | 9.21 | 35.52 | 302.22 | -22.44 | -8.15 | 6.72 |
| ACO.X.TO | Atco Ltd. | 6$B | 1.66 | 14.33 | 55.98 | 9.17 | 5.95 | 9.8 |
| BNS.TO | Bank of Nova Scotia | 78.2$B | 3.98 | 12.35 | 50.55 | 11.05 | 12.75 | 4.48 |
| BCE.TO | BCE Inc | 36.4$B | 5.27 | 18.39 | 104.7 | 20.25 | 2.93 | 26.13 |
| BDT.TO | Bird Construction Inc | 0.6$B | 5.62 | 47.56 | 263.47 | -28 | 5.08 | 9.26 |
| BYD.UN.TO | Boyd Group Income Fund | 0.5$B | 1.42 | #N/A | -233.29 | 11.89 | 17.95 | 72.11 |
| CAE.TO | CAE, Inc. | 3.9$B | 1.62 | 21.76 | 23.11 | -2.09 | 8.13 | 36.56 |
| CCO.TO | Cameco Corp | 10.5$B | 1.51 | 32.98 | 49.66 | -8.75 | 2.24 | 10.76 |
| CNR.TO | Canadian National Railway Co | 51.5$B | 1.61 | 20.06 | 27.72 | 9.37 | 4.51 | 13.33 |
| CNQ.TO | Canadian Natural Resources Ltd | 43.2$B | 2.26 | 19.12 | 23.04 | -6.6 | 5.24 | 20.26 |
| CP.TO | Canadian Pacific Railway Ltd | 29.8$B | 0.82 | 34.18 | 27.89 | 4.87 | 4.46 | 7.18 |
| REF.UN.TO | Canadian Real Estate Investment Trust | 3$B | 3.75 | 35.64 | 93.96 | 1.88 | 4.81 | 3.59 |
| CTC.A.TO | Canadian Tire Corp | 7.6$B | 1.76 | 14.4 | 20.78 | 8.48 | 5.26 | 11.43 |
| CU.TO | Canadian Utilities Ltd | 10.4$B | 2.69 | 18.59 | 30.66 | 4.91 | 4 | 7.84 |
| CWB.TO | Canadian Western Bank | 2.8$B | 2.15 | 14.57 | 34.51 | 8.26 | 13.99 | 10.76 |
| CCL.B.TO | CCL Industries Inc. | 3$B | 1.07 | 31.37 | 28.39 | 15.57 | 9.71 | 8.96 |
| CGX.TO | Cineplex Inc | 2.6$B | 3.43 | 31.46 | 105.47 | 19.14 | 6.63 | 2.6 |
| CCA.TO | Cogeco Cable Inc. | 2.7$B | 2.18 | 14.03 | 27.27 | 6.72 | 9.47 | 21.06 |
| CGO.TO | Cogeco Inc. | 0.9$B | 1.71 | 12.67 | 71.09 | 20.49 | 10.59 | 22.1 |
| CMG.TO | Computer Modelling Group Ltd. | 1.1$B | 2.59 | 42.74 | 106.66 | 23.53 | 19.64 | 26.19 |
| CSU.TO | Constellation Software Inc. | 5.5$B | 1.72 | 55.72 | 92.72 | 40.36 | 26.41 | 81.15 |
| CJR.B.TO | Corus Entertainment, Inc. | 2$B | 4.28 | 7.92 | 25.23 | 4.29 | 0.41 | 6.89 |
| DII.B.TO | Dorel Industries, Inc. | 1.2$B | 3.56 | 20.13 | 68.4 | -14.14 | -0.33 | 16.16 |
| EMA.TO | Emera, Inc. | 4.7$B | 4.33 | 20.46 | 91.13 | 5.41 | 10.86 | 7.92 |
| EMP.A.TO | Empire Company Limited | 3.8$B | 1.58 | 13.01 | 21.86 | 3.31 | 4.72 | 7.78 |
| ENB.TO | Enbridge, Inc. | 40.8$B | 2.85 | 90.6 | 209.86 | -21.28 | 15.33 | 13.81 |
| ENF.TO | Enbridge Income Fund Holdings Inc | 1.4$B | 5.28 | 16.36 | #N/A | 5.45 | -30.83 | N/A |
| ESL.TO | Enghouse Systems Limited | 0.9$B | 1.14 | 34.94 | 29.24 | 31.95 | 27.68 | 23.73 |
| ESI.TO | Ensign Energy Services Inc. | 2.6$B | 2.79 | 17.27 | 44.83 | -2.6 | 6.85 | 5.67 |
| ET.TO | Evertz Technologies Ltd | 1.3$B | 3.77 | 22.07 | 268.61 | -5.54 | 3.03 | 31.06 |
| EIF.TO | Exchange Income Corp | 0.4$B | 8.02 | 49.22 | 399.48 | -5.25 | 45.56 | 2.22 |
| FTT.TO | Finning International Inc. | 5.1$B | 2.05 | 15.3 | 30.65 | 28.67 | 2.43 | 6.8 |
| FTS.TO | Fortis, Inc. | 6.7$B | 4.09 | 18.3 | 58.69 | 4.56 | 6.1 | 7.91 |
| FNV.TO | Franco-Nevada Corp | 8.6$B | 1.3 | 139.63 | #N/A | #N/A | 165.54 | N/A |
| MIC.TO | Genworth MI Canada, Inc. | 3.5$B | 3.75 | 9.68 | 34 | 5.03 | 1.91 | N/A |
| GS.TO | Gluskin Sheff & Associates, Inc. | 0.9$B | 2.59 | 10.52 | 93.27 | 4.38 | 3.4 | 17.08 |
| HLF.TO | High Liner Foods Inc | 0.7$B | 1.57 | 23.06 | 33.68 | 23.19 | 10.82 | 23.8 |
| HCG.TO | Home Capital Group Inc | 1.5$B | 1.47 | 11.82 | 14.6 | 18.78 | 16.53 | 16.65 |
| IGM.TO | IGM Financial Inc. | 13.3$B | 4.07 | 17.44 | 71.45 | 1.82 | 0.16 | 1.46 |
| IMO.TO | Imperial Oil Ltd | 43.3$B | 1.02 | 15.35 | 14.39 | -5.3 | 0.84 | 5.22 |
| IFC.TO | Intact Financial Corp | 8.8$B | 2.88 | 21.28 | 58.93 | 24.18 | 12.12 | 7.26 |
| PJC.A.TO | Jean Coutu Group PJC Inc | 4.1$B | 1.56 | 10.67 | 15.96 | #N/A | 12.76 | N/A |
| KEY.TO | Keyera Corp | 5.3$B | 3.48 | 35.78 | 119.39 | -6.52 | 8.54 | 6.38 |
| LB.TO | Laurentian Bank of Canada | 1.3$B | 4.46 | 11.34 | 47.61 | 0.93 | 6.43 | 8.78 |
| MDI.TO | Major Drilling Group International Inc. | 0.7$B | 2.17 | #N/A | -56.14 | -8.85 | 3.35 | N/A |
| MX.TO | Methanex Corporation | 7.2$B | 1.19 | 20.98 | 35.71 | 11.04 | 2.86 | 2.72 |
| MRU.TO | Metro Inc. | 5.6$B | 1.93 | 8.51 | 13.46 | 23.66 | 1.23 | 14.52 |
| NPR.UN.TO | Northern Property Real Estate Investment Trust | 0.9$B | 5.6 | 3.27 | 24.6 | 49.92 | 9.16 | 12.09 |
| PSI.TO | Pason Systems Inc | 2.3$B | 2.14 | 98.44 | 218.6 | -17.31 | 6.62 | 19.23 |
| RBA.TO | Ritchie Bros. Auctioneers, Inc. | 2.7$B | 2.3 | 27.21 | #N/A | -4.18 | 3.03 | 5.53 |
| RCI.B.TO | Rogers Communications, Inc. | 22$B | 4.28 | 13.66 | 52.49 | 15.45 | 2.31 | 11.71 |
| SAP.TO | Saputo, Inc. | 10.8$B | 1.65 | 21.45 | #N/A | 11.8 | 7.6 | 19.25 |
| SJR.B.TO | Shaw Communications, Inc. | 11.2$B | 4.04 | 15.57 | 46.44 | 1.01 | 10.62 | 6.87 |
| SCL.TO | ShawCor, Ltd. | 2.6$B | 1.14 | 10.31 | 31.64 | 16.01 | 7.19 | 10.56 |
| SC.TO | Shoppers Drug Mart Corporation | 12.1$B | 1.89 | 20.11 | 37.56 | 3.23 | 3.25 | 5.8 |
| SNC.TO | SNC-Lavalin Group | 7$B | 2.07 | 206.12 | #N/A | -34.88 | 2.17 | 13.9 |
| SJ.TO | Stella-Jones, Inc. | 1.9$B | 0.72 | 21.15 | #N/A | 17.41 | 21.61 | 20.9 |
| SU.TO | Suncor Energy Inc | 53.3$B | 2.54 | 14 | 28 | 2.84 | 7.07 | 29.56 |
| T.TO | TELUS Corp | 24.1$B | 3.73 | 19.23 | 65.84 | 1.4 | 3.78 | 9.15 |
| TRI.TO | Thomson Reuters Corporation | 30.4$B | 3.94 | 240.71 | 844.71 | -39.08 | -0.89 | -2.54 |
| THI.TO | Tim Hortons, Inc. | 8.7$B | 2.07 | 21.88 | 37.47 | 12.72 | 9.76 | 26.62 |
| TD.TO | Toronto-Dominion Bank | 94.1$B | 3.67 | 14.27 | 44.1 | 7.25 | 13.2 | 6.54 |
| TRP.TO | TransCanada Corp | 35$B | 3.88 | 20.82 | #N/A | -0.81 | 1.74 | 5.02 |
| TCL.A.TO | Transcontinental Inc. | 1.2$B | 4.32 | #N/A | -1565.06 | #N/A | -2.78 | 13.35 |
| UNS.TO | Uni-Select Inc. | 0.6$B | 1.79 | 27.93 | 51.91 | -14.37 | 8.98 | 1.96 |
| WIN.TO | Wi-Lan Inc. | 0.4$B | 4.76 | #N/A | -105.82 | #N/A | 21.83 | 46.73 |
Dividend Aristocrat Additions
There have been several changes this year. With gold hurting mining companies and pushing them to cut their dividend, several companies were taken off the aristocrats list. On the other hand, 8 companies were added to the list by the S&P for 2014:
BCE Inc (BCE) Telecom, 5.27% dividend yield
Cogeco Inc (CGO) Communication, 1.71% dividend yield
Enghouse Systems Limited (ESL) Technology (software), 1.14% dividend yield
Franco-Nevada Corp (FNV) Resource (gold mining), 1.37% dividend yield
Gluskin Sheff + Associates (GS) Financial, 2.59% dividend yield (+ special dividend)
High Liner Food Inc (HLF), Consumer (food), 1.57% dividend yield
Uni-Select Inc (UNS), industrial (auto pieces), 1.79% dividend yield
Wi LAN Inc (WIN), technology (license), 4.76% dividend yield
I can’t say that I’m very impressed by the dividend yield of the newcomers. BCE and WIN seem to pay an interesting dividend yield and therefore I would advise to look closely at GS since their special yearly dividend pushes their yield over 4% year after year (but it’s always a gamble). As for the rest, I rarely look at stocks paying under 2% dividend yield. I’m looking to buy companies whose dividends cover at least rate of inflation. The only exception I have made was with Disney (DIS) but their stock growth potential is very interesting.
Dividend Aristocrats Delisted
While the aristocrats found 8 new members, they also withdrew 5 companies from the list.
Reitmans Canada Ltd A (RET), Consumer (clothing), 3.48% dividend yield
Talisman Energy Inc (TLM), Resources (oil & gas), 2.73% dividend yield
Ag Growth International Inc (AFN), industrial (grain handling), 5.15% dividend yield
Atlantic Power Corporation (ATP), utilities (electricity), 12.82% dividend yield
Barrick Gold Corp (ABX), resources (gold mining), 0.96% dividend yield
What’s Your Favorite Aristocrat for the Year?
Before I tell you which my favorite is, I must admit that I personally own a few Canadian aristocrats already:
ScotiaBank (BNS)
Gluskin & Sheff (GS)
Telus (T)
My all time favorite is definitely Telus. This is a great company with a great future and it keeps increasing their dividend significantly. However, for 2014, you can guess that my favorite aristocrat will be Gluskin & Sheff (GS). [2] What about you?
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