• I’m taking a quick pause in my new investing series about how to build an investment strategy (read part 1 and part2) to publish my stock pick returns as at March 31st and the usual TSX60 dividend yield and ex-dividend date chart. After a full quarter, I’m already taking a step ahead of both US and CDN benchmarks. Lets check how I beat both benchmarks by more than 1%.

    PSST! If you are curious to know how I keep beating the market with dividend stocks for the past 3 years, check out my new website!


    Best 2014 Dividend Stock Pick Returns


    I started this “tradition” on my blog in 2012. The goal is to pick 20 US and 10 CDN dividend stocks that I think will outperform their peers. This is the reason why I use VIG and XDV as benchmarks. I keep track of my results for accountability purposes. I find that too many analysts and blogs just drop the ball on their picks when they are not so great. By posting monthly results, I have no other choice but to face my performance and explain it. You can look at my previous picks and returns:

    Best Dividend Stock Picks 2012 (-1.47% vs VIG (US dividend ETF), + 8.32% vs XDV (CDN dividend ETF)

    Best Dividend Stock Picks 2013 (+11.07% vs VIG, + 0.77% vs XDV)


    You can also buy my 2014 Best Dividend Stock Picks for Kindle ( on Amazon) to get the full analysis:


    2014 book cover


    2014 Best US Dividend Stocks: +2.76% vs -0.01% (VIG)

    top US dividend stocks

    13 stocks out of 20 beat my benchmark. This is a 65% ratio… not bad, but not incredible either. However, I have 4 stocks (ALF, APPL, XOM, WMT) that could easily come back to life with some good news. After a quarter, I’m adding almost 3% to the benchmark which is a pretty solid performance.  My portfolio dividend yield is also 1% higher than VIG.


    What I can see is that consumer (staple or discretionary) stocks like Clorox (CLX), Mattel (MAT), Philip Morris (PM) and Wal-Mart (WMT) have had a rough start this year. In fact, if I look closer at my portfolio, I can also add that PepsiCo (PEP), McDonald’s (MCD), Hasbro (HAS) are beating the benchmark, but lagging the overall stock market. They show a YTD performance of 0.68%, 1.03% and 1.11% respectively.


    Its only normal that dividend stocks lag a bull market. Last year, dividend stocks were almost entering bubble territory since the market was hungry for revenue. The year-end results weren’t as high as expected by the market and this is why dividend stocks were penalized more than other stocks. Nonetheless, the overall return including dividends is still pretty good, even compared to the global market.


    2014 Best CDN Dividend Stocks: +2.66% vs 1.23% (XDV)

    top canadian dividend stocks

    I’m offering another solid performance in the Canadian market by adding 1.43% in value to the benchmark. For this portfolio, only 50% of my stocks beat the benchmark. This is not exactly a good batting average as this could have resulted in lagging behind the index. I was *lucky* to pick Black Diamond Group (BDI) and Gluskin Sheff (GS) boosting my results through the roof with a +14.16% and +24.23% YTD performance.


    I was expecting a more solid performance from Chorus that is evolving in a profitable market and shows strong fundamentals. Banks (BNS and RY) are not rising quickly during the first quarter and ScotiaBank has been hit by bad results from its Latin American branch results. I made another bet on consumers again with Dorel (DII.B) and North West Company (NWC) but they are also lagging due to deceiving results. Lassonde (LAS.A) is saving the consumer group with a good performance so far… but the dividend yield is anemic.


    Still, I was able to beat both benchmarks after three months and looking forward to the next quarter with enthusiasm!


    TSX60 Ex-Dividend Date & Dividend Yield


    Dividend Yield
    Payout Ratio
    Ex-DVD Date
    CPGCrescent Point Energy Corp40.356.84746.544/28/2014
    PWTPenn West Petroleum Ltd9.246.06N/A6/25/2014
    COSCanadian Oil Sands Ltd23.196.0481.295/21/2014
    TATransAlta Corp12.845.61N/A5/28/2014
    BCEBCE Inc47.625.1991.526/13/2014
    ERFEnerplus Corp22.14.89452.0341674
    SJR/BShaw Communications Inc26.44.1761.5841947
    NANational Bank of Canada44.34.1538.366/24/2014
    CMCanadian Imperial Bank of Commerce/Canada95.254.1244.496/25/2014
    BMOBank of Montreal73.964.1146.864/29/2014
    FTSFortis Inc/Canada31.524.0678.385/14/2014
    BNSBank of Nova Scotia64.03446.0641736
    RCI/BRogers Communications Inc45.813.9953.6941949
    ARXARC Resources Ltd30.453.94155.384/28/2014
    RYRoyal Bank of Canada72.893.945.24/22/2014
    TRIThomson Reuters Corp37.793.88848.035/23/2014
    POTPotash Corp of Saskatchewan Inc39.993.8764.4241855
    POWPower Corp of Canada30.223.8464.1841796
    TRPTransCanada Corp50.253.8275.996/27/2014
    TCK/BTeck Resources Ltd23.863.77N/A41949
    SLFSun Life Financial Inc38.283.7650.865/26/2014
    TTELUS Corp39.633.6367.2641735
    TDToronto-Dominion Bank/The51.833.6346.7241643
    HSEHusky Energy Inc33.163.6264.965/20/2014
    CVECenovus Energy Inc31.973.33110.5741949
    AGUAgrium Inc107.733.0834.016/27/2014
    ENBEnbridge Inc50.212.79234.165/13/2014
    TLMTalisman Energy Inc11.022.69N/A41765
    GGoldcorp Inc26.972.47N/A4/15/2014
    BBD/BBombardier Inc4.112.4732.5241949
    MFCManulife Financial Corp21.322.4431.9641887
    SUSuncor Energy Inc38.612.3828.025/29/2014
    CNQCanadian Natural Resources Ltd42.372.1227.5841949
    THITim Hortons Inc61.142.0936.85/22/2014
    LLoblaw Cos Ltd46.92.0541.9441949
    WNGeorge Weston Ltd82.342.0236.2541949
    SNCSNC-Lavalin Group Inc48.341.99389.785/16/2014
    BAM/ABrookfield Asset Management Inc45.031.9818.384/29/2014
    SCShoppers Drug Mart Corp60.831.8728.66/25/2014
    MRUMetro Inc64.91.8512.945/14/2014
    YRIYamana Gold Inc9.681.71N/A6/25/2014
    CTC/ACanadian Tire Corp Ltd104.231.6821.384/28/2014
    SAPSaputo Inc55.691.6533.5441919
    CNRCanadian National Railway Co62.111.6127.7241735
    MGMagna International Inc106.281.5918.195/28/2014
    CCOCameco Corp25.311.5849.666/25/2014
    ECAEncana Corp23.611.32209.3241949
    SLWSilver Wheaton Corp25.081.2342.6141674
    ABXBarrick Gold Corp19.681.13N/A5/28/2014
    AEMAgnico Eagle Mines Ltd33.471.0656.185/28/2014
    IMOImperial Oil Ltd51.481.0114.675/28/2014
    FMFirst Quantum Minerals Ltd20.430.9121.1341916
    GILGildan Activewear Inc55.710.8513.665/13/2014
    CPCanadian Pacific Railway Ltd165.650.8528.116/25/2014
    ELDEldorado Gold Corp6.150.3333.8541981
    VRXValeant Pharmaceuticals International Inc145.4400N/A
    KKinross Gold Corp4.57009/17/2014
    BBBlackBerry Ltd8.9500N/A
    CCTCatamaran Corp49.4600N/A
    GIB/ACGI Group Inc34.1300N/A
    1 Comment   |   Read more >


    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

    Market Cap
    DVD Yield
    EPS Basic
    DVD Growth
    AGF.B.TOAGF Management Limited1$B9.2135.52302.22-22.44-8.156.72
    ACO.X.TOAtco Ltd.6$B1.6614.3355.989.175.959.8
    BNS.TOBank of Nova Scotia78.2$B3.9812.3550.5511.0512.754.48
    BCE.TOBCE Inc36.4$B5.2718.39104.720.252.9326.13
    BDT.TOBird Construction Inc0.6$B5.6247.56263.47-285.089.26
    BYD.UN.TOBoyd Group Income Fund0.5$B1.42#N/A-233.2911.8917.9572.11
    CAE.TOCAE, Inc.3.9$B1.6221.7623.11-2.098.1336.56
    CCO.TOCameco Corp10.5$B1.5132.9849.66-8.752.2410.76
    CNR.TOCanadian National Railway Co51.5$B1.6120.0627.729.374.5113.33
    CNQ.TOCanadian Natural Resources Ltd43.2$B2.2619.1223.04-6.65.2420.26
    CP.TOCanadian Pacific Railway Ltd29.8$B0.8234.1827.894.874.467.18
    REF.UN.TOCanadian Real Estate Investment Trust3$B3.7535.6493.961.884.813.59
    CTC.A.TOCanadian Tire Corp7.6$B1.7614.420.788.485.2611.43
    CU.TOCanadian Utilities Ltd10.4$B2.6918.5930.664.9147.84
    CWB.TOCanadian Western Bank2.8$B2.1514.5734.518.2613.9910.76
    CCL.B.TOCCL Industries Inc.3$B1.0731.3728.3915.579.718.96
    CGX.TOCineplex Inc2.6$B3.4331.46105.4719.146.632.6
    CCA.TOCogeco Cable Inc.2.7$B2.1814.0327.276.729.4721.06
    CGO.TOCogeco Inc.0.9$B1.7112.6771.0920.4910.5922.1
    CMG.TOComputer Modelling Group Ltd.1.1$B2.5942.74106.6623.5319.6426.19
    CSU.TOConstellation Software Inc.5.5$B1.7255.7292.7240.3626.4181.15
    CJR.B.TOCorus Entertainment, Inc.2$B4.287.9225.234.290.416.89
    DII.B.TODorel Industries, Inc.1.2$B3.5620.1368.4-14.14-0.3316.16
    EMA.TOEmera, Inc.4.7$B4.3320.4691.135.4110.867.92
    EMP.A.TOEmpire Company Limited3.8$B1.5813.0121.863.314.727.78
    ENB.TOEnbridge, Inc.40.8$B2.8590.6209.86-21.2815.3313.81
    ENF.TOEnbridge Income Fund Holdings Inc1.4$B5.2816.36#N/A5.45-30.83N/A
    ESL.TOEnghouse Systems Limited0.9$B1.1434.9429.2431.9527.6823.73
    ESI.TOEnsign Energy Services Inc.2.6$B2.7917.2744.83-2.66.855.67
    ET.TOEvertz Technologies Ltd1.3$B3.7722.07268.61-5.543.0331.06
    EIF.TOExchange Income Corp0.4$B8.0249.22399.48-5.2545.562.22
    FTT.TOFinning International Inc.5.1$B2.0515.330.6528.672.436.8
    FTS.TOFortis, Inc.6.7$B4.0918.358.694.566.17.91
    FNV.TOFranco-Nevada Corp8.6$B1.3139.63#N/A#N/A165.54N/A
    MIC.TOGenworth MI Canada, Inc.3.5$B3.759.68345.031.91N/A
    GS.TOGluskin Sheff & Associates, Inc.0.9$B2.5910.5293.274.383.417.08
    HLF.TOHigh Liner Foods Inc0.7$B1.5723.0633.6823.1910.8223.8
    HCG.TOHome Capital Group Inc1.5$B1.4711.8214.618.7816.5316.65
    IGM.TOIGM Financial Inc.13.3$B4.0717.4471.451.820.161.46
    IMO.TOImperial Oil Ltd43.3$B1.0215.3514.39-5.30.845.22
    IFC.TOIntact Financial Corp8.8$B2.8821.2858.9324.1812.127.26
    PJC.A.TOJean Coutu Group PJC Inc4.1$B1.5610.6715.96#N/A12.76N/A
    KEY.TOKeyera Corp5.3$B3.4835.78119.39-6.528.546.38
    LB.TOLaurentian Bank of Canada1.3$B4.4611.3447.610.936.438.78
    MDI.TOMajor Drilling Group International Inc.0.7$B2.17#N/A-56.14-8.853.35N/A
    MX.TOMethanex Corporation7.2$B1.1920.9835.7111.042.862.72
    MRU.TOMetro Inc.5.6$B1.938.5113.4623.661.2314.52
    NPR.UN.TONorthern Property Real Estate Investment Trust0.9$B5.63.2724.649.929.1612.09
    PSI.TOPason Systems Inc2.3$B2.1498.44218.6-17.316.6219.23
    RBA.TORitchie Bros. Auctioneers, Inc.2.7$B2.327.21#N/A-
    RCI.B.TORogers Communications, Inc.22$B4.2813.6652.4915.452.3111.71
    SAP.TOSaputo, Inc.10.8$B1.6521.45#N/A11.87.619.25
    SJR.B.TOShaw Communications, Inc.11.2$B4.0415.5746.441.0110.626.87
    SCL.TOShawCor, Ltd.2.6$B1.1410.3131.6416.017.1910.56
    SC.TOShoppers Drug Mart Corporation12.1$B1.8920.1137.563.233.255.8
    SNC.TOSNC-Lavalin Group7$B2.07206.12#N/A-34.882.1713.9
    SJ.TOStella-Jones, Inc.1.9$B0.7221.15#N/A17.4121.6120.9
    SU.TOSuncor Energy Inc53.3$B2.5414282.847.0729.56
    T.TOTELUS Corp24.1$B3.7319.2365.841.43.789.15
    TRI.TOThomson Reuters Corporation30.4$B3.94240.71844.71-39.08-0.89-2.54
    THI.TOTim Hortons, Inc.8.7$B2.0721.8837.4712.729.7626.62
    TD.TOToronto-Dominion Bank94.1$B3.6714.2744.17.2513.26.54
    TRP.TOTransCanada Corp35$B3.8820.82#N/A-0.811.745.02
    TCL.A.TOTranscontinental Inc.1.2$B4.32#N/A-1565.06#N/A-2.7813.35
    UNS.TOUni-Select Inc.0.6$B1.7927.9351.91-14.378.981.96
    WIN.TOWi-Lan Inc.0.4$B4.76#N/A-105.82#N/A21.8346.73

    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). What about you?

    9 Comments   |   Read more >
  • Not so long ago, I released my Best 2014 Dividend Stocks Book including what I think will be the most profitable investments on both American (20 picks) and Canadian (10 picks) markets. Last year, I beat both markets and intend to reproduce my performance again this year.

    But picking stocks at the beginning of the year and making a monthly follow-up is only a part of showing you what we call “accountability”. The real meaning of this word usually happens when you put your money where your mouth is. And this is what I did last week when I added a new stock to my portfolio: Gluskin Sheff (GS) which is traded on the TSE.  You may not be familiar with this Canadian wealth management company and this is why it makes the choice even more interesting. I hope you will discover this great company today!


    Gluskin Sheff (GS) Business Description:

    Gluskin Sheff + Associates is one of the first Canadian private wealth management companies founded. GS manages investment portfolios for high net worth clients as well as institutional investors, foundations and municipalities. They claim to be “Stubbornly unconventional”. Founded in 1984 by Ira Gluskin and Gerald Sheff and 24 other private clients, the company is still owned at 26% by senior management and employees.

    I can appreciate the fact that 26% of shareholders have an even bigger interest in the well being of a company than the average investor. For these people, GS is their whole financial life.


    GS Stock Graph

    GS Stock Graph

    As you can see, GS has already showed some great upside in 2013 going up by 96% in the past 12 months. But let’s dig further to see what is so interesting about this company…


    GS Dividend Growth Graph

    GS Dividend Growth

    If I didn’t get your attention with a 1 year return of 96%, I’m sure I just did with this hectic dividend graph. This looks more like a cardiogram than a dividend payout graph, right? This is explained with the interesting habit of Gluskin Sheff to distribute special dividends in September. These spikes in dividend payments are explained by the distribution of extra cash coming from the company’s performance. I’ve taken away the special dividend to come up with another graph:

    GS quaterly dividend paid

    As you can see, for the past 5 years, the company has continuously increased its dividend payment to shareholders. Now, we will see what the total dividend paid yearly looks like:

    GS Total dividend paid

    Quick note: don’t always count on the special dividend payment. While it was quite substantial for four out of five years, GS definitely missed their revenue target in 2012 and only paid a small $0.06 as special dividend. This is quite a difference when you look at 2011 ($0.9375) and 2013 ($1.40!). The special dividend is directly related to the total assets under management along with performance fees. Since 2012 wasn’t a great year for GS, the extra dividend sucked.

    The Company Ratios and Financial Info:


    NameGluskin Sheff + Associates Inc
    Dividend Metrics
    Current Dividend Yield2,68
    5 year Dividend Growth23,82
    1 year Dividend Growth194,12
    Company Metrics
    Sales Growth (1 year)60,62
    Sales Growth (5 year)3,47
    EPS growth (5 year)8,04
    P/E ratio18,08
    P/E Next Year15,31
    Margins growth#VALUE!
    Payout ratio83,66
    Return on Equity93,83
    Debt to Capital Ratio0


    Gluskin Sheff Upcoming opportunities and dangers:

    They recently declared a special dividend in September of $1.40 per share. This represents about 5% dividend yield with this payment only. The company evolves in a highly profitable market and the company has become appealing to other big players for a takeover. I also like the fact that private clients tend to be more loyal than average. The 2013 numbers were very interesting and if the company continues to post such results, you can bet on another great year on the market.

    The main GS downside would be to count on an important special dividend in September. This payment is volatile and depends on how efficient the GS team is on the market. If we have a good year in 2014, the Gluskin Sheff dividend payout will continue to be juicy. This is one company that could pay 6% in your portfolio without jeopardizing its overall return.


    Final Thoughts on Gluskin Sheff

    I already like financials as they represent a very interesting sector considering the current economy. In addition to that, GS is evolving in the wealth management industry, which I believe is the future of financial services. GS seems to be operating in the right industry at the right time and its numbers are there to support the overall enthusiasm.

    As a bonus on holding this company, there have been rumours about a potential sale of the company in 2013. While it seems that it is not the intention of management at the moment, it could represent another great upside if a hostile bid would come to the table. Since we know wealth management is a small world, it could be a great opportunity for a bigger player to buy this well managed company.

    This is why I decided to put my money where my mouth is and add Gluskin Sheff to my portfolio.


    Disclaimer: I own shares of GS



    2 Comments   |   Read more >
  • Page 1 of 912345...Last »