Mike, Author at MOOSE MARKETS

Canadian Dividend Rock Stars List

I used to think that dividend stocks with a yield lower than 3% were worthless. Two decades of investing proved me wrong!

The Canadian Rock Stars List is a selection of the safest dividend stocks in Canada, identified through a rigorous screening process.

Unlike traditional high-yield lists, this selection combines dividend growth, financial strength, and credit stability to determine the best long-term holdings for investors seeking both income and growth.

Dividend Growth Investing = Safe Investing, More Money, Less Stress

“When you have confidence, you can have a lot of fun. And when you have fun, you can do amazing things.”

~Joe Namath

My entire portfolio is invested in dividend growth stocks.

Some holdings act as fixed income, offering a stable dividend yield and being able to weather market storms. Some others are my growth equity, providing lower yields but strong dividend growth and stock price appreciation potential.

Combining various dividend growers will create a balance where your portfolio will help you retire stress-free.

Even Vanguard—a pioneer in ETF investing—conducted studies on recent market history and concluded that dividend growers are among the best-performing assets.

Performance of dividend-oriented equity stategies figure by Vanguard — Performance of dividend-oriented equity strategies figure by Vanguard.

According to Vanguard’s study over these 20 years, dividend growth stocks not only beat the market, but they did it with less volatility.

While dividend growers usually give investors less volatility, you will still go through challenging periods where your favorite holdings will show red numbers. This is where you may start losing confidence and wondering if it would be appropriate to cash your profits and protect your capital.

The Ultimate Safe List to Get Dividend Growth Stock Ideas

To help you build a solid portfolio with dividend growth stocks, I have created the Canadian Rock Stars List, showing about 300 companies with growing trends.

You can read on to understand how it is built and why it’s the ultimate list for Canadian dividend investors, or you can skip to the good stuff and enter your name and email below to get the instant download in your mailbox.

How Has the Canadian Rock Stars List been Built?

This Canadian dividend stocks list has been created with the help of our investment membership; Dividend Stocks Rock. The market will keep throwing you curveballs, so let’s make sure you don’t whiff on them.

We have a clear strategy: we focus on dividend growth stocks.

We handpick companies showing a strong dividend triangle (revenue, earnings, and dividend growth trends) and make sure we understand their business model. Since our model is easy to understand and we know why we use it, we never doubt ourselves.

The Rock Stars List isn’t just about yield—it’s built using a multi-step screening process to ensure the highest-quality dividend stocks.

Here’s how we select the best Canadian dividend stocks:

Revenue & Earnings Growth—Minimum 1% annualized growth over 5 years (adjusted for market cycles).
Dividend Growth—Minimum 5% annual dividend growth over 5 years.
Financial Strength—We use Refinitiv’s StarMine Credit Score to assess a company’s ability to handle debt and maintain dividends. It ranks a company’s 1-year default probability from 1-100, with higher scores indicating lower bankruptcy risk.
Value Analysis—We integrate the StarMine Value Score and analyze six valuation metrics to avoid overpaying. It ranks stocks (1-100) based on their valuation, with higher scores indicating better value. It evaluates six key metrics: EV/Sales, EV/EBITDA, P/E, Price/Cash Flow, Price/Book, and Dividend Yield.
ESG Considerations—The Refinitiv ESG Combined Score evaluates a company’s Environmental, Social, and Governance (ESG) performance, factoring in reported data and controversies. A higher score (1-100) indicates more substantial corporate responsibility, while legal or ethical issues can lower a company’s rating.

It’s a stronger list than the dividend aristocrats, as we combine various metrics on top of dividend growth.

By filtering the market to find Canadian stocks showing growing sales, earnings, and dividends, we are convinced we can pick among the best Canadian dividend stocks, period.

The Dividend Triangle is key to identifying safe Canadian stocks

With a smart combination of three metrics, you’ll be able to pick the best stocks from our list. You can quickly identify safe investments using the dividend triangle:

Revenues

A business is not a business without revenues.

What is the difference between a company with growing revenues versus a company showing stagnating results? Companies with several growth vectors will ensure consistent sales increases year after year. I’m a big believer in “offense is the best defense.” Whenever we are about to face a recession, I want to make sure I have companies that have shown past revenue growth.

This is an excellent indicator that their business model is doing well and that they won’t enter a recession in a position of weakness.

Earnings

You cannot pay dividends if you don’t earn money.

Then again, this is a straightforward statement. Still, if earnings don’t grow strongly, there is no point in thinking that the dividend payment will increase indefinitely. Keep in mind that the EPS is based on a GAAP calculation. This makes EPS imperfect, as accounting principles are not aligned with cash flow.

This means you are better off looking at the EPS trend over 3, 5, and 10 years. Use an adjusted EPS that discounts those one-time events revealed by the company to have a clear view of what is happening. Some companies could “play around” with earnings for a year or two, but you can’t create a trend out of thin air.

Dividends

Finally, dividend payments are the *obvious* backbone of any dividend growth investing strategy. But I don’t focus on the actual dollar amounts or the yields because we focus solely on dividend growth.

Dividend growers show confidence in their business model.

This is a statement claiming that the company has enough money to grow its business and reward shareholders simultaneously. It also tells you that the business can pay off its financial obligations and invest in new projects (CAPEX). No management team will increase its dividend if it lacks the cash to run its business.

The Dividend Rock Stars List: The ONLY List Using the Dividend Triangle

The dividend triangle is an exclusive concept developed at Dividend Stocks Rock (DSR).

While many seasoned investors use these metrics in their analysis, no one has created a list based on them before.

Don’t waste any more time with complex strategies and dozens of metrics duplicating each other: focus on quality and download the list with filters now.

What Does a Strong Dividend Triangle Look Like?

Putting those metrics into a stock screener is one thing, but knowing what to do with them is another.

The problem with a simple stock screener is that it will give me the 3-year or 5-year annualized growth, but I can’t see the trend.

A strong Dividend Triangle should show steady revenue, earnings, and dividend growth over time. The trend over the past five years for each metric is long enough to show the current tendency and highlight some jumps or drops I must investigate.

Below is an example of two dividend stocks:

🟢 Strong Dividend Triangle Example (National Bank of Canada – NA.TO)

Revenue: Consistent annual growth of 5%+
EPS: Follows revenue growth, ensuring profitability
Dividend Growth: Resumes steady increases after economic downturns

A decrease in earnings during the pandemic led to a pause (forced by regulators) in dividend growth. Now that the pandemic is behind us, National Bank is back on the Rock Stars list with a strong dividend growth potential.

🔴 Weak Dividend Triangle Example (Algonquin Power & Utilities – AQN.TO)

Revenue: Inconsistent growth due to high debt and acquisitions
EPS: Declining due to rising borrowing costs
Dividend Growth: ❌ Cut after financial struggles in 2022 and again in 2024

Download the Exclusive Dividend Rock Stars List

This Canadian dividend stocks list is updated monthly. You will receive the updated version every month by subscribing to our newsletter. You can download the list by entering your email below.

This isn’t just a list of high-yield stocks—it’s a handpicked selection of Canada’s best dividend growth stocks, backed by detailed financial analysis.

✅ Monthly updates
✅ Full dividend safety ratings
✅ 10+ Metrics with filters

Enter your email to get the latest Canadian Dividend Rock Stars List now!

Canadian Dividend Aristocrats 2025

We look at the Canadian Dividend Aristocrats for 2025, what they are, who they are, and why they matter to dividend growth investors. See some of our favorite aristocrats and why we like them, and learn where to find stocks that are right for you.

What’s a Canadian Dividend Aristocrat?

It’s a Canadian company showing five consecutive years with a dividend increase. Aristocrats are solid companies with a robust balance sheet.

Why do they matter to you?

Dividend growers tend to outperform the market over a long period, and with less volatility. Dividend growers = more money and less stress. Investing in Canadian dividend growers should lead to recurrent investment income and help you achieve your retirement goals.

Can you invest in any Canadian Dividend Aristocrat and make money?

NO. This guide to Canadian Dividend Aristocrats provides you with a list of stocks and a methodology to select the right companies for your portfolio. We also share our favorite Canadian aristocrats.

Canadian Aristocrats and U.S. Aristocrats

The Canadian Dividend Aristocrats list is the little brother of a much more extensive and world-known dividend growers list. The popular U.S. Dividend Aristocrats List includes companies with over 25 consecutive years of dividend increases. What about Canadians? Do we have companies showing 25+ years of consecutive dividend increases?

While Canada has a few companies that achieved that feat, the Canadian Dividend Aristocrats list would be too short if we included them using the US requirement. Canadian aristocrats are companies that increased their dividends for at least five consecutive years.

While many investors might think 5 years is insufficient to give such an elite title to a company, I disagree. I love picking stocks that have just started increasing their dividends on their way to a great future. It’s a unique opportunity to select high-quality companies and enjoy stock price appreciation. We all wish we had bought shares of Coca-Cola (KO) 50 years ago when it was a young dividend grower. You have a similar opportunity with the Canadian dividend aristocrats.

Skip to the Good Stuff: Canadian Rock Stars List

Don’t get me wrong, I like the Canadian Aristocrats and will share more about them below. However, I believe there’s a better way to select dividend growers that will thrive for decades.

I have created a list showing about 300 companies with growing revenue, earnings per share (EPS), and dividend growth trends. Focusing on trends rather than numbers gives you a better perspective on past, present, and future growth.

The Dividend Rock Stars List is the best place to start your stock research. Get it for free by entering your name and email below.

What it Takes to Become a Canadian Dividend Aristocrat?

Canadian companies don’t have to show 25 years of consecutive dividend increases, unlike U.S. aristocrats. Even the 5-year minimum requirement isn’t as strict as you might think. The requirements Canadian companies must meet to earn the title are:

The company’s common stock is listed on the Toronto Stock Exchange (TSX) and is a constituent of the S&P BMI Canada. Stocks listed on the TSX Venture aren’t eligible.
The company’s market capitalization (Float-adjusted) is at least $300M. We want companies of a minimal size. Yet $300M is relatively permissive.
The company increased its regular cash dividends for five consecutive years, but companies can pause their dividend growth policy for a maximum of 2 years within said 5-year. In other words, if the company intends to share the wealth, it has a good chance of being included among the elite dividend growers.

Needless to say, it’s easier to become a Canadian aristocrat than a U.S. aristocrat! To do that, U.S. companies must:

Be a member of the S&P 500.
Show 25+ consecutive years of dividend increases.
Meet specific minimum size & liquidity requirements.

It would be foolish to think that any aristocrat out of the list makes a good investment. We regularly see companies added or withdrawn from the list on both sides of the border. The list you see in 2025 shows only those who survived the test of time.

Canadian Dividend Aristocrats for 2025

There are 92 Canadian dividend aristocrats in 2025. You’ll find very few Technology companies as that sector is not known for steady cash payments to shareholders. However, you’ll see many Financial Services and Industrials companies. Those two sectors have been and continue to be well-established dividend payers in Canada.

As shown below, half the Canadian dividend aristocrats are in the Financials, Industrials, and Real Estate sectors and about 22% are in the Communication Services and Utilities sectors. Industrials, Consumer Staples, Consumer Discretionary, and Materials each represent 4% to 9% of aristocrats. There are none in healthcare.

CDN Aristocrats Sector Allocation. Source: BlackRock

Here are the Canadian dividend aristocrats as of 2025, grouped by sector.

Core Sectors

Financials

Bank of Montreal (BMO.TO)	Intact Financial (IFC.TO)
Brookfield Asset Management (BAM.TO)	Manulife (MFC.TO)
Brookfield Corp (BN.TO)	National Bank (NA.TO)
CIBC (CM.TO)	Power Corporation (POW.TO)
Equitable Group (EQB.TO)	Royal Bank (RY.TO)
Fiera Capital Corp (FSZ.TO)	ScotiaBank (BNS.TO)
First National Financial (FN.TO)	Sun Life Financial (SLF.TO)
Great West Life (GWO.TO)	TD Bank (TD.TO)
Industrial Alliance (IAG.TO)	TMX Group (X.TO)

Consumer Staples

Alimentation Couche-Tard (ATD.TO)	Maple Leaf Foods (MFI.TO)
Empire Co (EMP.A.TO)	Metro (MRU.TO)
George Weston (WN.TO)	Premium Brands (PBH.TO)
Jamieson Wellness (JWEL.TO)	Saputo (SAP.TO)
Loblaw (L.TO)	The North West Company (NWC.TO)

Information Technology

Enghouse Systems (ENGH.TO)

Open Text Corporation (OTEX.TO)

Growth Sectors

Industrials

ADENTRA (ADEN.TO)	Hammond Power Solutions (HPS.A.TO)
Aecon Group (ARE.TO)	Savaria Corporation (SIS.TO)
Badger Daylighting (BDGI.TO)	Stantec (STN.TO)
Boyd Group Services (BYD.TO)	TFI International (TFII.TO)
Canadian National Railway (CNR.TO)	Thompson Reuters (TRI.TO)
Cargojet (CJT.TO)	Toromont Industries (TIH.TO)
Exchange Income Fund (EIF.TO)	Waste Connections (WCN.TO)
Finning Intl (FTT.TO)

Consumer Discretionary

Canadian Tire Corporation (CTC.A.TO)	Magna International (MG.TO)
Dollarama Inc (DOL.TO)	Restaurant Brands International (QSR.TO)

Income sectors

Real Estate

Allied Properties REIT (AP.UN.TO)	InterRent REIT (IIP.UN.TO)
Canadian Apartment Properties REIT (CAR.UN.TO)	Killam Apartment REIT (KMP.UN.TO)
CT REIT (CRT.UN.TO)	Minto Apartment REIT (MI.UN.TO)
FirstService Corp (FSV.TO)	Storagevault Canada (SVI.TO)
Granite REIT (GRT.UN.TO)

Utilities

AltaGas (ALA.TO)	Fortis (FTS.TO)
Atco (ACO.X.TO)	Hydro One (H.TO)
Canadian Utilities (CU.TO)	TransAlta Corp (TA.TO)
Emera (EMA.TO)

Communication Services

BCE (BCE.TO)	Quebecor (QBR.B.TO)
Cogeco (CGO.TO)	Telus (T.TO)
Cogeco Cable (CCA.TO)

Volatile Sectors

Materials

Altius Minerals (ALS.TO)	Stella-Jones (SJ.TO)
CCL Industries (CCL.B.TO)	West Fraser Timber (WFG.TO)
Franco-Nevada Corp (FNV.TO)	Wheaton Precious Metals Corp (WPM.TO)
Nutrien (NTR.TO)

Energy

Canadian Natural Resources (CNQ.TO)	Parkland Corporation (PKI.TO)
Enbridge (ENB.TO)	Pembina Pipeline (PPL.TO)
Gibson Energy (GEI.TO)	South Bow (SOBO.TO)
Imperial Oil (IMO.TO)	TC Energy (TRP.TO)
North American Construction (NOA.TO)	Tourmaline Oil (TOU.TO)

Even Better than an Aristocrat?

At Dividend Stocks Rock (DSR), we go further with our Canadian Rock Stars list, which we update and publish monthly. That list is even stronger than the Canadian Dividend Aristocraft list because we look beyond dividend growth. It is based on a combination of three metrics that I call the Dividend Triangle.

To be on the Rock Stars list, companies must show dividend, revenue, and EPS growth over 5 years. Growing revenue and profits fuel future dividend increases and make them more secure.

This simple focus on three metrics reduces your research time and helps you find companies with robust financials. Many aristocrats are on the Rock Star list, but not all. Also, the list includes many additional metrics and filters to help you narrow your search.

Download the Canadian Rock Stars list. We update it monthly!

Top 3 Canadian Dividend Aristocrats 2025

Using the methodology above, I’ve selected my favorite Canadian Aristocrats, who are also DSR Canadian Rock Stars.

Alimentation Couche-Tard (ATD.TO)

Investment Thesis: Big Dividends and Bigger Acquisitions

In the long term, dividend payouts should grow in the double digits, and investors should see strong stock price growth. ATD’s potential is directly linked to its capacity to acquire and integrate additional convenience stores. Management has proven its ability to pay the right price and generate synergies for each acquisition. ATD exhibits a solid combination of the dividend triangle: revenue, EPS, and strong dividend growth. The company counts on multiple organic growth vectors such as Fresh Food Fast, pricing & promotion, assortment, cost optimization, and network development. ATD has a growth plan (10 for the win) to generate over $10B in EBTIDTA in 2028. This includes a mix of organic growth and acquisitions.

In 2023, ATD confirmed the acquisition of 2,193 stores from TotalEnergies for €3.1B (100% of retail assets in Germany and the Netherlands and a 60% controlling interest in the Belgium and Luxembourg entities). This will significantly expand ATD’s exposure to the European market and increase its total number of stores to surpass 16,000 worldwide.

ATD Eyes 7-Eleven: A Game-Changer or a Waiting Game?

In mid-2024, the company announced its intention to acquire Seven & I (7Eleven), the world’s largest (by number) convenience store operator. We are still in the first innings of this soap opera, and nothing is telling us there will be an agreement. 7-Eleven is playing hard to get. You are better off waiting to see if an accepted deal is on the table before calculating the future debt ratio!

Potential Risks: Expansion Challenges

Growers by acquisition are all vulnerable to occasionally making a bad purchase. While ATD’s method of acquiring and integrating more convenience stores has proven successful, it is essential for them not to grow too fast or become too eager, leading to possibly overpaying in the name of growth. The company exhibited this when it tried to acquire the French grocery store Carrefour. Still, we don’t think the next acquisition should be a source of concern with the current management team. The company is back into another drama with its will to acquire 7-Eleven.

EV Disruption, Declining Tobacco Sales & Economic Uncertainty

Investors are also worried about the potential impact of electric vehicles on fuel sales, but we believe ATD will overcome this challenge by installing superchargers. Another secular trend is the decline in cigarette sales. ATD sells a lot of tobacco and alcohol products. It must shift its product offering toward food and fresh produce (that’s already the plan).

Finally, the economy impacts ATD’s revenue and earnings. In 2024, we saw a weakening dividend triangle, which has started to raise concerns from the most pessimistic investors.

Fortis (FTS.TO)

Investment Thesis: A Powerhouse in Growth & Dividends

Fortis invested aggressively over the past few years, resulting in solid growth from its core business. An investor can expect FTS’ revenues to grow as it expands. Bolstered by its Canadian-based businesses, the company has generated sustainable cash flows leading to four decades of dividend payments. The company has a five-year capital investment plan of approximately $25 billion between 2024 and 2028. This plan is $2.7 billion higher than the previous five-year plan. The increase is driven by organic growth, reflecting regional transmission projects for several business segments. Only 33% of its CAPEX plan will be financed through debt, while 61% will come from cash from operations. Chances are that most of its acquisitions will happen in the U.S. We also like the company’s goal of increasing its exposure to renewable energy from 2% of its assets in 2019 to 7% in 2035. FTS reported Capital expenditures of $2.3 billion in the first half of 2024, keeping its $4.8 billion annual capital plan on track.

Investing Big in U.S. Transmission & Renewables

Fortis is advancing its strategic initiatives by focusing on regulated growth and sustainability. The company is progressing with key transmission investments, including the MISO Long-Range Transmission Plan, where ITC expects at least $3 billion in capital investment for projects in Michigan and Minnesota. Fortis is also exploring opportunities to expand and extend growth beyond the current capital plan, with potential investments in renewable gases and transmission projects supporting the delivery of offshore wind.

Potential Risks: Interest Rates, Regulations & Currency Risks

Fortis remains a utility company; in other words, don’t expect astronomical growth. However, Fortis’ current investment plan is enough to make investors smile. Fortis made two acquisitions in the U.S. to perpetuate its growth by opening the door to a growing market. However, it may be difficult for the company to grow to a level where economies of scale would be comparable to that of other U.S. utilities. The risk of high prices for other U.S. utilities is also present. Fortis runs capital-intensive operations, making its business model sensitive to interest rates. Finally, as most of its assets are regulated, each increase is subject to regulatory approval. While FTS has a long history of negotiating with regulators, demand for rate increases may be revised. Please also note that Fortis’ revenue is subject to currency fluctuations between the CAD and USD currencies.

National Bank (NA.TO)

Investment Thesis: Winning Formula – Diversification, Acquisitions & Strong Dividends

NA has targeted capital markets and wealth management to support its growth. Private Banking 1859 has become a serious player in that arena. The bank opened private banking branches in Western Canada to capture additional growth. The bank now shows great diversification across its various business segments (with 50% of its revenue outside of classic savings & loans activities). Since NA is heavily concentrated in Quebec, it concluded deals to provide credit to investment and insurance firms under the Power Corp. (POW). In 2024, National Bank announced the acquisition of Canadian Western Bank (CWB.TO) for $5B. The deal is not closed yet (it is expected to close only at the end of 2025). If it happens, it will boost NA’s presence in Western Canada and open the door to more cross-selling opportunities amongst this new book of clients, as CWB doesn’t currently offer a service such as Private Banking 1859.

From Quebec to Cambodia

The stock has outperformed the Big 5 for the past decade as it has shown strong results. National Bank has been more flexible and proactive in many growth areas, such as capital markets and wealth management. Currently, NA is seeking additional growth vectors by investing in emerging markets such as Cambodia (ABA bank) and the U.S. through Credigy. We wonder if it can achieve more success than BNS on international grounds. This is one of the rare Canadian stocks having a near-perfect dividend triangle.

Potential Risks: Market Volatility & Economic Shifts

National Bank is still highly dependent on Quebec’s economy, as about half of its revenue comes from this province. As a hyper-regional bank, NA is more vulnerable to local economic events. This has not affected the bank significantly, but we advise keeping track of its credit loss provisions. Recessions and rising interest rates could also affect the bank’s debt portfolio. Financial markets’ revenues are also highly volatile. We often mention that financial markets could save or wreck the day–NA may experience a bad quarter if the stock market becomes bearish.

Overall, the bank has performed very well, but it usually takes more risk to identify growth vectors (such as the ABA bank investment and capital markets). So far, it has paid off, but it does not mean it will always be this way. Remember that investments in emerging markets are unpredictable and could shift very quickly.

Get More Stock Ideas: The Canadian Rock Stars List

Are you curious about the other Rock Stars on the list? Access to about 300 companies showing a positive dividend triangle (5-year revenue, earnings per share (EPS), and dividend growth trends) with filters.

Start your stock research on the right foot with the best Dividend Stocks List. Enter your name and email below.

Best Canadian Stocks to Buy in 2025

Most of the best Canadian stocks pay a dividend. Known for their stability when markets are rough, they also provide income to investors quarterly. Companies in sectors such as utilities, REITs, and banks can protect you against market fluctuations and severe losses.

Yet, not all dividend-paying companies are good investments. Investing in dividend stocks can lead to painful losses and income cuts. The risk of falling for dividend traps or seeing your retirement income plummet due to the wrong stock selection is too frequent.

The market creates bubbles and hurts your portfolio. You worked hard to invest money, and you shouldn’t lose it to the wolves of Bay Street. There is a way you can invest safely in Canadian dividend stocks. We have selected some high-quality stocks to make your life easier.

Best Canadian Dividend Stocks for 2025

When I built my retirement portfolio, I focused on companies showing a combination of safe income and steady growth. My choices include Canadian Dividend Aristocrats (companies showing several years of consecutive dividend increases). I added a few more metrics and used the DSR stock screener to refine my research.

Here are some of the best Canadian Dividend Stocks for 2025:

#10 Telus (T.TO)

#9 Granite REIT (GRT.UN.TO)

#8 Hydro One (H.TO)

#7 Dollarama (DOL.TO)

#6 Canadian Natural Resources (CNQ.TO)

#5 CCL Industries (CCL.B.TO)

#4 Brookfield Corp (BN.TO)

#3 Brookfield Renewables (BEPC.TO)

#2 National Bank (NA.TO)

#1 Alimentation Couche-Tard (ATD.TO)

More Stock Ideas and Sectors’ Insights

Get the Best from the Markets

It is possible to build a portfolio from Canadian dividend stocks only. However, the S&P 500 has outperformed the Canadian market for decades. You might consider adding a few US companies to take advantage of these outstanding returns. I have created a top stocks booklet to help you out.

Each year, I compile a list of stocks expected to do better than the market for Dividend Stocks Rock members. I review the 11 sectors for them and include top picks for each. I’ve decided to share three with you: Communication Services, Consumer Staples, and Industrials. The booklet is a great place to find dividend growth stocks that offer Canadian and US diversification.

Download 6 of my top 27 for 2025 right here:

#10 Telus (T.TO)

About a year ago, Telus was upgraded to a PRO rating of 5. I thought the company would bounce back faster, but it wasn’t the case. My long-term view of Telus hasn’t changed, though.

While the company reported modest revenue growth throughout the year, its cash flow metrics (cash flow from operations, free cash flow and capital expenditure) have improved significantly. The company is covering their dividend from free cash flow and interest charges are under control.

It took longer than expected, but I believe Telus will get out of this rut and make investors happy. It’s only a matter of time.

#9 Granite REIT (GRT.UN.TO)

Granite is a very frustrating REIT to hold. I love the investment thesis which includes the strong need for industrial properties, GRT’s ability to grow its business while growing FFO per unit and distribution increases intact and the high occupancy rate. The financial metrics back this investment thesis as revenue, Funds from operations, FFO per units, payout ratio and occupancy rate are all looking good. Why is GRT frustrating to hold? Because it simply doesn’t get any love from the market. Despite its good numbers, GRT lags the market and fails to generate positive returns.

With a low FFO payout ratio (68% for the first 9 months of 2024), shareholders can enjoy a 4.5% yield that should grow and match (or beat) the inflation rate. This is among the rare REITs exhibiting AFFO per unit growth while issuing more units to finance growth.

#8 Hydro One (H.TO)

From time to time, I hear that Hydro-Quebec should go public and unlock tons of value. However, I understand the government’s provincial point of view of keeping this amazing asset for themselves. Do you know why? Because Hydro-Quebec pays a generous dividend to the government each year!

Well, Hydro One is in a similar situation but you have the possibility of getting a piece of the cake as the Ontario Government decided to sell a part of its stake in this beauty. With 99% of its operations being regulated and 98% of its electric lines being in Ontario, an investment in Hydro One is a pure play on Ontario’s power development. This is the pure definition of a sleep-well-at-night investment. The company expects to invest $1.3B to $1.6B in CAPEX yearly until 2027 which will support their EPS growth guidance of 4-7% and dividend growth of about 5%. The province enjoys a strong and diversified economy and Hydro One will continue to grow by walking in the province’s path.

#7 Dollarama (DOL.TO)

I’m kicking myself for not having Dollarama in my portfolio. Maybe in another life!

DOL has built a strong brand, and its business model (aimed at low-value items) is an excellent defensive play against the e-commerce threat over the retail business. As consumers’ budgets are tight, DOL appears to be an amazing alternative for many goods. Dollarama has been able to increase same store sales along with opening new stores consistently. The introduction of many products under its “home brand” increases the company’s margin. DOL introduced a new price point of $5 for many items, which lends additional flexibility and pricing power.

#6 Canadian Natural Resources (CNQ.TO)

CNQ is a rare beast in its environment that has increased dividends for 25 consecutive years. Yes, it even increased its payouts while everybody was on hold or cutting distributions in 2020. It brings the question: why is CNQ “oil price resistant”?

The company is sitting on a large reserve of cheap oil. According to management, CNQ is profitable with an oil price per barrel of around $35-$40. This enables the company to manage production and capex with greater flexibility. They can then slowdown CAPEX when the oil price is low and produce less. When we are in “full oil bull mode”, CNQ bolsters CAPEX and boosts production generating maximum cash flow. This is exactly what just happened where CNQ dropped its debt and now focuses on rewarding shareholders with share buybacks and dividend increases.

To be clear, I don’t see CNQ as a super powered growth stock for the future. However, with a yield above 4% and a resilient business model, that’s the type of business that will either be very good in your portfolio, or it will go back into hibernation mode paying a secure dividend. In both scenarios, you can be a winner over the long run.

#5 CCL Industries (CCL.B.TO)

Finding an international leader with a well-diversified business based in Canada is rare. Through the major acquisition of business units from Avery (world’s largest supplier of labels) in 2013, the company has set the tone for several years of growth. Bolstered by its previous successes, CCL also bought Checkpoint, a leading developer of RF and RFID, and Innovia in the past few years and announced more acquisitions in 2021. The company is still able to generate organic growth (roughly 4-5%) on top of its growth through acquisitions.

#4 Brookfield Corporation (BN.TO)

I’m keeping BN among my top picks for a third year in a row. The 2024 selection paid off as Brookfield skyrocketed with more than 50% return. I think there is much more to come! Brookfield is amongst the largest players in alternative asset management. As the stock market looks overvalued, many investors will turn toward alternative assets as a way to generate profits and hedge their bets. Those long-term assets require patient capital and a high level of expertise. Brookfield is in a perfect position to provide this service to investors. Even better, BN invests its own capital in many projects. Therefore, it can double-dip by charging a fee on managed capital and making capital gains when selling assets.

#3 Brookfield Renewables (BEPC.TO)

BEP enjoys large-scale capital resources and has the expertise to manage its projects across the world. Management aims for a 5-9% annual distribution increase, backed by double-digit guidance that includes a mix of organic and M&A growth. Investors gravitate toward clean energy, and BEP is well-positioned to attract them.

Following an impressive stock price surge through 2020, the stock has been trending down for the past two years, although there is nothing to worry about. The rise of interest rates on bonds combined with the incredible ride BEP has had is responsible for this correction. In late 2023, management reaffirmed its strong position and ability to generate strong returns over the long haul. The latest results in early 2024 confirmed that BEP is still focused on growth opportunities. In Q2 of 2024, management highlighted the important contract signed with Microsoft to supply 10.5GW to support MSFT’s AI and cloud business energy needs. This could open the doors to more deals with corporations in the future.

#2 National Bank (NA.TO)

There is no secret here as I’m a National Bank fan. It seems that the bank has done everything right over the past 15 years. This big transformation converted a small provincial bank into a serious player in capital markets and the private wealth industries. The Bank is expected to complete a key acquisition of Canadian Western Bank in 2025 which will bring more capital onto its balance sheet (supporting capital market lucrative operations), more synergies (high cross-selling opportunities between CWB’s commercial clients and private wealth management) and a good presence in Western Canada. NA is also doing very well in Cambodia (Aba Bank) and through its door into the U.S. (Credigy).

#1 Alimentation Couche-Tard (ATD.TO)

I might never have another choice for Canadian than Couche-Tard. I’ve looked at grocery stores, but Metro (MRU.TO) and Loblaws (L.TO) don’t offer many growth opportunities. Don’t get me wrong, they are great companies, but I think ATD will do better.

Things are changing quickly around the 7-Eleven deal. ATD has tried to get to the negotiation table to acquire 7-Eleven for a few months now. The Japanese company is trying all means to stay Japanese. The latest chatter was that the son’s founder would buy it back and make it private. The market liked the idea, and the ATD share price rose again. This story isn’t over yet one way or another.

For 2025, I see ATD striking another acquisition. After all, it’s in its DNA. If it’s not 7-Eleven, it will be another chain (maybe Casey’s?… it tried to acquire CASY in 2010). ATD must gain more expertise in growing organically through the sale of read-to-eat and fresh produce. This is how they can mitigate the impact of slowing fuel and tobacco sales over the next 10-20 years.

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Dogs of the TSX – Beat The TSX! 2025

What if you could beat the Canadian market by selecting ten stocks each year? The Dogs of the TSX strategy gets its name from the Dogs of the Dow, an investing technique well-known in the U.S. for selecting the “dogs” (paying a higher dividend yield) of an index.

The Dogs of the TSX, or Beat the TSX (BTSX) strategy, was developed by a professor named David Stanley. He suggested that you could beat the index by selecting the highest dividend yielders of the TSX each year.

If you are tired of losing money on bad stocks, this strategy could help you quickly build a solid core portfolio.

The Dogs of the TSX in a Nutshell

One of the BTSX’s main advantages is its easy implementation. You can start trading with four simple steps:

#1 List the TSX 60 index by dividends. The TSX 60 is the index of the 60 largest Canadian companies. Most of them are blue chips like banks or telecoms and pay dividends.

#2 Select the top 10 yielding stocks from the TSX 60. The ten most generous stocks are called the dogs of the TSX. As they offer the largest yields, they haven’t performed well the year before. Therefore, their yield is higher, and you buy them at a relatively low price.

#3 Buy the top 10 yielding stocks in equal weight. Boom! You build your core portfolio for the year! The strategy is based on buying the dogs in January.

#4 Each January, review the new Dogs of the TSX and trade accordingly. Each year, you must do steps from #1 to #3 to ensure you always have the highest Canadian yield stocks.

The Dogs of the TSX (BTSX) Stocks List 2025

Here’s the list of the top 10 yielding stocks from the TSX 60 for this year. All you have to do is invest an equal amount of money in each dividend stock to build your portfolio.

	COMPANY	SYMBOL	PRICE	DIVIDEND	YIELD
1	Bell	BCE.TO	$34.07	$3.99	11.71%
2	Telus	T.TO	$20.56	$1.61	7.83%
3	Enbridge	ENB.TO	$63.88	$3.77	5.90%
4	Algonquin Power	AQN.TO	$6.32	$0.36	5.70%
5	Bank of Nova Scotia	BNS.TO	$74.53	$4.24	5.69%
6	Emera	EMA.TO	$54.36	$2.90	5.33%
7	Pembina	PPL.TO	$52.55	$2.76	5.25%
8	Power Corp	POW.TO	$43.31	$2.25	5.20%
9	Canadian Natural Resources	CNQ.TO	$44.43	$2.25	5.06%
10	TD Bank	TD.TO	$66.14	$3.28	4.96%

30 Years of Outperformance for BTSX

Matt from Dividend Strategy is doing a monk’s work to keep track of this strategy. Shockingly, The Dogs of the TSX has outperformed the market for 30+ years!

I must add that it did not beat the market in 2023 and 2024. While the results were just 1% apart in 2023, we can see a difference of 4% in favor of the market in 2024. The narrowed sector allocation of this strategy can explain this. I have given more thought to BTSX’s recent performance in the episode below.

As shown below, the average for five years and more still exceeds the market. In 2024, pipelines in the BTSX portfolio highly compensated for other losers.

Average rate of return over time graph. Source: Dividend Strategy.

Why the BTSX Portfolio Works so Well?

I was a bit skeptical when I heard of this strategy at first. It’s unlikely that such a simple strategy would outperform the market consistently. I’ve done my research to understand the success rate behind the BTSX strategy.

#1 Buying blue-chips quality stock. The TSX 60 refers to the 60 largest stocks in Canada. Chances are, those companies will be around for a while.

#2 Canadian stocks have a great history of paying and increasing dividends. There are many dividend aristocrats among the TSX 60. Dividend growers tend to outperform the market over a long period.

#3 Buy low, sell high. The Dogs of the TSX is based on a classic investment principle: buy when stocks are low and sell them at a higher price. By rotating your portfolio each year with the new “dogs”, you ensure to buy the best stocks at the lowest price while selling those with a great return over the past 12 months.

#4 It’s relatively easy to beat the Canadian market. The fact that the BTSX is working isn’t necessarily an achievement. The Canadian market is heavily concentrated in two sectors: Financials and Energy. By investing in other sectors, you can easily beat the TSX.

Use This List Instead

Actually, you could beat the TSX using a list of well-diversified dividend growers that are leaders in their industry. I have built a list of them for you to download for free using this strategy and the tools at Dividend Stocks Rock. Enter your name and email below to get your spreadsheet with filters.

Why I Don’t Use the Dogs of the TSX Strategy

Investors can beat the TSX with an easy-to-use and straightforward strategy. Why am I not using the Dogs of the TSX for my portfolio?

#1 Know what you hold and why you hold it. It is one of the foundations of my investment model. I prefer researching and understanding a company’s business model before I add it to my portfolio. Buying stocks based on an index and a dividend yield seems too simplistic. It won’t hold very well during market crashes.

#2 Sector concentration. The BTSX forces you to buy only ten stocks based on the dividend yield regardless of the sector. The Dogs of the TSX 2022 shows 30% of financial companies and 30% of energy stocks. With 2/3 of your money invested in two industries, your portfolio is subject to intense volatility.

#3 Transaction costs and taxes. Rotating your stocks each year could trigger several transactions and prevent you from deferring tax on capital gains. This will have a severe impact on your returns in a non-registered account. Investing in the Dogs of the TSX in an RRSP or a TFSA account is best.

#4 I already beat the TSX. I’ve been a dividend growth investor since 2010. My years of experience in the financial industry and research helped me build a proven investing strategy. My results are not only better than the TSX, but they are also better than the BTSX strategy. Therefore, I don’t see any reason to change something that already works.

I have created a mock portfolio of the 2025 BTSX using the Dividend Stocks Rock PRO Dashboard just to see how it would look. Not only is it highly concentrated, but it includes many companies with poor ratings, such as Bell (BCE.TO) with a PRO Rating of two and a Dividend Safety Score of one, and Algonquin (AQN.TO) with two for both ratings.

BTSX Sector Allocation and Stocks Ratings powered by DSR.

If you’d like to have more details on my investment thesis for the companies part of the Dogs of the TSX, I have reviewed them in this episode.

Exclusive List of Dividend Growers with More Potential

There is another way to beat the TSX with more conviction. It is to invest in companies that show revenue growth, earnings per share (EPS) growth, and dividend growth. Selecting well-diversified holdings with growth metrics ensures your portfolio will beat the market for decades!

To help you build a solid portfolio, I have created the Canadian Rock Stars List, showing over 300 companies with growing trends.

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Canoe Income Fund (EIT.UN.TO) Review – 2024

Canoe EIT Income Fund is a Canadian closed-end investment trust. The investment objective of the Fund is to maximize monthly distributions relative to risk and maximize net asset value while maintaining and expanding a diversified portfolio. In other words, EIT has been created to take your money, manage it, and distribute juicy monthly dividends to help you manage your retirement budget.

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What Canoe Income Fund looks like

The Canadian fund includes 47.3% (7% less than last year) of Canadian equity stocks, 50.4% (+7%) of U.S. stocks, 5.58% (you read that right, the website shows 103% of the money invested…that’s probably linked to leverage.) of international equity, and 0% (in line with last year) cash. Despite having less than 50% of its assets invested in Canadian firms, its sector breakdown is heavily concentrated in financials, energy, and materials (55.98%).

Source: EIT website

Top-25 Holdings

They have an impressive diversification of stocks from low yield to high yield with various safe stocks and other quite speculative securities. The fund has greatly diminished its exposure to the energy sector, as they have made the smart move of cashing in on many of their gains in that sector.

Another interesting point is the amount of turnover in the fund when we compare their top holdings from August 2023. I have highlighted (in green) 9 positions out of 25 (36%) that are not in the top 25 this year. Last year, it was 12 positions for a 48% turnover rate.

But my opinion does not really matter if the fund helps you retire happily. Let’s look at what does really matter though and that is how the fund’s money has been managed over time and how much you profit (or not) from the management team led by Rob Taylor, CPA, CA, CFA (yes, he needs 2 business cards to include all his titles!).

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Performance & Distributions

From their website, we can see that EIT has outperformed the TSX on a consistent basis (which was not the case prior to 2020). Their focus on the energy and basic materials sectors clearly paid off after the pandemic and now the fund has moved to other sectors.

However, I don’t particularly appreciate that they only use the TSX as their benchmark and ignore the S&P 500. With 50% of their portfolio invested in the U.S., it seems only fair to include U.S. and international components to their benchmark measures.

Just for fun, I ran the calculations using a portfolio with 47% XIU.TO, 50% SPY and 3% XEF.TO (for international equity) for the past 10 years, 5 and 3 years. Results include dividends and are as of 7/31/2024 to match their website.

CAGR: 10yr: 10.44%, 5yr: 12.72%, 3yr: 8.6%.

This is quite interesting, as our conclusions in 2021 and 2020 were not the same. The first two times we analyzed the fund, it had underperformed the index portfolios we created. This time, it is quite the opposite. You can see that change occurred around mid-2021 where Canoe started to surge while indexes reached a plateau and eventually decreased in 2022.

The idea of having a high-yield investment (EIT.UN.TO pays 8.5% yield at the time of writing) where distributions are paid monthly is quite interesting. If you reinvest the distribution, you could beat the market, which is quite impressive! Strangely enough, EIT.UN.TO returns are now quite similar to my personal portfolio.

The lesson here is that conclusions and returns can vary from one year to another. We will review Canoe again next year. The Canoe fund could be an interesting way to generate a high income from your investments. However, if you cash this distribution, make sure you realize two things:

#1 Your capital will not likely grow over time

#2 Your dividend will not likely grow over time

Therefore, it’s an interesting investment vehicle for income, but that income is not inflation-proof. In fact, you receive a lot less today than 10 years ago. If you reinvest the dividend in the fund, then, you get a good total return. However, you don’t get to cash the dividend to fund your retirement.

Do you see how we run into circles?

Canoe and the habit of issuing more shares

Another interesting point is that Canoe has continuously issued more units year after year since 2018. This is great for raising money to invest and capture opportunities. However, it’s not that great when you consider that it increases the amount to be paid in dividends each year.

With this kind of structure, it looks like Canoe will do well as long as we are in a bull market. If units start to tumble, Canoe will have difficulty issuing more shares to invest and pay the current dividend. This could put serious pressure on Canoe’s ability to maintain its generous distribution.

Final Thoughts

Canoe EIT income fund is not the worst investment in the world. In fact, it generated decent returns considering its dividend. While recent performance has been impressive, the fund is not perfect. First, ownership of this fund does not avoid value fluctuations when the market is shaky. If you looked at your portfolio value during corrections Canoe did not save you from headaches.

The only thing that is “guaranteed” is the dividend payment… until it isn’t. Does any Canadian remember Financial Split Corp (FTN.TO) or Dividend 15 Split Corp (DF.TO)? They were both famous for their high yields and super solid investment strategy. I will leave it to you to research them today if you are curious. Did I ever tell you there is no free lunch in the world of finance and investments?

Canoe looks good today, but it was not the same story three years ago. Can it show more consistency going forward? Only time will tell.

The Canadian Dividend Stock to Buy in September 2024

The Canadian Dividend Stock to buy in a Nutshell

Franco Nevada operates a royalty-based business model in stable countries such as the U.S., Canada, and Australia.
The company owns a wide portfolio of development projects to fuel future growth.
The closing of Cobre Panama mine since Nov 2023 is an opportunity for investors.

Selecting a gold stock for your top Canadian Dividend Stock to buy in September, Mike? Haha! I know, right? But this one qualifies to be an exception as it shows a great opportunity for dividend investors.

What’s the problem? Production at Cobre Panama has been halted since November 2023. Cobre Panama generated $223M in revenue for Franco-Nevada in 2022 and $248.9M in 2023, making it its most productive (in term of revenue) asset last year.

What is going to happen with the mine is still a mystery. However, FNV business model remains robust and the fact it has no debt will make it easier for management to navigate through trouble waters.

Let’s take a deeper look at it!

Franco Nevada Business Model

First Franco-Nevada is a streamer (meaning it gets royalties paid by mining companies instead of spending lots of capital in exploration and operations). Second, FNV has no debt. So it’s basically sitting on quality assets and reaping rewards like operating a cash printing machine. Here’s a summary of its portfolio:

Franco Nevada assets

Source: August 2024 presentation

Franco Nevada diversification

The company focuses 75% on precious metals (mostly gold with some silver) with a little bit of oil & gas and most of its assets are held in Americas.

Its revenue will fluctuate according to commodity prices, but the company has little expenses compared to a classic precious metal miner.

Investment Thesis

Franco-Nevada doesn’t waste its time operating mines, but rather manages a portfolio of royalty streams. The company owns 64,000 square kilometers of geologically prospective land but will let gold miners spend their own time and money on exploration. Once the miners find worthwhile materials, the royalty will intervene; we like this cash-flow-focused business model.

As FNV is a play on gold and precious metals, it enjoys stronger cash flows when gold prices surge. The company exhibits unparalleled portfolio diversification, offering shareholders some peace of mind in volatile markets. Finally, FNV has virtually no long-term debt. This is an interesting play if an investor is in it for the long game.

However, please note that the company is currently running with conflicts with the Government of Panama (around Cobre Panama). The upcoming Panamanian election on May 5th was highlighted as a critical event. Franco-Nevada expressed hope that the election could lead to a new dialogue with the incoming government, which might facilitate resolving the issues at Cobre Panama. However, it was noted that the new government would not officially take office until July.

This increases the level of risk (more in the potential risks section).

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Dividend Growth Perspective

Franco-Nevada has been a Canadian dividend stock since its IPO in 2008. Unfortunately, its very low dividend yield will not pay an investor’s utility bills. For that reason, many may decide to pass on it for their retirement portfolios. The company pays its dividend in USD. This is obviously a play on growth and not just income. The company has a strong dividend triangle, and an investor can expect further dividend increases in the coming years. In early 2023, FNV announced another dividend increase of 6% (from $0.32/share to $0.34/share). Again, in 2024, FNV increased its dividend by another $0.02 to $0.36/share (5.9% increase).

Franco Nevada assets dividend triangle

We can see the impact of Cobre Panama closing on its dividend triangle as both revenue and EPS have been affected.

Potential Risks

The company employs a strong business model and relies on royalties rather than being directly linked to commodity price fluctuations. Nonetheless, an investor can expect turbulence when the gold price drops; it’s highly cyclical. As a royalty-based company, FNV is subject to various tax and regulatory risks. Since it receives royalties from several countries, a change in regulation could lead to a change in distribution.

The company is running into legal issues with the Government of Panama. Panama’s Supreme Court declared First Quantum’s Cobre Panama mining contract to be unconstitutional on November 28th. Mining operations were essentially shut down late last week. First Quantum (the mine’s operator) along with FNV initiated arbitration proceedings under the Panama/Canada Free Trade Agreement.

Franco-Nevada expressed hope that the election could lead to a new dialogue with the incoming government, which might facilitate resolving the issues at Cobre Panama. It is clearly testing investors patience.

Final thought

Franco Nevada is a strong Canadian dividend stock, period. While the situation in Panama is a concern, I see it more as a buying opportunity for investors. The rest of the company is well, and Franco Nevada shows no debt. Worse, FNV won’t get royalties from this mine for a while, which will slow down the company’s short-term growth. However, five years from now, I doubt it will significantly impact Franco Nevada’s ability to generate cash flow.