Canadian Growth Stocks
I believe that, although the company’s growth is slowing, Shopify’s valuation is still too high to justify the market. For investors looking to leap into a company with enormous growth catalysts on the horizon, Curaleaf is this company.
It is a growth stock that trades with a discount to its Canadian counterparts, but it has better fundamentals and an impressive integrated business model. At the start of the summer, Canadian dividend stocks have enjoyed a fine run as we enter a period of cyclical rotation away from banks and toward industry. The post The 3 Best Growth Stocks in Canada Today appeared on Motley Fool Canada for the first time.
As a long-time dividend investor, I have has been in Canada’s dividend investment portfolio for more than 15 years. As I began the Smith maneuver, I quickly learned that current dividend yields are a beautiful thing but that long-term dividend growth and earnings per share (EPS) will drive your portfolio’s total return. After years of personal dividend investing and research, I have concluded that dividend stocks are rocking, and the best way to judge them is their digital triangle, which is the best long-term way to value solid Canadian companies.
Here’s a look at our top 10 Canadian long-term dividend stocks in the order of their dividend growth series. As well, you can find my personal selection of top dividend shares for long-term investments here.
As income, I looked for dividend stocks with a dividend yield of at least 4%, dividend growth of 6% to 5% per year, and a dividend increase, and these are the Canadian dividend artists. For growth, I also looked at dividend stocks with the lowest dividend yield, 10-year dividend increases and dividend yields with dividend growth above 12%.
Since last year, the company has increased its dividend by 7.5% annually. On average, over the past five years, the company has increased turnover by 6% and earnings by 3% annually. As a result, the AQN share has generated a cumulative return of 43.4% since its IPO in 2009.
Regulators have urged banks to maintain liquidity and not increase dividends in 2020 to protect customers and shareholders. Given that the company is paying a healthy dividend, I think it would be a mistake if Canadians on this stock were not capitalized on at pre-COVID levels. The Bank of Canada is a Canadian dividend aristocrat who has increased dividends for seven years and still receives its dividend monthly, making it attractive to Canadian investors who want a steady stream of income.
Over the last five years, Agnico has increased its dividend by 34.34%, and although the recent increase did not nearly double this rate, the company is still pumping out a dividend of 7.5%. Its yield is low at 1.93%, but if it generates significant cash flow in the future, its dividend growth rate can be expected to increase.
Overall, Canadian energy giant Enbridge is now one of the best dividend-paying companies on the TSX. The forward yield is a palatable 7%, and the company has increased its dividend for 26 consecutive years.
A company paying a dividend must have strong fundamentals and generate stable cash flows throughout the business cycle. It also needs a sustainable payout ratio and a low leverage ratio. Thus, the best dividend companies increase the payout over time.
Still, I prefer to do some homework before buying a single share. If you don’t feel comfortable owning individual shares, you can buy dividend ETFs or consider various passive income ideas to generate retirement income. On the other hand, if investing in dividend growth works for you and generates a healthy retirement income, you should buy individual shares.
One of the main risks of owning high-priced growth stocks is volatility. The higher the valuation, the higher the likelihood that the stock will become more volatile than the broader market. Investors who take this risk and are eager for marijuana stocks should buy Canopy Growth shares the next time they step into the buying zone.
Those three top growth stocks should be on your radar if Canadian growth investors are willing to pay a premium for the chance to earn multi-digger returns. But, of course, this is only a snapshot from time to time, and from that point on, many factors can change leading up to the ranking.
We use the algorithm developed by Finders to evaluate TSX-listed stocks based on price performance, earnings, revenues and dividends. Our Fundamental Analysis filters out stocks that take historical prices into account, dividends, revenue growth, low volatility, and profit margins. Although this indicates the quality of the shares, we cannot guarantee the performance or the return.
Despite the short outbreak caused by the pandemic, growth stocks continue to perform better than expected. Businessman holds up a tablet that shows a growing virtual hologram diagram with arrows on a dark background.