Best Canadian Stocks For Retirement Portfolio
As a long-time dividend investor, Dave has been investing over 15 years in Canada’s dividend portfolio. 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) drive your portfolio’s total return. Thus, after years of personal dividend investment and research, I have concluded that dividend stocks have a rock-solid way of judging themselves by their advice triangle and that the best long-term way to preserve value from solid Canadian companies is to invest in them.
For lovers of dividend growth on a million-dollar trip, I have my own list of best dividend stocks in Canada, focusing on Earnings per share and forward earnings/share as my key metrics for dividend stocks. As income, I look for dividend stocks with a dividend yield of at least 4%, dividend growth of 6% to 5% per year and dividend increases, and these are the Canadian dividend artists.
One of the best ways to increase the value of a portfolio of stocks and protect it from adverse market movements is by adding Canadian dividend stocks. If your investment strategy requires dividend securities, you will want to fill your portfolio with stocks that pay a high dividend. Examine your strategy with a tax expert to make sure you add dividends from Canadian-paying companies and the right type of investment account to minimize the impact on taxes.
If like me, you want to bolster your investment portfolio with these stocks, this list of Canada’s best blue-chip stocks will help you get started. As you can see, Canadian DIY investors who want to rely on dividend income at retirement will want to ensure they invest in high-quality dividend growth assets that deliver a reliable and growing dividend stream over many years. If you’re looking for top stocks to build a diversified TFSA or RRSP bond portfolio, banks like Nova Scotia and Enbridge deserve to be on your radar.
Although the overall market seems expensive, some large companies trade at reasonable prices and offer attractive dividends. For example, the Bank of Nova Scotia is sitting on surplus money that they could use for share buybacks and generous dividend increases, and the government has allowed Canadian banks to resume dividend increases and purchase shares. As a result, investors buying the stock today can take over the bank at a reasonable price and secure a solid dividend yield of 4.4%.
While most analysts predict an impulse-driven rally for Canadian companies in the energy and banking sectors, our top Canadian dividend stocks will likely experience massive surprises. American investors interested in a combination of income and capital appreciation should look to the dividend aristocrats, a select group of 65 S & P 500 shares that have improved their annual distributions for at least 25 consecutive years. For example, Canadian utility Fortis Canadian utilities have increased dividends and paid attractive dividend yields for more than 40 years.
My top 10 list of Canada’s best dividend stocks is based on total growth, a combination of dividend growth and price appreciation. A dividend share is a dividend share that is a share in a company that has been incorporated and is demonstrably profitable and pays regular dividends to shareholders. Investing in shares means buying shares in a company or shares in a company.
To qualify for coverage, 87 shares were to be listed on the Toronto Stock Exchange, be a member of the broad market index S’P / Canada BMI, increase their annual distribution for five consecutive years, maintain the same dividend for two consecutive years and have a float-adjusted market capitalization of at least C $300 million.
If you are interested in further details, the Canadian Dividend Screener offers many more data points to help you make your investment decisions. For example, most of the high-dividend companies in the Canadian dividend stocks mentioned above have announced their dividend intentions for next year and have divided their after-tax profits into dividends and retained earnings.
In 2020, the bank increased its quarterly dividend by a modest 3% to $1.08 per share. The company’s payout ratio of 33.2% is among the best in the industry, and dividends account for 43% of cash flow. The company’s dividend will increase by 7% per year in 2021 and a further 5% to 7% per year thereafter.
It is the highest among the country’s leading online banks with a generous yield, an outstanding dividend history of 24 consecutive years of growth, and a 10-year CAGR of 8.96%. With an 11-year dividend growth series, a 5-year dividend growth rate of 23.95% and a payout ratio of 89.5%, this company is in one of Canada’s best positions to drive dividend growth for investors. Over the last 26 years, Enbridge’s has increased its annual dividend on a consolidated basis by 10%, placing it at the top of Canadian dividend stocks, which have grown the most.
Dividend investors who care about dividend growth and capital appreciation, like Canadian National Railway overtaking the market. I also like TD as one of Canada’s best dividend stocks due to its bank branches available. Finally, I chose National Bank as another of these dividend stocks because it is a smaller player than the big five banks.
Fortis is the country’s largest provider by market capitalization and the oldest dividend aristocrat on the TSX. So there is always the possibility that you will add a stock you already own to your portfolio.