The 2020 Canadian Dividend Aristocrats are Canadian stocks that that have grown their dividend for 5+ years in a row. There are about 81 stocks on the list as of October 30, 2020. But 5 years or more of dividend growth does not by itself qualify a stock as a Canadian Dividend Aristocrat. In order to be included on the list a company must meet three criteria:
- Be a member of the S&P Canada BMI and Toronto Stock Exchange
- Have raised the regular dividend per share for 5+ consecutive years but can maintain the same dividend for a maximum of two consecutive years within that five-year period. For new additions, the company must have increased its dividend in the first year of the prior five years.
- Have a market capitalization of at least $300 million CAD
- The index is weight by dividend yield
- Individual stocks are capped at an 8% weighting and subject to a basket liquidity maximum weight. BL maximum weight is determined by dividing the three-month average daily value traded by the BL amount of CAD 100 million.
Notably, these criteria are very different from those that are used to determine the list of Dividend Aristocrats in the U.S. These stocks can be found in the S&P 500 Dividend Aristocrats index. There are currently 65 constituents of the U.S. index. On the other hand, there are currently 81 constituents in the Canadian index. These stocks can be found in the S&P/TSX Canadian Dividend Aristocrats index. Note that some of the Canadian Dividend Aristocrats trade on other exchanges as well.
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Performance of the Canadian Dividend Aristocrats 2020
As a group, the Canadian Dividend Aristocrats have exhibited higher returns with lower volatility compared with the benchmark index, which is the S&P/TSX Composite Index. Over the past ten years, the Canadian Dividend Aristocrats have had an annualized return of 6.16% and a standard deviation of 12.01%, while the benchmark has had an annualized return of 5.19% and a standard deviation of 11.38%.
Changes to the List of Canadian Dividend Aristocrats 2020
The sector composition has changed with time due to changes in the index composition. The index was most recently updated on February 3, 2020 when 14 stocks were added to the Canadian Dividend Aristocrats list.
On April 23, 2020 eight stocks were deleted from the list due to dividend cuts and/or suspensions. The deletions were effective on May 1, 2020.
On May 25, 2020 another five stocks sere deleted from the list due to dividend cuts or suspension. The deletions were effective June 1, 2020.
On June 23, 2020 one stock was deleted from list due to a dividend cut or suspension. The deletion was effective on July 1, 2020.
Other Dividend Stock Lists
For U.S. stocks, I have previously provided the following lists:
- List of Dividend Kings in 2020
- List of Dividend Aristocrats in 2020
- List of Dividend Champions in 2020
- List of Dividend Contenders in 2020
- List of Dividend Challengers in 2020
- Dogs of the Dow in 2020
For U.K. stocks, I have written about:
Details on the Canadian Dividend Aristocrats 2020
The list of Canadian Dividend Aristocrats 2020 is a fairly select list since there are only 81 companies. This is out of the over 1,600 companies listed on the Toronto Stock Exchange at end of January 2020. These companies have survived periods of inflation, stock market crashes, global crises, and deep recessions but still met the aforesaid criteria. Hence, this list serves as a starting point for small investors seeking to research potential ideas for Canadian dividend stocks.
The sector breakdown for the Canadian Dividend Aristocrats 2020 is seen in the chart below as of October 30, 2020. Stocks from the financials sector have the greatest representation on the list of Dividend Aristocrats at about 24%. The second sector with high representation is utilities at approximately 16.7%. The third sector is industrial at about 14.2%. Note that this has changed in 2020 as energy stocks have cut or suspended dividends this sector’s relative ranking has dropped.
Stocks in the financial sector tend to have somewhat more volatile earnings and cash flows that depend on the stock market valuation as well as interest rates. Industrial also have more volatile earnings and cash flows but many have low payout ratios letting them grow the dividends during recessions and economic downturns. On the other hand, utilities tend to have long-term stable revenue, earnings, and cash flow. So, their presence in the top three is not surprising.
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The sector ranking for the Canadian Dividend Aristocrats 2020 is unlike the U.S. Dividend Aristocrats, which have industrials, consumer staples, and financials as the top three sectors.
The largest Canadian Dividend Aristocrat by market capitalization is Royal Bank of Canada (TSE:RB). Combined the 81 Canadian Dividend Aristocrats have a total market capitalization of over $1.425 trillion. The mean market capitalization is about $17,593 million and the median market capitalization is roughly $6,214 million. The stock with the largest market capitalization is about $132,600 million and the stock with the smallest market capitalization is roughly $712 million.
The smallest Canadian Dividend Aristocrat is Savaria Corporation (TSE:SIS). The one with the highest yield is Keyera Corp (TSE:KEY) and the one with the lowest yield is Boyd Group Income Fund (TSE:BYD). Canadian Utilities (TSE:CU) is the Canadian Dividend Aristocrat with longest streak of consecutively increasing the dividend at 48 years. Fortis Inc (TSE:FTS) has the second longest streak of consecutive dividend increases at 46 years.
On average the Canadian Dividend Aristocrats 2020 have a yield of about 4.71%, which is greater than that of the U.S. Dividend Aristocrats. The top 10 members make up about 23.2% of the index and list.
The Canadian Dividend Aristocrat list serves as a screen for further investigating a stock for a dividend growth portfolio. It is a list of companies with stable businesses that have competitive advantages and have returned cash to shareowners consistently through dividends.
List of Canadian Dividend Aristocrats in 2020 – Updated 10/30/20
|RNW||TRANSALTA RENEWABLES INC||2.67|
|TCL.A||TRANSCONTINENTAL SUB VOTING INC CL||2.45|
|NWC||NORTH WEST COMPANY INC||2.45|
|ITP||INTERTAPE POLYMER GROUP INC||2.36|
|FSZ||FIERA CAPITAL CORP CLASS A||2.34|
|INE||INNERGEX RENEWABLE ENERGY INC||2.25|
|CM||CANADIAN IMPERIAL BANK OF COMMERCE||2.19|
|CPX||CAPITAL POWER CORP||2.06|
|CHP.UN||CHOICE PROPERTIES REAL ESTATE INVE||2.01|
|GRT.UN||GRANITE REAL ESTATE INVESTMENT STA||2.01|
|SMU.UN||SUMMIT INDUSTRIAL INCOME REIT UNIT||1.99|
|SRU.UN||SMARTCENTRES RL ESTATE INVESTMENT||1.84|
|CRT.UN||CT REIT UNITS TRUST||1.83|
|AQN||ALGONQUIN POWER UTILITIES CORP||1.8|
|GWO||GREAT WEST LIFECO INC||1.78|
|EIF||EXCHANGE INCOME CORP||1.72|
|BNS||BANK OF NOVA SCOTIA||1.71|
|POW||POWER CORPORATION OF CANADA||1.69|
|BLX||BORALEX INC CLASS A||1.67|
|RY||ROYAL BANK OF CANADA||1.61|
|NA||NATIONAL BANK OF CANADA||1.55|
|CTC.A||CANADIAN TIRE LTD CLASS A||1.51|
|BMO||BANK OF MONTREAL||1.48|
|SLF||SUN LIFE FINANCIAL INC||1.45|
|TFII||TFI INTERNATIONAL INC||1.44|
|CSH.UN||CHARTWELL RETIREMENT RESIDENCES RE||1.42|
|CU||CANADIAN UTILITIES LTD CLASS A||1.41|
|TRP||TC ENERGY CORP||1.36|
|FTT||FINNING INTERNATIONAL INC||1.3|
|PPL||PEMBINA PIPELINE CORP||1.24|
|ARE||AECON GROUP INC||1.23|
|MG||MAGNA INTERNATIONAL INC||1.21|
|MFC||MANULIFE FINANCIAL CORP||1.21|
|CWB||CANADIAN WESTERN BANK||1.18|
|MIC||GENWORTH MI CANADA INC||1.18|
|RBA||RITCHIE BROS AUCTIONEERS INC||1.17|
|ACO.X||ATCO LTD CLASS I||1.01|
|PBH||PREMIUM BRANDS HOLDINGS CORP||0.99|
|CAR.UN||CANADIAN APARTMENT PROPERTIES REAL||0.99|
|CNQ||CANADIAN NATURAL RESOURCES LTD||0.97|
|MFI||MAPLE LEAF FOODS INC||0.93|
|AP.UN||ALLIED PROPERTIES REAL ESTATE INVT||0.91|
|TRI||THOMSON REUTERS CORP||0.89|
|IFC||INTACT FINANCIAL CORP||0.89|
|CNR||CANADIAN NATIONAL RAILWAY||0.87|
|IAG||IA FINANCIAL INC||0.81|
|WN||GEORGE WESTON LTD||0.8|
|OR||OSISKO GOLD ROYALTIES LTD||0.8|
|EMP.A||EMPIRE LTD CLASS A||0.79|
|CCA||COGECO COMMUNICATIONS SUBORDINATE||0.78|
|L||LOBLAW COMPANIES LTD||0.78|
|TIH||TOROMONT INDUSTRIES LTD||0.77|
|SJ||STELLA JONES INC||0.7|
|IMO||IMPERIAL OIL LTD||0.67|
|IIP.UN||INTERRENT REAL ESTATE INVESTMENT T||0.67|
|OTEX||OPEN TEXT CORP||0.59|
|QBR.B||QUEBECOR INC CLASS B||0.56|
|FNV||FRANCO NEVADA CORP||0.51|
|CCL.B||CCL INDUSTRIES INC CLASS B||0.5|
|EQB||EQUITABLE GROUP INC||0.47|
|ENGH||ENGHOUSE SYSTEMS LTD||0.47|
|BAM.A||BROOKFIELD ASSET MANAGEMENT INC CL||0.4|
|FSV||FIRSTSERVICE SUBORDINATE VOTING CO||0.37|
|ATD.B||ALIMENTATION COUCHE TARD SUB VOTIN||0.26|
|BYD||BOYD GROUP INCOME INC||0.12|
Source: iShares S&P/TSX Canadian Dividend Aristocrats Index ETF and S&P/TSX Canadian Dividend Aristocrats Index (as October 30, 2020)
Analyses on Stocks in the Canadian Dividend Aristocrats 2020
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Prakash Kolli is the founder of the Dividend Power site. He is a self-taught investor, analyst, and writer on dividend growth stocks and financial independence. His writings can be found on Seeking Alpha, InvestorPlace, Business Insider, Nasdaq, TalkMarkets, ValueWalk, The Money Show, Forbes, Yahoo Finance, and leading financial sites. In addition, he is part of the Portfolio Insight and Sure Dividend teams. He was recently in the top 1.0% and 100 (73 out of over 13,450) financial bloggers, as tracked by TipRanks (an independent analyst tracking site) for his articles on Seeking Alpha.