The 2021 Canadian Dividend Aristocrats are Canadian stocks that that have grown their dividend for 5+ years in a row. There are about 86 stocks on the list as of September 30, 2021. 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 CAD million
- 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 86 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.
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.
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Performance Update of the Canadian Dividend Aristocrats 2021
The Canadian Dividend Aristocrats 2021 currently (as of September 30, 2021) has a yield of about 3.91% and the average forward price-to-earnings ratio is approximately 13.9X. The mean market capitalization is roughly $23,741 million (all dollar values are in CAD) and the median market capitalization is roughly $8,685 million. The market cap ranges between approximately $882 million to $179,589 million. The total market capitalization is approximately $2,021.844 million.
In 2020, the Canadian Dividend Aristocrats provided a total return of -2.34%. This was the lowest return since 2018 and the third negative return in the past decade. The price return was -6.87%. This performance was relatively poor considering the strong positive market returns of most U.S indices. This was at least in part caused by dividend cuts and suspensions for some Canadian stocks as well as the poor outlook for Financials, Utilities, Real Estate, and Energy, which are four of the top five sectors in the list.
As a group, the Canadian Dividend Aristocrats have exhibited better risk-adjusted returns compared with the benchmark index, which is the S&P/TSX Composite Index. Over the past decade, the Canadian Dividend Aristocrats have had an annualized total return of 8.4% and a standard deviation of 12.63%, while the benchmark (the S&P/TSX Composite Index) has had an annualized total returns of 7.44% and a standard deviation of 11.78%. Over the trailing 5-years the Canadian Dividend Aristocrats have had an annualized total return of 9.63% and a standard deviation of 15.8%, while the benchmark has had annualized total returns of 10.77% and a standard deviation of 13.61%.
The table below the calendar year performance from 2011 to 2020.
Impending Changes to the Canadian Dividend Aristocrats in 2021
On January 22, 2021, the S&P Dow Jones Indices announced that the list would be changes with an effective date of February 1, 2021. This will have the effect of adding six net names to the list for a total of 85 stocks.
Additions to the Canadian Dividend Aristocrats in 2020
The sector composition has changed with time due to changes in the index composition. The index was updated on February 3, 2020 when 14 stocks were added to the Canadian Dividend Aristocrats list.
Deletions to the Canadian Dividend Aristocrats in 2020
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 2021
- List of Dividend Aristocrats in 2021
- List of Dividend Champions in 2021
- List of Dividend Contenders in 2021
- List of Dividend Challengers in 2021
- Dogs of the Dow in 2021
For U.K. stocks, I have written about:
Other dividend stock lists
Details on the Canadian Dividend Aristocrats 2021
The list of Canadian Dividend Aristocrats 2021 is a fairly select list since there are only 86 companies. This is out of the over 1,600 companies listed on the Toronto Stock Exchange at end of January 2020.
Canadian Dividend Aristocrats Sector Breakdown
The sector breakdown for the Canadian Dividend Aristocrats 2021 is seen in the chart below as of September 30, 2020. Stocks from the Financials sector have the greatest representation on the list of Dividend Aristocrats at about 29%. The second sector with high representation is Energy at approximately 16.1%. The third sector is Industrials at about 10.6%. These three sectors make top the majority of the Canadian Dividend Aristocrats at 55.7% of the total. Note that this relative ranking has changed in 2020 as energy stocks have cut or suspended dividends this sector’s relative ranking has dropped. However, the addition of some companies in 2021 has caused this sector’s relative ranking to rise again.
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 sector stocks 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, Energy tends to have fluctuating revenue, earnings, and cash flow but over time can generate decent returns. So, their presence in the top three is not surprising.
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. It is also unlike the UK High Yield Dividend Aristocrats that has Financial, Consumer Staples, and Real Estate in the top three sectors.
Market Size of the Canadian Dividend Aristocrats 2021
The largest Canadian Dividend Aristocrat by market capitalization is Royal Bank of Canada (TSE:RB). Combined the 86 Canadian Dividend Aristocrats have a total market capitalization of over $2.042 trillion. The mean market capitalization is about $23,741 million and the median market capitalization is roughly $8,685 million. The stock with the largest market capitalization is about $165,040 million and the stock with the smallest market capitalization is roughly $816 million.
The largest Canadian Dividend Aristocrat is Royal Bank (TSE:RY) and the smallest is Fiera Capital Corp (TSE:FSZ). The one with the highest yield is Keyera Corp (TSE:KEY) and the one with the lowest yield is Boyd Group (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.
List of Canadian Dividend Aristocrats in 2021 – Updated 09/30/21
On average the Canadian Dividend Aristocrats 2021 have a yield of about 3.91%, which is greater than that of the U.S. Dividend Aristocrats. The top 10 members make up about 25.9% 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.
|SRU.UN||SMARTCENTRES RL ESTATE INVESTMENT||3.04|
|PPL||PEMBINA PIPELINE CORP||2.94|
|CNQ||CANADIAN NATURAL RESOURCES LTD||2.68|
|POW||POWER CORPORATION OF CANADA||2.47|
|EIF||EXCHANGE INCOME CORP||2.19|
|FSZ||FIERA CAPITAL CORP CLASS A||2.19|
|GWO||GREAT WEST LIFECO INC||2.18|
|TRP||TC ENERGY CORP||2.11|
|CPX||CAPITAL POWER CORP||2.09|
|CM||CANADIAN IMPERIAL BANK OF COMMERCE||2.08|
|SMU.UN||SUMMIT INDUSTRIAL INCOME REIT UNIT||1.96|
|CU||CANADIAN UTILITIES LTD CLASS A||1.82|
|BNS||BANK OF NOVA SCOTIA||1.76|
|IMO||IMPERIAL OIL LTD||1.76|
|BMO||BANK OF MONTREAL||1.73|
|CSH.UN||CHARTWELL RETIREMENT RESIDENCES RE||1.73|
|CRT.UN||CT REIT UNITS TRUST||1.71|
|NA||NATIONAL BANK OF CANADA||1.62|
|FN||FIRST NATIONAL FINANCIAL CORP||1.58|
|CWB||CANADIAN WESTERN BANK||1.57|
|ACO.X||ATCO LTD CLASS I||1.55|
|MFC||MANULIFE FINANCIAL CORP||1.49|
|RY||ROYAL BANK OF CANADA||1.48|
|GRT.UN||GRANITE REAL ESTATE INVESTMENT STA||1.43|
|NWC||NORTH WEST COMPANY INC||1.41|
|AP.UN||ALLIED PROPERTIES REAL ESTATE INVT||1.4|
|ARE||AECON GROUP INC||1.32|
|SLF||SUN LIFE FINANCIAL INC||1.3|
|IAG||IA FINANCIAL INC||1.27|
|TCL.A||TRANSCONTINENTAL SUB VOTING INC CL||1.24|
|ITP||INTERTAPE POLYMER GROUP INC||1.19|
|TFII||TFI INTERNATIONAL INC||1.05|
|FTT||FINNING INTERNATIONAL INC||1.04|
|QSR||RESTAURANTS BRANDS INTERNATIONAL I||1.01|
|WN||GEORGE WESTON LTD||1|
|CAR.UN||CANADIAN APARTMENT PROPERTIES REAL||0.97|
|AQN||ALGONQUIN POWER UTILITIES CORP||0.96|
|L||LOBLAW COMPANIES LTD||0.92|
|PBH||PREMIUM BRANDS HOLDINGS CORP||0.91|
|CTC.A||CANADIAN TIRE LTD CLASS A||0.88|
|IIP.UN||INTERRENT REAL ESTATE INVESTMENT T||0.87|
|CCA||COGECO COMMUNICATIONS SUBORDINATE||0.81|
|TRI||THOMSON REUTERS CORP||0.78|
|IFC||INTACT FINANCIAL CORP||0.76|
|MG||MAGNA INTERNATIONAL INC||0.73|
|QBR.B||QUEBECOR INC CLASS B||0.73|
|X||TMX GROUP LTD||0.71|
|ECN||ECN CAPITAL CORP||0.71|
|MFI||MAPLE LEAF FOODS INC||0.71|
|EQB||EQUITABLE GROUP INC||0.62|
|OTEX||OPEN TEXT CORP||0.55|
|INE||INNERGEX RENEWABLE ENERGY INC||0.55|
|CNR||CANADIAN NATIONAL RAILWAY||0.53|
|TIH||TOROMONT INDUSTRIES LTD||0.51|
|BAM.A||BROOKFIELD ASSET MANAGEMENT INC CL||0.5|
|AEM||AGNICO EAGLE MINES LTD||0.47|
|EMP.A||EMPIRE LTD CLASS A||0.47|
|BDGI||BADGER INFRASTRUCTURE SOLUTIONS LT||0.44|
|CCL.B||CCL INDUSTRIES INC CLASS B||0.41|
|RBA||RITCHIE BROS AUCTIONEERS INC||0.39|
|SJ||STELLA JONES INC||0.34|
|WPM||WHEATON PRECIOUS METALS CORP||0.33|
|ATD.B||ALIMENTATION COUCHE TARD SUB VOTIN||0.31|
|BLX||BORALEX INC CLASS A||0.3|
|FNV||FRANCO NEVADA CORP||0.27|
|CP||CANADIAN PACIFIC RAILWAY LTD||0.25|
|ENGH||ENGHOUSE SYSTEMS LTD||0.23|
|FSV||FIRSTSERVICE SUBORDINATE VOTING CO||0.19|
|BYD||BOYD GROUP INCOME INC||0.09|
Analyses on Stocks in the Canadian Dividend Aristocrats 2021
- Dividend Champion Analysis: Canadian National Railways (CNI) Is The Newest Champion
- Enbridge (ENB): A High Yield Dividend Stock But Be Cautious
- Thomson Reuters (TRI): A Dividend Champion
- BMO – High Dividend Yield and Safety from Canada’s Oldest Bank
- BCE – Dividend Income Appeal
Prior Year Lists
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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.