If you seek stable investments and consistent dividends, look no further than the list of Canadian Dividend Aristocrat stocks.
These companies earn a stable enough cash flow to pay increasing dividends each year. The downside is that you will likely not see as much stock price growth.
This article will discuss the 10 top Canadian dividend aristocrat stocks for October 2024.
What Are Dividend Aristocrats?
The term dividend aristocrat in Canada is slightly different than in the United States. While south of the border, a dividend aristocrat has to have raised its dividend for 25 consecutive years, in Canada, that threshold is only five years.
Here are the exact requirements to be a Canadian dividend aristocrat:
- Be listed on the Toronto Stock Exchange.
- Be a constituent of the S&P Global BMI.
- The company has increased dividends for at least five years. Within those five years, the company can maintain the same dividend for a maximum of two consecutive years.
- The float-adjusted market capitalization must be greater than $300 million.
Unfortunately, being a Canadian dividend aristocrat is not as noble as it is in the United States. A five-year range for dividend growth is not a large enough sample size to ensure future dividend growth.
That said, many of the companies on the list have grown their dividends for much longer than five years. The list is a great place to start your research on Canadian dividend stocks, but always look more in-depth into the company and determine if future dividend growth is a likely outcome.
Top Canadian Dividend Aristocrats
1. Royal Bank of Canada
- Ticker Symbol: RY.TO
- Market Capitalization: $180.794 Billion
- 52-week trading range: 107.92 – 139.38
- Dividend Yield: 4.29%
- 1-Year Return: -7.43%
- P/E Ratio: 12.24
Royal Bank of Canada needs no introduction to Canadian investors. It is the largest consumer bank in Canada and the 10th largest investment bank in the world. With nearly 1,200 branches and over 15 million Canadian customers, RBC is the premier financial institution in our country.
As for the dividend, RBC has raised its distribution to shareholders for 13 consecutive years. More importantly, it has not decreased its dividend payout for 32 years, proving that it is more than worthy of being one of Canada’s top dividend aristocrat stocks to own.
2. Canadian Natural Resources
- Ticker Symbol: CNQ.TO
- Market Capitalization: $109.255 Billion
- 52-week trading range: $ 143.13 – $174.63
- Dividend Yield: 3.38%
- 1-Year Return: +6.73%
- P/E Ratio: 19.96
Canadian Natural Resources is one of Canada’s largest oil and gas companies that operates primarily in Western Canada and the prairies. It also owns energy assets in the UK, Africa, and across North America, giving it one of the most diversified energy portfolios in the world.
CNQ stock is also one of Canada’s top dividend aristocrat stocks. It has raised its quarterly dividend for 23 consecutive years with a staggering dividend CAGR of 21% over that period.
3. Fortis Inc
- Ticker Symbol: FTS.TO
- Market Capitalization: $25.623 Billion
- 52-week Trading Range: $49.82 – $62.00
- Dividend Yield: 4.52%
- 1-Year Return: -0.82%
- P/E Ratio: 16.85
Fortis is a utility company based out of St. John’s, Newfoundland, that operates across Canada, the US, the Caribbean, and Central America. It pales in comparison to other companies in the list in terms of market capitalization, but Fortis is one of the more popular dividend stocks among Canadian dividend investors.
Why is it so popular? Fortis has an impressive 49 consecutive-year streak of raising its quarterly dividend payout to shareholders. As of August 2023, it is projecting 4-6% annual growth of its dividend through 2027.
4. Toronto-Dominion Bank
- Ticker Symbol: TD.TO
- Market Capitalization: $140.75 billion
- 52-week trading range: $75.89 – $93.09
- Dividend Yield: 5.19%
- 1-Year Return: -15.62%
- P/E Ratio: 14.04
Right on the heels of RBC is the Toronto-Dominion Bank. It is Canada’s second-largest consumer bank and has an ever-expanding footprint in the United States as well. TD has over 1,100 branches in Canada and over 14 million customers from coast to coast.
TD stock pays out a generous dividend yield of 5.19% and has a 5-year dividend CAGR of 6.72%, including sustained dividend growth during the COVID-19 pandemic. It also has a strong 40-50% dividend payout ratio. Combined with a 5-year revenue CAGR of 8.6%, TD’s dividends look safe for years to come.
5. Telus Inc
- Ticker Symbol: T.TO
- Market Capitalization: $34.228 Billion
- 52-week Trading Range: $21.16 – $28.95
- 1-Year Return: -6.18%
- Dividend Yield: 6.35%
- P/E Ratio: 40.68
Telus Inc., better known as Telus Canada, is one of the largest telecommunications companies in Canada, along with Rogers and Bell. All three of these make for good dividend investments in Canada. Telus has more than 18 million customers across its wireless, voice, and television products.
For the past 14 years, Telus has raised its quarterly dividend each year. Over that period, the dividend has grown at a CAGR of about 5.04%. Telus reported a 7.3% increase in cash flow in 2023, which is an excellent sign that the company will continue raising its dividend.
6. Enbridge Inc
- Ticker Symbol: ENB.TO
- Market Capitalization: $98.564 Billion
- 52-week Trading Range: $42.75 – $54.05
- Dividend Yield: 7.89%
- 1-Year Return: -6.94%
- P/E Ratio: 16.33
Enbridge is another popular dividend stock among Canadian investors due to its high yield and consistent dividend growth. It is Canada’s largest oil pipeline company by market capitalization, and its Enbridge transports about 65% of U.S.-bound Canadian production. Enbridge also operates over 38,000 kilometres of natural gas pipelines that span from Canada to the Gulf of Mexico.
The company’s strong, utility-like cash flows allow it to pay out some of the best dividends in Canada. Enbridge has raised its dividend for 28 consecutive years and has provided an annual total shareholder return (TSR) of about 12% since 2002.
7. Dollarama
- Ticker Symbol: DOL.TO
- Market Capitalization: $28.9 billion
- 52-week trading range: $74.36 – $103.96
- Dividend Yield: 0.28%
- 1-Year Return: +29.67%
- P/E Ratio: 30.95
With retail prices increasing across the board, Dollarama has benefited from consumers who are looking for cheaper options. Dollarama has been one of the best-performing stocks on this list over the past year and has seen a nearly 30% return.
While this list is focused on dividend-earning stocks, Dollarama is unique in that it has seen a rapid increase in stock price alongside a steady dividend.
8. National Bank of Canada
- Ticker Symbol: NA.TO
- Market Capitalization: $34.89 billion
- 52-week trading range: $84.27 – $104.83
- Dividend Yield: 4.24%
- 1-Year Return: +2.10%
- P/E Ratio: 11.00
The National Bank of Canada is often overlooked by investors as it is not one of Canada’s Big 5 banks. It is the sixth-largest commercial bank in Canada and operates primarily in the Province of Quebec. National Bank has over 2.6 million customers across Canada, with branches in most Provinces and Territories.
Earlier this year, the National Bank raised its dividend yet again, making it more than a decade of consistent annual dividend growth. Over the past ten years, the dividend has grown at a CAGR of about 9.4%. With a payout ratio of 40%, National Bank is well-equipped to continue raising its dividend for the foreseeable future.
9. First National Financial Corporation
- Ticker Symbol: FN.TO
- Market Capitalization: $2.451B
- 52-week trading range: $32.86 – 41.80
- Dividend Yield: 2.41%
- 1-Year Return: 3.45%
- P/E Ratio: 4.13
With 16 dividend increases since 2006, First National is a great option for those looking for stable, long term returns. The company operates in the financial sector, providing commercial and residential mortgages. First National is one of the largest mortgage brokers in Canada by market share.
First National had $137.8 billion in mortgages under their administration as of 2023. With the real estate market remaining an important part of Canada’s economy, dividend yields are projected to continue rising.
10. Canadian Apartment Properties REIT
- Ticker Symbol: CAR-UN.TO
- Market Capitalization: $8.486 Billion
- 52-week trading range: $40.52- $54.60
- Dividend Yield: 2.94%
- 1-Year Return: +5.02%
- P/E Ratio: 55.06
The last stock on the list is a Real Estate Investment Trust or REIT. These are companies that own physical real estate and pay out a large chunk of their net income from rent to shareholders as distributions. In exchange, they do not pay any corporate income tax. Canadian Apartment REITs owns over 65,000 units in Canada and Europe, with an overall occupancy of more than 95%.
REITs are fantastic dividend stocks, and CAR is no exception. This REIT stock pays monthly dividends and has raised its distribution each year since 2011. Even at a time when Canadian residential real estate is on shaky ground, CAPREIT continues to pay out and grow its monthly dividends.
Pros of Investing in Dividend Aristocrats
Dividend aristocrat stocks come with nice dividend growth over time. But they also provide stability as they are usually mature companies that have a lot of free cash flow each year.
Adding to dividend aristocrat stocks can enable a steady growth to your portfolio when used with a DRIP system.
During times of market volatility, dividend aristocrat stocks tend to outperform growth stocks.
Cons of Investing in Dividend Aristocrats
If you are young, you should focus more on long-term capital appreciation. Dividend aristocrat stocks will not see major increases in stock price over time.
Dividends can get cut anytime, as we learned during the COVID-19 pandemic. Do not rely only on dividends for portfolio growth.
Five years is not a long enough period to forecast future dividend growth for Canadian stocks.
How To Buy Canadian Dividend Aristocrat Stocks in 2024
The best way to buy Canadian dividend aristocrat stocks is with little to no trading fees. Discount brokerages like Questrade or Qtrade offer low-cost commissions, so you can get the most out of every trade.
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Canadian Dividend Aristocrat Stocks
Note: All of these figures are accurate as of February 2024.
| Ticker Symbol | Stock Name | Dividend Yield | Market Capitalization |
| RY.TO | Royal Bank of Canada | 4.21% | 185.575 billion |
| TD.TO | Toronto-Dominion Bank | 5.13% | $144.135 billion |
| CNR.TO | Canadian National Railway | 1.94% | $112.252 billion |
| ENB.TO | Enbridge Inc | 8.11% | $97.373 billion |
| CNQ.TO | Canadian Natural Resources | 4.91% | $92.151 billion |
| BMO.TO | Bank of Montreal | 4.77% | $91.793 billion |
| TRI.TO | Thompson Reuters Corp | 1.37% | $96.877 billion |
| BNS.TO | Bank of Nova Scotia | 6.69% | $77.237 billion |
| BN.TO | Brookfield Corp | 0.80% | $85.169 billion |
| ATD.TO | Alimentation Couche-Tard | 0.71% | $80.237 billion |
| BCE.TO | BCE Inc | 7.96% | $45.82 billion |
| TRP.TO | TC Pipelines | 7.32% | $53.924 billion |
| CM.TO | CIBC | 5.92% | $57.318 billion |
| WCN.TO | Waste Connections | 0.69% | $57.535 billion |
| MFC.TO | Manulife Financial Corp | 4.76% | $60.234 billion |
| IMO.TO | Imperial Oil | 3.00% | $43.564 billion |
| QSR.TO | Restaurant Brands International | 3.01% | $45.672 billion |
| ABX.TO | Barrick Gold Corp | 2.83% | $34.514 billion |
| SLF.TO | Sunlife Financial | 4.38% | $42.111 billion |
| L.TO | Loblaws Companies | 1.31% | $43.27 billion |
| FNV.TO | Franco-Nevada Corp | 1.34% | $28.541 billion |
| GWO.TO | Great-West Lifeco | 5.01% | $38.635 billion |
| IFC.TO | Intact Financial Corp | 2.17% | $40.632 billion |
| T.TO | Telus Corp | 6.43% | $34.981 billion |
| NA.TO | National Bank of Canada | 4.24% | $34.893 billion |
| AEM.TO | Agnico Eagle Mines | 3.50% | $31.163 billion |
| WPM.TO | Wheaton Precious Metals Group | 1.39% | $27.048 billion |
| FTS.TO | Fortis Inc | 4.48% | $25.839 billion |
| DOL.TO | Dollarama Inc | 0.28% | $28.90 billion |
| BEP-UN.TO | Brookfield Renewable Partners | 6.01% | $21.561 billion |
| TOU.TO | Tourmaline Oil Corp | 2.07% | $19.23billion |
| PPL.TO | Pembina Pipeline Corp | 5.89% | $25.106 billion |
| MG.TO | Magna International | 3.49% | $21.488 billion |
| POW.TO | Power Corporation | 5.53% | $25.159 billion |
| H.TO | Hydro One | 2.95% | $24.203 billion |
| WN.TO | George Weston | 1.63% | $23.336 billion |
| BIP-UN.TO | Brookfield Infrastructure Partners | 5.22% | $19.849 billion |
| MRU.TO | Metro Inc | 1.91% | $16.02 billion |
| TFII.TO | TFI International Inc | 1.09% | $16.848 billion |
| RBA.TO | RB Global Inc | 1.79% | $14.92 billion |
| OTEX.TO | Open Text Corp | 2.46% | $14.613 billion |
| EMA.TO | Emera Inc | 6.13% | $13.281 billion |
| BAM.TO | Brookfield Asset Management | 3.78% | $21.634 billion |
| SAP.TO | Saputo Inc | 2.66% | $11.991 billion |
| CCL.B.TO | CCL Industries Class B | 1.84% | $10.481 billion |
| STN.TO | Stantec Inc | 0.70% | $12.762 billion |
| CTC.A.TO | Canadian Tire Class A | 4.97% | $8.167 billion |
| TIH.TO | Toromont Industries Ltd | 1.55% | $10.309 billion |
| EMP.A.TO | Empire Company Ltd | 2.96% | $8.415 billion |
| CU.TO | Canadian Utilities Class A | 6.06% | $8.40 billion |
| WFG.TO | West Fraser Timber Co Ltd | 1.51% | $9.063 billion |
| IAG.TO | IA Financial Corporation | 3.32% | $9.824 billion |
| X.TO | TMX Group Ltd | 2.06% | $9.602 billion |
| CAR-UN.TO | Canadian Apartment Properties REIT | 2.94% | $8.486 billion |
| PAAS.TO | Pan American Silver Corp | 3.23% | $6.349 billion |
| FSV.TO | FirstService Corp | 0.60% | $10.067 billion |
| QBR.B.TO | Quebecor Inc | 3.81% | $7.312 billion |
| PKI.TO | Parkland Corp | 3.00% | $8.024 billion |
| FTT.TO | Finning International | 2.85% | $5.086billion |
| BYD.TO | Boyd Group Services Inc | 0.20% | $6.687 billion |
| CPX.TO | Capital Power Corp | 6.84% | $4.273 billion |
| GRT-UN.TO | Granite REIT | 4.36% | $4.803 billion |
| PBH.TO | Premium Brand Holdings Corp | 3.40% | $4.13 billion |
| ACO.X.TO | ATCO LTD Class I | 5.36% | $4.245 billion |
| SJ.TO | Stella Jones Inc | 1.12% | $4.583 billion |
| CRT-UN.TO | CT REIT | 6.31% | $3.387 billion |
| MFI.TO | Maple Leaf Foods Inc | 3.27% | $3.171 billion |
| EQB.TO | EQB Inc | 1.77% | $3.433 billion |
| CCA.TO | Cogeco Communications | 5.59% | $2.597 billion |
| AP-UN.TO | Allied Properties REIT | 10.37% | $2.293 billion |
| CSH-UN.TO | Chartwell Retirement Residences REIT | 5.05% | $2.957 billion |
| CWB.TO | Canadian Western Bank | 4.70% | $2.736 billion |
| FN.TO | First National Financial Corp | 6.08% | $2.409 billion |
| EIF.TO | Exchange Income Corp | 5.72% | $2.184 billion |
| KMP-UN.TO | Killam Apartment REIT | 3.57% | $2.302 billion |
| GSY.TO | Goeasy Ltd | 2.76% | $2.98 billion |
| IIP-UN.TO | InterRent REIT | 2.8% | $2.009 billion |
| CJT.TO | Cargojet Inc | 1.05% | $2.079 billion |
| ENGH.TO | Enghouse Systems Ltd | 2.48% | $1.947 billion |
| NWC.TO | North West Company Inc | 3.97% | $1.876 billion |
| BDGI.TO | Badger Infrastructure Solutions Ltd | 1.50% | $1.573 billion |
| TCL.A.TO | Transcontinental Inc Class A | 6.76% | $1.195 billion |
| JWEL.TO | Jamieson Wellness Inc | 2.54% | $1.261 billion |
| GCG.A.TO | Guardian Capital Group Ltd | 2.81% | $1.119 billion |
| SIS.TO | Savaria Corp | 3.10% | $1.19 billion |
| ALS.TO | Altius Minerals Corporation | 1.94% | $785.306 million |
| LGT.B.TO | Logistec Corp Class B | 0.77% | $366.659 million |
| CF.TO | Canaccord Genuity Group Inc | 4.02% | $884.957 million |
| ADEN.TO | Adentra Inc | 1.62% | $777.407 million |
| ARE.TO | Aecon Group Inc | 5.26% | $867.342 million |
| CGO.TO | Cogeco Inc | 5.86% | $575.385 million |
| MI-UN.TO | Minto Apartment REIT | 3.02% | $677.079 million |
| FSZ.TO | Fiera Capital Corp | 11.83% | $788.303 million |
| TCS.TO | Tecsys Inc | 0.90% | $517.937 million |
| XTC.TO | Exco Technologies Ltd | 5.83% | $285.63 million |
Should You Invest in Canadian Dividend Aristocrats?
Dividend investing can be a polarizing subject among investors. Ultimately, it will come down to your risk tolerance, investment goals, and investment horizon.
For younger investors, investing in Canadian dividend aristocrats might not be the best strategy. While you will surely be able to grow your portfolio over time, you are potentially missing out on investing in massive growth stocks instead.
Older investors looking for stability and income in retirement can rely on dividend aristocrat stocks to defend their capital.
Canadian Dividend Aristocrats ETFs
Given that nearly 80 dividend aristocrat stocks are in Canada, you might think it would be easier just to buy an ETF. Luckily, Blackrock has an ETF that tracks the Canadian dividend aristocrat stock index.
The iShares S&P/TSX Canadian Dividend Aristocrats Index ETF (CDZ.TO) is the ETF that tracks that index the closest. Some of its top holdings include Great WestLife Co, Power Corporation of Canada, BCE Inc., and Enbridge Inc.
This ETF holds 90 Canadian dividend aristocrat stocks and pays out a monthly distribution yield of 4.04%. The MER for CDZ is 0.66%, which means for every $10,000 you have invested, you will pay $66.00 in annual fees.
Methodology
For Canadian investors with a low-risk appetite, dividend aristocrat stocks can be great additions to your portfolio. When choosing Canadian dividend aristocrat stocks, I usually look at the track record for dividend growth, as well as the total shareholder returns.
On top of that, it helps to look at the company’s payout ratio, which shows how much of its profit it pays out in dividends each year. Do not chase a high dividend yield, as consistent dividend growth over time is far more valuable.
FAQs
In Canada, it is difficult to top the oil pipeline stocks like Enbridge, Pembina, and TC Energy. Not only do they have high dividend yields, but they back that up with high cash flow and a long history of dividend growth.
Dividend Kings are companies that have raised their dividends for 50 or more consecutive years. In Canada, Canadian Utilities (CU.TO) and Fortis (FTS.TO) are the only two companies on the list, with the latter joining recently in 2024.
Many Canadian REIT stocks pay high monthly dividends. Most notably, dividend aristocrat stocks like Canadian Apartments REIT (CAR-UN.TO), Allied Properties REIT (AP-UN.TO), and Granite REIT (GRT-UN.TO) all pay monthly dividends.
Canadian Utilities (CU.TO) is the longest-reigning dividend aristocrat stock in Canada. As of 2023, it has raised its dividend every year for 50 years, making it the current leader on the TSX.
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