For the beginning of the year, I did some research on a lot of stocks and wrote the Best Dividend Stocks for 2013 eBook (you can download it for only $2.99 here). This eBook includes 30 Dividend Growth Stocks (20 US and 10 Canadian) that have been showing very solid dividend metrics.
Last week, I pulled out the Best 2013 US dividend stocks with an impressive list of 96 stocks. This is a lot more than the 20 picks I selected for the best 2013 dividend stocks (30 stock analyses in this book). Unfortunately, the Canadian market is not as deep nor diversified. I have applied the same specific metrics described in Dividend Growth Freedom Through Passive Income. These metrics have been proven to combine both dividend and capital growth for each company. While I pulled 96 US stocks, only 22 made the list from the Canadian market.
Here’s the list of the filters I’ve used to create my list.
Dividend yield over 3%
5 year positive dividend growth
Dividend payout ratio under 75%
Return on equity (ROE) over 10%
5 year positive annual income growth rate
Current price / earnings ratio (PE) under 20
Top 2013 Canadian Stocks
| Ticker | Name | Dvd Yield | Dvd 5Y Growth | EPS 5Y Growth | Payout Ratio | P/E | ROE | Industry |
|---|---|---|---|---|---|---|---|---|
| ADW/A | Andrew Peller Ltd | 3,61 | 5,42 | 12,18 | 39,59 | 10,36 | 11,44 | Beverages-Wine/Spirits |
| SJR/B | Shaw Communications Inc | 4,56 | 12,67 | 1,99 | 47,84 | 13,12 | 22,33 | Cable/Satellite TV |
| RCI/B | Rogers Communications Inc | 3,6 | 36,08 | 21,16 | 49,01 | 14,57 | 40,17 | Cellular Telecom |
| RY | Royal Bank of Canada | 4,17 | 4,61 | 11,37 | 46,61 | 12,23 | 19,21 | Commer Banks Non-US |
| TD | Toronto-Dominion Bank/The | 3,76 | 6,49 | 5,29 | 40,57 | 11,03 | 14,85 | Commer Banks Non-US |
| BNS | Bank of Nova Scotia | 4,18 | 4,71 | 12,68 | 44,36 | 11,83 | 19,38 | Commer Banks Non-US |
| CM | Canadian Imperial Bank of Commerce/Canada | 4,74 | 3,2 | 163,87 | 47,74 | 10,26 | 22,58 | Commer Banks Non-US |
| NA | National Bank of Canada | 4,09 | 6,2 | 8,35 | 38,36 | 8,67 | 22,46 | Commer Banks Non-US |
| LB | Laurentian Bank of Canada | 4,24 | 9,67 | 5,66 | 33,69 | 8,7 | 10,7 | Commer Banks Non-US |
| CTY | Calian Technologies Ltd | 5,42 | 20,34 | 10,93 | 56,69 | 11,28 | 21,61 | Consulting Services |
| EMA | Emera Inc | 4,01 | 8,65 | 15,22 | 65,82 | 18,5 | 14,44 | Electric-Integrated |
| ACD | Accord Financial Corp | 4,6 | 6,75 | 22,4 | 35,19 | 9,52 | 14,67 | Finance-Commercial |
| ET | Evertz Technologies Ltd | 3,75 | 60,95 | 5,54 | 62,58 | 16,41 | 17,56 | Industr Audio&Video Prod |
| GWO | Great-West Lifeco Inc | 5,32 | 3,71 | 14,57 | 57,81 | 10,96 | 17,24 | Life/Health Insurance |
| PWF | Power Financial Corp | 5,34 | 4,66 | 6,79 | 59,73 | 11,19 | 15,16 | Life/Health Insurance |
| POW | Power Corp of Canada | 4,7 | 5,74 | 16,61 | 52,67 | 11,44 | 11,62 | Life/Health Insurance |
| CJR/B | Corus Entertainment Inc | 4,2 | 13,4 | 50,17 | 52,56 | 12,7 | 13,68 | Multimedia |
| CUF-U | Cominar Real Estate Investment Trust | 6,16 | 2,59 | 29,58 | 52,64 | 9,68 | 12,12 | REITS-Diversified |
| AP-U | Allied Properties Real Estate Investment Trust | 4,15 | 1,15 | 86,96 | 39,19 | 10,47 | 14,07 | REITS-Office Property |
| BDI | Black Diamond Group Ltd | 3,52 | 6,19 | 81,16 | 49,85 | 16,66 | 16,96 | Rental Auto/Equipment |
| BCE | BCE Inc | 5,29 | 8,77 | 22,05 | 71,03 | 13,58 | 23,1 | Telecom Services |
| T | TELUS Corp | 3,79 | 9,67 | 6,36 | 58,65 | 16,98 | 15,73 | Telecom Services |
Out of 22 stocks, 45% come from the financial services sector (6 Canadian Banks and 4 Insurance/Investment holding companies). Let’s just say that you can’t really build a complete dividend portfolio by using this list! Choosing Canadian banks seems like a no brainer but while they pay a healthy dividend, the Canadian housing market should remain a concern for 2013. I also found some interesting picks with Andrew Peller and Emera (which I recently covered on The Dividend Guy Blog).
They Are Not Stock Pick Recommendations
I have done a lot of research to produce this list of stocks (and even more to write my book for 2013!) but they cannot be used as stock recommendations alone. I truly believe in creating a proper mix of asset allocation for your own portfolio. The other thing is when I look at my 2012 results, I had 1 stock that didn’t do well out of 9 (IMG). I know that my Canadian portfolio beat the index by more than 6% but still, I’m not a professional and I am not giving stock picking recommendations.
Among the 22 stocks on this list, I’ve picked 10 companies for my Best Dividend Stocks for 2013:
Andrew Peller – ADW.A
Black Diamond Group – BDI
Calian Technologies – CTY
Emera – EMA
Evertz Technologies – ET
National Bank – NA
Rogers Communications –RCI.B
Power Corporation – POW
Royal Bank – RY
Telus – T
I hope to beat the market by 6% again this year ;-D
If You Are Looking For The First Canadian Dividend Book – Here it Is:
Disclaimer: I hold NA & T
Happy New Year Mike. I really like your Best Dividend Stocks for 2013 e-book. Good work and thank you! My opinion is your list should do better than the index, but my favorite bank is TD followed by Scotia. I’ve had EMA for a long time and I like it a lot. POW, I’ve had for too long! Maybe this year will be good for Power Financial.
Thanks for putting together the list Mike. I’m glad I already have some of those companies, mostly in the financial sector, but am interested now in ADW and EMA 😀
Buying BDI a couple of years ago (in the $8.50 range, split-adjusted), has been one of my best stock picks. Looking forward to another good year from them. 😀
I already own a number of other stocks in your list, but may have a look at ET and ADW.
Hi Jeremy,
Thanks for your list and your hard work all year. I was reading an article in a recent “Money” magazine (US publication).
There was an article that one writer wrote about dividend stocks not really being any better then other good quality growth stocks for example. He brought up a point that at the dividend payout date the stocks value drops equal to the dividend payout.
So he felt people don’t really see this and focus on only the dividend and ignore that small share price drop. I just wondered if you have ever touched on that in one of your past posts?
If your interested I could probably scan the article and e-mail it to you. It’s not with me at work today…