Dividend aristocrats are often used to help guide investment decisions or at least filter down to a set of companies that have a proven record of increasing dividends. The most popular list is the U.S. Dividend Aristocrats which requires companies to be part of the S&P500 and to have increased their dividends every year for the past 25 years. That’s no small feat. Imagine the compound growth you get from 25 years of dividend increase.
What you need to do next is research and do your own stock analysis. The aristocrats are a good filter to start with but you often can only buy one at a time and your purchase price still matters.
If you want to get access to some quick stock research on a technical front, try one of the services below:
Canadian Dividend Aristocrats Requirements
The Canadian dividend aristocrats list doesn’t have the same requirements. They are a little softer. In order to become a TSX dividend aristocrat, a company must match the following 3 criteria:
- It must be listed on the Toronto Stock Exchange and be part of the S&P Canada Broad Market Index (BMI).
- It must have increased dividends every year for the past 5 years.
- It must be worth at least Canadian 300 million dollars.
Canadian Dividend Aristocrats List
Addition to the Canadian Dividend Aristocrats List
- Bird Construction Income Fund (BDT.UN) – It recently converted to a corporation.
- Enbridge Income Fund (ENF.UN)
- North West Company Fund (NWF.UN)
- Rogers Communications Inc. (RCI.B)
- Tim Hortons Inc. (THI)
Removal from the Canadian Dividend Aristocrats List
- AltaGas Ltd. (ALA)
- Allied Properties REIT (AP.UN)
- Bell Aliant Regional Communications Income Fund (BA.UN)
- Bank of Nova Scotia (BNS)
- CML Healthcare Income Fund (CLC.UN)
- Canadian Tire Corporation (CTC.A)
- Cominar REIT (CUF.UN)
- Canadian Western Bank (CWB)
- Davis & Henderson Income Fund (DHF.UN)
- EnCana Corporation (ECA)
- Great-West Lifeco Inc. (GWO)
- Industrial Alliance Insurance and Financial Services Inc. (IAG)
- IGM Financial Inc. (IGM)
- Just Energy Income Fund (JE.UN)
- Methanex Corporation (MX)
- Parkland Income Fund (PKI.UN)
- Power Corporation of Canada (POW)
- Power Financial Corporation (PWF)
- RioCan REIT (REI.UN)
- Ritchie Bros. Auctioneers Inc. (RBA)
- Toronto-Dominion Bank (TD)
- Uni-Select Inc. (UNS)
Some really good companies were removed from the list. There are a few banks, insurance companies and some energy companies that make up for a large portion of the TSX that were drop due to their inability to increase their dividends in the past year. For some, it’s simply a temporary set back. For others, the road back to be a dividend aristocrat may be longer.
Readers: What do you think of the list? Do you use it to filter your investments?