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2012 Canadian Dividend Aristocrats

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The 2013 Dividend Aristocrats is here!

Here is the list many of you have been waiting for:

The 2012 Canadian Dividend Aristocrats!

Unless you are tracking many companies on your own with historical data, the following dividend aristocrat list is a must have resource for any dividend investor. You can also review last year’s Dividend Aristocrats if you want. 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 Aristocrat Requirements

The rules have changed … Was there some lobbying to alleviate the impact on the lack of dividend increase during the financial crisis?!? The Canadian Dividend Aristocrats must now meet the following requirements to be included in the list as defined by the Standard & Poor’s comity.

  1. The company’s security is a common stock or income trust listed on the Toronto Stock Exchange and a constituent of the S&P Canada BMI. .
  2. The security has increased ordinary cash dividends every year for five years, but can maintain the same dividend for a maximum of two consecutive years within that five year period.
  3. The float-adjusted market capitalization of the security, at the time of the review, must be at least C$ 300 million.
  4. For index additions, the company must have increased dividend in the first year of the prior five years of review for dividend growth. This rule does not apply for current index constituents.
Rule number 2 has been amended since last year. You’ll probably see some banks in the list now. If you are familiar with the U.S. Dividend Aristocrat requirements, you’ll find that it’s much softer. I should say much much softer with this year’s criteria update. I’d love to see a list that follows the criteria above with a 10 year history rather than 5.

Canadian Dividend Aristocrat

Addition to the Canadian Dividend Aristocrats List

  • AFN – Ag Growth International Inc.
  • ATP – Atlantic Power Corporation
  • BNS – Bank of Nova Scotia  
  • ABX – Barrick Gold Corporation
  • CTC.A – Canadian Tire Corporation Limited
  • CWB  – Canadian Western Bank
  • CGX – Cineplex Inc.
  • CMG  – Computer Modelling Group Ltd.
  • CSU – Constellation Software Inc.
  • DII.B – Dorel Industries Inc.
  • EMA  – Emera Incorporated
  • EIF  – Exchange Income Corp.
  • FFH – Fairfax Financial Holdings Ltd.
  • IGM  – IGM Financial Inc.
  • PJC.A – Jean Coutu Group (PJC) Inc.
  • MX – Methanex Corporation
  • NPR.UN – Northern Property REIT
  • RET.A – Reitman’s (Canada) Ltd.
  • RBA – Ritchie Bros. Auctioneers Incorporated
  • SU – Suncor Energy Inc.
  • TD – Toronto-Dominion Bank 

Removal from the Canadian Dividend Aristocrats List

  • NWC – North West Company Inc.
  • TI – Toromont Industries Ltd.

Thoughts

It’s nice to see the strong aristocrats are still in the list and newcomers have arrived. The newcomers aren’t necessarily new to the list though since they did not need to wait another 5 years due to the rule change. I wish they would have increased the length to 10 years if they were going to soften the consecutive years in payment. It’s not meant to be an easy list to be on – you really need to earn it in my point of view. :)

Readers: What do you think of the addition? What do you make of the rules?

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11 Responses to "2012 Canadian Dividend Aristocrats"

  1. It’s nice to see the newcomers as well.

    I think the 5-year window is way too short, like you said (especially compared to U.S. aristocrats) but nonetheless, I’d like to own about 50% of the companies above.

  2. Shawn says:

    Thanks so much for this post! And ya, I agree the length should be 10 years not 5.

    • The Passive Income Earner says:

      @Shawn
      Thanks. Glad you find it useful. I don’t mind that they would allow them to skip a year, but 5 years is not very long to create a steady history for a commitment to reward investors.

  3. PIE Great post, and I’m glad you took the time to update us on the Dividend Aristocrats for Canadian stocks. ;) I know you are a big fan of the 10-10 rule, and apply it to your own investments now. Clearly the longer a company continues to raise its dividend, the stronger the company appears to be.

    Interestingly as you remember, American Banks were pulled from the 10-10 rule before the 2008 to 2009 crash, as they didn’t raise their dividends due to financial difficulties before the meltdown. Other US stocks as well – so we know the 10-10 rule has merit.

    I’m not sure putting the companies back on the list now makes sense, but then I guess there wouldn’t be an index – too few Canadian companies to choose from ;)

    Cheers
    Dividend Ninja

  4. Juan says:

    Thanks for the list, it really does provide some good ideas for places some places place some of that extra cash that is lying around.

  5. Great list, PIE. Good job on putting it all together. Like MOA, I’d like to own about half of these companies. This coming year, the plan is to continue to “diverisify” into Canadian dividend-paying equities.

  6. Ken says:

    Thanks for the analysis, it is very useful.

    I believe I’ve found a mistake with Pason Systems Inc. (PSI). Their dividend is showing at $0.20 and is paid twice per year for a total dividend of $0.40 (or $0.44 if you look at MSN Money). Either way, that represents a yield of 2.67% (or 2.94% if you use the MSN number) – not the 5.35% from your table.

    Ken

  7. MikeO says:

    Trackbacks are a real pain and not useful in your comments. Maybe you should hide or remove them.

  8. Katherine says:

    Are the dividends for these stocks paid out at the same frequency? (e.g. quarterly) Thanks!

    • The Passive Income Earner says:

      @Katherine

      Not all of them. You have to look into each of them but over 95% of them do quarterly dividends.

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