Dividend Aristocrats – The Canadian TSX Version

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The 2012 list is out and ready for your consumption!

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:

  1. It must be listed on the Toronto Stock Exchange and be part of the S&P Canada Broad Market Index (BMI).
  2. It must have increased dividends every year for the past 5 years.
  3. It must be worth at least Canadian 300 million dollars.
As you can see, the requirements for dividend increase is not on par with the U.S dividend aristocrats list but it’s still good to see what we have on this side of the 49th parallel.

Canadian Dividend Aristocrats List

Here is the list of Canadian Dividend Aristocrats as of December 2010. I took the liberty to highlight the companies with a 3% yield or more in green and the list is sorted by market capitalization.
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I don’t know what expectations I had from the list, but this is not the list I expected. I know nothing of nearly half of the companies on the list. The banks are missing in action considering they had a dividend freeze for the past couple of years but a few telecommunication companies are present.

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)

Final Thoughts

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?

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8 Responses to "Dividend Aristocrats – The Canadian TSX Version"

  1. martin m says:

    how can a u.s. citizen invest in canadian stocks, etfs, exchanges? i know several, if not many, of Canadian aristocrats trade on u.s. markets. unfortunately, some are otc or less. i would appreciate a response from the editors of this site by email. thanks much.

    • The Passive Income Earner says:

      Thanks for the question Martin, I just emailed you. For anyone reader, with a discount broker, I believe you should be able to pick the market you want to trade the stock on. All Canadian discount brokers allow us to buy stocks on the US exchange (NYSE or NASDAQ). I believe the option should be there on the US side of brokers as well.

  2. mark says:

    Don’t forget about GBT.A, which is still increasing..

    It is a small company, but for some reason these dividend lists always miss it. It has been a great investment over the past decade – returning 1945%, according to a google stock chart, and that doesn’t include dividends.

  3. Dividend Invertor from Europe says:

    The North West Company Inc (NWF.TO) dividend dropped to 0.24 from 0.34.

    • The Passive Income Earner says:

      Thanks for the heads up. It looks like they also just changed their stock symbol to NWC.

  4. The ETF associated with this index (CDZ) makes up a significant portion of our income portfolio. Does anyone know what stocks have increased dividends for the past 4 years and are potential additions to this index for 2012 ?

  5. I just like the valuable info you provide in your articles. I’ll bookmark your weblog and check again right here regularly. I’m moderately certain I will be told lots of new stuff proper here! Best of luck for the following!

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