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Top 20 Dividend Stocks – April 2012

Questrade Democratic Pricing - 1 cent per share, $4.95 min / $9.95 maxI have been meaning to do my top 20 dividend stocks update in March but I got busy with house work (i.e. mini renos) and went on a family vacation. Now is great timing to release a top 20 dividend stocks update considering the markets are going through a sell off. Do you have cash on hand? I unfortunately don’t. Do you have some bonds to use for rebalancing? I unfortunately don’t. Nevertheless, I keep a tab on my investments and I keep a lookout on future investments. This top 20 dividend stocks is a way to see what the market has to offer.

If you want to get access to some quick stock research on a technical front, try one of the services below:

Top 20 Dividend Stocks – Technical Screening

The technical screening is based on 5 criteria that I can easily fetch from Google Finance.

  • P/E : Target is 15
  • 52 Week Range : The lower in the range the higher the score
  • Yield : Normalized up to 6% (this one is manual)
  • Payout Ratio : Under 60%
  • Market Cap : Bonus multiplier with a target of $25B or more (+/- 10%). I normalize it between 0.9 and 1.1 and use that to multiply my previous total of the first 4 criteria.

I have been using this formula since my January 2012 update. I like it better and it’s important for everyone to review and adjust their screening over time. I recently had a reader sharing some screening information utilizing Benjamin Graham’s value formula, author of The Intelligent Investor, and I thought it was very interesting.

In my last update, the life insurance companies were surfacing to the top of the list. That’s no longer the case :) You had about a few months to get in at the bottom for the life insurance. I managed to get Manulife (MFC) and increase my position in Power Financials (PWF) which indirectly owns Great-West LifeCo (GWO).
TickerCompanyQuote52 Week RatioP/EMarket CapDividendYieldPayout RatioValue Metric
COS.TOCanadian Oil Sand$20.2613.39%8.599.82$0.305.92%50.85%5.66
WAG** Walgreen$32.2112.47%10.9927.79$0.182.17%23.89%5.40
AFL** Aflac$42.2241.97%10.0819.72$0.302.84%28.64%5.33
CDL.ACorby Distilleries Ltd.$16.0933.62%9.870.45$0.153.73%36.81%5.26
HSE.TOHusky$2436.75%1023.18$0.305.00%50.00%5.21
LB.TOLaurentian Bank$44.844.56%9.71.13$0.454.02%38.96%5.11
TCK.BTeck Resources$34.826.15%7.720.39$0.402.30%17.70%5.05
CM.TOCIBC$74.4640.82%10.3229.99$0.904.83%49.93%5.05
BBD.BBombardier$3.9516.46%8.516.81$0.032.53%21.74%4.97
L.TOLoblaws$33.26.11%12.499.34$0.212.53%31.58%4.83
BMO.TOBank of Montreal$58.1142.00%11.2637.21$0.704.82%54.26%4.80
SU.TO* Suncor$29.6827.70%10.9346.35$0.101.35%14.76%4.66
HASHasbro Inc.$35.5624.62%12.414.61$0.252.81%34.84%4.65
CVX** Chevron$101.4557.70%7.55200.56$0.813.19%24.11%4.64
MMM** 3M$84.5853.96%14.2158.74$0.592.79%39.66%4.59
LLYLilly$39.4268.48%10.145.74$0.494.97%50.26%4.55
POT.TOPotash Corp$43.0616.51%12.2836.98$0.141.30%15.95%4.55
SJR.BShaw Communications$20.5242.39%12.719.02$0.084.48%56.79%4.51
CNQ.TO* Canadian National Resources$31.2920.31%13.0534.44$0.111.34%17.50%4.48
EMR** Emerson Electric$49.6446.54%15.8936.46$0.342.74%43.59%4.48
The double star (**) highlights a US Dividend Aristocrat and the single star (*) indicates a Canadian Dividend Aristocrat.

Top 20 Dividend Stocks – Dividend Yield

A list purely base on the yield. Don’t let the yield fool you as sometimes it’s an indication of turbulent waters. TransAlta comes to mind when it comes to turbulent waters…

TickerCompanyQuote52 Week RatioP/EMarket CapDividendYieldPayout RatioValue Metric
ERF.TOEnerplus Corp$19.211.12%31.543.77$0.1811.24%354.10%1.98
JE.TOJust Energy$13.8571.79%#N/A1.93$0.103338.95%-1549.95%#N/A
AGF.B*AGF Management$14.35.80%14.101.37$0.277.55%106.93%2.56
EIF.TOExchange Income Fund$24.2778.50%21.970.43$0.146.92%152.73%1.01
BA.TOBell Alliant$27.5558.79%19.276.28$0.4756.90%132.87%1.60
DH.TODavis + Henderson$18.3364.67%11.531.09$0.316.76%77.99%1.83
PBH.TOPremium Brands Holding Corp$17.3183.42%24.030.35$0.296.70%161.11%0.96
CPG.TOCrescent Point Energy$41.4250.13%56.7212.61$0.236.66%378.08%1.26
KEG.UNThe Keg Royalty Income Fund$14.4689.22%17.120.16$0.086.64%114.29%1.09
AX.UNArtis REIT$16.2894.85%4.661.55$0.096.63%30.95%3.10
LIQ.TOLiquor Store Income Fund$16.8383.53%15.560.38$0.096.42%100.00%1.29
TA.TOTransAlta$17.744.05%13.553.99$0.2842296.41%86.79%2.61
RSI.TORogers Sugar$5.4474.24%16.750.51$0.0856.25%106.25%1.41
SLF.TOSun Life Financial$23.5641.53%#N/A13.85$0.366.11%-257.14%#N/A
CUF.UNCominar$23.889.41%9.671.83$0.126.05%58.54%2.74
ARX.TOArc Resources$19.9411.42%19.855.76$0.16.02%120.00%2.26
COS.TOCanadian Oil Sand$20.3614.19%8.639.87$0.35.89%50.85%5.65
TAT&T$30.875.00%46.59182.58$0.445.71%266.67%2.25
CWT.UNCalloway REIT$27.2192.66%18.353.36$0.12915.69%104.68%2.39

Thoughts

I have been doing my Top 20 Dividend Stocks for a little while now and it’s interesting to see how the landscape changes every two months. It’s a sign that the markets are always fluctuating.

For a list of my holdings, see the Dividend Income section where I list my dividend holdings monthly with the dividends earned.

Readers: Any of the companies on your watch list?

Disclaimer: Please note that this blog post represents my opinion and not an advice/recommendation. I am not a financial adviser, I am not qualified to give financial advice. Before you buy any stocks/funds consult with a qualified financial planner. Make your decision at your own risk – see my full disclaimer for more details.

Image: jannoon028 / FreeDigitalPhotos.net

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12 Responses to "Top 20 Dividend Stocks – April 2012"

  1. Derrick says:

    Good post, I personally have been increasing my holdings in WAG, it has been “stuck” around that price for some time but I expect it to move higher. I will happily continue to take the dividends while I wait, plus with a 23% payout ratio there is plenty of room for continued dividend growth.

  2. First off, let me say how much I’ve been enjoying your site. Although dividend investing is only a minor share of my portfolio, it’s an area I’ve enjoyed learning about as I try to grow my passive income. Please keep up the great work!

    I’m surprised that Just Energy (JE.TO) and Exchange Income (EIF.TO) are not coming up in your screens. Along with SLF, JE has been one of my favourite dividend-paying holdings in 2012. It’s up 20% since I entered in late January on a big breakout, and up ~50% since its October lows. Although it hasn’t increased its dividend, it is still yielding 9%. This stock wouldn’t meet the criteria of your first list (for instance it has a high payout ratio), and I would certainly wait for a pull-back before adding further, but I’ll continue to hold as long as it keeps making new highs on solid volume.

    EIF was recently added as a Canadian Dividend Aristocrat, and it’s currently yielding 6.7%. I’ve been eyeing it since its big run up in late 2011, but so far it has been tracking sideways in 2012. I’d love to see another one of those big August/October 2011 plunges!

    • The Passive Income Earner says:

      @TropicalTrader
      Thanks for the kind comments.

      The reason it’s not on the value list is due to its negative EPS, it’s not providing a nice dividend payout ratio and the P/E is negative. As for the yield table, I mistakenly removed it. It would be ranked second simply on yield. I’ll see about updating the table.

      I don’t currently have EIF.TO in my list. I just added it and due to its high payout ratio, it also would not show up on the value list. Now, as an income trust, the DPR should be looked at differently since you don’t just get dividends but also capital gains and return of capital.

      SLF exhibits a negative EPS at the moment and that’s why it’s not making it in the value list. A negative EPS make most other numbers look really bad :(

  3. Jay says:

    Thanks for the data. I think there is an error with DH. It pays 0.31 per quarter which, at today’s price of 18.19, yields 6.82%, not 11.07%.

  4. Sorry, I sacrificed clarity for brevity. I had thought that both companies might show up in your high-yield list, and that EIF.TO might also show up on the value list. I saw that it had a DPR of <50 on my Globe watchlist, so I assumed it met that criterion.

    Thanks for the clarification.

  5. Bernie says:

    Why not include historical dividend growth metrics in your screens such as 1, 3 & 5 year % div. increases.

    • The Passive Income Earner says:

      @Bernie
      I’d like to, I just have not had time to do the data entry. There is a lot more I would like to do but it becomes more of a manual process. Over time, if I can get started on it, it wouldn’t take long to keep it up to date but it’s the initial hurdle where I need more time.

  6. The Passive Income Earner says:

    I have updated the yield table. Somehow the sorting was wrong and the company data did not match the yield.
    Thanks for those who reported it.

  7. WKG says:

    curious how you came up with the payout ratio of artis reit

  8. Steven says:

    Later Post: Check out PLZ on the venture exchange. I have this in a DRIP and have been following this company for the past five years.. Plaza Corp has been increasing it”s dividend regularly every year and is now at a respectful .21 cents per share. FYI

  9. Steven says:

    Sorry I noted my e mail had a y at the end of .com repost

    Steven
    Your comment is awaiting moderation.
    June 23, 2012 at 12:16 pm · Reply
    Later Post: Check out PLZ on the venture exchange. I have this in a DRIP and have been following this company for the past five years.. Plaza Corp has been increasing it”s dividend regularly every year and is now at a respectful .21 cents per share. FYI

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