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Top 20 Dividend Stocks – May 2013

Mortgage RatesEvery other months, I share the Top 20 Dividend Stocks from my tracking list. It’s pre-filtered by about 150 stocks across Canada and the US. I do track many stocks by sectors and they are mostly large cap as I am mostly investing in blue chip stocks with an economic moat. The purpose of the Top 2o is to highlight the movement of many of the companies and that value buys do come into play every now and again. If you feel a stock might be missing, let me know. I am always interested in tracking good stocks.

For my last three Top 20, Apple (AAPL) has been owning the crown of best valued company in my list and yet I continue to resist buying it. My investing strategy is for the long term and with Apple, it’s really hard to assess the long term and the highly competitive mobile landscape. When I say long term, I mean 10 + years… The cash on hand is making new buyers jump in feeling good about the dividends. I know we are all waiting for the next innovation and that’s why the company stock price is getting punished. Will it continue to be an innovator or just another electronic company? For those owning Apple, will you jump in Google if they start a dividend? They also have a lot of cash on hand. If not, why and what’s the difference? Google has more of an economic moat with advertisement than Apple with a phone. I personally would pick GOOG over AAPL if Google was to initiate a dividend with a growth target. What about you?

If you want to get access to some quick stock research on a technical front, try one of the services below. It’s free and you get technical trends by email.

Top 20 Dividend Stocks – Technical Screening

Below are the values I used in my technical screening system. You may find the range to be wider than necessary but it’s required to have more stocks in the screener to compare. I need to be able to see more stocks in order to compare as trends can come into play. That’s why the end value is normalize to 1 in order to weight each criteria effectively. I don’t buy purely from the filter but it does indicate stocks to be on the look out for. Sometimes a dividend increase will give a boost and in other cases, it’s the lower stock price.

I have also removed the REITs from the list as the comparison is not really possible. The REITs need to be looked at differently and the payout ratio isn’t comparative to the corporations.

The Canadian Banks are still rocking. I own the big 6 and they pay well. I am not sure what the growth is going to be in the coming years but they certainly pay well and I am one of those that don’t believe we will see a market crash just yet with the mortgage industry.

  • P/E : Target is 15
  • 52 Week Range : The lower in the range the higher the score for an entry point
  • Yield : Normalized up to 6% (this one is manual)
  • Payout Ratio : Between 25% and 65%
  • Market Cap : Bonus multiplier with a target of $20B 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.
  • Liability-to-Equity Ratio : Anything below 1.00 gets a full score and it goes down from there.
TickerCompanyQuoteP/EEPSMarket CapDebt RatioYieldPayout RatioValue Metric
AAPLApple$433.2610.34$41.89407.310.542.82%29.12%0.98
NA.TONational Bank$74.187.92$9.3712.0304.48%35.43%0.94
CM.TOCIBC$78.8210.07$7.8331.6804.77%48.02%0.93
IMO.TO* Imperial Oil$40.069.6$4.1733.950.791.20%11.51%0.92
G.TOGoldcorp$26.5814.73$1.8121.580.362.26%33.15%0.89
INTCIntel Corporation$24.0411.99$2118.900.653.74%45.00%0.88
BMO.TOBank of Montreal$62.1810.28$6.0540.5404.76%48.93%0.87
TD.TOTD Bank$82.8211.7$7.0876.2403.91%45.76%0.85
BNS.TOScotia Bank$58.7611.15$5.2770.0404.29%47.82%0.85
LB.TOLaurentian Bank$43.398.85$4.91.2304.52%40.00%0.83
TCK.BTeck Resources$27.9817.93$1.5616.230.932.86%51.28%0.82
RY.TORoyal Bank$62.1712.21$5.0989.9204.05%49.51%0.79
XOM** Exxon Mobile Corp$91.769.36$9.81408.000.942.48%23.24%0.78
CVXChevron$123.429.33$13.23239.310.692.92%27.21%0.78
AGU.TOAgrium$93.849.64$9.7413.981.311.09%10.47%0.77
CNQ.TO* Canadian National Resources$30.3919.89$1.5333.140.981.65%32.68%0.74
HSE.TOHusky$30.2415.17$1.9929.720.833.97%60.30%0.73
BPO.TOBrookefield Office Properties$19.298.94$2.1611.111.052.90%25.93%0.71
CWB.TOCanadian Western Bank$28.6312.71$2.252.2602.38%30.22%0.71
IFC.TO* Intact Financial$59.4513.94$4.269.123.052.96%41.31%0.70
The double star (**) highlights a US Dividend Aristocrat and the single star (*) indicates a Canadian Dividend Aristocrat.

Top 20 Dividend Stocks – Dividend Yield

This section could simply raise the  red flag yield or show you some good income producing investments as a high yield stock.

TickerCompanyQuoteP/EEPSMarket CapDebt RatioYieldPayout RatioValue Metric
AGF.B* AGF Management$12.0942.57$0.281.080.608.93%385.71%0.29
TA.TOTransAlta$15.46#N/A-$3.174.051.837.50%-36.59%#N/A
ATP.TOAtlantic Power Corp$4.95#N/A-$0.600.592.377.27%-60.00%#N/A
CPG.TOCrescent Point Energy$38.2461.02$0.6314.630.407.22%438.10%0.43
COS.TOCanadian Oil Sand$20.5712.33$1.679.971.256.81%83.83%0.44
BA.TOBell Alliant$28.148.63$3.266.410.006.75%58.28%0.53
ERF.TOEnerplus Corp$16.32#N/A-$0.783.240.776.62%-138.46%#N/A
AX.UNArtis REIT$16.635.72$2.912.091.146.49%37.11%0.59
EIF.TOExchange Income Fund$26.0421.60$1.210.541.136.45%138.84%0.35
KEG.UNThe Keg Royalty Income Fund$15.2566.05$0.230.170.176.30%417.39%0.22
PBH.TOPremium Brands Holding Corp$18.6025.45$0.730.391.996.24%158.90%0.23
CUF.UNCominar$23.617.95$2.972.951.086.10%48.48%0.65
LIQ.TOLiquor Store Income Fund$18.0321.99$0.820.410.585.99%131.71%0.62
RSI.TORogers Sugar$6.0114.55$0.410.571.085.66%82.93%0.60
DH.TODavis + Henderson$23.2719.26$1.211.380.845.50%105.79%0.46
MBT.TOManitoba Telecom$31.8113.85$2.302.152.385.34%73.91%0.56
CWT.UNCalloway REIT$29.233.94$7.413.860.785.30%20.91%0.85
HR.UNH&R REIT$24.579.03$2.724.801.315.19%46.89%0.79
ENF.TO* Enbridge Income Fund$26.3517.40$1.511.490.035.12%89.40%0.45
KMPKinder Morgan Energy$88.3841.23$2.1433.661.775.02%207.48%0.43

I maintain a list of my holdings in the Dividend Income section. It does not change very often since I am long with my investments and my dividend investing strategy. Have a look at my monthly dividend income since 2010.

If you are researching stocks, here are posts I have written to help others do their own research:

Readers: Any surprises in the list?

Disclaimer: I own a number of stocks listed, see my holdings in the Dividend Income section for a full 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: renjith krishnan / FreeDigitalPhotos.net

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10 Responses to "Top 20 Dividend Stocks – May 2013"

  1. I hope your lists are good since I own 6 stocks how of it!
    BNS, HSE, CVX, AAPL, INTC, NA.

    good stuff :-)

    • The Passive Income Earner says:

      @Dividend Guy, @Zach

      The list, as mentioned, is already pre-filtered by companies I approve of already. It’s not a blind listing of everything out there – I don’t find that very useful for my strategy. I would be happy to own any companies in the list. It’s a way to sort it out and show which companies are showing better value for purchase over others.

    • The Passive Income Earner says:

      @ Dividend Guy
      They happen to still be nicely valued from a technical screening perpective :)

  2. I own quite a few stocks on the technical screening list as well. Very solid lists.

  3. Integrator says:

    I recently added both Apple and Cisco to my dividend portfolio. In my view both are reasonable priced right now and will provide solid dividend growth in my view. I do agree with you that Google has a wider moat, though Apple has certainly developed a narrow with ecosystem lock in. They just need to keep extending that to additional form factors, which I am sure they will do. I feel their torrid days of growth are over, but sustained EPS growth of 10% per annum is all I am looking for.

  4. gibor says:

    I own 11 stock from first table (8 from first 9, except IMO – this is not a dividend :) ) and 6 from 2nd.

  5. DividendPlayer says:

    Canadian Utilities I find to very rarely show up on dividend lists however with a FPE of 16.2, yield of 2.4% with yesrly 10% increases, 10 billion market cap, very low float and due to split 2:1. And an AFFO payout of 39%, CU.T is an often over looked Dividend star and together with Fortis (FTS.T) should be a part of any Canadian dividend portfolio.

  6. I agree also that Fortis and CU.T are great additions to anyone’s portfolio. The wedding of these two stocks will create a lasting marriage in your portfolio.

  7. Gary says:

    It’s great to see young people investing in dividend paying stocks and growing income from a younger age; so as to live off that income when old. Go with companies that have a track record of increasing their dividends and rewarding shareholders; a good place to start finding these names is the S&P 500 Dividend Aristocrats Index.

    Here is more information about them. S&P 500 Dividend Aristocrats is a listing of all companies in the S&P 500 Index that have consistently increased dividends each year for the last 25 years. You will find some of America’s largest blue-chip companies in this index including AT&T, Chevron, Coca Cola, Johnson & Johnson, McDonalds, Procter & Gamble, Wal-Mart and Walgreen. For the year 2013, the S&P 500 Dividend Aristocrats Index had 54 companies that were equally weighted and not favored because of their sizes or market capitalization. Source: http://www.2topdividendpayingstocks.com/sp-dividend-aristocrats-2013.html

    Each company in the Index is an investment opportunity without regard to its size. In addition, each constituent must have a minimum $3 billion float-adjusted market capitalization to be included in the Index. S&P 500 Dividend Aristocrats is a listing of all companies in the S&P 500 Index that have consistently increased dividends each year for the last 25 years. You will find some of America’s largest blue-chip companies in this index including AT&T,
    Chevron, Coca Cola, Johnson & Johnson, McDonalds, Procter & Gamble, Wal-Mart and Walgreen. For the year 2013, the S&P 500 Dividend Aristocrats Index had 54 companies that were equally weighted and not favored because of their sizes or market capitalization. Each company in the Index is an investment opportunity without regard to its size. In addition, each constituent must have a minimum $3 billion float-adjusted market capitalization to be included in the Index.

  8. Sumflow says:

    Kinder Morgan uses a different kind of metric. P/E does not apply to Mlps. How can it pay out 200% when it has to pay out 100% of cash available every quarter?

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