For global dividend growth investors, the Canadian dividend aristocrats list can be a source of investment ideas. Like the US Dividend Aristocrats, the “Canadian” version is also created and maintained by S&P. The major difference is the number of consecutive years of dividend increases. To become a member of the Canadian dividend aristocrats list, 5 years of consecutive dividend increases are already sufficient, while the minimum requirement is 25 years for the US stocks.
When looking at the fundamentals, the average dividend yield of 4.2% is almost double the 2.3% of the US Dividend Aristocrats. Also, the P/E ratio is lower, 25.61 (US) versus 16.5 (Canadian).
True Canadian dividend aristocrats
There are always several angles to screen dividend growth stock appropriate for your investment strategy. If you prefer a more strict “consecutive years of dividend increases” requirement, e.g. 25 years, there are only 9 Canadian stocks that qualify. We call them often true dividend aristocrats.
The table below lists the nine Canadian dividend aristocrats with at least 25 consecutive years of dividend increases, including dividend yield and the exact number of dividend growth years.
Another angle is selecting the stock based on the highest dividend yield. The top-10 sorted on dividend yield is shown in the table below:
Dividend growth is also another important factor. Below the stocks with the highest dividend growth rate over the last 5 years.
Other Sources of Dividend Investment Ideas
The Dividend Aristocrats list is not the only way to quickly screen for businesses that regularly pay rising dividends.
- The Dividend Kings List is even more exclusive than the Dividend Aristocrats. It is comprised of less than 20 businesses with 50+ years of consecutive dividend increases.
- The MoneyInvestExpert Defensive Aristocrats is a performance-based top-10 selection of the Dividend Aristocrats to outperform the market on the long-term.
- Portfolio lists like the Berkshire Hathaway Portfolio or Bill Gates’stock portfolio can be a source.
- For the European focused investors there is also the list of European Dividend Aristocrats.
- Dividend Champions are not necessarily members of the S&P 500 index, have increased their dividend for 25 or more consecutive years.
- 100+ years of dividend, the list of stocks that pay over 100 year of dividend can be an list of inspiration.
Next to selecting the right dividend stocks, important principles for successful long-term investing are Disciple, Diversification, Defensive & indeed Dividend. Read more about this in our free e-book.
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