My Top 10 'Forever Holding' Canadian Dividend Stocks
As Canadian, we always have our Canadian dividend stocks in our portfolio. We love Canadian dividend companies for the following reason:
- They pay generous dividend.
- They increase dividend every year.
- They have a history of continuous paying dividend.
- We can buy our Canadian Dividend Stocks in Canadian currency.
Below is our list of my top 10 ‘Forever Holding’ Canadian Dividend Stocks in our Portfolio. These stocks are the core of our holdings, so we plan to keep these stocks forever. In addition, my plan is to have each of the ‘Forever Holding’ Dividend stock generating at least $1,000 of dividend income per year.
The Toronto-Dominion Bank, together with its subsidiaries, provides various personal and commercial banking products and services in Canada and the United States. The company operates through three segments: Canadian Retail, U.S. Retail, and Wholesale Banking. This bank is second largest bank in Canada and the fifth largest bank in North America (by the number of branches).
- Sector: Financial Services
- Industry: Banks-Diversified
- PE Ratio: 11.12
- Dividend: $3.16
- Dividend Yield: 4.98%
- 5 Year Dividend Growth: 9.40%
- Dividend Payout Ratio: 52.81%
- Dividend Increase Streak: 9 years
The bank has paid dividends for over 163 years to its shareholders. In February 2020, TD Bank announced a 7.0% increase to its dividend per share, increasing the quarterly dividend to $0.79. This translates into $3.16 dividend per share on an annualized basis for 2020. Over the past 10 years, the dividend has grown at an average compound annual growth rate of 9.70%. During the past ten-year period, the first annual payment was $1.22 in 2010, compared to $3.16 in 2020.
The historical return of a $10,000 investment in the last 25 years will firm up your decision to make TD Bank your core holding. The total return for the period with the said amount is 2,761.23% or $285,917.13, including reinvested dividends. Where else can you find a high-quality investment that delivers an average annual total return of 14.32% in 25 years?
Overall, TD Bank is one of the few stocks with capital appreciation, dividend growth and a good dividend yield. With all reasons above, TD Bank is the second largest holding in our dividend growth portfolio. Currently, we are owning 334 shares of TD and dripping $1054/year.
With roots tracing back to the 1860s, Royal Bank of Canada (RY), or RBC, is one of the oldest and largest banks in the world. The firm is well-diversified across businesses, geographies, and client segments, serving 16 million customers across Canada, the U.S., and more than 30 other countries.
- Sector: Financial Services
- Industry: Banks-Diversified
- PE Ratio: 12.48
- Dividend: $4.32
- Dividend Yield: 4.42%
- 5 Year Dividend Growth: 7.30%
- Dividend Payout Ratio: 53.78%
- Dividend Increase Streak: 9 years
This bank has paid dividends to shareholders every year since 1870, boasting one of the longest track records in the market. In February 2020, Royal Bank announced a 3.81% increase to its dividend per share, increasing the quarterly dividend to $1.08. This translates into $4.32 dividend per share on an annualized basis for 2020. Over the past 10 years, the dividend has grown at an average compound annual growth rate of 7.7%. During the past ten-year period, the first annual payment was $2.00 in 2010, compared to $4.32 last year. Dividends per share have grown at approximately 7.7% per year over this time.
The historical return of a $10,000 investment in the last 25 years will firm up your decision to make Royal Bank your core holding. The total return for the period with the said amount is 3,142.55% or $324,568.17, including reinvested dividends. Where else can you find a high-quality investment that delivers an average annual total return of 14.90%?
Overall, Royal Bank is one of the world’s best run, most conservative, and most profitable banks. Royal Bank shows a perfect balance between revenue growth and dividend growth. Currently, I am holding 167 shares of Royal Bank and making it the 5 largest holding in our dividend growth portfolio. We are dripping $721/year. We will continue to add more Royal Bank shares until the dividend income can generate $1.000/year .
Canadian National Railway is a world-class transportation leader and the only transcontinental railway in North America. CNR’s 19,600-mile network spans Canada and Mid-America, connecting three coasts: the Atlantic, the Pacific and the Gulf of Mexico. CNR offers fully integrated rail and other transportation services, including intermodal, trucking, freight forwarding, warehousing and distribution.
- Sector: Industrial
- Industry: Railroads
- PE Ratio: 17.66
- Dividend: $1.70
- Dividend Yield: 1.66%
- 5 Year Dividend Growth: 16.18%
- Dividend Payout Ratio: 44.04%
- Dividend Increase Streak: 24 years
The company has paid dividends to shareholders every year since IPO in 1995. In January 2020, CNR announced a 18% increase to its dividend per share, increasing the quarterly dividend to $0.425. This translates into $1.70 dividend per share on an annualized basis for 2020. During the past ten-year period, the first annual payment was $0.54 in 2010, compared to $1.70 in 2020. Dividends per share have grown at approximately 16.40% per year over this time.
The historical return of a $10,000 investment in the last 24 years will firm up your decision to make CNR your core holding. The total return for the period with the said amount is 4,523.34%, or $462,713.08 including reinvested dividends. Where else can you find a high-quality investment that delivers an average annual total return of 17.53%?
Overall, CNR has all key ingredients for a top dividend growth stock: long dividend streak, good dividend growth history, strong financial strength, and a wide moat. Because of these reasons, CNR is currently in the top 10 holding of our dividend growth portfolio. Currently, we are holding 100 shares of CNR and generating $230/year of dividend income. We will continue to add more shares until we are able to drip a full share of CNR per quarter.
Enbridge Inc. operates as an energy infrastructure company in Canada and the United States. The company operates through five segments: Liquids Pipelines, Gas Transmission and Midstream, Gas Distribution, Green Power and Transmission, and Energy Services.
- Sector: Energy
- Industry: Oil & Gas Midstream
- PE Ratio: 45.80
- Dividend: $3.24
- Dividend Yield: 7.46%
- 5 Year Dividend Growth: 11.82%
- Distributable Cash Flow (DCF): 65%
- Dividend Increase Streak: 25 years
The company has paid dividends for over 69 years to its shareholders. In December 2019, Enbridge announced a 9.8% increase to our dividend per share, increasing the quarterly dividend to $0.810. This translates into $3.24 dividend per share on an annualized basis for 2020. Over the past 25 years, the dividend has grown at an average compound annual growth rate of 11%. During the past ten-year period, the first annual payment was $0.74 in 2010, compared to $3.24 in 2019. Dividends per share have grown at approximately 16% per year over this time.
The historical return of a $10,000 investment in the last 25 years will firm up your decision to make Enbridge your core holding. The total return for the period with the said amount is 3,048.45% or $314,803.60, including reinvested dividends. Where else can you find a high-quality investment that delivers an average annual total return of 14.63%?
Overall, Enbridge stock has down more than 20% since the year high of $57.32 in February 2020 because of the weaker energy demand. However, Enbridge has a robust of cash flow. The dividend is very safe and growing. With the history of dividend increase more than 25 years, Enbridge is a good company for Income and Dividend Growth Investor. Since March 2020, we have added quite a bit of shares due the weakness of the stock. Now it is the largest in our dividend growth portfolio. Currently, we are holding 759 shares of Enbridge and dripping $2459/year.
Algonquin Power & Utilities Corp. is a $10 billion regulated utility and renewable company that operates in North America. It generates and sells electrical energy through non-regulated renewable and clean energy power generation facilities. The company also owns and operates hydroelectric, wind, solar, and thermal facilities with generating capacity of approximately gigawatt; and regulated electric, natural gas, water distribution, and wastewater collection utility systems.
- Sector: Utilities
- Industry: Utilities-Renewable
- PE Ratio: 18.177
- Dividend: $0.82
- Dividend Yield: 4.55%
- 5 Year Dividend Growth: 12.40%
- Dividend Payout Ratio: 76.22%
- Dividend Increase Streak: 10 years
The company has paid dividends for over 15 years to its shareholders. In May 2020, AQN announced a 10 % increase to the dividend, increasing the quarterly dividend to $0.2191. This translates into $0.82 dividend per share on an annualized basis for 2020. During the past ten-year period, the first annual payment was $0.24 in 2010, compared to $0.82 in 2020. Dividends per share have grown at approximately 13.70% per year over this time.
The historical return of a $10,000 investment in the last 10 years will firm up your decision to make AQN your core holding. The total return for the period with the said amount is 593.15% or $69,328.45, including reinvested dividends. This high-quality investment delivers an average annual total return of 21.23% in the last 10 years
Overall, AQN has all key ingredients for a top dividend growth stock: long dividend streak, good dividend growth history, high dividend yield comparing to its peers, above average earning growth. Because of these reasons, AQN is currently in the top 10 holding of our portfolio. Currently, we are holding 894 shares of AQN and generating $733.08/year of dividend income. In conclusion, we will continue to add more shares until we reach $1000/year of dividend income.
Brookfield Renewable Energy is a global leader in hydroelectric power, which comprises approximately 64% of its portfolio. It is also an experienced owner, operator and investor of global wind, solar, distributed generation, and storage facilities.
Its portfolio consists of approximately 19,300 MW of capacity and 5,301 generating facilities in North America, South America, Europe and Asia. Its investment objective is to deliver long-term annualized total returns of 12%-15%, including annual distribution increases of 5–9% from organic cash flow growth and project development. It has an established track record of creating value by prudently acquiring, building and financing assets, and actively managing its operations.
- Sector: Utilities
- Industry: Utilities-Renewable
- PE Ratio: N/A
- Dividend: $2.35
- Dividend Yield: 4.08%
- 5 Year Dividend Growth: 8.80%
- Dividend Payout Ratio: 53.74%
- Dividend Increase Streak: 11 years
Brookfield Renewable Energy has paid dividends for over 15 years to its shareholders. In February 2020, Brookfield Renewable Energy announced a 10 % increase to the dividend, increasing the quarterly dividend to $0.54. This translates into $2.16 dividend per share on an annualized basis for 2020. During the past ten-year period, the first annual payment was $0.24 in 2010, compared to $0.82 this year. Dividends per share have grown at approximately 13.70% per year over this time.
The historical return of a $10,000 investment in the last 15 years will firm up your decision to make Brookfield Renewable Energy your core holding. The total return for the period with the said amount is 874.69% or $97,478.51, including reinvested dividends. This high-quality investment delivers an average annual total return of 15.68% in the last 15 years.
Overall, Brookfield Renewable Energy has all key ingredients for a top dividend growth stock: long dividend streak, good dividend growth history, high dividend yield comparing to its peers, above average earning growth. Because of these reasons, Brookfield Renewable Energy is standing in the top 10 holding of our portfolio. Currently, we are holding 205 shares of Brookfield Renewable Energy and generating $606.80/year of dividend income. In conclusion, we will continue to add more shares until we reach $1000/year of dividend income.
Fortis Inc. operates as an electric and gas utility company in Canada, the United States, and the Caribbean countries. With more than 130 years in business, Fortis Inc. has grown into one of the top 15 utilities in North America.
- Sector: Utilities
- Industry: Utilities—Regulated Electric
- PE Ratio: 19.96
- Dividend: $1.91
- Dividend Yield: 3.62%
- 5 Year Dividend Growth: 7.40%
- Dividend Payout Ratio: 70.04%
- Dividend Increase Streak: 47 years
This stock has paid dividends for over 47 years to its shareholders.. In September 2019, Fortis announced a 6.1 % increase to the dividend, increasing the quarterly dividend to $0.4775. This translates into $1.91 dividend per share on an annualized basis for 2020. During the past ten-year period, the first annual payment was $1.12 in 2010, compared to $1.92 in 2020. Dividends per share have grown at approximately 5.80% per year over this time.
The historical return of a $10,000 investment in the last 25 years will firm up your decision to make Fortis your core holding. The total return for the period with the said amount is 2,076.57% or $217,512.45, including reinvested dividends. This high-quality investment delivers an average annual total return of 13.07% in the last 25 years.
Overall, Fortis provides dependable dividend income with 47 years of paying and growing dividend. Currently, we are holding 153 shares of Fortis and generating $292.53/year of dividend income. In conclusion, we will continue to add more shares until we reach a reasonable number of dividend income.
goeasy Ltd. is a Canadian company headquartered in Mississauga, Ontario, that provides non-prime leasing and lending services through its easyhome and easyfinancial divisions. With a wide variety of financial products and services including unsecured and secured instalment loans, goeasy aspires to help put Canadians on a path to a better financial future as they rebuild their credit and graduate to prime lending.
- Sector: Financial Services
- Industry: Credit Services
- PE Ratio: 12.99
- Dividend: $1.80
- Dividend Yield: 2.58%
- 5 Year Dividend Growth: 33.30%
- Dividend Payout Ratio: 29.01%
- Dividend Increase Streak: 16 years
This stock has paid dividends for over 16 years to its shareholders. In March 2020, goeasy announced a 45 % increase to the dividend, increasing the quarterly dividend to $0.45. This translates into $1.80 dividend per share on an annualized basis for 2020. During the past 16 year period, the first annual payment was $0.16 in 2004, compared to $1.80 in 2020. Dividends per share have grown at approximately 27.95% per year over this time.
The historical return of a $10,000 investment in the last 10 years will firm up your decision to make GSY your core holding. The total return for the period with the said amount is 864.10% or $96,423.04, including reinvested dividends. This high-quality investment delivers an average annual total return of 25.28% in the last 10 years.
Overall, goeasy qualifies as growth, dividend and value stock. The earning has grown 30% year over year in the past five years. Currently, we are holding 124 shares of goeasy and generating $223.20/year of dividend income. In conclusion, we will continue to add more shares until we are able to drip a full share from goeasy.
TELUS Corporation, together with its subsidiaries, provides a range of telecommunications products and services in Canada. It operates through Wireless and Wireline segments. The company’s telecommunications products and services comprise wireless and wireline voice and data services; data services, including Internet protocol; television services; hosting, managed information technology, and cloud-based services; healthcare solutions; customer care and business services; and home and business smart security solutions.
- Sector: Communication Services
- Industry: Telecom Services
- PE Ratio: 20.62
- Dividend: $1.17
- Dividend Yield: 4.81%
- 5 Year Dividend Growth: 8.0%
- Dividend Payout Ratio: 65%
- Dividend Increase Streak: 16 years
This stock has paid dividends for over 25 years to its shareholders. Usually, Telus increases dividend twice a year. However, Telus won’t be raising its dividend until at least November because of the uncertain outcomes of the COVID-19 pandemic. Currently, Telus is paying $1.17 dividend per share on an annualized basis for 2020. During the past 10 year period, the first annual payment was $0.32 in 2010, compared to $1.17 in 2020. Dividends per share have grown at approximately 9.60% per year over this time.
The historical return of a $10,000 investment in the last 10 years will firm up your decision to make Telus your core holding. The total return for the period with the said amount is 261.04% or $36,093.96, including reinvested dividends. This high-quality investment delivers an average annual total return of 13.61% in the last 10 years.
Overall, Telus has a considerable moat and has proven to be a consistent and reliable performer. It remains a top dividend stock for income investors. Currently, we are holding 502 shares of Telus and generating $587.34/year of dividend income. In conclusion, we will continue to add more shares until we reach $1000/year in dividend from Telus.
Alimentation Couche-Tard Inc. operates and licenses convenience stores. Its convenience stores sell tobacco products, grocery items, candies and snacks, beer, wine, beverages, and fresh food offerings; road transportation fuels; and stationary energy and aviation fuels. The company operates its convenience stores chain under various banners, including Circle K, Corner Stone, Couche-Tard, Holiday, Ingo, and Mac’s. It is also involved in the sale of lottery tickets, calling cards, gift cards, postage stamps, and bus tickets; issuance of money orders; and provision of automatic teller machines and car wash services.
- Sector: Consumer Defensive
- Industry: Grocery Stores
- PE Ratio: 21.78
- Dividend: $0.28
- Dividend Yield: 0.62%
- 5 Year Dividend Growth: 28.50%
- Dividend Payout Ratio: 9.15%
- Dividend Increase Streak: 16 years
The dividend growth has just been as incredible! It started paying a dividend in 2006. In the past 12 years, its dividend growth averaged 29% per year. And its five- and 10-year dividend-growth rates were 29% and 24%, respectively. In July 2020, Alimentation Couche-Tard announced a 12 % increase to the dividend, increasing the quarterly dividend to $0.07. This translates into $0.28 dividend per share on an annualized basis for 2020.
The historical return of a $10,000 investment from 2004 to 2018 will firm up your decision to make Alimentation Couche-Tard your core holding. The total return for the period of 14 years with the said amount is 1,571.64% or $167,215.26, including reinvested dividends. This high-quality investment delivers an average annual total return of 21.94% from 2004 to 2018.
Overall, Alimentation Couche-Tard is an excellent growth stock. The dividend is currently quite small but it is growing rapidly. Just a matter of time, it will become a top dividend stock for income investors. Currently, we are holding 130 shares of Alimentation Couche-Tard and generating $36.40/year of dividend income. In conclusion, we will continue to add more shares until we reach $100/year in dividend from Alimentation Couche-Tard.
Conclusion
There are other companies that could make the list of my top 10 Canadian ‘Forever Holding’ dividend stocks. We believe this list providing strong dividend income growth, and excellent capital appreciation.
If you are dividend investor, it is more valuable to focus on dividend growth instead of yield. The following criteria should be based on for picking a good dividend growth stock: P/E ratio, payout ratio, current yield, paying dividend history and the 5 and 10 year annual dividend growth rate.
Thanks you for reading our blog.
Sam
Disclaimer
I am not a licensed investment Advisor or Tax professional; Therefore all content posted on this blog represents my personal views and opinions and should never be considered as professional advice. This blog should be viewed for entertainment or educational purposes only. Not a recommendation to buy/sell certain stocks. Please do your own research before buy/sell stocks.
We try our best to provide the accuracy of the information; however we does not guarantee the accuracy of the information on this page due to the dynamic nature of the information provided.
We own shares of all companies in the above list.
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