Category Archives: Dividend Investing

1 Top Canadian REIT that Yields 4% to Buy Now

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I was absolutely thrilled to find out about Canadian Net REIT (TSXV:NET) around April this year, which is about when I started buying the quality real estate investment trust (REIT) in my Tax-Free Savings Account (TFSA). You might know the company, which is formerly known as Fronsac REIT (TSXV:FRO.UN).

I found the top-notch dividend stock when I was going through the Canadian Dividend All-Star List — you can obtain the latest version here. Just to be clear, I’m not affiliated with that website in any way. The author explains the list as “a free spreadsheet with an abundance of useful dividend screening information on Canadian companies that have increased their dividend for five or more years in a row.”

I haven’t found any similar company as Canadian Net REIT on the Canadian exchanges (yet). There are bigger versions of it on the NYSE though, including Realty Income (NYSE:O) and the like.

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5 Canadian Dividend Stocks with Incredible Dividend Growth

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The Canadian Dividend Aristocrat list is a good place to explore prospective dividend stocks for buying. There are dividend stocks that grow their dividends at an incredible pace. Ideally, we aim to focus on dividend stocks with long-term growth trends.

Typically, the longer the dividend growth streak of a dividend stock, the better. But you’ve got to investigate its business and determine if more above-average growth is coming. And make sure you pay a reasonable multiple for the stock.

grow dividends

You can observe the one- and three-year dividend growth rates (DGR) to get an idea of recent dividend increases. Also, look at the five- and 10-year DGR. The 10-year rate will likely include a recession, which provides a glimpse of how resilient the business might be during tough economic times. Dig into the year(s) of recession for the real resilience of the business.

Here are some of the top Canadian Dividend Aristocrats with incredible five-year DGR. Stocks with high dividend growth tend to have small yields. (Typically, you would find blue-chip Canadian dividend-growth stocks growing dividends in the 5-7%. It would be amazing to find one growing its dividend at 10%.)

Dividend stockDG streak5-year DGRRecent Yield
goeasy (TSX:GSY)635.1%1.6%
Agnico Eagle Mines (TSX:AEM)(NYSE:AEM)524.3%2.3%
Savaria (TSX:SIS)822.4%2.4%
Canadian Pacific Railway (TSX:CP)(NYSE:CP)520.5%0.8%
Enghouse Systems (TSX:ENGH)1419.1%1.1%

Source: Data for DG streak and 5-year DGR columns are from the Canadian Dividend All-Star list. Data for Recent Yield column is from Yahoo Finance.

We believe by going through many examples, investors can better identify the type of dividend stocks to invest in for long-term buy and hold or potentially sizing a position accordingly for trading. Here are five dividend stock examples.

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1 Must-Have Dividend Stock for Your Income Portfolio

The heat wave that hit certain parts of North America like British Columbia, Seattle, Portland, and New York highlights how essential utilities are. 

Apparently, when utility infrastructures are built, extreme weather is not accounted for, which is why cities like New York warned citizens to conserve power. They asked citizens to avoid using major appliances and limit electricity usage to reduce the risk of a wide-area power outage. 

Hundreds of lives have been lost because of this heat wave. The demographics that are most at risk include seniors, children, and pregnant women. 

In any case, if you’re affected by the heat wave, make sure to stay hydrated and cool. Consider going to the mall to enjoy air conditioning in the hottest hours and stay under the shade when you’re outside.

Utilities are essential no matter if the economy is doing well or badly. People need to use electricity, gas, and water no matter what. So, utilities are one must-have dividend stock in your income portfolio. Specifically, you want utilities that are large enough to make stable earnings year in year out and pay sustainable dividends. 

electric distribution

Here are some of the dividend-paying utility stocks that I own in my income portfolio: Algonquin Power & Utilities Corp. (TSX:AQN)(NYSE:AQN), Fortis (TSX:FTS)(NYSE:FTS), and Brookfield Infrastructure Partners L.P. (TSX:BIP.UN)(NYSE:BIP).

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