- Post the first comment
- Back to the blog
WHAT ARE WE LOOKING FOR?
Most investors looking for stocks with rising dividends focus on the large-cap S&P/TSX 60 index.
Today, with the help of UBS Securities Canada Inc. strategist George Vasic, we're searching for small and mid-cap stocks that aren't part of the S&P/TSX 60 but still have solid records of dividend growth.
WHY SEARCH OUTSIDE THE S&P/TSX 60?
We'll let Mr. Vasic explain: “The reason investors need to pay attention to the dividend growers outside the TSX 60 is that they have uniformly outperformed their large-cap peers within the 60,” he wrote in a recent note.
WHAT DID WE TURN UP?
Financials tend to account for a disproportionate share of dividend growth stocks, and that was true in this case as well. Nine of the 16 companies with superior earnings growth identified by Mr. Vasic are financials. The remaining seven are consumer and industrial stocks.
All but one of the 16 stocks posted double-digit annual dividend growth over the past five years.
DIVIDENDS AREN'T EVERYTHING
The stocks that made the cut have also shown significant capital appreciation. Since 1995, the four financials with the longest record of dividend growth have risen by an average of 16.9 per cent annually, beating the 14.7-per-cent gain of financials in the S&P/TSX 60. The four financials are Great-West Lifeco Inc., IGM Financial Inc., Power Corp. of Canada and Power Financial Corp., all of which are part of the Desmarais family empire.
-
Table: View result set 
Start the Conversation, Leave a Comment
This conversation is semi-moderated What is moderation? | How do I report a comment?
You must be logged-in to submit a comment — login now!
Not registered with globeandmail.com? Register now. It is quick and free.
Alert us about this comment
Please let us know if this reader’s comment breaks the editor's rules and is obscene, abusive, threatening, unlawful, harassing, defamatory, profane or racially offensive by selecting the appropriate option to describe the problem.
Do not use this to complain about comments that don’t break the rules, for example those comments that you disagree with or contain spelling errors or multiple postings.
