Skip to main content

What are we looking for?

Canadian dividend stocks with a record of growth. We like dividends but we're even fonder of stocks that show the ability to keep increasing their dividends without breaking the bank to do so.

How we did it

Story continues below advertisement

We used our Bloomberg terminal to shop for stocks listed on the Toronto Stock Exchange that met three criteria:

They have dividend yields of 1.5 per cent or more.

They have grown their dividends over the past five years by a net 20 per cent or more.

Their payout ratio – the amount of their earnings they're paying out as dividends – is 50 per cent or less.

Our goal was to identify companies that have both a record of increasing their dividends as well as the financial room to continue to do so.

What we found

Only 10 stocks met our criteria. Many – no surprise – are high-profile household names that benefit from steady, recurring sales to customers.

Story continues below advertisement

Tim Hortons Inc., for instance, is exactly the type of company we would expect to show steady dividend growth as it pours ever-increasing amounts of coffee and Timbits into the maws of a seemingly insatiable crowd of customers.

Cable companies also do well on our list, with both Rogers Communications Inc. and Cogeco's various corporate entities featuring prominently. And, of course, there's also Potash Corp. of Saskatchewan Inc., purveyor of fertilizer to the world.

But how about Dorel Industries Inc., maker of baby strollers, bicycles and high chairs? You may not have heard of it, but it offers a tempting 3.54 per cent yield.

Similarly, Glentel Inc., which designs and installs wireless networks, and Enghouse Systems Ltd., which develops software products for automated mapping, are unlikely to come up in conversation around the dinner table, but offer decent dividends with a record of growth.

As always, you should do your own research before buying any of these stocks. But our list suggests that there good deals to be had for dividend hunters in companies that are not household names.

Your Globe

Build your personal news feed

  1. Follow topics and authors relevant to your reading interests.
  2. Check your Following feed daily, and never miss an article. Access your Following feed from your account menu at the top right corner of every page.

Follow the author of this article:

View more suggestions in Following Read more about following topics and authors
Report an error Editorial code of conduct
Tickers mentioned in this story
Due to technical reasons, we have temporarily removed commenting from our articles. We hope to have this fixed soon. Thank you for your patience. If you are looking to give feedback on our new site, please send it along to feedback@globeandmail.com. If you want to write a letter to the editor, please forward to letters@globeandmail.com.

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff.

We aim to create a safe and valuable space for discussion and debate. That means:

  • Treat others as you wish to be treated
  • Criticize ideas, not people
  • Stay on topic
  • Avoid the use of toxic and offensive language
  • Flag bad behaviour

Comments that violate our community guidelines will be removed.

Read our community guidelines here

Discussion loading ...

To view this site properly, enable cookies in your browser. Read our privacy policy to learn more.
How to enable cookies