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The selection of beaten-down dividend growth stocks is beyond belief right now, but buying them requires patience you may not be feeling.

So, how about dividend growth stocks that have held their own at least in the past 12 months? Yes, there are some of these. Not a lot, but enough to make things interesting.

We start with the companies in the S&P/TSX 60 index, which are typically large in size. Almost all pay a dividend, and most have increased their dividends in the past five years. Next, we screen the 60 index for stocks that have a yield at or higher than 3.8 per cent, and that have boosted their dividends by at least 3.8 per cent annually on average over the past five years. The 3.8-per-cent threshold isn’t random - it’s the year-over-year inflation rate in October.

Finally, we want stocks that have a positive return over the past 12 months. Of all the screening criteria used here, this is the toughest because so many dividend stalwarts have fallen hard in the past while.

Five stocks that made it through the screen:

  • Canadian Natural Resources Ltd. (CNQ-T): Dividend yield of 4.4 per cent, five-year dividend growth of 23 per cent and a one-year return to early November of 7.6 per cent.
  • Manulife Financial Corp. (MFC-T): A 5.75-per-cent dividend yield, five-year dividend growth of close to 10 per cent and a one-year return of 12.3 per cent.
  • Sun Life Financial Inc. (SLF-T): A 4.6-per-cent dividend yield, five-year dividend growth of 9.6 per cent and a one-year return of 8.6 per cent.
  • Power Corp. of Canada (POW-T): A 6-per-cent dividend yield, five-year dividend growth of 7 per cent and a one-year return of 4.4 per cent.
  • Fortis Inc. (FTS-T): A 4.2-per-cent dividend yield, five-year dividend growth of close to 6 per cent and a one-year return of 7.2 per cent.

The long-term reward from buying hard hit dividend stocks, let’s say five to 10 years from now, could very well be superior to what the five stocks listed here provide. The price you pay for a stock has a huge impact on your returns. But it’s worth noting the inflation-beating dividend growth stocks that have held up well through a tough year. Resilience counts for something.

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Tickers mentioned in this story

Study and track financial data on any traded entity: click to open the full quote page. Data updated as of 01/03/24 4:00pm EST.

SymbolName% changeLast
CNQ-T
Canadian Natural Resources Ltd.
+3.34%97.7
MFC-T
Manulife Fin
+0.53%32.38
SLF-T
Sun Life Financial Inc
+0.65%72.55
POW-T
Power Corp of Canada Sv
-0.08%39.18
FTS-T
Fortis Inc
-0.1%52.28

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