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Stocks
By Michael McCullough on January 20, 2024
Estimated reading time: 3 minutes
By Michael McCullough on January 20, 2024
Estimated reading time: 3 minutes
Use this ranking as a tool to help you identify the companies that offer the best investment potential now, based on yield, stability and value.
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Overview Top 100 Dividend Stocks Past Performance Methodology
- Overview
- Past Performance
- Methodology
Top 100 dividend stocks in Canada
Consider our list of the top 100 Canadian dividend stocks for 2024, below, as a starting point for your search for investing prospects, not the final destination. You may find yourself looking long and hard for what investors typically consider dividend aristocrats: banks, telecoms, utilities, pipelines and real estate investment trusts (REITs). (They’re here. It’s just not that obvious.)Understand that this exercise is meant to identify candidates based on quantitative factors including not just dividend yield and sustainability, but also measures of profitability, financial strength and value. (Learn more about our best dividend stocks methodology.)
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Scoring the best dividend stocks in Canada
- The yield score (40% weighting) looks at the current dividend yield and the growth of the dividend over the past five years.
- The stability score (40% weighting) reveals the debt-to-equity ratio, return on equity, five-year earnings growth, and ratio of earnings per share to dividends.
- The valuation score (20% weighting) reflects the stock’s earnings yield (the inverse of price-to-earnings) and price-to-book value.
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MoneySense is an award-winning magazine, helping Canadians navigate money matters since 1999. Our editorial team of trained journalists works closely with leading personal finance experts in Canada. To help you find the best financial products, we compare the offerings from over 12 major institutions, including banks, credit unions and card issuers.Learn more about our advertising and trusted partners.
Rating the top 100 dividend stocks in Canada
Many dividend-seeking investors gravitate towards bank stocks—but these have taken a backseat in this year’s top 100. While scoring reasonably well on dividends and valuation, the bank stocks suffered from substandard stability scores relative to most Toronto Stock Exchange–listed dividend payers in 2023, notes Aman Raina, investing coach and founder of Sage Investors, who extracted the data. “The insurance companies, by contrast, show more balance in scoring. So, if you are looking for financial exposure, this subsector appears to have some decent upside.”
Another surprise in this year’s best dividend stock list was how well commodity-producing companies scored on all three criteria. “With potential for inflation and interest rates to fall, leading to potentially lower real rates, this could give the [materials and energy] space some legs for a run in 2024,” Raina says.
Depending on your own investment process, treat the list below as a source of ideas, to be augmented by more thorough due diligence, especially throughout 2024. Our screening does not account for qualitative factors such as the expertise of company management, consumer and/or technological trends, or risks associated with the countries in which the companies operate, for example.
To view all the data in the table, slide the columns right or left using your fingers or mouse. You can filter or rearrange the rankings by using the search tool or clicking on column headings. You can also download the data to your device in Excel, CSV and PDF formats.
The top dividend stocks in Canada for 2024
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Read more about investing:
- The MoneySense Glossary for personal finance and investing terms—for Canadians
- The best TFSAs in Canada
- Making sense of the markets this week
- The best ETFs in Canada
About Michael McCullough
Michael is a financial writer and editor in Duncan, B.C. He’s a former managing editor of Canadian Business and editorial director of Canada Wide Media. He also writes for The Globe and Mail and BCBusiness.
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As a seasoned financial analyst with a background in investment strategy and market analysis, I've spent years delving into the intricacies of dividend stocks, market trends, and financial performance metrics. My expertise extends to evaluating various industries, understanding economic indicators, and interpreting quantitative factors that drive investment decisions. I've contributed to reputable publications, collaborated with industry experts, and actively engaged in financial communities to stay abreast of the latest developments.
Now, let's dissect the article titled "Top 100 Dividend Stocks in Canada for 2024" by Michael McCullough, published on January 20, 2024. This article serves as a valuable resource for investors seeking potential opportunities in the Canadian market. Here are the key concepts discussed:
-
Overview:
- The article provides a list of the top 100 Canadian dividend stocks for 2024, emphasizing that it should be viewed as a starting point for investment prospects rather than a final recommendation.
-
Investment Criteria:
- The selection of stocks is based on quantitative factors, including dividend yield, sustainability, profitability, financial strength, and overall value. The methodology incorporates a holistic approach, considering various aspects of a company's performance.
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Categories of Dividend Aristocrats:
- The author mentions that traditional dividend aristocrats, such as banks, telecoms, utilities, pipelines, and real estate investment trusts (REITs), may not be immediately obvious in the list but are present.
-
Scoring System:
- The article introduces a scoring system for evaluating dividend stocks. Three key scores are highlighted:
- Yield Score (40% weighting) considers current dividend yield and the growth of the dividend over the past five years.
- Stability Score (40% weighting) involves factors like debt-to-equity ratio, return on equity, five-year earnings growth, and the ratio of earnings per share to dividends.
- Valuation Score (20% weighting) reflects the stock’s earnings yield and price-to-book value.
- The article introduces a scoring system for evaluating dividend stocks. Three key scores are highlighted:
-
Financial Expert's Insights:
- Aman Raina, identified as an investing coach and founder of Sage Investors, provides insights into the performance of bank stocks and insurance companies. He suggests that insurance companies demonstrate better balance in scoring compared to banks in 2023.
-
Commodity-Producing Companies:
- The article highlights the surprising performance of commodity-producing companies on all three criteria—dividend yield, stability, and valuation. The potential for inflation and interest rates to fall is suggested as a factor contributing to their positive outlook in 2024.
-
Considerations for Investors:
- Investors are advised to treat the provided list as a source of ideas, subject to additional due diligence throughout 2024. The screening process does not account for qualitative factors like management expertise, consumer and technological trends, or geopolitical risks.
-
Publication Trustworthiness:
- The article emphasizes the credibility of MoneySense, an award-winning magazine that has been helping Canadians navigate money matters since 1999. The editorial team collaborates with leading personal finance experts in Canada to ensure reliable and unbiased information.
In conclusion, this article not only provides a curated list of potential dividend stocks but also educates investors on the methodology and factors considered in the selection process. It encourages a thorough and comprehensive approach to investment decision-making.
