The Globe and Mail recently published an interesting article on Canadian dividend growth stocks. With research help from Morningstar CPMS, the article revealed three lists with different views on dividend growth.
From the article:
One includes the Canadian stocks that have increased dividends in each of the past 10 years, and another covers 15 stocks that have increased their dividends the most on an average annual basis over the past 10 years.
The third list comes out of an exercise conducted by CPMS to test the idea that focusing on dividend growth stocks is a smart approach for investors. Using data going back to 1992, CPMS created annual portfolios of all TSX-listed stocks that increased their dividend over the previous year. The annualized return through 2010 was 13.9 per cent, compared to 9.7 per cent for the S&P/TSX composite total return index. Both figures include dividends as well as share price gains.
The stocks listed below are from the third list noted above.
Dividend Growth Stars of Today, Part Three
| Company | Ticker (TSX) | Purchased | Purchase Price ($) | Current Yield (%) | Yield on Cost (as of Dec. 31) (%) |
| Fortis | FTS | 12/31/1991 | 5.97 | 3.6 | 19.4 |
| Canadian Utilities | CU | 12/31/1992 | 10.25 | 2.9 | 14.7 |
| SNC-Lavalin Group Inc. | SNC | 12/31/1993 | 2.08 | 1.5 | 32.7 |
| Atco Ltd. | ACO.X | 12/30/1994 | 7.50 | 1.9 | 14.1 |
| Imperial Oil | IMO | 12/30/1994 | 5.14 | 1.0 | 8.6 |
| Emera Inc. | EMA | 12/29/1995 | 12.38 | 4.1 | 10.5 |
| Empire Company Ltd. | EMP.A | 12/29/1995 | 6.50 | 1.5 | 12.3 |
| Metro Inc. | MRU.A | 12/29/1995 | 4.66 | 1.6 | 14.6 |
| Toromont Industries | TIH | 12/29/1995 | 3.69 | 3.4 | 17.3 |
| Canadian National Railway | CNR | 12/31/1996 | 8.68 | 1.7 | 12.4 |
| Enbridge Inc. | ENB | 12/31/1996 | 9.99 | 3.2 | 19.6 |
| AGF Management Ltd. | AGF.B | 12/31/1997 | 9.16 | 5.6 | 11.4 |
| Saputo Inc. | SAP | 12/31/1998 | 10.80 | 1.4 | 5.9 |
| Ensign Energy Services | ESI | 12/29/2000 | 9.25 | 2.1 | 4.1 |
| Canadian Natural Res. | CNQ | 12/31/2001 | 4.79 | 0.9 | 6.3 |
| CCL Industries | CCL.B | 12/31/2002 | 19.46 | 2.2 | 3.6 |
| Finning International | FTT | 12/31/2002 | 12.77 | 1.8 | 3.8 |
| Suncor Energy | SU | 12/31/2002 | 12.35 | 1.2 | 3.2 |
| Transcontinental Inc. | TCL.A | 12/31/2002 | 18.50 | 3.7 | 2.4 |
| TransCanada Corp. | TRP | 12/31/2002 | 12.92 | 4.0 | 7.0 |
Note: Purchase price may be adjusted for stock splits; yield on cost is the dividend yield resulting from the 2010 level of dividends and the original purchase price.
Source: Morningstar Canada
Note: Please note prices mentioned are in Canadian dollars and tickers are for the TSX exchange in Toronto.
Canadian National Railway (CNI) reached a yearly high of $81.26 on the NYSE today. TransCanada Corp (TRP) and Enbridge Inc (ENB) have a dividend yield of over 3%.
Disclosure: Long CNI
