WHAT ARE WE LOOKING FOR?
Let's check in on the performance of Canada's blue-chip dividend stocks. Yields for many of them are high, and as long as dividend cuts aren't in the cards then many of these stocks will be great long-term investments.
HOW HAVE BIG-CAP DIVIDEND-GROWING STOCKS FARED?
Every summer, George Vasic, strategist at UBS Securities Canada Inc., takes a look at the best Canadian dividend stocks.
Today, we'll look at dividend growth stocks in the S&P/TSX 60 and update the stock prices since last summer. Stocks had to have a five-year track record of dividend growth to make it onto Mr. Vasic's list.
WHAT DID WE FIND...
There are 21 dividend growth stocks on Mr. Vasic's list. The last year has been rough, as they're down an average 25.3 per cent. But that's not as bad as the S&P/TSX 60, which fell 30.1 per cent over the same time and the broader S&P/TSX composite, which fell 31.6 per cent.
These figures don't include dividends. If you are to compare dividend yields, the average yield on Mr. Vasic's list is 3.7 per cent, versus 3.5 per cent for the S&P/TSX 60, and 3.9 per cent for the S&P/TSX composite.
Last summer, Mr. Vasic pointed out that the dividend growth stocks outperformed the S&P/TSX 60 and the S&P/TSX composite considerably over 10-year periods, and had lower volatility to boot.