We’re pleased to present the Globe’s Dividend All-Stars, which highlights the best dividend-paying stocks on the Toronto Stock Exchange. Starting with a list of 200 of the largest stocks on the TSX, each stock was evaluated for its overall investment appeal. You can read about our full methodology here.
Full Rankings: See results for 200 dividend-paying stocks on the TSX
These 20 stocks offer the best combination of income, value, and stability. Those marked with an asterisk are returning members from last year’s team.
AGF Management AGF-B-T is a Toronto-based asset manager with operations in North America and Europe. It happens to be the second smallest All-Star this year, with a market capitalization near $700-million. AGF trades at 0.6 times book value, offers a 4.3 per cent dividend yield, and raised its dividend-per-share by 4.5 per cent over the past 12 months.
* ATCO ACO-X-T is a sprawling utility-heavy conglomerate with global operations that makes its home in Calgary. The company offers a 4.2 per cent dividend yield and an 8.9 per cent earnings yield based on forward 12-month earnings estimates. It also cut its share count by 1 per cent over the past four quarters to boost its shareholder yield to 5.2 per cent.
Bank of Nova Scotia BNS-T is the third-largest Canadian bank by assets and the largest company in the team this year with a market capitalization of $90.5-billion. The Toronto-based company offers the largest dividend yield of the big six banks at 5.8 per cent and trades at a relatively modest 1.2 times book value.
Cogeco Communications CCA-T is a Canadian telecommunications company based in Montreal, which also operates in 13 U.S. states. It pays a 5.8 per cent dividend yield and reduced its share count by 5 per cent over the past four quarters to increase its shareholder yield to 10.8 per cent.
Empire EMP-A-T runs grocery stores under the Sobeys, Safeway, IGA, and other brands across the country while making its home in Stellarton, N.S. The company raised its dividend-per-share by 9.6 per cent and cut its share count by 4.3 per cent over the past four quarters. While its dividend yield is relatively modest at 1.9 per cent, its shareholder yield a healthier 6.2 per cent.
Extendicare EXE-T operates long-term care homes and serves seniors across the country. The company makes its home in Markham, Ont., and pays a 4.4 per cent dividend yield in monthly instalments. Mind you, Extendicare hasn’t increased its dividend in the past 10 years.
Fairfax Financial FFH-T is an insurance-focused conglomerate based in Toronto, run by CEO Prem Watsa in a manner similar to Warren Buffett’s Berkshire Hathaway (BRK.A). Its shares trade at 1.4 times book value and 9.1 times forward 12-month earnings estimates. It pays an annual dividend in U.S. dollars and has a modest yield of 1.1 per cent. But Fairfax cut its share count by 5.8 per cent over the past four quarters to push its shareholder yield up to 6.9 per cent.
First National Financial FN-T is an originator, underwriter, and servicer of residential and commercial mortgages that makes it home in Toronto. It pays a 6.2 per cent dividend yield in monthly instalments and trades at 10.1 times forward 12-month earnings estimates.
* iA Financial IAG-T is an insurance and wealth management firm based in Quebec City with operations in Canada and the United States. It pays a 2.8 per cent dividend yield after boosting its quarterly dividend by a hefty 17.6 per cent over the past year. It also cut its share count by 7.6 per cent over the past four quarters to push its shareholder yield up to 10.4 per cent.
IGM Financial IGM-T is a Winnipeg-based wealth and asset manager that happens to be a subsidiary of Power (POW), which is also a member of the All-Star team. IGM pays a dividend yield of 5.1 per cent and trades near 8.9 times trailing 12-month earnings.
Laurentian Bank LB-T is a small Canadian bank based in Montreal with a market capitalization of $1.2-billion. It’s been out of favour in recent years and trades at 45 per cent of book value while paying a 6.8 per cent dividend yield. Mind you, the company cut its dividend in 2020, which helps to explain why some people shy away from its shares.
* Manulife Financial MFC-T provides insurance and wealth management to individuals and institutions, primarily in Asia, Canada, and the United States. The Toronto-based company grew its dividend-per-share by 9.6 per cent over the last year, pays a 3.8 per cent dividend yield, and cut its share count by 3.2 per cent over the past four quarters. It sports a shareholder yield of 7 per cent.
MCAN Mortgage MKP-T is a flow-through mortgage investment company based in Toronto that invests in residential mortgages in addition to construction and commercial loans. It is the third smallest member of the team this year with a market capitalization near $710-million but it pays an 8.5-per-cent yield.
PetroTal TAL-T is an oil and gas company that focuses on the development of oil assets in Peru. It is the smallest member of the All-Star team this year, with a market capitalization near $650-million. It pays a dividend yield of 11.8 per cent, in U.S. dollars, and trades at 4.6 times forward 12-month earnings estimates.
* Power POW-T is a large financial conglomerate based in Montreal that focuses on financial services in North America, Europe, and Asia. It owns a 68.2-per-cent stake in Great-West Lifeco (GWO) and 62.5 per cent of IGM Financial (IGM), which also appears herein. Power trades near 0.8 times its adjusted net asset value, which includes the quarter-end market value of its publicly traded subsidiaries. It pays a 4.7 per cent dividend yield and its quarterly dividend-per-share grew by 7.1 per cent over the past year.
* Suncor Energy SU-T is a large integrated oil and gas company based in Calgary with operations primarily in the U.S. and Canada. Suncor pays a dividend yield of 4 per cent and increased its quarterly dividend-per-share by 4.6 per cent over the past year. It also cut its share count by 3.5 per cent over the last four quarters to boost its shareholder yield to 7.5 per cent.
Tamarack Valley Energy TVE-T is a Calgary-based oil and gas exploration and production company with operations in Alberta. It trades at 6.6 times earnings, reduced its share count by 4 per cent over the past four quarters, and sports a monthly dividend with a yield of 3.4 per cent, which puts its shareholder yield at 7.4 per cent.
* Transcontinental TCL-A-T is a printing and packaging company that makes its home in Montreal with operations primarily in the U.S., Canada, and Latin America. The company pays a 5.2 per cent dividend yield while trading near 0.8 times book value and 7.0 times forward 12-month earnings estimates.
Westshore Terminals WTE-T exports coal from its Vancouver-based operations to Japan, South Korea, and other countries worldwide. It is also in the process of adding facilities to ship potash through its existing terminal. The company pays a 6.1-per-cent yield and grew its regular dividend-per-share by 7.1 per cent over the last year.
* Whitecap Resources WCP-T is an oil and gas company with operations in Alberta, Sask., and B.C. that makes its home in Calgary. It offers a 7.5 per cent dividend yield, paid in monthly instalments, and cut its share count by 3.0 per cent over the past four quarters to produce a shareholder yield of 10.5 per cent.
Norman Rothery, PhD, CFA, is the founder of StingyInvestor.com.
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