On Feb. 17, National Bank released its 2025 Dividend All-Stars portfolio, which expanded to 21 securities with the addition of three investment ideas.
To be included in the ‘Dividend All-Stars’ portfolio, each security must meet the following requirements: 1) have a minimum yield of approximately 5 per cent; 2) exhibit a high probability of sustainable or rising dividends; and 3) have an overall positive outlook for the company and/or the security price.
Here is a list of all securities in the portfolio grouped by sector exposures along with brief commentaries on the portfolio’s recent additions.
Pipeline/Utilities/Energy
* AltaGas Ltd. (ALA-T)
- Target price: $41
- Yield (as of Feb. 14): 3.7%
* Brookfield Renewable Partners LP (BEP-UN-T)
- Target price: US$30
- Yield (as of Feb. 14): 6.7%
* Capital Power Corp. (CPX-T)
- Target price: $65
- Yield (as of Feb. 14): 5%
* Gibson Energy Inc. (GEI-T)
- Target price: $29
- Yield (as of Feb. 14): 6.9%
* Innergex Renewable Energy Inc. (INE-T)
- Target price: $16
- Yield (as of Feb. 14): 4.8%
* TC Energy Corp. (TRP-T)
- Target price: $74
- Yield (as of Feb. 14): 5.2%
* Topaz Energy Corp. (TPZ-T)
- Target price: $33.50
- Yield (as of Feb. 14): 5.2%
Financials
* Alaris Equity Partners Income Trust (AD-UN-T)
- Target price: $24.50
- Yield (as of Feb. 14): 6.8%
* Canadian Imperial Bank of Commerce (CM-T)
- Target price: $100
- Yield (as of Feb. 14): 4.4%
* IGM Financial Inc. (IGM-T)
- Target price: $54
- Yield (as of Feb. 14): 5%
Communication Services
* Cogeco Communications Inc. (CCA-T)
- Target price: $85
- Yield (as of Feb. 14): 5.7%
Transportation
* Exchange Income Corp. (EIF-T)
- Target price: $73
- Yield (as of Feb. 14): 5.1%
* Mullen Group Ltd. (MTL-T)
- Target price: $19
- Yield (as of Feb. 14): 6.2%
Real Estate
* Choice Properties REIT (CHP-UN-T)
- Target price: $15.50
- Yield (as of Feb. 14): 5.6%
* Dream Industrial REIT (DIR-UN-T)
- Target price: $15.50
- Yield (as of Feb. 14): 6%
* RioCan REIT (REI-UN-T)
- Target price: $22
- Yield (as of Feb. 14): 5.9%
* Sienna Senior Living Inc. (SIA-T)
- Target price: $19
- Yield (as of Feb. 14): 5.9%
Diversified
* Chemtrade Logistics Income Fund (CHE-UN-T)
- Target price: $15.50
- Yield (as of Feb. 14): 6.9%
* Dexterra Group Inc. (DXT-T)
- Target price: $11
- Yield (as of Feb. 14): 4.3%
* Doman Building Materials Group Ltd. (DBM-T)
- Target price: $12.50
- Yield (as of Feb. 14): 7.3%
* Transcontinental Inc. (TCL-A-T)
- Target price: $23
- Yield (as of Feb. 14): 5.2%
Three Additions
Choice Properties Real Estate Investment Trust (”sector perform” rating)
- “CHP is the most defensive portfolio within retail and across our coverage owing to its tenant base and relationship with Loblaws (L-T).”
- “Further insulating this portfolio is Loblaw’s higher share of discount banners.”
- “Our target is set at a 1 per cent premium to our NAV (net asset value) and is equal to a 2026 FFO (funds from operations) multiple of approximately 14 times, a premium to the retail peer group to reflect the anchor-tenant/related party’s strength and low leverage levels.”
Cogeco Communications Inc. (”outperform” rating)
- “Following the streamlining of Canada/U.S. leadership last summer after CCA’s new CEO was promoted in March, CCA stepped into fiscal 2025 to begin its transformation program with added investment this year to help set stage for incremental revenues and better efficiencies in fiscal 2026 and especially fiscal 2027.”
- “CCA’s been talking about a possible pruning at Breezeline since last March. While this could be up to 50 per cent of the platform, we’ll likely find out in a quarter or two if any sale will occur.”
- “We forecast FCF (free cash flow) moving up from $455 million in fiscal 2025 to $527 million in fiscal 2026 and toward $600 million in fiscal 2027.”
Innergex Renewable Energy Inc. (”outperform” rating)
- “After digesting last year’s dividend cut and re-focused strategy, INE is now trading with a dividend yield of 4.8 per cent, which represents a 46 per cent payout on 2025.”
- “We believe as INE continues to execute and win RFPs (request for proposals) in target markets, a re-rate should occur.”
- “Growth should be supported by RFP wins, where INE has recently had success in B.C (560 megawatts of wind) and Quebec (400 megawatts of wind).”
- “We believe as the company executes on its near-term initiatives, combined with falling interest rates, shares of INE should recover.”