National Bank’s “Dividend All-Stars” portfolio outperformed the broader index over the past six months. Between Aug. 29 and Feb. 13, the All-Stars portfolio rallied 23.3 per cent with a total return of 25.4 per cent, including a 2.1-per-cent yield. In comparison, the S&P/TSX Composite Index climbed 15.8 per cent, which combined with a 1.4-per-cent yield delivered a total return to 17.2 per cent.
The All-Stars portfolio’s long-term performance record is also solid. Over the past 14 years, the portfolio is up on average 14.4 per cent per year compared to an 11.7-per-cent annual gain for the S&P/TSX Composite Index.
In mid-February, National Bank updated its 2026 Dividend All-Stars portfolio, removing two securities and adding four securities. The Bank of Montreal (BMO-T) and Exchange Income Corp. (EIF-T) were replaced by Automotive Properties REIT (APR-UN-T), Crombie REIT (CRR-UN-T), Manulife Financial (MFC-T), and Primaris REIT (PMZ-UN-T).
To be included in the 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 23 securities in the updated portfolio grouped by sector exposures along with brief commentaries on the portfolio’s recent additions.
Pipeline/Utilities/Energy
AltaGas Ltd. (ALA-T)
- Closing price (as of Feb. 19): $45
- Target price: $50
- Yield (as of Feb. 13): 3%
- Payout ratio (as of Feb. 13): 43%
Brookfield Renewable Partners LP (BEP-UN-T)
- Closing price (as of Feb. 19): Cdn$42.90, US$31.29
- Target price: US$34
- Yield (as of Feb. 13): 4.9%
- Payout ratio (as of Feb. 13): 78%
Capital Power Corp. (CPX-T)
- Closing price (as of Feb. 19): $62.83
- Target price: $74
- Yield (as of Feb. 13): 4.5%
- Payout ratio (as of Feb. 13): 40%
Gibson Energy Inc. (GEI-T)
- Closing price (as of Feb. 19): $27.91
- Target price: $30
- Yield (as of Feb. 13): 6.1%
- Payout ratio (as of Feb. 13): 86%
Pembina Pipeline Corp. (PPL-T)
- Closing price (as of Feb. 19): $58.93
- Target price: $60
- Yield (as of Feb. 13): 4.7%
- Payout ratio (as of Feb. 13): 62%
TC Energy Corp. (TRP-T)
- Closing price (as of Feb. 19): $84.48
- Target price: $86
- Yield (as of Feb. 13): 3.9%
- Payout ratio (as of Feb. 13): 76%
Topaz Energy Corp. (TPZ-T)
- Closing price (as of Feb. 19): $29.08
- Target price: $33.50
- Yield (as of Feb. 13): 4.8%
- Payout ratio (as of Feb. 13): 71%
Financials
Alaris Equity Partners Income Trust (AD-UN-T)
- Closing price (as of Feb. 19): $22.53
- Target price: $28.50
- Yield (as of Feb. 13): 6.6%
- Payout ratio (as of Feb. 13): 65%
IGM Financial Inc. (IGM-T)
- Closing price (as of Feb. 19): $67.11
- Target price: $82
- Yield (as of Feb. 13): 3.8%
- Payout ratio (as of Feb. 13): 54%
Manulife Financial Corp. (MFC-T) – ADDITION
- Closing price (as of Feb. 19): $50.64
- Target price: $57
- Yield (as of Feb. 13): 3.9%
- Payout ratio (as of Feb. 13): 46%
Communication Services
BCE Inc. (BCE-T)
- Closing price (as of Feb. 19): $35.21
- Target price: $39
- Yield (as of Feb. 13): 5%
- Payout ratio (as of Feb. 13): 51%
Transportation
Mullen Group Ltd. (MTL-T)
- Closing price (as of Feb. 19): $16.95
- Target price: $19
- Yield (as of Feb. 13): 5%
- Payout ratio (as of Feb. 13): 45%
Real Estate
Automotive Properties REIT (APR-UN-T) - ADDITION
- Closing price (as of Feb. 19): $11.30
- Target price: $12.50
- Yield (as of Feb. 13): 7.2%
- Payout ratio (as of Feb. 13): 81%
Choice Properties REIT (CHP-UN-T)
- Closing price (as of Feb. 19): $15.60
- Target price: $15.50
- Yield (as of Feb. 13): 5%
- Payout ratio (as of Feb. 13): 88%
Crombie REIT (CRR-UN-T) - ADDITION
- Closing price (as of Feb. 19): $16.07
- Target price: $17
- Yield (as of Feb. 13): 5.6%
- Payout ratio (as of Feb. 13): 80%
Dream Industrial REIT (DIR-UN-T)
- Closing price (as of Feb. 19): $13.35
- Target price: $15.75
- Yield (as of Feb. 13): 5.4%
- Payout ratio (as of Feb. 13): 77%
Primaris REIT (PMZ-UN-T) - ADDITION
- Closing price (as of Feb. 19): $17.39
- Target price: $19.25
- Yield (as of Feb. 13): 5%
- Payout ratio (as of Feb. 13): 66%
RioCan REIT (REI-UN-T)
- Closing price (as of Feb. 19): $19.71
- Target price: $22.50
- Yield (as of Feb. 13): 5.9%
- Payout ratio (as of Feb. 13): 85%
Sienna Senior Living Inc. (SIA-T)
- Closing price (as of Feb. 19): $23.40
- Target price: $24.50
- Yield (as of Feb. 13): 4%
- Payout ratio (as of Feb. 13): 89%
Diversified
Chemtrade Logistics Income Fund (CHE-UN-T)
- Closing price (as of Feb. 19): $16
- Target price: $18
- Yield (as of Feb. 13): 4.5%
- Payout ratio (as of Feb. 13): 35%
Dexterra Group Inc. (DXT-T)
- Closing price (as of Feb. 19): $13.17
- Target price: $15.50
- Yield (as of Feb. 13): 3.1%
- Payout ratio (as of Feb. 13): 52%
Doman Building Materials Group Ltd. (DBM-T)
- Closing price (as of Feb. 19): $10.47
- Target price: $11.50
- Yield (as of Feb. 13): 5.5%
- Payout ratio (as of Feb. 13): 43%
Materials
Aura Minerals Inc. (ORA-T)
- Closing price (as of Feb. 19): US$68.77
- Target price: US$75
- Yield (as of Feb. 13): 2%
- Payout ratio (as of Feb. 13): 32%
Four Additions
Automotive Properties Real Estate Investment Trust (APR-UN-T)
“Sector Perform” rating
- “Dilawri is the largest automotive retail group in Canada… While dealers earn the majority of revenue (46 per cent of revenue / 18 per cent of gross profit) from new car sales, the lion share of gross profit continues to be represented by parts (11 per cent of rev. / 35 per cent) and financing/insurance (5 per cent of rev. / 30 per cent). These measures safeguard it from adverse economic outcomes, as dealers are an integral part of the sales/repair channel for OEMs [original equipment manufacturer].”
- “Our $12.50 target is based on a roughly 6 per cent discount to our NAV [net asset value], equal to a 2027E FFO [funds from operations] multiple of 11 times. This is set at a discount to the retail peer group to reflect its auto exposure and rental growth profile, offset by its low leverage.”
Crombie Real Estate Investment Trust (CRR-UN-T)
“Outperform” rating
- “CRR is a defensive, grocery-anchored retail REIT majority owned and leased to Empire (EMP-A-T).”
- “CRR remains in a strong position to continue posting steady (2 to 3 per cent) SPNOI [same property net operating income] growth, reflected by retail occupancy heading towards new highs and a positive trajectory for renewal spreads. Fundamentals are strong due to little supply being built, which contrasts with heightened immigration. Its main market, Atlantic Canada, 34 per cent of retail GLA [gross leasable area], maintains a low cost of living compared to other areas in Canada and exhibits more modest economic cycles.”
- “Our target is based on a roughly 2 per cent discount to our NAV and equates to a 2027E P/FFO [price/funds from operations] multiple of 12.3 times.”
Manulife Financial Corp. (MFC-T)
“Outperform” rating
- “Strong capital position”
- “Good dividend track record”
- “Global business with exposure to Asian growth markets Geographically, 45 per cent of earnings come from Asia, with the remainder equally divided between Canada and the U.S.”
- Core earnings per share forecasts are: $4.58 in 2026 and $5.09 in 2027.
- “Our target of $57 is based on an equally weighted P/E [price-to-earnings] multiple of 11.5 times and P/ B [price-to-book] multiple of 1.7 times applied on 2027E.”
Primaris Real Estate Investment Trust (PMZ-T)
“Outperform” rating
- “Management intends to increase the distribution on an annual basis, recently approving a 2.3 per cent increase for 2026. With 2026 FFO/unit guidance raised to $1.85 to $1.90, Primaris has solid visibility on sustaining and growing its distribution.”
- “Primaris has amongst the lowest leverage in our coverage universe.”
- “2026, as expected, is going to be a transition year for Primaris as it refills vacated HBC [Hudson’s Bay Company] and Toys R Us stores. When all is said and done in approximately 24 months, the REIT will be better for it from an earnings and tenant quality standpoint.”