On Oct. 8, National Bank released an update to its 2026 Dividend All-Stars portfolio. For the second half of the year, three securities were added to the portfolio and one stock was removed.
Each security in the Dividend All-Stars portfolio must meet three investment criteria: 1) yield of approximately 5 per cent or higher; 2) high probability of sustainable or rising dividends; and 3) an overall positive outlook for the company and/or the security price.
During the first half of this year (Feb. 14 to Oct. 7), the Dividend All-Stars portfolio delivered a total return, including the yield, of 10.8 per cent, outperforming the S&P/TSX Composite Index, which rallied 7.2 per cent.
Over the past 14 years, the Dividend All-Stars portfolio has reported an average annual total return of 14.4 per cent compared to an 11.7 per cent gain for the Index, representing roughly 2.7 per cent of outperformance per year.
Additions:
Brookfield Asset Management Ltd. (BAM-T)
Analyst Jaeme Gloyn has an ‘outperform’ recommendation on BAM with a target price of US$70.
He states, “We believe BAM is well positioned to continue compounding earnings and dividends based on: i) the rapid growth of alternative assets, ii) significant exposure to in-demand asset classes, iii) manager consolidation and iv) a strong investing track record.”
Mr. Gloyn anticipates distributable earnings per share will expand to $1.83 in 2026, up from $1.65 reported in 2025, and increase to $2.06 in 2027.
BAM pays its shareholders a quarterly dividend U.S. 50.25 cents per share, equating to a current annualized yield of 4.4 per cent.
MCAN Mortgage Corp. (MKP-T)
Analyst Jaeme Gloyn has an ‘outperform’ recommendation on MKP with a target price of Cdn$27.
He argues, “Our positive view reflects MKP’s differentiated model allowing for CDIC-insured deposit funding and securitization access that gives MKP a structural funding advantage, higher quality return profile versus peers, and better positioning in an adverse credit scenario. MKP has grown the regular dividend at a 5% CAGR (compound annual growth rate) over the past five years and aims to deliver disciplined dividend growth over time supported by targets for 10% average annual asset growth and a 13% to 15% average ROE (return on equity).”
Mr. Gloyn anticipates earnings per share will expand to $2.12 in 2026, up from $1.90 reported in 2025, and come in at $2.07 in 2027.
Open Text (OTEX-Q)
Analyst Doug Taylor has an ‘outperform’ recommendation and target price of US$33.
Mr. Taylor maintains, “OpenText enters its June-ended FY27 (fiscal year 2027) with a cleaner and more streamlined software portfolio, after the Company switched gears between acquisition and divestiture in recent years. Management recently introduced FY27 guidance targeting 2-3% core revenue growth and 8-10% core Cloud growth, while also planning to invest $100-200 million in additional sales capacity, partners and R&D to support a more durable organic growth profile.”
Mr. Taylor forecasts free cash flow per share of $2.85 in 2027, down from $3.33 reported in fiscal 2026 (fiscal year-end is June 30), and $3.76 in 2028.
Subtractions:
Aura Minerals Inc. (AUGO-Q) was removed from the portfolio.
Listed below are all 25 securities in the Dividend All-Stars portfolio (data as of Oct. 7)
Alaris Equity Partners Income Trust (AD-UN-T). Yield 6.6%. Target price: $31.50.
AltaGas Ltd. (ALA-T). Yield 2.5%. Target price: $60.
Automotive Properties REIT (APR-UN-T). Yield 7.2%. Target price: $12.50.
BCE Inc. (BCE-T). Yield 6.2%. Target price: $36.
Brookfield Asset Management Ltd. (BAM-T). Yield 4.5%. Target price: US$70.
Brookfield Renewable Partners LP (BEP-T). Yield 5.3%. Target price: US$38.
Capital Power Corp. (CPX-T). Yield 4.4%. Target price: $84.
Chemtrade Logistics Income Fund (CHE-UN-T). Yield 5%. Target price: $22.50
Choice Properties REIT (CHP-UN-T). Yield 5.3%. Target price: $16.50.
Crombie REIT (CRR-UN-T). Yield 5.8%. Target price: $19.25.
Dexterra Group Inc. (DXT-T). Yield 2.2%. Target price: $20.50.
Doman Building Materials Group Ltd. (DBM-T). Yield 5.2%. Target price: $13.50.
Dream Industrial REIT (DIR-UN-T). Yield 5.6%. Target price: $16.75.
Gibson Energy Inc. (GEI-T). Yield 5.7%. Target price: $34.
IGM Financial Inc. (IGM-T). Yield 3%. Target price: $92.
Manulife Financial Corp. (MFC-T). Yield 3.3%. Target price: $69.
MCAN Mortgage Corp. (MKP-T). Yield 8.5%. Target price: $27.
Mullen Group Ltd. (MTL-T). Yield 3.1%. Target price: $31.
Open Text Corp. (OTEX-T). Yield 4.8%. Target price US$33.
Pembina Pipeline Corp. (PPL-T). Yield 4.5%. Target price: $73.
Primaris REIT (PMZ-UN-T). Yield 4%. Target price: $25.50.
RioCan REIT (REI-UN-T). Yield 5.7%. Target price: $26.50.
Sienna Senior Living Inc. (SIA-T). Yield 4.8%. Target price: $28.50.
TC Energy Corp. (TRP-T). Yield 4.2%. Target price: $103.
Topaz Energy Corp. (TPZ-T). Yield 5%. Target price: $37.50.