10 Best Canadian Dividend Aristocrat Stocks (Sep 2022)

If you are an income-focused investor looking at dividend-paying stocks, Canadian dividend aristocrats are a segment of the stock market that you may not have considered. 

Unlike bonds which typically pay fixed coupons to bondholders over time, dividends from companies can fluctuate over time. A company’s common shares are usually under no obligation to pay dividends to investors.

Since 1926, dividends have contributed 32% of the total return of the S&P 500 index.

We will cover the best Canadian dividend aristocrat stocks below and go over some of their key features.

What is a Canadian Dividend Aristocrat?

While it’s nice for a stock to come with a long history of paying dividends to investors, the aristocrat title is reserved for stocks that constantly increase their dividends.  

For Canadian stocks, a dividend aristocrat must meet the following criteria:

  • The stock must be listed on the Toronto Stock Exchange
  • The stock must have increased its dividend for five consecutive years
  • The company must have a market capitalization of at least $300 million

The requirements for being crowned a dividend aristocrat in the US are much more stringent than here in Canada.

Keep in mind that while dividends paid are fairly stable over short periods of time, dividend yields can fluctuate drastically (as these take into account stock prices which can move over time).

Best Canadian Dividend Aristocrat Stocks

1. Fortis Inc.

Fortis Stock logo
  • Ticker: FTS.TO
  • Size: Large Cap
  • Valuation: Value
  • Forward Dividend Yield: 3.62%
  • Dividend Payout Ratio: 79.92%
  • Dividend Yield (12-Month Trailing): 3.76%
  • Upcoming Dividend Date: Sep 01, 2022
  • Market Cap: $26.94 Billion
  • Forward P/E Ratio: 19.01
  • Average Analyst Rating: 3.1 - Hold

Fortis is an electricity distributing and generating company headquartered in Newfoundland. The company’s main goal is delivering energy to clients, with 93% of total assets being infrastructure dedicated to providing electricity and natural gas to customers.

Fortis operates ten independent utility operations across North America.

The company has over 9,000 employees globally and roughly $60 billion in total assets as of mid-2022. Fortis brought in over $9 billion dollars in revenue during fiscal 2021 and has roughly 3.4 million customers.

Fortis 3.4 million customers

Currently, David Hutchens is the CEO of Fortis. The company is listed on the TSX but also trades on the New York Stock Exchange under the ticker FTS for clients looking to purchase it with US dollars.

Company values include:

  • An emphasis on safety
  • Valuing employees
  • Working locally
  • Acting with integrity
  • Being community champions
  • Aiming for excellence

Fortis has an amazing dividend track record with 48 years of consecutive dividend payment increases. It pays a good current forward dividend yield.

The company is fairly ESG dedicated, releasing an annual sustainability report as well as other ESG materials for investors. By 2050, Fortis plans to be net-zero in terms of greenhouse gas emissions.

Out of the $20 billion capital plan for 2022-2026, $3.8 billion is dedicated to cleaner energy investments.

Fortis trades at a modest forward P/E ratio and is reasonably priced based on other metrics such as price-to-sales and price-to-book.

As a top energy player in Canada, Fortis is a well-known blue chip stock to be considered for any Canadian dividend aristocrat portfolio.

2. Metro Inc.

metro Stock logo
  • Ticker: MRU.TO
  • Size: Large Cap
  • Valuation: Core
  • Forward Dividend Yield: 1.58%
  • Dividend Payout Ratio: 22.22%
  • Dividend Yield (12-Month Trailing): 1.51%
  • Upcoming Dividend Date: Sep 21, 2022
  • Market Cap: $16.91 Billion
  • Forward P/E Ratio: 17.21
  • Average Analyst Rating: 2.6 - Hold

Metro is the third largest Canadian grocer in the country. With operations only in the provinces of Quebec and Ontario, the company has a lot of room for future expansion throughout Canada. The company is headquartered in Montreal, Quebec.

The grocer runs roughly 950 stores under a few different brands:

  • Metro
  • Super C
  • Metro Plus
  • Food Basics

Most Metro grocery stores also include a pharmacy somewhere inside the store. The company runs roughly 650 of these pharmacies under several different brands:

  • Metro Pharmacy
  • Food Basics Pharmacy
  • Jean Coutu
  • Brunet

Currently, the CEO of Metro is Eric La Flèche.

Metro is ramping up its emphasis on ESG and has put a 2022-2026 corporate responsibility plan in place. Out of the 17 UN sustainable development goals (SDGs), Metro is currently addressing 12 through its current corporate responsibility plan:

Metro corporate responsibility plan

Although Metro pays a relatively low dividend yield, it has grown its distributions to investors constantly over time. The company aims to pay 30-40% of net earnings from the previous year as a dividend to investors.

The company is on a streak of 27 consecutive years of dividend increases. 

Despite several difficult market environments over the past several years, the stock has demonstrated extreme resilience. The majority of the stock’s growth over time has come from capital appreciation due to its lower dividend yield.

As an excellent defensive stock and a firm with a good history of growing its dividend, the company is an excellent Canadian dividend aristocrat to consider.

3. Algonquin Power & Utilities

Algonquin Power and Utilities Stock
  • Ticker: AQN.TO
  • Size: Mid Cap
  • Valuation: Core
  • Forward Dividend Yield: 5.04%
  • Dividend Payout Ratio: 230.87%
  • Dividend Yield (12-Month Trailing): 4.04%
  • Upcoming Dividend Date: Oct 14, 2022
  • Market Cap: $11.62 Billion
  • Forward P/E Ratio: 15.7
  • Average Analyst Rating: 2.7 - Hold

Algonquin Power & Utilities is a large renewable energy company in Canada.

From their latest annual report, Algonquin is headquartered in the Greater Toronto Area and runs the following infrastructure:

  • 55 hydroelectric generators
  • 1,541 wind turbines
  • 1,217,680 solar panes

The firm employs approximately 3,400 individuals. It has a 2.3-gigawatt gross capacity (installed) and owns 41 energy facilities.

Algonquin Power & Utilities has sustained a very high growth rate and has implemented a substantial capital expenditure plan in place for the next several years. The high capital expenditure spending should help continue the trend going forward.

Algonquin Power & Utilities

When accounting for current projects under development, Algonquin’s total electrical capacity increases to approximately 4 gigawatts.

Algonquin has increased its dividend for 11 consecutive years and has averaged a 10% compounded annual growth rate in its dividend. Currently, its forward dividend yield is above 5%, providing investors with an excellent rate of income.

As a renewable energy company, Algonquin is a good fit for a lot of responsible investing or ESG strategies. This will also make the stock attractive for ESG investors or those looking to build an ESG portfolio.

A Canadian dividend aristocrat with a high forward dividend yield, a good track record of raising dividends, and an important presence in the Canadian renewable energy space makes Algonquin a good stock to consider for a dividend aristocrat portfolio.

4. Enbridge Inc.

Enbridge Stock
  • Ticker: ENB.TO
  • Size: Large Cap
  • Valuation: Value
  • Forward Dividend Yield: 6.35%
  • Dividend Payout Ratio: 140.66%
  • Dividend Yield (12-Month Trailing): 6.28%
  • Upcoming Dividend Date: Sep 01, 2022
  • Market Cap: $109.44 Billion
  • Forward P/E Ratio: 17.55
  • Average Analyst Rating: 2.3 - Buy

Enbridge is one of Canada’s most well-known pipeline companies. Within the oil and gas industry, it is part of the midstream segment, involved in the transportation of fuels to businesses and consumers. The firm is headquartered in Calgary.

Enbridge has a long track record of meeting earnings guidance and has a great historical performance record when compared to peers in its category as well as broader benchmarks.

Enbridge benchmarks

Enbridge is one of the largest public companies in Canada and offers an incredible forward dividend yield to investors. The stock is listed on the TSX as well as on the NYSE under the same ticker, for investors looking to purchase it with US dollars.

The current CEO of Enbridge is Al Monaco.

The company has more than 10,000 employees and the longest pipeline system in North America, spanning well into the US. Because of these reasons, Enbridge is a critical business to the Canadian economy.

With 27 years of dividend growth, Enbridge is firmly classified as a dividend aristocrat here in Canada.

Although the stock has faced some high volatility in the past, it has been resilient over the long term. Enbridge’s high dividend has helped to offset negative performance and provide investors with at least some level of expected return through income.

Enbridge is an excellent blue chip stock and Canadian dividend aristocrat that deserves consideration for any Canadian dividend aristocrat portfolio.

5. Canadian National Railway

Canadian National Railway Stock
  • Ticker: CNR.TO
  • Size: Large Cap
  • Valuation: Growth
  • Forward Dividend Yield: 1.82%
  • Dividend Payout Ratio: 37.02%
  • Dividend Yield (12-Month Trailing): 1.75%
  • Upcoming Dividend Date: Sep 29, 2022
  • Market Cap: $104.71 Billion
  • Forward P/E Ratio: 19.46
  • Average Analyst Rating: 2.7 - Hold

One of the largest North American railway companies, Canada National Railway is headquartered in Montreal. It operates the largest railway network in Canada and also has extensive operations throughout the US, making it a critical business here at home.

Canadian National Railway was previously owned by the Canadian government until it was privatized in 1995. The company’s rail network is over 30,000 kilometres long and runs throughout most of Canada.

An interesting ownership fact about the company is that Bill Gates is currently the largest individual shareholder of CNR. His ownership stake is currently above 14%

With over 24,000 employees, the company saw significant increases in several key operating metrics in fiscal 2021.

Canadian National Railway 2021

Tracy Robinson was appointed as the CEO of CNR in early 2022. Similar to other rail companies in Canada, CNR reports weekly performance statistics around its current operations.

Despite being categorized as a growth stock, CNR pays a decent forward yield and has grown its dividend over the past 26 years. Since the company’s privatization, the stock has rewarded investors with an excellent rate of total return.

As a growth Canadian dividend aristocrat, CNR is a great choice for investors that are not necessarily looking for high-yielding stocks.

6. Telus Corporation

Telus Stock
  • Ticker: T.TO
  • Size: Large Cap
  • Valuation: Core
  • Forward Dividend Yield: 4.50%
  • Dividend Payout Ratio: 97.73%
  • Dividend Yield (12-Month Trailing): 4.6%
  • Upcoming Dividend Date: Oct 03, 2022
  • Market Cap: $40.94 Billion
  • Forward P/E Ratio: 19.88
  • Average Analyst Rating: 2.1 - Buy

Telus is a large Canadian communications company and one of the major telecommunications service providers in Canada. Currently, the company has roughly $17 billion in revenue and approximately 17 million customers using at least one of its services.

Key competitors to Telus include Rogers Communications and Bell Canada.

Telus had excellent results in 2021, delivering on many promises made around key performance metrics.

Telus performance metrics

The company is headquartered in Vancouver and was managed by CEO Darren Entwistle since 2015.

Since the beginning of 2021, the company has had two business segments – TELUS technology solutions (TTech) and TELUS International (DLCX).

TELUS technology solutions include:

  • Mobile services
  • Cloud-based services
  • Network and data revenues

The DLCX segment primarily functions in US dollars and focuses on digital customer experience and digital transformation (including artificial intelligence).

Telus stock pays a great dividend yield and has grown its dividends for 18 consecutive years.

T stock has rewarded investors with excellent performance over the past several years, including against major benchmarks. The stock has been incredibly resilient throughout periods of market stress, making it appealing to more defensive investors.

With a long history of growing dividends, resilient performance, and great dividend yield, Telus deserves serious consideration for any Canadian dividend aristocrat portfolio.

Telus shares

7. Toronto-Dominion Bank

Toronto-Dominion Stock
  • Ticker: TD.TO
  • Size: Large Cap
  • Valuation: Value
  • Forward Dividend Yield: 4.21%
  • Dividend Payout Ratio: 43.85%
  • Dividend Yield (12-Month Trailing): 4.02%
  • Upcoming Dividend Date: Oct 31, 2022
  • Market Cap: $156.33 Billion
  • Forward P/E Ratio: 11.3
  • Average Analyst Rating: 2.6 - Hold

The second largest bank in Canada by market capitalization is the Toronto-Dominion, or TD bank. Within a more global context, it ranks among some of the largest banks in the world.

TD employs over 90,000 people on a global scale and works with over 26 million customers worldwide. The bank has placed a lot of emphasis on its online operations and now has more than 15 million web and mobile users.

As of early 2022, TD had $1.8 trillion in assets. The bank’s CEO has been Bharat Masrani since 2014.

The bank divides its current operations into three key operating segments:

  • Canadian Retail
  • Wholesale Banking
  • US Retail

Within Canada, TD offers commercial and personal banking, credit solutions, insurance, and wealth management.

TD Securities offers capital market services to both governments and various businesses. The bank provides personal and business banking, auto financing, and wealth management in the US.

As such a large bank within Canada, TD is constantly among the largest publicly traded equities on the Toronto Stock Exchange. The stock is also listed on the NYSE under the ticker TD.

TD stock has paid a great yield for a long period of time and has increased its dividend over the last 11 consecutive years.

As a value stock in Canada, TD trades at low valuation multiples relative to stocks across most other industries.

If you are looking for a value dividend aristocrat here in Canada, TD stock is a great option.

8. Bank of Nova Scotia (Scotiabank)

Scotiabank logo
  • Ticker: BNS.TO
  • Size: Large Cap
  • Valuation: Value
  • Forward Dividend Yield: 5.38%
  • Dividend Payout Ratio: 47.01%
  • Dividend Yield (12-Month Trailing): 5.6%
  • Upcoming Dividend Date: Oct 27, 2022
  • Market Cap: $83.25 Billion
  • Forward P/E Ratio: 8.24
  • Average Analyst Rating: 2.8 - Hold

The Bank of Nova Scotia is a large Canadian bank, third in size by market capitalization. Unlike the other main Canadian banks, Scotiabank has a huge emphasis on developing its presence across many countries in North and South America.

Scotiabank is top three in Chile, Canada, and Peru. In Mexico, Scotiabank is in the top five, and in Colombia, it is a top six bank.

As of early 2022, Scotiabank had $1.3 trillion in assets and employed roughly 90,000 people around the world. The CEO of Scotiabank is currently Brian Porter.

Scotiabank splits its operations across four main business segments:

Scotiabank four main business segments

The bank, similar to TD, has been focused on digital adoption, leading it to win several awards for its digital offering. Its stock is listed on the NYSE as well, for trading in US dollars.

When compared to RBC and TD (the first and second largest Canadian banks), Scotiabank is significantly smaller in market capitalization. Despite this, the Bank of Nova Scotia is paying the highest forward dividend yield amongst the banks and is currently trading at very attractive prices.

Based on current ratios and metrics, Scotiabank is likely the most attractively priced Canadian bank at the moment. The bank has raised its dividend for 11 years in a row.

Bank of Nova Scotia stock is likely a great buy at current levels and pays a fabulous dividend yield while trading at a great valuation, making it a great dividend aristocrat pick.

9. Toromont Industries Ltd.

Toromont Industries Stock
  • Ticker: TIH.TO
  • Size: Mid Cap
  • Valuation: Core
  • Forward Dividend Yield: 1.53%
  • Dividend Payout Ratio: 33.18%
  • Dividend Yield (12-Month Trailing): 1.54%
  • Upcoming Dividend Date: Sep 21, 2022
  • Market Cap: $16.77 Billion
  • Forward P/E Ratio: 17.06
  • Average Analyst Rating: 2.6 - Hold

Toromont Industries is a fairly large Canadian company involved in the supplying of equipment and product support to industries such as roadbuilding, construction, mining, infrastructure, and manufacturing.

As per the company’s 2021 annual report, Toromont employs approximately 6,400 individuals across 160 locations and through seven business units.

The seven business units are:

  • Toromont Cat
  • Battlefield Equipment Rentals
  • CIMCO Refrigeration
  • AgWest Ltd.
  • SITECH Mid-Canada Ltd.
  • Toromont Material Handling
  • Jobsite Industrial Rental Services
Toromont 2021

An overwhelming majority of the company’s revenues come from supplying new and used equipment as well as offering product support (85% of total revenue). 

Over the past several years, Toromont shares have significantly outperformed the S&P/TSX composite index.

The company has paid a dividend to investors every year since 1968 and has grown its dividend over the last 32 years. Its current dividend yield is fairly low, likely because its share price has risen sharply over the past few years.

Toromont stock is a great Canadian dividend aristocrat to consider within the industrials sector. 

10. Saputo Inc.

Saputo Stock
  • Ticker: SAP.TO
  • Size: Mid Cap
  • Valuation: Core
  • Forward Dividend Yield: 2.16%
  • Dividend Payout Ratio: 83.72%
  • Dividend Yield (12-Month Trailing): 2.12%
  • Upcoming Dividend Date: Sep 16, 2022
  • Market Cap: $13.88 Billion
  • Forward P/E Ratio: 16.85
  • Average Analyst Rating: 2.1 - Buy

Saputo is a large Canadian dairy company headquartered in Montreal that also ranks among the top ten dairy processors in the world.

The company is in leading market positions in Canada, Australia, the US, Argentina, and the UK. The firm’s products are sold in over 60 countries across the world.

Saputo leading positions

The company processes roughly 11 billion litres of milk on an annual basis. It operates 67 plants, 70 distribution centers globally and employs around 18,600 employees.

Saputo sells products across several brands:

Saputo sells products across several brands

The company has a very long track record of paying dividends to investors and has grown these dividends annually for the past 24 years.

Since 1997, the company has completed 36 individual acquisitions, helping it to gain substantial market share.

The long-term performance of Saputo shares has been excellent but the shares have faced some downward pressure over the past several years.

As a packaged foods stock, Saputo is a more defensive Canadian dividend aristocrat stock that may appeal to relatively risk-averse investors. 

Pros and Cons of Canadian Dividend Aristocrats

Dividend aristocrats come with their advantages and disadvantages, similar to all investments that you could consider for your accounts.

Regardless of a company’s dividend history, you should always make sure that the company is a good investment overall.

Pros
  • Increasing income stream (which can help with inflation and rising costs)
  • The underlying companies usually have stable and predictable cash flows
  • Aristocrats tend to be more defensive companies with good dividend yields
Cons
  • The company potentially prioritizes dividend increases instead of growing operations
  • Some great companies don’t pay dividends (let alone constantly grow them)
  • Growing dividends do not guarantee a superior total return

Top 50 Canadian Dividend Aristocrats

There is a total of 93 dividend aristocrats in Canada, but these are our top 50 by consecutive years of dividend increases.

Company NameTickerMarket CapDividend Yield
(12-month trailing)
Canadian Utilities LimitedCU.TO$10.78 Billion4.42%
Fortis Inc.FTS.TO$26.94 Billion3.76%
Toromont Industries Ltd.TIH.TO$16.77 Billion1.54%
Canadian Western BankCWB.TO$2.17 Billion5.03%
ATCO Ltd.ACO-X.TO$5.27 Billion3.96%
Thomson Reuters CorporationTRI.TO$68.38 Billion1.17%
Imperial Oil LimitedIMO.TO$38.74 Billion2%
Metro Inc.MRU.TO$16.91 Billion1.51%
Empire Company LimitedEMP-A.TO$9.33 Billion1.69%
Enbridge Inc.ENB.TO$109.44 Billion6.28%
Canadian National Railway CompanyCNR.TO$104.71 Billion1.75%
Saputo Inc.SAP.TO$13.88 Billion2.12%
Canadian Natural Resources LimitedCNQ.TO$79.12 Billion3.68%
Transcontinental Inc.TCL-A.TO$1.41 Billion5.36%
Finning International Inc.FTT.TO$3.90 Billion3.51%
CCL Industries Inc.CCL-B.TO$11.59 Billion1.35%
Ritchie Bros. Auctioneers IncorporatedRBA.TO$9.44 Billion1.18%
TELUS CorporationT.TO$40.94 Billion4.6%
Cogeco Communications Inc. CCA.TO$3.47 Billion3.64%
Cogeco Inc.CGO.TO$935.21 Million4.13%
Intact Financial CorporationIFC.TO$34.85 Billion1.88%
Stella-Jones Inc.SJ.TO$2.38 Billion1.87%
Exco Technologies LimitedXTC.TO$308.58 Million5.22%
Andrew Peller LimitedADW-A.TO$260.30 Million4.32%
Emera IncorporatedEMA.TO$16.05 Billion4.36%
Enghouse Systems LimitedENGH.TO$1.60 Billion2.46%
Boyd Group Services Inc.BYD.TO$3.89 Billion0.24%
Franco-Nevada CorporationFNV.TO$30.54 Billion0.78%
Tecsys Inc.TCS.TO$417.34 Million0.96%
BCE Inc.BCE.TO$56.84 Billion5.82%
National Bank of CanadaNA.TO$29.82 Billion3.78%
Magna International Inc.MG.TO$20.42 Billion2.49%
Logistec CorporationLGT-B.TO$497.35 Million1.13%
Alimentation Couche-Tard Inc.ATD.TO$56.01 Billion0.61%
Waste Connections, Inc.WCN.TO$48.65 Billion0.47%
Algonquin Power & Utilities Corp.AQN.TO$11.62 Billion4.04%
The Bank of Nova ScotiaBNS.TO$83.25 Billion5.6%
Canadian Imperial Bank of CommerceCM.TO$56.27 Billion5.08%
Granite Real Estate Investment Trust GRT-UN.TO$4.62 Billion4.23%
Royal Bank of CanadaRY.TO$173.94 Billion3.79%
The Toronto-Dominion BankTD.TO$156.33 Billion4.02%
Canadian Tire Corporation, LimitedCTC-A.TO$9.47 Billion3.48%
Guardian Capital Group LimitedGCG-A.TO$780.48 Million2.99%
EQB Inc.EQB.TO$1.62 Billion1.91%
Hardwoods Distribution Inc.HDI.TO$631.79 Million1.31%
TFI International Inc.TFII.TO$11.17 Billion0.81%
Dollarama Inc.DOL.TO$22.10 Billion0.27%
Pembina Pipeline CorporationPPL.TO$25.10 Billion5.49%
First National Financial CorporationFN.TO$2.25 Billion6.12%
Allied Properties Real Estate Investment Trust AP-UN.TO$3.64 Billion5.93%

Should You Invest in Canadian Dividend Aristocrat Stocks?

Canadian dividend aristocrat stocks are ideal for investors that want growing dividends from their investments over time. If you have a large allocation to Canadian stocks or are not concerned with income, better investment options may exist.

The ideal investor that should consider dividend aristocrat stocks:

  • Is looking for a growing income stream
  • Would like a more defensive stock investment
  • Has room in tax-advantaged accounts (dividends are less favourably taxed than capital gains)

Before deciding to invest in dividend aristocrats or any equities, be sure to determine that stocks are appropriate for your risk tolerance.

Which Dividend Aristocrats Pay the Highest Dividend?

Enbridge is the Canadian dividend aristocrat that currently pays the highest forward dividend yield. 

Conclusion

Canadian dividend aristocrat stocks allow you to invest in companies that pay a fairly reliable growing dividend stream to investors.

Companies that are able to consistently grow their dividends to investors have at least indicated some stability in their operating cash flows and profitability. 

Dividend aristocrats rarely pay their income on a monthly basis. Make sure to check out some of the best monthly dividend stocks if you are looking for income on a more frequent basis.

Photo of author
Author Bio - Christopher Liew is a CFA Charterholder with 11 years of finance experience and the creator of Wealthawesome.com. Read about how he quit his 6-figure salary career to travel the world here.

Check Out These Posts:

6 thoughts on “10 Best Canadian Dividend Aristocrat Stocks (Sep 2022)”

  1. I just caught on to this article of yours, and wanted to thank you for it.
    I found it very informative and easy to understand. I am a retired senior and am planning on starting a passive income portfolio and will definitely put some if not all your suggestions in it.
    Thanks again, and hope you are keeping safe and enjoying your stay in Thailand.

    Gloria

    Reply

Leave a Comment