One of the misconceptions about dividend stocks is that they are immune to the fluctuations of the broader stock market. The truth is: Far from it. Stocks are stocks are stocks, even ones paying dividends. You’re just as likely to lose money owning a dividend-paying stock as you are owning a non-dividend-paying growth stock.
This list of the best dividend stocks was created by MoneySense editors 16 years ago to help identify dividend-paying Canadian companies well positioned to withstand any shocks, with shares at palatable price points. But even with these promising picks, you can’t let your guard down. You have to do your homework, invest for the long term and expect volatility. (For more on this ranking, including data on yield, dividend growth, stock cash-flow generation, and value of stocks, you can read our detailed methodology.)
We’ve graded the largest, most liquid Canadian dividend stocks based on yield, stability and value. To earn top letter-grade marks, each company had to demonstrate its ability to provide a steady flow of income to investors, at a reasonable price. Rank 1 through 10 are categorized as tier 1 (shown in green below), and 11 through 20 are tier 2 (shown in blue). Rankings were based on data as of November 30, 2022.
To view all the data in the table, slide the columns right or left using your fingers or mouse. You can filter or rearrange the rankings by using the search tool or clicking on column headings. You can also download the data to your device in Excel, CSV and PDF formats.
Best dividend stocks 2023
1. Dividend yield and growth
We first identified and ranked companies sporting a history of growing their dividends over the past five years. While current yield is important, ideally we want exposure to companies that have a long-term track record of growing their dividend payouts over those years. This two-pronged approach seeks to identify companies that not only offer attractive yields but are also well positioned to grow their payouts over time. This criteria accounted for 40% of the overall score. Among the top-ranking companies with five-year dividend growth were Winpak (77% dividend growth), Quebecor Inc. (66.9%) and ECN Capital Corp. (57.2%).
Note: All figures are accurate as of Nov. 30, 2022.
2. Stock cash-flow generation
Sky-high dividend yields are meaningless if the company can’t generate stable, consistent cash flows in the future. To try to avoid this risk, we targeted companies that should be able to consistently generate high returns on scarce capital. For this criteria, we also attempted to identify companies with the means to continue their dividends even if they hit minor setbacks.