How our Dividend All-Stars performed over the past year - MoneySense

How our Dividend All-Stars performed over the past year

Our portfolio beat its dividend benchmark and there were individual breakout performers. Here’s how they fared over the last year.

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Over the last year, our Dividend All-Stars struggled against a series of interest rate increases that put a damper on the returns of many Canadian dividend payers.

Our A-graded stocks gained an average of 10% since last year’s update and the larger group of A-and-B-graded stocks gained 6% on average. By way of comparison, the iShares Canadian Select Dividend exchange traded fund (XDV), which holds 30 of the top yielding stocks in Canada, climbed 5% over the same period.

(The returns above assume dividends are reinvested once a year, when the portfolio turns over. The returns below assume dividends are reinvested when they are received.)

Last year’s Dividend All-Stars fared relatively well. There were a slew of big winners and a few stinkers in the bunch.

The top two performers happened to be B-graded stocks. Suncor Energy climbed to the very top with a 29.9% total return. Genworth MI Canada took the second spot with a 28.2% return.

The next three spots were taken by A-graded bank stocks. The Dividend All-Star portfolio benefited from the Bank of Montreal gaining 25.2%, CIBC advancing 22.9%, and TD Bank climbing 22.8%. The three banks rounded out the list of All-Stars with gains north of 20% this year.

The huge returns were offset somewhat by stinkers that fell by 10% or more. CI Financial reduced its dividend, tumbled 20.8%, and took home the year’s dividend dud award. Linamar gave up 15.6% in a poor showing while Arc Resources fell 10.0%.

Overall, 13 of the 22 stocks we identified as All-Stars last year were profitable, nine gained more than 10%, and five beat the 20% mark. On the other hand, five fell by more than 5%. Many profitable portfolios experience a similar sort of return divergence. The big gains come with a few losers.

Here’s the full breakdown of how the Dividend All-Stars performed over the last year.


Rank Company Total Return Previous Year's All-Star Grade
1 Suncor Energy 29.9% B
2 Genworth MI Canada 28.2% B
3 Bank of Montreal 25.2% A
4 CIBC 22.9% A
5 TD Bank 22.8% A
6 National Bank of Canada 19.6% B
7 Magna International 17.3% B
8 Imperial Oil 14.6% B
9 Sun Life Financial 14.5% A
10 Thomson Reuters 9.9% B
11 Bank of Nova Scotia 4.9% B
12 Industrial Alliance Insurance 2.1% B
13 Manulife Financial 1.6% B
14 Power Corp of Canada -2.0% A
15 E-L Financial -2.3% B
16 Fortis -3.6% B
17 Great-West Lifeco -3.7% A
18 Power Financial -5.7% A
19 Whitecap Resources -8.2% B
20 ARC Resources -10.0% B
21 Linamar -15.6% B
22 CI Financial -20.8% B

Norm Rothery, CFA, PhD, tweets as @NormanRothery. He may hold some of the securities mentioned in this article.