As stock prices decline, dividend yields rise. There is, of course, a
hitch. Falling stock prices may indicate weakness in the economy or
in a company's business. Such weakness could result in a dividend
cut.
That's why yield junkies often look for a history of dividend growth
in addition to a generous dividend yield. Cautious investors also
keep an eye on a variety of valuation ratios.
To help you search for dividend growth stocks, I created a list of
Canadian dividend payers that have grown their dividends over the last
5 years. (5Yr.D.Gr shows average annual dividend growth, as a
percentage, over the last 5 years.)
The table below shows the list which is sorted by market
capitalization with large stocks at the top.
Name Price Yield 5Yr.D.Gr P/E P/B
======================= ====== ===== ======== ===== =====
ROYAL BANK (RY) $31.67 6.3% 17.6 9.3 1.51
ENCANA (ECA) $57.22 3.4% 53.8 7.0 1.71
BARRICK GOLD (ABX) $43.98 1.1% 8.5 21.3 2.24
TD BANK (TD) $42.38 5.8% 14.9 8.6 1.12
MANULIFE (MFC) $21.91 4.7% 20.7 9.4 1.34
IMPERIAL OIL (IMO) $39.79 1.0% 5.6 8.7 3.82
SCOTIABANK (BNS) $31.17 6.3% 16.9 10.2 1.65
POTASH CORP (POT) $95.80 0.5% 14.5 7.9 5.06
HUSKY ENERGY (HSE) $30.77 6.5% 20.2 5.7 1.83
CANADIAN NATURAL (CNQ) $45.89 0.9% 21.7 6.2 1.50
SUNCOR ENERGY (SU) $25.10 0.8% 15.8 11.0 1.62
CN RAILWAY (CNR) $44.62 2.3% 22.5 11.2 1.98
TRANSCANADA (TRP) $33.50 4.3% 5.9 12.1 1.64
CIBC (CM) $48.41 7.2% 15.0 -7.8 1.65
BANK OF MONTREAL (BMO) $33.70 8.3% 15.9 8.9 1.05
GREAT-WEST LIFECO (GWO) $18.90 6.5% 16.4 5.9 1.49
POWER FINANCIAL (PWF) $23.25 6.0% 17.2 6.4 1.35
SUN LIFE (SLF) $27.03 5.3% 16.2 12.6 1.01
ENBRIDGE (ENB) $40.46 3.7% 9.7 11.1 2.45
PETRO-CANADA (PCA) $28.70 2.8% 27.0 3.2 0.87
TALISMAN ENERGY (TLM) $12.10 1.7% 20.8 4.1 1.22
BROOKFIELD A. (BAM.A) $21.00 3.0% 18.1 15.8 1.99
TELUS (T) $34.66 5.5% 24.9 9.0 1.56
Source: Bloomberg, January 28, 2009
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