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the list

The Canadian Dividend All-Star List is a list that started as an excel spreadsheet of Canadian companies that have increased their dividend for 5 or more consecutive calendar years in a row. The list has expanded a bit beyond the original criteria and includes companies with a dividend streak of less than 5 years in the “Others” tab. The “Others” tab was meant to help identify other Canadian dividend growth companies with streaks under 5 years. Think of the big Canadian banks.

I typically update the list on a monthly basis, but I’ve recently added a July 3, 2015 version after the June 30th one. When I ran my macro for the June 30th version it was missing the PEG ratios and 5 year growth estimates. The macro started working properly a few days later, so I released the July 3rd version. Hopefully these technical problems don’t continue.

As I’m already talking about the Canadian Dividend All-Star List I thought it might be a good time to talk about some of the dividend increases that were announced in June 2015. When I went through the list I found 6 dividend increases announced in the month.

Canadian Western Bank

This is a stock I own, so I was happy to hear that they announced a 5% dividend increase. The company has a recent history of increasing their dividend twice a year, so this was their second increase in a year.

Canadian Western Bank [TSE:CWB Trend] is a bank operating mostly in Western Canada, but has operations across Canada. This is a lesser known bank as it is not one of the “Big 6” Canadian banks. It has the longest current dividend streak of the Canadian Banks having increased its dividend for 23 consecutive calendar years. Canadian Western Bank currently yields 3.1% and has 5 and 10 year dividend growth rates of 12.7% and 17.6% respectively. It has a history of consistently high earnings growth as it has been able to increase its EPS each fiscal year in 9 of the last 10 years (2005 -10 to 2014-10). I start to get interested in investing around a dividend yield of 2.8%.

Related articles: Canadian Western Bank Dividend Stock Analysis & Portfolio Update & 14 Canadian Dividend Growth Companies with Consistently High Earnings Growth

Empire Company Ltd

Empire Company Ltd. [TSE:EMP.A Trend] announced an 11.1% dividend increase. The quarterly dividend will be increased from $0.2700 to $0.3000.

Empire Company Limited is a Canadian company, whose key businesses include food retailing and related real estate. The non-voting class A shares trade on the Toronto Stock Exchange using the stock ticker EMP.A. The food retailing division is from their 100% ownership of Sobeys Inc. which is a grocery store chain with operations across Canada. They own a large minority interest in Crombie REIT [TSE:CRR.UN Trend] which operates a real estate portfolio of grocery and drug store anchored shopping centres and freestanding stores in Canada.

Empire Company Ltd has increased its dividend for 20 consecutive calendar years and currently yields 1.4%. They have 5 and 10 year dividend growth rates of 8.0% and 9.2% respectively.

Normally I get interested in a dividend growth stock when the dividend yield is close to its third highest dividend yield from the past decade. For Empire Company Limited this is dividend yield of around 1.7%, which is below my minimum target of 2.5%. The highest yield they’ve had in the past decade was in 2008 when it got up to 2.0%. I think I’d be interested in investing if the dividend yield got into the 2.0% to 2.5% range.

Canadian REIT

Canadian REIT [TSE:REF.UN Trend] announced a 2.9% dividend increase. The monthly dividend will be increased from $0.1458 to $0.1500.

Canadian Real Estate Investment Trust is a real estate investment trust. The Company owns and operates a portfolio of retail, industrial and office properties.

Canadian REIT has increased its dividend for 13 consecutive calendar years and yields 4.2%. They have 5 and 10 year dividend growth rates of 5.0% and 3.4% respectively. I start to get interested in investing around a dividend yield of 7.4%.

Andrew Peller Ltd.

Andrew Peller Ltd. [TSE:ADW.A Trend] announced a 7.1% dividend increase. The quarterly dividend will be increased from $0.1050 to $0.1125.

Andrew Peller Ltd is engaged in the production, bottling and marketing of wines & wines related products in Canada. Its brands include; Sandhill, Peller, Red Rooster, Calona, Thirty Bench Wine, Vineco, Winexpert and Artful Winemaker.

Andrew Peller Ltd. has increased its dividend for 9 consecutive calendar years and currently yields 2.5%. They have 5 and 10 year dividend growth rates of 5.7% and 6.8% respectively.

I haven’t looked into the company in detail, but I probably won’t be investing in the company. Their earnings appear to be erratic over the past decade and the Return on Equity (ROE) isn’t as high as I’d like it to be.

Alaris Royalty Corporation

Alaris Royalty Corporation [TSE:AD Trend] announced a 4.0% dividend increase. The monthly dividend will be increased from $0.1250 to $0.1300.

Alaris Royalty Corporation has increased its dividend for 7 consecutive calendar years and currently yields 5.0%. They have a 5 year dividend growth rate of 9.4%. The 10 year dividend growth rate is not available as they haven’t paid dividends for 10 years.

I haven’t looked into the company in detail, but I probably won’t be investing in the company.

Laurentian Bank of Canada

Laurentian Bank of Canada [TSE:LB Trend] announced a 3.7% dividend increase. The quarterly dividend will be increased from $0.5400 to $0.5600. Like Canadian Western Bank the company has a recent history of increasing their dividend twice a year.

Laurentian Bank is a small cap regional Canadian bank headquartered in Montreal, Quebec. They have increased their dividend for 7 consecutive calendar years and currently have a dividend yield of 4.6%. They have 5 and 10 year dividend growth rates of 8.7% and 5.9% respectively.

I haven’t made up my mind if I’d consider investing in this stock. I plan to do some additional research on the company before making a final decision.

Final Thoughts

I think Laurentian Bank is worth a more detailed look, so if you have any thoughts please comment. I don’t know much about the company, but its trading around book value right now which has piqued my interest. Another company I’m interested in learning more about is Andrew Peller Ltd., so again please comment if you have any thoughts, good or bad.

 

Photo credit: sunshinecity / Foter / CC BY

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15 Comments

  1. As usual excellent work. I am looking forward to see any detail analysis for utility companies which are among top 4 of this list. What you think is right price for these companies. Specially atco which is trading quite low and lower price to GP ratio.

    Thanks for taking out time and sharing this information with us.

  2. Not surprised to see two banks in the list! 😉 But I think there are better buys in Canadian Banks, like RBC and TD that were both at discount when I last looked.

    Cheers!

    Mike

    1. I’m close to buying Bank of Nova Scotia right now, but it hasn’t dipped below the $62 mark. I thought Greece and China might get it there, but it didn’t quite make it. The other big banks are about 10% to 20% off from where I get interested.

  3. Hello,
    I just wanted to point out that Alaris announced a further dividend increase on June 25th taking the monthly distribution to $0.135 per month. All good stuff!
    Regards,
    MG

    1. Where did you find this info out? I tried looking at the news feed on Alaris Royalty’s investor website and couldn’t find any info.

  4. Hello DGIR,
    Heard back from Alaris Investor Relations:

    “Thank you for your message. Due to securities laws in Canada and the U.S., we cannot post press releases to our website if they contain information of an equity offering.

    Because the new investment was announced simultaneously to the offering we could not post this release. If you go to http://www.marketwired.com you can find the announcement of the Federal Resources investment as well as the offering simply typing “Alaris” into the search bar. You can also register to receive all of our announcements, as well as many other public companies on that site as Marketwired is the news service provider many public companies use. If you have previously registered to receive announcements via our website you will not get them if they include an equity offering. So to ensure you have all the releases please register via Marketwired.

    Here are some links to those announcements:

    http://www.marketwired.com/press-release/alaris-royalty-corp-announces-a-58-million-contribution-a-new-private-company-partner-tsx-ad-2033300.htm

    http://www.marketwired.com/press-release/alaris-royalty-corp-announces-upsized-bought-deal-offering-tsx-ad-2033373.htm

    Please let me know if you have any other questions.

    Curtis Krawetz

    VP Investments and Investor Relations

    Alaris Royalty Corp.”

    1. Thanks for looking into this. I had a look on sedar.com and the news release was there too. I’ll update Alaris Royalty in next month’s version of the list.

  5. It looks like Andrew Pellar has an inconsistent dividend over the last several years. I have been watching it for a while but not ready to pull the trigger on it because of the above. The payout ratio seems good but they also issued more shares last year. Ok if they are putting that capital to good use but not a good sign if not.

    1. I think Morningstar counted a 2012 quarterly dividend twice by accident. It makes it look like they cut in 2013, but they didn’t. Andrew Peller Ltd. has increased their dividend for 9 years in a row on a calendar year basis.

      DGI&R

  6. if that is the case then it may be time to buy. I will have a look around and see if I can confirm the double count.

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