Dividend Aristocrats: Canadian Stocks That Keep Paying Year After Year

Top Canadian stocks like Bank of Nova Scotia (TSX:BNS) also qualify as Dividend Aristocrats that you can trust for the long haul.

Ambrose O'Callaghan

Ambrose O'Callaghan graduated with a BA in Political Science from McMaster University. After that, he jumped into the banking world. He worked from the front line to an investment associate role. After that, he found a way to marry his experience and knowledge in the world of banking and finance to his love and passion for writing. Ambrose is a passionate believer in Warren Buffett's value investing model.

Published June 7, 2023 3:15 pm EDT

The S&P/TSX Composite Index was down 41 points in early afternoon trading on June 7. A Canadian Dividend Aristocrat is a stock that has delivered at least five consecutive years of dividend growth. Today, I want to zero in on three Canadian stocks that qualify as Dividend Aristocrats at this stage in 2023. Let’s dive in.

dividends grow over time — Source: Getty Images

This Dividend Aristocrat has delivered over 20 straight years of income growth

TC Energy (TSX: TRP) is the first Canadian stock I’d target for its impressive dividend-growth streak. Shares of this energy stock have dropped 1% month over month at the time of this writing. The stock is up 4.2% so far in 2023.

This company released its first-quarter fiscal 2023 earnings on April 28. TC Energy reported net income of $1.3 billion, or $1.29 per common share — up from $0.4 billion, or $0.36 per common share, in the previous year. Meanwhile, the company reaffirmed its comparable earnings before interest, taxes, depreciation, and amortization (EBITDA) growth rate, which it expects to be 5-7% higher than the prior year.

Shares of this Canadian stock currently possess a middling price-to-earnings (P/E) ratio of 34. This stock currently offers a quarterly dividend of $0.93 per share. That represents a tasty 6.6% yield. TC Energy has delivered 22 straight years of dividend growth.

Here’s a top Canadian stock in the telecom space you can trust for the long haul

BCE (TSX: BCE) is a Montreal-based communications company that provides wireless, wireline, internet, and television services to residential, business, and wholesale customers in Canada. Its shares have dropped 4.7% month over month as of early afternoon trading on June 7. The stock is up 1.6% in the year-to-date period.

Investors got to see BCE’s first-quarter fiscal 2023 results on May 4. The company delivered operating revenue growth of 3.5% to $6.05 billion. Meanwhile, adjusted net earnings dipped 4.8% year over year to $772 million. BCE reported adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of $2.53 billion — down 1.8% compared to the first quarter of fiscal 2022. Despite the dip in earnings, BCE still achieved strong net subscriber additions, device net activations, and higher wireless service revenue.

This Canadian stock last had a solid P/E ratio of 21. BCE currently pays out a quarterly distribution of $0.968 per share, which represents a very strong 6.3% yield. The stock has achieved dividend growth for 14 consecutive years.

Scotiabank: A top Canadian stock that is also a Dividend Aristocrat

Scotiabank (TSX: BNS) is the third Canadian stock that qualifies as a Dividend Aristocrat that I want to focus on today. This top Canadian bank has seen its stock dip 1.4% over the past month. Its shares are still up 1.7% in the year-to-date period. Investors can see how volatile this bank stock has been by playing with the interactive price chart below.

In the second quarter of 2023, Scotiabank reported adjusted net income of $2.17 billion — down from $2.76 billion in the second quarter of fiscal 2022. Shares of this bank stock currently possess an attractive P/E ratio of 9.8. Meanwhile, it offers a quarterly dividend of $1.06 per share, representing a 6.3% yield. Scotiabank has delivered 12 straight years of dividend growth.