Canada and the United States have different qualifiers for a “Dividend Aristocrat.” In the United States, a Dividend Aristocrat is a stock that has achieved at least 25 consecutive years of dividend growth. However, in Canada, a stock that has posted just five straight years of dividend growth is awarded the same unofficial title.
In this piece, I’m going to use the more stringent U.S. qualifier to target Canadian stocks that have posted at least a quarter-century of income increases. Let’s jump in.
This energy infrastructure superstar is also a top Dividend Aristocrat
Enbridge (TSX: ENB) is a Calgary-based energy infrastructure company that is one of the most dominant and well-known dividend stocks available on the Toronto Stock Exchange (TSX). Shares of this Canadian stock have dipped 1.8% month over month as of close on July 4. The stock has dropped 7.6% so far in 2023.
In the first quarter of fiscal 2023, this company posted adjusted earnings that were largely flat in the year-over-year period at $1.7 billion, or $0.85 per common share. Meanwhile, Enbridge reaffirmed its full-year financial guidance for earnings before interest, taxes, depreciation, and amortization (EBITDA) and distributable cash flow (DCF).
This Canadian stock has achieved 27 straight years of dividend growth. The Dividend Aristocrat currently offers a quarterly distribution of $0.887 per share. That represents a superb 7.2% yield.
Don’t sleep on this grocery stock with a rock-solid history
Metro (TSX: MRU) is a Montreal-based company that operates as a retailer, franchisor, distributor, and manufacturer in the food and pharmaceutical sectors in Canada. Its shares have increased 4.6% over the past month. The stock is still down 1.1% in the year-to-date period.
This company delivered sales growth of 6.6% to $4.55 billion in the second quarter of fiscal 2023. Moreover, adjusted net earnings jumped 10% to $225 million. This top grocery retailer has delivered 28 straight years of dividend growth. Shares of Metro last paid out a quarterly dividend of $0.302 per share, which represents a modest 1.6% yield. Moreover, this Dividend Aristocrat possesses a favourable price-to-earnings (P/E) ratio of 19.
Here’s a Dividend Aristocrat that can also deliver solid growth for investors
Toromont Industries (TSX: TIH) is a Toronto-based company that provides specialized capital equipment in Canada, the United States, and around the world. This Canadian stock has climbed marginally over the past month. Its shares have increased 11% so far in 2023.
In the first quarter of 2023, Toromont reported revenue growth of 23% to $1.06 billion, and operating income surged 48% to $127 million. Toromont has achieved 33 straight years of dividend growth. This Canadian stock offers a quarterly distribution of $0.43 per share, representing a modest 1.5% yield. Shares of this Dividend Aristocrat last had an attractive P/E ratio of 18.
One more Dividend Aristocrat I’d target in early July 2023
Saputo (TSX: SAP) is the fourth and final Canadian stock I’d target today that qualifies as a top Dividend Aristocrat on the TSX. Shares of Saputo have plunged 15% month over month as of close on July 4. That has pushed this Canadian stock into negative territory in the year-to-date period.
This company reported total revenues of $17.8 billion for the full year in fiscal 2023 — up from $15.0 billion in the previous year. Meanwhile, adjusted EBITDA rose to $1.55 billion compared to $1.15 billion for the full year in fiscal 2022. Saputo has achieved 25 consecutive years of dividend growth. The stock offers a quarterly distribution of $0.18 per share, which represents a 2.4% yield. This Dividend Aristocrat also boasts a favourable P/E ratio of 19.
