In case you search steady investments and constant dividends, look no additional than the checklist of Canadian Dividend Aristocrat shares.
These firms earn a steady sufficient money circulation to pay growing dividends annually. The draw back is that you’ll probably not see as a lot inventory worth development.
This text will talk about the ten prime Canadian dividend aristocrat shares for April 2025.
What Are Dividend Aristocrats?
The time period dividend aristocrat in Canada is barely completely different than in america. Whereas south of the border, a dividend aristocrat has to have raised its dividend for 25 consecutive years, in Canada, that threshold is just 5 years.
Listed below are the precise necessities to be a Canadian dividend aristocrat:
- Be listed on the Toronto Inventory Alternate.
- Be a constituent of the S&P International BMI.
- The corporate has elevated dividends for not less than 5 years. Inside these 5 years, the corporate can preserve the identical dividend for a most of two consecutive years.
- The float-adjusted market capitalization have to be larger than $300 million.
Sadly, being a Canadian dividend aristocrat is just not as noble as it’s in america. A five-year vary for dividend development is just not a big sufficient pattern dimension to make sure future dividend development.
That stated, lots of the firms on the checklist have grown their dividends for for much longer than 5 years. The checklist is a good place to start out your analysis on Canadian dividend shares, however at all times look extra in-depth into the corporate and decide if future dividend development is a possible end result.
Prime Canadian Dividend Aristocrats
1. Royal Financial institution of Canada
- Ticker Image: RY.TO
- Market Capitalization: $222.163 Billion
- 52-week buying and selling vary: 131.57 – 180.45
- Dividend Yield: 3.76%
- 1-Yr Return: 18.82%
- P/E Ratio: 12.81
Royal Financial institution of Canada wants no introduction to Canadian buyers. It’s the largest client financial institution in Canada and the tenth largest funding financial institution on this planet. With almost 1,200 branches and over 15 million Canadian prospects, RBC is the premier monetary establishment in our nation.
As for the dividend, RBC has raised its distribution to shareholders for 13 consecutive years. Extra importantly, it has not decreased its dividend payout for 33 years, proving that it’s greater than worthy of being certainly one of Canada’s prime dividend aristocrat shares to personal.
2. Fortis Inc
- Ticker Image: FTS.TO
- Market Capitalization: $32.423 Billion
- 52-week Buying and selling Vary: $51.02 – 67.52
- Dividend Yield: 3.81%
- 1-Yr Return: 29.6%
- P/E Ratio: 19.95
Fortis is a utility firm primarily based out of St. John’s, Newfoundland, that operates throughout Canada, the US, the Caribbean, and Central America. It pales compared to different firms within the checklist when it comes to market capitalization, however Fortis is without doubt one of the extra common dividend shares amongst Canadian dividend buyers.
Why is it so common? Fortis has a powerful 50 consecutive-year streak of elevating its quarterly dividend payout to shareholders.
3. Toronto-Dominion Financial institution
- Ticker Image: TD.TO
- Market Capitalization: $141.98 billion
- 52-week buying and selling vary: $73.22 – 87.99
- Dividend Yield: 5.18%
- 1-Yr Return: 7.97%
- P/E Ratio: 17.17
Proper on the heels of RBC is the Toronto-Dominion Financial institution. It’s Canada’s second-largest client financial institution and has an ever-expanding footprint in america as properly. TD has over 1,100 branches in Canada and over 14 million prospects from coast to coast.
TD inventory pays out a beneficiant dividend yield of 5.18%.
4. Telus Inc
- Ticker Image: T.TO
- Market Capitalization: $30.631 Billion
- 52-week Buying and selling Vary: $19.10 – 23.43
- 1-Yr Return: -1.97%
- Dividend Yield: 7.95%
- P/E Ratio: 30.19
Telus Inc., higher often known as Telus Canada, is without doubt one of the largest telecommunications firms in Canada, together with Rogers and Bell. All three of those make for good dividend investments in Canada. Telus has greater than 18 million prospects throughout its wi-fi, voice, and tv merchandise.
For the previous a number of years, Telus has raised its quarterly dividend annually. Over that interval, the dividend has grown at a CAGR of about 5.04%. Telus reported a 7.3% enhance in money circulation in 2023, which is a wonderful signal that the corporate will proceed elevating its dividend.
5. Enbridge Inc
- Ticker Image: ENB.TO
- Market Capitalization: $130.86 Billion
- 52-week Buying and selling Vary: $42.75 – $54.05
- Dividend Yield: 6.28%
- 1-Yr Return: 35.54%
- P/E Ratio: 25.66
Enbridge is one other common dividend inventory amongst Canadian buyers because of its excessive yield and constant dividend development. It’s Canada’s largest oil pipeline firm by market capitalization, and its Enbridge transports about 65% of U.S.-bound Canadian manufacturing. Enbridge additionally operates over 38,000 kilometres of pure gasoline pipelines that span from Canada to the Gulf of Mexico.
The corporate’s sturdy, utility-like money flows enable it to pay out among the greatest dividends in Canada. Enbridge has raised its dividend for 28 consecutive years and has offered an annual complete shareholder return (TSR) of about 12% since 2002.
6. Dollarama
- Ticker Image: DOL.TO
- Market Capitalization: $44.807 billion
- 52-week buying and selling vary: $74.36 – $103.96
- Dividend Yield: 0.26%
- 1-Yr Return: +43.6%
- P/E Ratio: 38.88
With retail costs growing throughout the board, Dollarama has benefited from shoppers who’re searching for cheaper choices. Dollarama has been one of many best-performing shares on this checklist over the previous yr and has seen an almost 30% return.
Whereas this checklist is targeted on dividend-earning shares, Dollarama is exclusive in that it has seen a fast enhance in inventory worth alongside a gradual dividend.
7. Nationwide Financial institution of Canada
- Ticker Image: NA.TO
- Market Capitalization: $44.36 billion
- 52-week buying and selling vary: $105.43 – 141.15
- Dividend Yield: 4.02%
- 1-Yr Return: +2.10%
- P/E Ratio: 10.43
The Nationwide Financial institution of Canada is commonly missed by buyers as it’s not certainly one of Canada’s Large 5 banks. It’s the sixth-largest industrial financial institution in Canada and operates primarily within the Province of Quebec. Nationwide Financial institution has over 2.6 million prospects throughout Canada, with branches in most Provinces and Territories.
Earlier this yr, the Nationwide Financial institution raised its dividend but once more, making it greater than a decade of constant annual dividend development. Over the previous ten years, the dividend has grown at a CAGR of about 9.4%. With a payout ratio of 40%, Nationwide Financial institution is well-equipped to proceed elevating its dividend for the foreseeable future.
8. First Nationwide Monetary Company
- Ticker Image: FN.TO
- Market Capitalization: $2.451B
- 52-week buying and selling vary: $32.86 – 41.80
- Dividend Yield: 2.41%
- 1-Yr Return: 3.45%
- P/E Ratio: 4.13
With 16 dividend will increase since 2006, First Nationwide is a good possibility for these searching for steady, long run returns. The corporate operates within the monetary sector, offering industrial and residential mortgages. First Nationwide is without doubt one of the largest mortgage brokers in Canada by market share.
First Nationwide had $137.8 billion in mortgages underneath their administration as of 2023. With the actual property market remaining an necessary a part of Canada’s financial system, dividend yields are projected to proceed rising.
9. Canadian Pure Assets
- Ticker Image: CNQ.TO
- Market Capitalization: $79.184 Billion
- 52-week buying and selling vary: $34.92 – 54.69
- Dividend Yield: 6.23%
- 1-Yr Return: -28%
- P/E Ratio: 13.24
Canadian Pure Assets is certainly one of Canada’s largest oil and gasoline firms that operates primarily in Western Canada and the prairies. It additionally owns vitality property within the UK, Africa, and throughout North America, giving it probably the most diversified vitality portfolios on this planet.
CNQ inventory can be certainly one of Canada’s prime dividend aristocrat shares. It has raised its quarterly dividend for 23 consecutive years with a staggering dividend CAGR of 21% over that interval.
10. Canadian Condominium Properties REIT
- Ticker Image: CAR-UN.TO
- Market Capitalization: $6.37 Billion
- 52-week buying and selling vary: $37.28 – 56.71
- Dividend Yield: 3.95%
- 1-Yr Return: -6.05%
- P/E Ratio: 22.68
The final inventory on the checklist is a Actual Property Funding Belief or REIT. These are firms that personal bodily actual property and pay out a big chunk of their internet earnings from lease to shareholders as distributions. In trade, they don’t pay any company earnings tax. Canadian Condominium REITs owns over 65,000 items in Canada and Europe, with an general occupancy of greater than 95%.
REITs are unbelievable dividend shares, and CAR isn’t any exception. This REIT inventory pays month-to-month dividends and has raised its distribution annually since 2011. Even at a time when Canadian residential actual property is on shaky floor, CAPREIT continues to pay out and develop its month-to-month dividends.
Execs of Investing in Dividend Aristocrats
Dividend aristocrat shares include good dividend development over time. However additionally they present stability as they’re normally mature firms which have a number of free money circulation annually.
Including to dividend aristocrat shares can allow a gradual development to your portfolio when used with a DRIP system.
Throughout instances of market volatility, dividend aristocrat shares are likely to outperform development shares.
Cons of Investing in Dividend Aristocrats
In case you are younger, you must focus extra on long-term capital appreciation. Dividend aristocrat shares is not going to see main will increase in inventory worth over time.
Dividends can get lower anytime, as we realized through the COVID-19 pandemic. Don’t rely solely on dividends for portfolio development.
5 years is just not an extended sufficient interval to forecast future dividend development for Canadian shares.
How To Purchase Canadian Dividend Aristocrat Shares in 2025
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Canadian Dividend Aristocrat Shares
Word: All of those figures beneath are correct as of 2024.
| Ticker Image | Inventory Title | Dividend Yield | Market Capitalization |
| RY.TO | Royal Financial institution of Canada | 4.21% | 185.575 billion |
| TD.TO | Toronto-Dominion Financial institution | 5.13% | $144.135 billion |
| CNR.TO | Canadian Nationwide Railway | 1.94% | $112.252 billion |
| ENB.TO | Enbridge Inc | 8.11% | $97.373 billion |
| CNQ.TO | Canadian Pure Assets | 4.91% | $92.151 billion |
| BMO.TO | Financial institution of Montreal | 4.77% | $91.793 billion |
| TRI.TO | Thompson Reuters Corp | 1.37% | $96.877 billion |
| BNS.TO | Financial institution of Nova Scotia | 6.69% | $77.237 billion |
| BN.TO | Brookfield Corp | 0.80% | $85.169 billion |
| ATD.TO | Alimentation Couche-Tard | 0.71% | $80.237 billion |
| BCE.TO | BCE Inc | 7.96% | $45.82 billion |
| TRP.TO | TC Pipelines | 7.32% | $53.924 billion |
| CM.TO | CIBC | 5.92% | $57.318 billion |
| WCN.TO | Waste Connections | 0.69% | $57.535 billion |
| MFC.TO | Manulife Monetary Corp | 4.76% | $60.234 billion |
| IMO.TO | Imperial Oil | 3.00% | $43.564 billion |
| QSR.TO | Restaurant Manufacturers Worldwide | 3.01% | $45.672 billion |
| ABX.TO | Barrick Gold Corp | 2.83% | $34.514 billion |
| SLF.TO | Sunlife Monetary | 4.38% | $42.111 billion |
| L.TO | Loblaws Corporations | 1.31% | $43.27 billion |
| FNV.TO | Franco-Nevada Corp | 1.34% | $28.541 billion |
| GWO.TO | Nice-West Lifeco | 5.01% | $38.635 billion |
| IFC.TO | Intact Monetary Corp | 2.17% | $40.632 billion |
| T.TO | Telus Corp | 6.43% | $34.981 billion |
| NA.TO | Nationwide Financial institution of Canada | 4.24% | $34.893 billion |
| AEM.TO | Agnico Eagle Mines | 3.50% | $31.163 billion |
| WPM.TO | Wheaton Treasured Metals Group | 1.39% | $27.048 billion |
| FTS.TO | Fortis Inc | 4.48% | $25.839 billion |
| DOL.TO | Dollarama Inc | 0.28% | $28.90 billion |
| BEP-UN.TO | Brookfield Renewable Companions | 6.01% | $21.561 billion |
| TOU.TO | Tourmaline Oil Corp | 2.07% | $19.23billion |
| PPL.TO | Pembina Pipeline Corp | 5.89% | $25.106 billion |
| MG.TO | Magna Worldwide | 3.49% | $21.488 billion |
| POW.TO | Energy Company | 5.53% | $25.159 billion |
| H.TO | Hydro One | 2.95% | $24.203 billion |
| WN.TO | George Weston | 1.63% | $23.336 billion |
| BIP-UN.TO | Brookfield Infrastructure Companions | 5.22% | $19.849 billion |
| MRU.TO | Metro Inc | 1.91% | $16.02 billion |
| TFII.TO | TFI Worldwide Inc | 1.09% | $16.848 billion |
| RBA.TO | RB International Inc | 1.79% | $14.92 billion |
| OTEX.TO | Open Textual content Corp | 2.46% | $14.613 billion |
| EMA.TO | Emera Inc | 6.13% | $13.281 billion |
| BAM.TO | Brookfield Asset Administration | 3.78% | $21.634 billion |
| SAP.TO | Saputo Inc | 2.66% | $11.991 billion |
| CCL.B.TO | CCL Industries Class B | 1.84% | $10.481 billion |
| STN.TO | Stantec Inc | 0.70% | $12.762 billion |
| CTC.A.TO | Canadian Tire Class A | 4.97% | $8.167 billion |
| TIH.TO | Toromont Industries Ltd | 1.55% | $10.309 billion |
| EMP.A.TO | Empire Firm Ltd | 2.96% | $8.415 billion |
| CU.TO | Canadian Utilities Class A | 6.06% | $8.40 billion |
| WFG.TO | West Fraser Timber Co Ltd | 1.51% | $9.063 billion |
| IAG.TO | IA Monetary Company | 3.32% | $9.824 billion |
| X.TO | TMX Group Ltd | 2.06% | $9.602 billion |
| CAR-UN.TO | Canadian Condominium Properties REIT | 2.94% | $8.486 billion |
| PAAS.TO | Pan American Silver Corp | 3.23% | $6.349 billion |
| FSV.TO | FirstService Corp | 0.60% | $10.067 billion |
| QBR.B.TO | Quebecor Inc | 3.81% | $7.312 billion |
| PKI.TO | Parkland Corp | 3.00% | $8.024 billion |
| FTT.TO | Finning Worldwide | 2.85% | $5.086billion |
| BYD.TO | Boyd Group Providers Inc | 0.20% | $6.687 billion |
| CPX.TO | Capital Energy Corp | 6.84% | $4.273 billion |
| GRT-UN.TO | Granite REIT | 4.36% | $4.803 billion |
| PBH.TO | Premium Model Holdings Corp | 3.40% | $4.13 billion |
| ACO.X.TO | ATCO LTD Class I | 5.36% | $4.245 billion |
| SJ.TO | Stella Jones Inc | 1.12% | $4.583 billion |
| CRT-UN.TO | CT REIT | 6.31% | $3.387 billion |
| MFI.TO | Maple Leaf Meals Inc | 3.27% | $3.171 billion |
| EQB.TO | EQB Inc | 1.77% | $3.433 billion |
| CCA.TO | Cogeco Communications | 5.59% | $2.597 billion |
| AP-UN.TO | Allied Properties REIT | 10.37% | $2.293 billion |
| CSH-UN.TO | Chartwell Retirement Residences REIT | 5.05% | $2.957 billion |
| CWB.TO | Canadian Western Financial institution | 4.70% | $2.736 billion |
| FN.TO | First Nationwide Monetary Corp | 6.08% | $2.409 billion |
| EIF.TO | Alternate Revenue Corp | 5.72% | $2.184 billion |
| KMP-UN.TO | Killam Condominium REIT | 3.57% | $2.302 billion |
| GSY.TO | Goeasy Ltd | 2.76% | $2.98 billion |
| IIP-UN.TO | InterRent REIT | 2.8% | $2.009 billion |
| CJT.TO | Cargojet Inc | 1.05% | $2.079 billion |
| ENGH.TO | Enghouse Techniques Ltd | 2.48% | $1.947 billion |
| NWC.TO | North West Firm Inc | 3.97% | $1.876 billion |
| BDGI.TO | Badger Infrastructure Options Ltd | 1.50% | $1.573 billion |
| TCL.A.TO | Transcontinental Inc Class A | 6.76% | $1.195 billion |
| JWEL.TO | Jamieson Wellness Inc | 2.54% | $1.261 billion |
| GCG.A.TO | Guardian Capital Group Ltd | 2.81% | $1.119 billion |
| SIS.TO | Savaria Corp | 3.10% | $1.19 billion |
| ALS.TO | Altius Minerals Company | 1.94% | $785.306 million |
| LGT.B.TO | Logistec Corp Class B | 0.77% | $366.659 million |
| CF.TO | Canaccord Genuity Group Inc | 4.02% | $884.957 million |
| ADEN.TO | Adentra Inc | 1.62% | $777.407 million |
| ARE.TO | Aecon Group Inc | 5.26% | $867.342 million |
| CGO.TO | Cogeco Inc | 5.86% | $575.385 million |
| MI-UN.TO | Minto Condominium REIT | 3.02% | $677.079 million |
| FSZ.TO | Fiera Capital Corp | 11.83% | $788.303 million |
| TCS.TO | Tecsys Inc | 0.90% | $517.937 million |
| XTC.TO | Exco Applied sciences Ltd | 5.83% | $285.63 million |
Ought to You Put money into Canadian Dividend Aristocrats?
Dividend investing could be a polarizing topic amongst buyers. In the end, it’s going to come all the way down to your threat tolerance, funding targets, and funding horizon.
For youthful buyers, investing in Canadian dividend aristocrats won’t be the perfect technique. Whereas you’ll absolutely be capable of develop your portfolio over time, you’re probably lacking out on investing in large development shares as an alternative.
Older buyers searching for stability and earnings in retirement can depend on dividend aristocrat shares to defend their capital.
Canadian Dividend Aristocrats ETFs
Given that almost 80 dividend aristocrat shares are in Canada, you may assume it might be simpler simply to purchase an ETF. Fortunately, Blackrock has an ETF that tracks the Canadian dividend aristocrat inventory index.
The iShares S&P/TSX Canadian Dividend Aristocrats Index ETF (CDZ.TO) is the ETF that tracks that index the closest. A few of its prime holdings embrace Nice WestLife Co, Energy Company of Canada, BCE Inc., and Enbridge Inc.
This ETF holds 90 Canadian dividend aristocrat shares and pays out a month-to-month distribution yield of 4.04%. The MER for CDZ is 0.66%, which implies for each $10,000 you’ve got invested, you’ll pay $66.00 in annual charges.
Methodology
For Canadian buyers with a low-risk urge for food, dividend aristocrat shares might be nice additions to your portfolio. When selecting Canadian dividend aristocrat shares, I normally take a look at the observe file for dividend development, in addition to the entire shareholder returns.
On prime of that, it helps to take a look at the corporate’s payout ratio, which exhibits how a lot of its revenue it pays out in dividends annually. Don’t chase a excessive dividend yield, as constant dividend development over time is way extra priceless.
FAQs
In Canada, it’s troublesome to prime the oil pipeline shares like Enbridge, Pembina, and TC Power. Not solely have they got excessive dividend yields, however they again that up with excessive money circulation and an extended historical past of dividend development.
Dividend Kings are firms which have raised their dividends for 50 or extra consecutive years. In Canada, Canadian Utilities (CU.TO) and Fortis (FTS.TO) are the one two firms on the checklist, with the latter becoming a member of lately in 2024.
Many Canadian REIT shares pay excessive month-to-month dividends. Most notably, dividend aristocrat shares like Canadian Residences REIT (CAR-UN.TO), Allied Properties REIT (AP-UN.TO), and Granite REIT (GRT-UN.TO) all pay month-to-month dividends.
Canadian Utilities (CU.TO) is the longest-reigning dividend aristocrat inventory in Canada. As of 2023, it has raised its dividend yearly for 50 years, making it the present chief on the TSX.
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