4 TSX Stocks That Could Be the Next Dividend Aristocrats

Positive dividend growth in each of the last four fiscal periods boosts the attractiveness of the TSX stocks on our list

SmallCapPower | November 15, 2016: Dividend Aristocrats refer to mature companies that have been raising their dividends for the past number of years. On the S&P 500 a company must raise dividends for 25 consecutive years, however in Canada a company only needs to be increasing its dividend for 5 consecutive years, and can hold its dividend steady for 2 before being kicked out of the club. The reason for this discrepancy between the two countries is simply due to the significantly smaller number of companies on Canadian exchanges. That being said, the TSX stocks on our list today have all increased their dividends at least over the past 3 fiscal years, have had positive year-to-date stock growth, and although they are not on a TSX dividend aristocrats ETF, could be vying for a spot.

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canadian-logoCanadian Energy Services and Technology Corp. (TSE:CEU) – $6.16
Oil Related Services and Equipment

Canadian Energy Services and Technology Corp is a Canada-based company, which designs, implements, and manufactures consumable fluids and specialty chemicals for the oil and gas industry. The Company operates in the Western Canadian Sedimentary Basin and in several basins throughout the United States. In Canada, the Company operates under the trade names Canadian Energy Services, PureChem Services, Sialco Materials Ltd., Clear Environmental Solutions and EQUAL Transport. In the United States, the Company operates under the trade names AES Drilling Fluids, AES Frac Fluids, Superior Weighting Products and JACAM Chemicals. The Company offers total solutions at the drill-bit, at the point of completion and stimulation, at the wellhead and pump-jack, and through to the pipeline and midstream market.

  • Market Cap: $1,611.86(mm)
  • Dividend per Share – Actual (FY-3, CAD): $0.20
  • PoP % Chg (3FY) in Dividend per Share – Actual (FY0, CAD): $61%
  • Dividend per Share – Actual (FY0, CAD): $0.32canadian-graph

dorel-logoDorel Industries Inc. (TSE:DII.B) – $37.22
Home Furnishings

Dorel Industries Inc. is a global consumer products company that designs, manufactures or sources, markets and distributes a portfolio of product brands. The Company markets its products in the United States, Europe, Latin America, Canada, and Asia. The Company operates through three segments: Dorel Juvenile, Dorel Sports and Dorel Home Furnishings. The Company’s Dorel Juvenile segment is engaged in designing, sourcing, manufacturing, distribution and retailing of children’s furniture and accessories. The Company’s Dorel Sports segment is engaged in designing, sourcing, manufacturing and distribution of recreational and leisure products and accessories. The Company’s Dorel Home Furnishings segment is engaged in designing, sourcing, manufacturing and distribution of ready-to-assemble (RTA) furniture and home furnishings. The Company’s brands include Cannondale, Schwinn, GT, Mongoose, Caloi, Quinny, Maxi-Cosi, Tiny Love, Cosco, Infanti, Voyage, Angel, Disney and Eddie Bauer.

  • Market Cap: $1,206.74(mm)
  • Dividend per Share – Actual (FY-3, CAD): $0.93
  • PoP % Chg (3FY) in Dividend per Share – Actual (FY0, CAD): $72%
  • Dividend per Share – Actual (FY0, CAD): $1.60doral-graph

high-logoHigh Liner Foods Inc. (TSE:HLF) – $19.65
Food Processing

High Liner Foods Incorporated is a Canada-based company engaged in processing and marketing of prepared and packaged frozen seafood products. The Company’s retail branded products are sold across the United States, Canada and Mexico under the High Liner, Fisher Boy, Mirabel, Sea Cuisine and C. Wirthy & Co. brands. The Company operates in manufacturing and marketing of prepared and packaged frozen seafood segment. The Company offers its products to restaurants, institutions, food retailers and foodservice distributors under Icelandic Seafood and FPI brands.

  • Market Cap: $607.79(mm)
  • Dividend per Share – Actual (FY-3, CAD): $0.21
  • PoP % Chg (3FY) in Dividend per Share – Actual (FY0, CAD): $133%
  • Dividend per Share – Actual (FY0, CAD): $0.50high-graph

rich-logoRichelieu Hardware Ltd. (TSE:RCH) – $27.10
Home Furnishings

Richelieu Hardware Ltd. is a distributor, importer and manufacturer of specialty hardware and complementary products. The Company’s product categories include furniture, glass and building decorative and functional hardware, lighting systems, finishing and decorating products, ergonomic workstation components, kitchen and closet storage solutions, sliding door systems, decorative and functional panels, window and door hardware, glass hardware and floor protection products. Its products are targeted to a customer base of kitchen and bathroom cabinet, furniture, and window and door manufacturers plus the residential and commercial woodworkers, as well as a large customer base of hardware retailers, including renovation superstores.

  • Market Cap: $1,569.19(mm)
  • Dividend per Share – Actual (FY-3, CAD): $0.16
  • PoP % Chg (3FY) in Dividend per Share – Actual (FY0, CAD): $275%
  • Dividend per Share – Actual (FY0, CAD): $0.60rich-graph