The high-yielding Canadian dividend stocks on our list could continue to deliver superior returns
SmallCapPower | August 3, 2017: When looking for dividend stocks, investors generally look for two things: stocks that are high yielding, and stocks that should continue to pay a stable and increasing dividend payout. The Canadian dividend stocks on our list are all yielding over 5%, and are expected to increase their dividends over the next 12 months, according to the consensus broker estimate. This provides investors the opportunity to invest in companies that will continue to send them substantial cash payments, at least over the next 12 months.
Exchange Income Corp. (TSX: EIF) – $29.04
Airlines
Exchange Income Corporation is focused on opportunities in aerospace and aviation services and equipment, and manufacturing. The Company operates through two segments: Aviation and Manufacturing. The Aviation segment provides scheduled airline and charter service, and emergency medical services to communities located in Manitoba, Ontario and Nunavut. These services are provided by Calm Air International LP, Perimeter, Keewatin Air LP, Bearskin Lake Air Service LP, Custom Helicopters Ltd. and other aviation supporting businesses. Regional One focuses on supplying regional airline operators with various after-market aircraft, engines and component parts. services in various industries and geographic markets throughout North America.
- Dividend Per Share: $2.00
- NTM Dividend Per Share: $2.20
- Yield: 7.4%
MCAN Mortgage Corp. (TSX: MKP) – $14.99
Banks
MCAN Mortgage Corporation (MCAN) is a Canada-based loan company and mortgage investment corporation. The Company’s primary objective is to generate income by investing its corporate funds in a portfolio of mortgages (including single family residential, residential construction, non-residential construction and commercial loans), as well as other types of financial investments, loans and real estate investments. The Company’s primary subsidiary, Xceed Mortgage Corporation (Xceed), focuses on the origination and sale to MCAN and third party mortgage aggregators of residential first-charge mortgage products across Canada.
- Dividend Per Share: $1.20
- NTM Dividend Per Share: $1.30
- Yield: 8.4%
Alaris Royalty Corp. (TSX: AD) – $22.68
Investment Management & Fund Operators
Alaris Royalty Corp. is a Canada-based company providing capital to private businesses (individually, a Private Company Partner and collectively the Partners). The Company’s operations consist of investments in private operating entities in the form of preferred limited partnership interests, preferred interest in limited liability corporations in the United States, or long-term license and royalty arrangements. The Company is an equity provider to service a niche in the capital market, such as steady growth companies with an entrepreneurial management team, incentivized to grow and maintain control of their business. It forms partnerships with private companies where owners want to maintain control of their business (day-to-day operations, corporate culture and long-term objectives).
- Dividend Per Share: $1.60
- NTM Dividend Per Share: $1.70
- Yield: 7.1%
First National Financial Corp. (TSX: FN) – $25.32
Corporate Financial Services
First National Financial Corporation is a Canada-based parent company of First National Financial LP (FNFLP), which is an originator, underwriter and servicer of prime residential (single-family and multi-unit) and commercial mortgages. The Company operates through two segments: Residential (which includes single-family residential mortgages) and Commercial (which includes multi-unit residential and commercial mortgages). The Company provides mortgage-financing solutions to the mortgage market in Canada. The Company also invests in short-term mortgages, usually for six- to 18-month terms. The Company provides underwriting and fulfilment processing services to a mortgage originator using the mortgage broker distribution channel.
- Dividend Per Share: $1.70
- NTM Dividend Per Share: $1.90
- Yield: 7.2%
Disclosure: Neither the author nor any of the principals at Small Cap Power, or their family members, own shares in any of the companies mentioned above.
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