The Canadian dividend stocks we’ve discovered are unlikely to have to cut their investor payouts
SmallCapPower | June 23, 2020: Dividend-paying stocks are becoming increasingly important, especially in this low interest rate environment. Today we have identified three top Canadian dividend stocks with sustainable investor payouts.
*Returns are based on closing stock prices as of June 22, 2020
TELUS Corporation (TSX:T) – $23.47
TELUS is a communications and information technology company with $14.7 billion in annual revenue and 15.2 million customers spanning wireless, data, IP, voice, television, entertainment, video and security. Social distancing has boosted demand for wireless data and TELUS Health is Canada’s largest healthcare IT provider with more than 26,000 Canadian healthcare professionals using TELUS Health’s electronic medical record (EMR) digital health solutions. TELUS announced that its Free Cash Flow increased by $392 million year over year to $545 million during the first quarter of 2020. TELUS stock currently yields about 5% and the Company recently increased its dividend by 6.9%. The Company has raised its dividend 7.4%, on average, each year for the past four years and has a payout ratio of 64%.
- Year-to-Date Return: – 2.5%
Fortis Inc. (TSX:FTS) – $51.47
Fortis is a North American regulated electric and gas utility industry provider, with 2019 revenue of $8.8 billion and total assets of $57 billion as at March 31, 2020. The Company serves utility customers in five Canadian provinces, nine U.S. states and three Caribbean countries. Fortis has a history of being a true ‘Steady Eddy’ grower, with 46 consecutive years of dividend increases and 6% average annual dividend growth planned through 2024. Nearly 100% of the Company’s earnings is expected to come from regulated and/or long-term contracted utility infrastructure. FTS stock has a current dividend yield of 3.7% with a payout ratio of 38%.
- Year-to-Date Return: – 1%
Quebecor Inc. (TSX:QBR.B) – $29.76
Quebecor, a family business founded in 1950, is a provider of telecommunications, entertainment, news media, sports, and culture. During Q1 2020, the Company’s revenue rose 2.7% year over year to $1.06 billion, while Adjusted EBITDA for the period increased 3.8% from a year earlier to $436.7 million. Quebecor owns Videotron, the largest cable operator in the Province of Québec (approximate 80% market share) and the third largest in Canada. QBR stock has a current dividend yield of 2.7% with a payout ratio of 16.8%.
- Year-to-Date Return: – 7.6%
Disclosure: Neither the author nor his family own shares in any of the companies mentioned above.
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