The Canadian dividend stocks we’ve discovered have increased shareholder distributions by at least 18% per year over the past seven years
SmallCapPower | March 24, 2021: Dividend-paying stocks can generate income for investors without having to sell shares. Additionally, dividend increases are generally a good indicator that companies are growing their free cash flow (FCF) and are more likely to have better returns than their peers with stagnant dividend payouts. Dividend increases are typically a positive sign because it implies that a company’s profits have increased, thus more funds can be allocated to dividend payouts. Today we have identified four TSX-listed Canadian dividend stocks that have had at least 18% growth in their investor payouts per year over the past seven years.
*Share prices and other metrics as at market close on March 23, 2021
Quebecor Inc. (TSX:QBR.A) – $35.41
Media and Entertainment
Quebecor is a major cable and wireless operator in the province of Quebec. Quebecor operates in the following business segments: Telecommunications, Media, and Sports and Entertainment. Quebecor’s corporate strategy is to capture synergies among its segments and leverage the value of content for the benefit of multiple distribution platforms. The Company also owns select media assets, including a 68.4% equity interest in television broadcaster TVA Group. On March 22, 2021, QBR announced that Videotron, a wholly-owned subsidiary of Quebecor, is planning to connect 37,000 rural Quebec households with high-speed internet service by the end of 2022.
- Market Cap: $8,868.4M
- YTD-Return: +8.0%
- 7-Year Share Price Return: +9179.5%
- 30-Day Average Trading Volume: 1,080
- 2020 Dividend/Share: $0.80
- 2013 Dividend/Share: $0.05
- 7-Year Dividend CAGR: 48.6%
goeasy Ltd. (TSX:GSY) – $119.98
Consumer Finance
goeasy is a Canada-based, full-service provider of alternative financial services and has two main business segments: easyfinancial and easyhome. The easyhome segment provides consumer loans for furniture, electronics, computers and appliances, which are offered under weekly or monthly leasing agreements. Easyfinancial has ~$879.0M in consumer loans receivable and a 47% revenue CAGR over past seven years. The easyfinancial segment is its financial services arm, operating in the non-prime consumer lending marketplace. easyfinancial is focused on providing consumer installment loans with $49M in lease assets. The Company operates approximately 200 easyfinancial locations and over 180 easyhome stores across Canada. On March 15, 2021, the Company announced that it had appointed Jason Mullins, the Company’s President & Chief Executive Officer, to its Board of Directors. In 2020, Mr. Mullins was also named one of Canada’s Top 40 under 40, one of the country’s most coveted awards for young achievers in Canadian business.
- Market Cap: $1,785.4M
- YTD-Return: +24.1%
- 7-Year Share Price Return: +570.3%
- 30-Day Average Trading Volume: 87,010
- 2020 Dividend/Share: $1.80
- 2013 Dividend/Share: $0.34
- 7-Year Dividend CAGR: 26.9%
Maple Leaf Foods Inc. (TSX:MFI) – $29.34
Packaged Foods and Meats
Maple Leaf Foods is a consumer-packaged food processing company located in Canada, the United States, the United Kingdom, Asia and Mexico. Maple Leaf operates in main three segments, which include the Meat Products Group, the Agribusiness Group and the Bakery Products Group. The main markets the Company relies on are major grocery stores, independent grocery outlets and retail and wholesale buying groups. On March 19, 2021, Maple Leaf announced that it had completed its purchase of a 118,000 sq. ft plant in Indianapolis where it will be installing new equipment to increase the Company’s tempeh production capacity to meet growing demand. Initial production at the plant is targeted to begin in the first half of 2022, and when fully operational, it will employ approximately 115 people.
- Market Cap: $3,614.1M
- YTD-Return: +4.0%
- 7-Year Share Price Return: +72.6%
- 30-Day Average Trading Volume: 421,970
- 2020 Dividend/Share: $0.64
- 2013 Dividend/Share: $0.16
- 7-Year Dividend CAGR: 21.9%
Enghouse Systems Limited (TSX:ENGH) – $61.95
Technology
Enghouse Systems provides enterprise software solutions and has grown through a ‘roll-up’ strategy, typically spending between $20 million to $40 million a year on acquisitions of good-quality software assets at bargain prices, which are used in contact centres, telecommunication networks, transportation systems and for video conferencing. On March 11, 2021, ENGH released its Q1F21 financial results. Net revenues grew by 7.6% to $119.1M and net income climbed 27.9% from the prior quarter to $40.6M, while adjusted earnings before interest taxes depreciation and amortization (adj. EBITDA) increased 26% to $44.5M.
- Market Cap: $3,429.1M
- YTD-Return: +0.5%
- 7-Year Share Price Return: +264.4%
- 30-Day Average Trading Volume: 236,560
- 2020 Dividend/Share: $0.57
- 2013 Dividend/Share: $0.16
- 7-Year Dividend CAGR: 18.7%
Disclosure: Neither the author nor his family own shares in any of the companies mentioned above.
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