3 Greatest Canadian Dividend Stocks Of All Time?

The Canadian dividend stocks on our list have been top long-term performers

SmallCapPower | May 27, 2020: Dividend stocks have become increasingly important to income investors in this ultra-low interest rate environment. Today we have identified what we think are the three greatest Canadian dividend stocks of all time, or at least during the past 20 years, based on a combination of yield and capital appreciation.

*Returns are based on closing stock prices as of May 26, 2020

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Canadian National Railway Company (TSX:CNR) – $117.78
Canadian National Railway has a network of rail tracks that spans Canada from coast to coast and extends through Chicago to the Gulf of Mexico. In 2019, CN delivered almost 6 million carloads over its 19,600 miles of track. CN generated 2019 revenue that rose 4% year over year to $14.9 billion. Canadian National Railway has increased its dividend every year since the Company’s IPO in 1995, with a 7% hike planned for 2020. CNR stock has a current dividend yield of 2%.

  • Average Annual Return Over the Past 20 Years (Excluding Dividends): 115%

Toromont Industries Ltd. (TSX:TIH) – $66.10
Toromont Industries operates through two business segments: the Equipment Group and CIMCO. The Equipment Group includes one of the larger Caterpillar dealerships by revenue and geographic territory – spanning the Canadian provinces of Newfoundland & Labrador, Nova Scotia, New Brunswick, Prince Edward Island, Québec, Ontario and Manitoba, in addition to most of the territory of Nunavut. The Group includes rental operations, a complementary material handling business and an agricultural equipment business. CIMCO is a provider of design, engineering, fabrication and installation of industrial and recreational refrigeration systems. The Company’s CEO said recently that its businesses have, to date, been declared essential services in all jurisdictions in which it operates. Toromont has been paying a dividend for 52 years, with 31 consecutive years of dividend growth. The Company raised its quarterly dividend 14.8% in 2020 to $0.31 share. TIH stock has a current dividend yield of 1.9%.

  • Average Annual Return Over the Past 20 Years (Excluding Dividends): 88%

Fortis Inc. (TSX:FTS) – $51.91
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%.

  • Average Annual Return Over the Past 20 Years (Excluding Dividends): 69%

Disclosure: Neither the author nor his family own shares in any of the companies mentioned above.

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