Top 5 Canadian Dividend Growth Stocks

The Canadian dividend growth stocks we’ve found have increased payouts by at least 20% per year over the past four years

SmallCapPower | January 30, 2020: 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 discovered four TSX-listed Canadian dividend growth stocks that have had at least 20% growth in their investor payouts per year over the past four years.

*Share price data as at January 28, 2020, data obtained form S&P Capital IQ
***LTM Q3F2019 Dividend per Share used as a proxy for F2019 Dividend per Share

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Quebecor Inc. (TSX:QBR.B) – $33.52
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.

  • Market Cap: $8,570.5M
  • 90-Day Return: +9.5%
  • 4-Year Return: +88.5%
  • 90-Day Average Trading Volume: 335,400
  • LTM Q3F2019 Dividend per share: $0.34
  • FY2015 Dividend per Share: $0.07
  • 4-Year Dividend Growth CAGR: +50.7%

Restaurant Brands International Inc. (TSX:QSR) – $82.64
Fast Food Restaurants

Restaurant Brands International operates and franchises quick-service restaurants. The Company operates through Tim Hortons, Burger King, and Popeyes. Tim Hortons offers primarily coffee and baked goods under the Tim Hortons brand name, primarily fast food hamburgers under the Burger King brand, and primarily chicken under the Popeyes brand name. At the beginning of 2019, the Company operated ~4,846 Tim Hortons restaurants, ~17,769 Burger King restaurants, and 3,102 Popeyes restaurants in ~100 countries.

  • Market Cap: $24,660.8M
  • 90-Day Return: -4.1%
  • 4-Year Return: +77.6%
  • 90-Day Average Trading Volume: 704,530
  • LTM Q3F2019 Dividend per share: $1.95
  • FY2015 Dividend per Share: $0.44
  • 4-Year Dividend Growth CAGR: +45.1%

CCL Industries Inc. (TSX:CCL.B) – $56.50
Containers and Packaging

CCL Industries manufactures and sells labels, containers, consumer printable media products, technology driven label solutions, polymer bank note substrates, and specialty films. CCL operates through four main business units: CCL, Avery, Checkpoint, and Innovia. CCL is the world’s largest converter of pressure sensitive film materials for instructional, functional and security applications. Avery is the world’s largest supplier of labels, specialty converted media and software solutions for short-run digital printing applications. Checkpoint is a leading developer of RF and RFID based technology systems for loss prevention and inventory management applications. Innovia is a leading global producer of high-performance multi-layer films for label, packaging and security applications.

  • Market Cap: $10,100.1M
  • 90-Day Return: +4.2%
  • 4-Year Return: +42.2%
  • 90-Day Average Trading Volume: 261,560
  • LTM Q3F2019 Dividend per share: $0.64
  • FY2015 Dividend per Share: $0.30
  • 4-Year Dividend Growth CAGR: +20.9%

Alimentation Couche-Tard Inc. (TSX:ATD.B) – $44.58
Food Retail

Alimentation Couche-Tard operates and licenses 12,575 convenience stores globally. Its convenience stores sell tobacco products, grocery items, beverages, and fresh food offerings; road transportation fuel; and stationary energy, marine fuel, aviation fuel, and chemicals. The Company operates its convenience stores chain under various banners, including Circle K, Corner Stone, Couche-Tard, Holiday, Ingo, Mac’s, ReStore, and Topaz.

  • Market Cap: $50,154.3M
  • 90-Day Return: +13.6%
  • 4-Year Return: +45.5%
  • 90-Day Average Trading Volume: 1,268,520
  • LTM Q3F2019 Dividend per share: $0.18
  • FY2015 Dividend per Share: $0.08
  • 4-Year Dividend Growth CAGR: +24.0%

NFI Group Inc. (TSX:NFI) – $30.15
Construction Machinery and Heavy Trucks

Headquartered in Winnipeg, Canada, NFI Group is a leading independent global bus manufacturer, providing a variety of mass transportation solutions under brands: New Flyer, Alexander Dennis Limited, Plaxton, MCI, ARBOX, and NFI parts. Last year, NFI acquired Alexander Dennis Limited (ADL), one of the world’s leading independent bus and coach manufacturers, for approximately US$405M, representing an implied purchase multiple of 7.3x ADL’s F2018 adj. EBITDA.

  • Market Cap: $1,884.2M
  • YTD-Return: +13.1%
  • 90-Day Return: +4.1%
  • 4-Year Return: +13.1%
  • 90-Day Average Trading Volume: 300,580
  • LTM Q3F2019 Dividend per share: $1.20
  • FY2015 Dividend per Share: $0.44
  • 4-Year Dividend Growth CAGR: +28.4%

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

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