Financial institutions are known for its dividend payouts, which is why the group has long been considered a ‘safe’ investment. These companies can be valued by discounting its appropriate dividends using a dividend growth rate and a discount rate. The financial institutions on today’s list have managed to increase its dividend payouts by more than 10% over each of the previous two years, which is superior to the industry average of 0%-1.5%.
Home Capital Group Inc. (TSX: HCG) – $27.30
Banks
Home Capital Group Inc. is a Canada-based holding company that operates through its subsidiary, Home Trust Company (Home Trust). Home Trust is a federally regulated trust company offering insured and uninsured deposits, residential and non-residential commercial mortgage lending, retail credit, credit card issuing services and consumer lending. Home Trust offers deposits via brokers and financial planners, and through its direct to consumer deposit brand, Oaken Financial.
- Market Cap: $2,098,298,202
- DPS (2 year CAGR): 24.7%
- Total Equity (2 year CAGR): 22.3%
- DPS (2014): $0.70
Canadian Western Bank (TSX: CWB) – $23.59
Banks
Canadian Western Bank (CWB) is a bank that offers a range of financial services through more than 40 branch locations in Western Canada. The bank offers Personal banking, Business banking and Investing services.
- Market Cap: $1,912,323,360
- DPS (2 year CAGR): 10.7%
- Total Equity (2 year CAGR): 7.5%
- DPS (2014): $0.76
Guardian Capital Group Ltd. (TSXV: GCG) – $19.39
Investment Management & Fund Operators
Guardian Capital Group Limited (Guardian) is a Canada-based diversified financial services company. It serves the wealth management needs through its business segments. Guardian operates in areas such as: institutional and private client investment management; financial advisory, including an insurance managing general agency (MGA), a mutual fund dealer and a securities dealer; and corporate activities and investments. Guardian has a portfolio of securities together with its investment in Bank of Montreal shares.
- Market Cap: $612,091,327
- DPS (2 year CAGR): 18.8%
- Total Equity (2 year CAGR): 17.6%
- DPS (2014): $0.24
Alaris Royalty Corp. (TSX: AD) – $30.35
Investment Management & Fund Operators
Alaris Royalty Corp. (Alaris) is a Canadian company that provides alternative financing to a range of private businesses in North America. The Company earns its revenues by providing capital to private businesses (Private Company Partner). Alaris provides long-term equity capital to companies for whom traditional private equity capital or debt is not typically available or attractive, namely, privately-held companies whose owners want to retain long-term control of their businesses.
- Market Cap: $1,100,182,169
- DPS (2 year CAGR): 18.3%
- Total Equity (2 year CAGR): 37.8%
- DPS (2014): $1.47
Equitable Group Inc. (TSX: EQB) – $51.65
Consumer Lending
Equitable Group Inc. is a financial services company that operates through its wholly-owned subsidiary, Equitable Bank (the Bank). The Bank provides mortgage loans to a range of customers that include business-for-self borrowers, newcomers to Canada and commercial real estate investors. The Bank also provides savers with savings accounts and guaranteed investment certificates (GICs). The Company serves retail and commercial customers across Canada with a range of savings solutions and mortgage lending products.
- Market Cap: $812,652,529
- DPS (2 year CAGR): 14.4%
- Total Equity (2 year CAGR): 18.4%
- DPS (2014): $0.68
