5 Canadian Dividend Stocks with Superior ROE, Yields

The Canadian dividend stocks on our list have high returns on equity, dividend yields, and dividend growth rates

SmallCapPower | May 17, 2018: Today we have identified five Canadian dividend stocks with strong dividend metrics. They hold an average trailing 12 months ROE of 25.4%, with a five-year average of 31.7%, while generating an attractive dividend yield that averages 6.3%.

First National Financial Corp. (TSX:FN) – $27.63
Corporate Financial Services

First National is a Canada-based financial services company. The Company’s Residential segment originates single-family residential mortgages, while its Commercial segment is focused on multi-unit residential and commercial mortgages. First National has more than $1 billion in mortgages under administration. The Company owns a number of financial services subsidiaries and operates out of five offices across Canada.

  • Market Cap: $1,656.9 Million
  • ROE: 34.6%
  • ROE 5 YR Avg: 40.6%
  • Dividend Per Share Yield %: 6.8%
  • Dividend Growth Hist 5 YR: 7.4%
  • YTD Total Return: -1.9%
  • 52 Week Total Return: 20.1%

Peyto Exploration & Development Corp. (TSX:PEY) – $10.96
Oil & Gas Exploration and Production

Peyto Exploration & Development is an oil and gas producer operating in the Alberta Deep Basin. In 2017, the Company produced an average of 560,000 mmcf/d of natural gas and 9,000 bbl/d of oil, or 102,000 boe/d at 10% liquids. The Company’s wells are spread over 751 net sections and are 99% operated and processing by the Company. Peyto expects to continue production increases despite poor natural gas prices, drilling 50-60 horizontal wells in 2017.

  • Market Cap: $1,807.0 Million
  • ROE: 33.1%
  • ROE 5 YR Avg: 35.5%
  • Dividend Per Share Yield %: 6.7%
  • Dividend Growth Hist 5 YR: 10.9%
  • YTD Total Return: -25.5%
  • 52 Week Total Return: -54.6%

Gluskin Sheff + Associates Inc. (TSX:GS) – $16.30
Investment Management & Fund Operators

Gluskin Sheff is a Canada-based financial services company. The Company provides wealth management services to high-net-worth individuals. The Company operates an investment portfolio and provides investment advisory services on a wide variety of portfolio models.

  • Market Cap: $509.1 Million
  • ROE: 31.4%
  • ROE 5 YR Avg: 59.3%
  • Dividend Per Share Yield %: 6.2%
  • Dividend Growth Hist 5 YR: 9.0%
  • YTD Total Return: -0.4%
  • 52 Week Total Return: 15.8%

Exchange Income Corp. (TSX:EIF) – $33.72
Airlines

Exchange Income is a Canada-based company focused on the aerospace industry. The Company’s Aerospace & Aviation segment provides scheduled and chartered flights, emergency medical services, after-market support, and custom sensor-equipped aircraft manufacturing and operation. EIF’s Manufacturing segment creates a wide variety of specialized products across multiple industries.

  • Market Cap: $1,072.1 Million
  • ROE: 14.4%
  • ROE 5 YR Avg: 10.7%
  • Dividend Per Share Yield %: 6.5%
  • Dividend Growth Hist 5 YR: 5.3%
  • YTD Total Return: -3.3%
  • 52 Week Total Return: 1.6%

Laurentian Bank of Canada (TSX:LB) – $49.36
Banks

Founded in 1846, the Laurentian Bank of Canada operates as a chartered Canadian bank serving over 500,000 clients across Canada. With a network of 145 branches, the Company employs over 3,600 individuals and manages approximately $47 billion in assets.

  • Market Cap: $2,059.4 Million
  • ROE: 13.7%
  • ROE 5 YR Avg: 12.2%
  • Dividend Per Share Yield %: 5.2%
  • Dividend Growth Hist 5 YR: 5.8%
  • YTD Total Return: -11.5%
  • 52 Week Total Return: -4.5%

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

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