4 Canadian Dividend Growers That Have Underperformed

The Canadian dividend growers on our list have strong dividend growth, but weak market returns over the past year

SmallCapPower | February 6, 2018: Today we have identified four Canadian dividend growers with strong 5-year dividend growth yet poor stock-price performance over the past year. These companies are an exception, as the average Y/Y return of companies with over 15% dividend growth is 16%.

Home Capital Group Inc. (TSX:HCG) – $16.56
Financial Services

Home Capital Group is a Canada-based bank. The Company operates through its subsidiary, Home Trust Company. Home Trust is an alternate lender that operates as a federally regulated trust. The Company offers its clients deposits, mortgages, retail credit and credit card issuing services. Home Capital has offices across Canada.

  • Market Cap: $1,328.9 Million
  • 52 Week Total Return: -43.1%
  • Dividend Growth Historical 5 Year : 20.9%
  • Dividend Yield 5 YR Avg: 2.1%

Supremex Inc. (TSX:SXP) – $4.44
Paper Products

Supremex is a Canada-based paper products company producing envelopes, packaging products, and other specialty products. Supremex manufactures its products out of 13 manufacturing facilities across Canada and the U.S. SXP represents 60% of the total Canadian market, selling to 8000 customers across North America.

  • Market Cap: $126.1 Million
  • 52 Week Total Return: -5.7%
  • Dividend Growth Historical 5 Year : 19.6%
  • Dividend Yield 5 YR Avg: 5.9%

Exco Technologies Ltd. (TSX:XTC) – $9.80
Industrial Machinery & Equipment

Exco Technologies is a Canada-based industrial company that develops dies, molds and other consumable equipment, primarily for the automotive and die cast industries. Based in Canada, XTC has 17 manufacturing facilities across eight countries, which employ over 6,500 individuals.

  • Market Cap: $416.0 Million
  • 52 Week Total Return: -3.3%
  • Dividend Growth Historical 5 Year: 18.1%
  • Dividend Yield 5 YR Avg: 2.3%

Guardian Capital Group Ltd. (TSX:GCG.A) – $25.50
Investment Management & Fund Operators

Guardian Capital is a Canada-based financial services company. The Company provides institutional fund management, private wealth management, and financial advisory services. On January 2, Guardian finished acquiring a 70% stake in Alta Capital Management, as part of its strategy to grow its distribution network in the U.S.

  • Market Cap: $755.2 Million
  • 52 Week Total Return: 0.7%
  • Dividend Growth Historical 5 Year: 16.3%
  • Dividend Yield 5 YR Avg: 1.5%

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

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