I use this list as a starting point to find dividend growth stocks in Canada. I created this file and it shows Canadian companies that have increased their dividend for five or more consecutive years. The list shows a variety of information for each company, like the dividend history for the past 10 years, dividend growth rates, and other stock information that I use to identify potential dividend growth candidates. Usually I’ll use this list to filter down the number of options in the Canadian dividend market. Once I’ve got a more manageable list of options, I’ll research the individual companies in more detail.
I haven’t been able to find a free stock screener that shows the 10 year dividend growth rates, so I use this file instead.
The site has some resources of it’s own and is a good place to learn about dividend Reinvestment Plans in Canada and the US. There are two main areas that I focus on, the forum and the US Dividend Champions File.
The forum is a great place for asking questions. There are lots of veteran DRIPers that are happy to answer all your questions. I highly recommend joining this forum if you plan on getting involved in DRIPs. I’ve listed some of the different forum topics they cover:
- Canadian DRIPs
- US DRIPs
- Beginners Corner
- US Money and Tax Matters
- Canadian Money and Tax Matters
- Stock Talk
- Overlooked Stocks
- Share Exchange
- Brokerage, T.A, & Bank Accounts:
I’ve bolded the Beginners Corner and Share Exchange as I think these will be the most useful areas to focus on if you are just staring out. You can ask pretty much anything you want in the beginner’s corner and it’s usually very helpful. They’ll also get back to you quite quickly. Once you’ve done your research and you’ve decided you want to buy a starter share so you can enroll in the DRIP and SPP head over to the Share Exchange where you can buy shares from others that are already enrolled in the company’s DRIP. It’s a good idea to check the reputation of the seller before buying.
This site is an invaluable resource if you have a DRIP. There is a mix of Canadians and US contributors on the forum. I’d say there is a larger Canadian base but you can get useful information for both Canadian and US topics.
The second area to check out is the US Dividend Champions file download. David Fish maintains this list, and it is updated monthly. It can be found in the Tools area of the website. If you are planning on investing in US companies this is a great resource. The excel file/pdf shows companies that have paid raising dividends for five or more consecutive years. They are broken into categories:
- Champions for 25 years or more of consecutive dividend increases.
- Contenders for 10-24 years of consecutive dividend increases.
- Challengers for 5-9 years of consecutive dividend increases.
If you can use Microsoft Excel then this file can be a great starting point for screening US dividend companies. I frequently use this list to identify good dividend growth potential stocks. It was this list that inspired me to create the Canadian Dividend All-Star List (A Canadian version of this list).
The site has a listing of all the Canadian DRIPs and SPPs. It’s a great website if you want to quickly see which companies in Canada offer a DRIP or SPPs. The list will also indicate the DRIP discount if any, if there are any fees involved in the DRIP or SPP, the minimum SPP contribution and how often you can contribute to the SPP. The site also has more information on DRIPs, and is meant to be a site to help someone starting out in DRIPs, but I mainly use it for the DRIP & SPP list as I already have an understanding of how to setup DRIPs.
This is where I go to get a breakdown of a company’s financial statements and other stock information. I copy the Annual financial statement information from this site into excel and use it to further analyse the company. One thing to be aware of when looking at dividends in the year, is that the amounts include special dividends as well. This can make it look like a company that is known for increasing dividends suddenly cut their dividend, when in fact they just paid out a special dividend on top of their regular dividend in one year, but not the next.
The site also has useful information like the company’s 5 year average yield, and the 5 year high and low P/E ratios. These ratios can be used to quickly determine if the company warrants further research. For instance if the current yield is higher than the 5 year average, or the current P/E is close to the low, then this is usually a good indication that the stock is trading at a reasonable price.
I use a variety of ratios to identify reasonably to cheaply priced stocks. I use this site to get a lot of this information.
This site has all the financial statements and other regulatory filings for all the publicly listed companies in Canada. I find that a number of Canadian companies don’t have a very good investor relations website. When this is the case it can be difficult to find historical information, especially historical dividend information. It can be a little overwhelming when you see all the different company filings. I generally focus on Annual Reports and Annual Information Forms. The Annual Information Form will usually have the company’s dividend policy and some information about that year’s dividend and how it compares to the previous few years of dividends. Some companies will not have an annual report, in which case I’ll look at the Audited Financial Statements. The annual report will have a the financial statements along with other company information and a narrative. Annual reports can vary largely from one company to the next, but sometimes they will have a comparative table of the dividends paid out over the past 10 years.
Finding a free stock screener that includes past dividend growth can be surprisingly difficult to find on the internet. I like to use TMX Money’s stock screener because it includes the 5 year dividend growth rates for companies. You can use this stock screener to screen US and Canadian Companies.
Side Note: Finding the 10 year dividend growth rates in a free online stock screener is more difficult, and I haven’t been able to find one yet. You can use the Canadian Dividend All-Star List, and David Fish’s US Dividend Champions list to find the 10 year dividend growth rates for Canadian and US companies that have increased their dividends for five or more consecutive years. These lists leave out companies that haven’t increased dividends for five or more consecutive years, so you will be missing some companies.
Your local library
The book I most recommend for dividend growth investing is The Single Best Investment: Creating Wealth with Dividend Growth by Lowell Miller.
I’m naturally frugal, so I recommend checking this book out from your local library. If you want to buy the book, you feel that my blog has provided useful information and you’d like to show your appreciation please use the following Amazon link.