Researching Canada’s greatest dividend shares for 2023

Our course of to seek out shares with these three substances sounds easy, however there was a good bit of knowledge to undergo. We pulled and reviewed a dataset of dividend-paying shares buying and selling on the TSX and condensed it right into a high tier containing one of the best of one of the best, in addition to a second tier of honourable mentions worthy of additional examination. The businesses are ranked based on our three standards. Rankings had been primarily based on knowledge as of November 30, 2022.

We utilized greater weightings to the primary two standards to replicate their larger significance. One of the best firms achieved the bottom set of scores. Consider it like golf: the decrease the rating, the higher the efficiency.

The highest-tier firms exhibit sturdy qualities for all three standards, and the second-tier firms are additionally price taking a look at. Corporations that didn’t make the reduce for both tier fell brief on one or two standards. 

Earlier than you log in to your brokerage account, although, right here’s a reminder that MoneySense’s “Canada’s greatest dividend shares” rating is predicated on a purely quantitative evaluation of knowledge collected from publicly obtainable inventory market data. To make sure broad illustration, we included firms that won’t have knowledge for a particular subject, however these earn no factors for that class. And, notably, this rating doesn’t contemplate administration expertise or how financial pressures might weigh on an organization’s earnings. 

Right here’s the breakdown of the three standards utilized in our analysis.

Word: To view all the information within the tables, slide the columns proper or left utilizing your fingers or mouse. You’ll be able to filter or rearrange the rankings through the use of the search software or clicking on column headings. You can even obtain the information to your gadget in Excel, CSV and PDF codecs.

1. Dividend yield and development

We first recognized and ranked firms sporting a historical past of rising their dividends over the previous 5 years. Whereas present yield is vital, ideally we would like publicity to firms which have a long-term observe file of rising their dividend payouts over these years. This two-pronged method seeks to establish firms that not solely provide enticing yields however are additionally nicely positioned to develop their payouts over time. This standards accounted for 40% of the general rating. Among the many top-ranking firms with five-year dividend development had been Winpak (77% dividend development), Quebecor Inc. (66.9%) and ECN Capital Corp. (57.2%).

Word: All figures are correct as of Nov. 30, 2022.