This is a list of Canadian dividend stocks that currently, or in the past, had a history of consecutive dividend increases. For those wishing to find the most complete fundamental information on these companies, we recommend visiting one of Canada’s leading financial websites, the Financial Post (found here). However, Yahoo!Finance probably has the better long-term charts and historical dividend data.
| Symbol |
Name |
Price |
P/E |
EPS |
P/B |
% from low |
Downside risk* |
| FFH.TO |
Fairfax Financial Holdings |
359.99 |
35.54 |
- |
- |
0.99% |
-28.01% |
| FTS.TO |
Fortis Inc. |
33.05 |
18.78 |
1.73 |
1.6 |
5.52% |
-15.10% |
| IGM.TO |
IGM Financial Inc. |
39.05 |
11.83 |
3.3 |
2.29 |
6.09% |
-33.42% |
| SJR-B.TO |
Shaw Communications, Inc. |
20.1 |
13.4 |
1.52 |
2.61 |
6.18% |
-12.94% |
| RBA.TO |
Ritchie Bros. Auctioneers Incorporated |
19.02 |
24.7 |
0.77 |
3.12 |
6.61% |
-36.91% |
| CCA.TO |
Cogeco Cable Inc. |
37.25 |
7.3 |
5.06 |
1.55 |
8.13% |
-28.46% |
| TCL-A.TO |
Transcontinental Inc. |
8.66 |
- |
-1.77 |
0.7 |
8.66% |
-7.97% |
| PWF.TO |
Power Financial Corporation |
25.75 |
10.55 |
2.43 |
1.58 |
9.02% |
-8.27% |
| GS.TO |
Gluskin Sheff + Associates, Inc. |
14.42 |
10.6 |
0.6 |
5.58 |
9.49% |
-58.32% |
| IFC.TO |
Intact Financial Corporation |
58.59 |
15.71 |
3.82 |
1.95 |
9.78% |
-20.91% |
-
stocks are in Canadian dollars.
-
*based on Dow Theory 50% Principle
Watch List Summary
This month’s list has one important feature that is an added benefit for those wondering about our take on the downside risk for these stocks. We’ve added a downside risk column to suggest what an investor might reasonably be able to expect for the listed companies in the coming year. Our estimate for the downside risk is based on the Dow Theory 50% Principle.
The Dow Theory 50% Principle is based on the midpoint between the low, after a significant decline in price, and the most recent peak in the price. According to Charles H. Dow, the 50% Principle, also known as the law of action and reaction, works in the following fashion:
“The market is always responsive to the great law of action and reaction. The longer the swing one way the longer it will be the other. One of the best general rules in speculation is the theory that the reaction in an advance or a decline will be at least one-half of the primary movement.” (Dow, Charles H. “Review & Outlook.” Wall Street Journal. October 19, 1900.)
In the chart below, we have circled the low and high for Fairfax Financial (FFH.TO). The mid-point between the high and the low is $259.15 or –28.01% below the current trading price.
We believe that the downside targets are a necessary consideration before the purchase of any stock. This become even more of an issue when we believe that the stock market appears to be topping and Dow Theory currently indicates that we are in a bear market.
For good measure we have applied the 50% Principle for the Toronto Stock Exchange Composite Index. Our expectation is that if the TSX manages to stay above 10,922.12 then the market will go back to the 2012 high. However, if the TSX cannot stay above the mid-point, then we expect it to decline to the 9,747 level. Anything below the 9,747 level will result in a decline to the 2009 low.
