MP Market Review ā March 28, 2025
Last updated by BM on April 1, 2025
Summary
Welcome to this weekās MP Market Review ā your go-to source for insights and updates on the Canadian dividend growth companies we track on āThe Listā! While weāve expanded our watchlists to include U.S. companies (The List-USA), our Canadian lineup remains the cornerstone of our coaching approach.
Donāt miss out on exclusive newsletters and premium content that will help you sharpen your investing strategy. Explore it all at magicpants.substack.com.
Your journey to dividend growth mastery starts here ā letās dive in!
- Last week, dividend growth stayed the same, with an average return of +7.0% YTD (income).
- Last week, the price of ‘The List’ was up from the previous week with an average return of +0.11% YTD (capital).
- Last week, there were no dividend announcements made by companies on ‘The List’.
- Last week, there were no earnings reports from a company on ‘The List’.
- This week, one company on ‘The List’ is due to report earnings.
DGI Clipboard
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āOur increasing income comes from our companies directly, not the market.ā
-Tom Connolly
When Stocks Fall, Dividend Growth Investors Rise
Intro
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In The past few months have tested the resolve of many investors. With stocks retreating from recent all-time highs, it’s in moments like these that the difference between true long-term investors and short-term speculators becomes crystal clear.
As dividend growth investors, we understand that wealth is built not by timing the market, but by time in the market. Staying the course during volatility gives us the best opportunity to harness the power of compounding, leading to growing streams of dividend income and the potential for substantial capital appreciation over time.
This is when discipline matters most. When sentiment is low and prices are falling, buying high-quality dividend growers may feel uncomfortable in the short term, but history has shown it can be a brilliant move over the next 10 to 20 years.
Itās natural to feel the urge to protect your portfolio from further price declines. But for those focused on growing reliable income, market pullbacks are not threats, theyāre opportunities. Opportunities to accumulate shares of great businesses at more attractive yields, setting the stage for future income and long-term gains.
One of the ways we deal with volatile times is to focus on our income (dividends). Knowing that our income is unaffected by markets is another magical thing about what we do. The chart below (10YR DIV PAID) helps us sit tight during market volatility waiting patiently for an opportunity to purchase our quality dividend growers at better prices.
Sorted by total dividends paid over the past 10 years š
If you had invested $10,000 in each stock on The List on January 1, 2015, hereās how much you would have collected in dividends by now. On average, that’s $3,968āabout 40% of your initial investment returned in cash.
Starting yield (Yield 2015) plays a big role in early dividend income, but donāt count out the low-yield, high-growth names. Some are catching up fast.
Take goeasy Ltd., for example. Despite a modest starting yield, its high dividend growth means youād have already received your entire initial investment backĀ in dividends alone.
Thatās the power of compounding + disciplined dividend growth investing.
Dividend Return represents the annualized return you’re earning from dividends alone based on your initial investmentāand it continues to grow with every dividend increase.
At an average of 5.9%, the names on The List are closing in on the stock market’s historic total return (7%)ābut through dividends alone.
At this pace, it wonāt be long before our income return rivals (or surpasses) what most investors hope to earn in total return.
Thatās the quiet power of dividend growth.
Wrap Up
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Keeping last weekās 10YR TR CAGR and this weekās 10YR DIV PAID charts nearby is how dividend growth investors deal with short term market uncertainty.
Join as a paying subscriber to gain full access to this post and exclusive, subscriber-only content. Plus, get real-time DGI alerts from our model signaling service whenever we make trades in our portfolios. We do the work; you stay in control. Subscribe today and take your dividend growth investing to the next level.
DGI Scorecard
The List (2025)
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The Magic Pants 2025 list includes 29 Canadian dividend growth stocks. Here are the criteria to be considered a candidate on āThe Listā:
- Dividend growth streak: 10 years or more.
- Market cap: Minimum one billion dollars.
- Diversification: Limit of five companies per sector, preferably two per industry.
- Cyclicality: Exclude REITs and pure-play energy companies due to high cyclicality.
Based on these criteria, companies are added or removed from āThe Listā annually on January 1. Prices and dividends are updated weekly.
āThe Listā is not a portfolio but a coaching tool that helps us think about ideas and risk manage our model portfolio. We own some but not all the companies on āThe Listā. In other words, we might want to buy these companies when valuation looks attractive.
Our newsletter provides readers with a comprehensive insight into the implementation and advantages of our Canadian dividend growth investing strategy. This evidence-based, unbiased approach empowers DIY investors to outperform both actively managed dividend funds and passively managed indexes and dividend ETFs over longer-term horizons.
Performance of ‘The List’
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Last week, dividend growth stayed the same, with an average return of +7.0% YTD (income).
The price of ‘The List’ was up from the previous week, with an average YTD return of +0.11% (capital).
Even though prices may fluctuate, the dependable growth in our income does not. Stay the course. You will be happy you did.
Last week’s best performers on ‘The List’ were Brookfield Infrastructure Partners (BIP-N), up +3.45%; Loblaw Companies Limited (L-T), up +3.29%; and Metro Inc. (MRU-T), up +2.89%.
Magna (MGA-N) was the worst performer last week, down -6.64%.
| SYMBOL | COMPANY | YLD | PRICE | YTD % | DIV | YTD % | STREAK |
|---|---|---|---|---|---|---|---|
| ATD-T | Alimentation Couche-Tard Inc. | 1.1% | $69.78 | -11.73% | $0.78 | 8.3% | 15 |
| BCE-T | Bell Canada | 12.1% | $32.87 | -1.94% | $3.99 | 0.0% | 16 |
| BIP-N | Brookfield Infrastructure Partners | 5.8% | $29.71 | -6.75% | $1.72 | 6.2% | 17 |
| CCL-B-T | CCL Industries Inc. | 1.8% | $69.35 | -5.80% | $1.28 | 10.3% | 23 |
| CNR-T | Canadian National Railway | 2.5% | $139.52 | -4.95% | $3.55 | 5.0% | 29 |
| CTC-A-T | Canadian Tire | 4.8% | $149.27 | -2.89% | $7.10 | 1.4% | 14 |
| CU-T | Canadian Utilities Limited | 5.0% | $36.76 | 5.69% | $1.83 | 1.0% | 53 |
| DOL-T | Dollarama Inc. | 0.2% | $151.68 | 8.19% | $0.37 | 5.1% | 14 |
| EMA-T | Emera | 4.8% | $60.32 | 12.68% | $2.90 | 0.7% | 18 |
| ENB-T | Enbridge Inc. | 5.9% | $63.62 | 2.83% | $3.77 | 3.0% | 29 |
| ENGH-T | Enghouse Systems Limited | 4.6% | $25.35 | -6.32% | $1.16 | 16.0% | 18 |
| FNV-N | Franco Nevada | 1.0% | $155.47 | 28.35% | $1.52 | 5.6% | 17 |
| FTS-T | Fortis Inc. | 3.8% | $64.82 | 8.72% | $2.46 | 3.1% | 51 |
| GSY-T | goeasy Ltd. | 3.9% | $149.95 | -10.30% | $5.84 | 24.8% | 10 |
| IFC-T | Intact Financial | 1.9% | $286.15 | 8.81% | $5.32 | 9.9% | 20 |
| L-T | Loblaw Companies Limited | 1.0% | $198.30 | 4.25% | $2.05 | 7.0% | 13 |
| MFC-T | Manulife Financial | 4.0% | $44.06 | 0.27% | $1.76 | 10.0% | 11 |
| MGA-N | Magna | 5.7% | $34.00 | -18.54% | $1.94 | 2.1% | 15 |
| MRU-T | Metro Inc. | 1.5% | $97.75 | 8.41% | $1.48 | 10.4% | 30 |
| RY-T | Royal Bank of Canada | 3.7% | $160.58 | -6.79% | $5.92 | 5.7% | 14 |
| SJ-T | Stella-Jones Inc. | 1.8% | $67.75 | -7.18% | $1.24 | 10.7% | 20 |
| STN-T | Stantec Inc. | 0.8% | $117.48 | 3.86% | $0.89 | 7.3% | 13 |
| T-T | Telus | 7.9% | $20.44 | 4.13% | $1.61 | 5.2% | 21 |
| TD-T | TD Bank | 4.9% | $86.37 | 12.90% | $4.20 | 2.9% | 14 |
| TFII-N | TFI International | 2.3% | $76.98 | -41.95% | $1.80 | 12.5% | 14 |
| TIH-T | Toromont Industries | 1.8% | $112.51 | -0.52% | $2.08 | 8.3% | 35 |
| TRI-Q | Thomson Reuters | 1.4% | $171.01 | 5.31% | $2.38 | 10.2% | 31 |
| TRP-T | TC Energy Corp. | 4.9% | $68.82 | 0.88% | $3.40 | 3.3% | 24 |
| WCN-N | Waste Connections | 0.7% | $192.83 | 13.49% | $1.26 | 7.7% | 15 |
| Averages | 3.5% | 0.11% | 7.0% | 21 |
Note: Stocks ending in ā-N or -Qā declare earnings and dividends in US dollars. To achieve currency consistency between dividends and share price for these stocks, we have shown dividends in US dollars and share price in US dollars (these stocks are listed on a US exchange). The dividends for their Canadian counterparts (-T) would be converted into CDN dollars and would fluctuate with the exchange rate.
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