“You have a pair of pants. In the left pocket, you have $100. You take $1 out of the left pocket and put in the right pocket. You now have $101. There is no diminution of dollars in your left pocket. That is one magic pair of pants.”

Month: June 2025

MP Market Review – June 27, 2025

Last updated by BM on July 1, 2025

Summary

 

Welcome to this week’s MP Market Review – your go-to source for insights and updates on the Canadian dividend growth companies we track on The List! While we’ve expanded our watchlists to include U.S. companies The List-USA, our Canadian lineup remains the cornerstone of our coaching approach.

Don’t 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 – let’s dive in!

  • Last week, dividend growth stayed the same with an average return of +6.9% YTD (income).
  • Last week, the price of The List was up from the previous week with an average return of +7.6% YTD (capital).
  • Last week, there were no dividend announcements from companies on The List.
  • Last week, there was one earnings report from a company on The List.
  • This week, no company on The List will report on earnings.

DGI Clipboard

 

“How do we protect our principle? With growing yields, over time, from fine companies.”

– Tom Connolly

Are You Measuring the Right Yield? Most Investors Get This Wrong
Intro

 

Yield on Cost, or as we prefer to define it, Growth Yield, is one of the best ways to measure and estimate dividend growth investing success. We will show you how you can also use this metric to build a powerful DGI portfolio.

First, a couple of definitions:

  • Dividend Yield is the current annualized dividend divided by the current price of the stock
  • Growth Yield is the current annualized dividend divided by the original cost basis of the stock

In other words, Dividend Yield is your current yield, and Growth Yield is the yield you are now making, on dividends alone, from your original investment sometime in the past.

Using both a historical and estimated Growth Yield, we have found that you can reliably construct powerful DGI portfolios.

As mentioned before, dividend growth investing is a risk reduction strategy that leads us to the highest quality companies. The Growth Yield metric is one way to get there.

First, we need to decide on the minimum Growth Yield we would like to achieve after ten years of holding the stock. This is a personal decision based on your own objectives. We like a minimum average Growth Yield of 7% in our Magic Pants Wealth-Builder Portfolios.

The first thing we do is look at the company’s historical record and how it has performed over the last decade, keeping our minimum Growth Yield in mind. The historical Growth Yield calculation is an easy one. Start with the current annualized dividend and divide it by the stock price ten years ago. If the Growth Yield is greater than 7% you now have a candidate for further analysis.

Next, we estimate if this type of dividend growth is likely to continue. Estimating Growth Yield ten years out can be calculated by taking the current (or starting) dividend yield and multiply it by the average annual forward dividend growth rate to the power of the period in question (5 for the next five years, 10 for the next ten years). We will use ten years for our demonstration.

Forward dividend growth rates can be a little trickier. Some companies even publish their estimated dividend growth rates in their earnings reports.

If company estimates are not available, you can always look at the recent past (3-5 yrs) and estimate a forward growth rate.

Here is a recent example of a growth yield calculation we did before purchasing Manulife Financial for our Canadian model portfolio a little over a year ago.

The Historical Growth Yield is an actual value based on an investment made ten years ago.

Historical Growth Yield calculation for Manulife Financial (MFC-T)

Formula: Current Dividend (2024) / Price Jan. 1, 2014 = Historical Growth Yield

$1.60 / $20.73 = 7.7%

The Estimated Forward Growth Yield is a forecasted value over the next ten years based on today’s investment.

Estimated Growth Yield calculation for Manulife Financial (MFC-T)

Formula: Current Yield (Jan. 1, 2024) * 5YR average annual dividend growth rate ^ Period (10 years)

4.86% * 10.0% ^ 10 = 12.6%

In this case, Manulife Financial easily meets both our minimum Growth Yields (historical and estimated).

To put this metric in context, if you invested $10,000 in Manulife Financial (MFC-T) in March 2024, based on our estimates, you can anticipate earning approximately $1,260 annually from dividend payments alone after ten years. This projected return significantly surpasses our 7% threshold, highlighting the attractive income potential for investors over the long term.

Purchasing companies at a ‘sensible price’ is still essential in our process, and you should not blindly add positions based on Growth Yield alone. Valuation at the time of purchase will improve your future performance.

Takeaway

 

Our purchase in Manulife Financial has turned out to be a good one as the stock has gone up 33% since our purchase. More importantly though was the dividend increase announced earlier this year of 10%, right in line with our forward estimate.

Assembling a portfolio with an average Growth Yield of 7% or better (with some yields lower and some higher) is achievable from companies on The List. Conduct your own analysis with all the stocks on The List, establish a ‘sensible price’ to enter a position, determine your position sizes based on quality ratings, and start building a powerful DGI portfolio.

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)

 

The Magic Pants 2025 list includes 29 Canadian dividend growth stocks. Here are the criteria to be considered a candidate on ‘The List’:

  1. Dividend growth streak: 10 years or more.
  2. Market cap: Minimum one billion dollars.
  3. Diversification: Limit of five companies per sector, preferably two per industry.
  4. Cyclicality: Exclude REITs and pure-play energy companies due to high cyclicality.

Based on these criteria, companies are added or removed from ‘The List’ annually on January 1. Prices and dividends are updated weekly.

‘The List’ 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 ‘The List’. 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’

 

Last week, dividend growth stayed the same, with an average return of +6.9% YTD (income).

The price of ‘The List’ was up from the previous week, with an average YTD return of +7.6% (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 Stella-Jones Inc. (SJ-T), up +4.39%.; Manulife Financial (MFC-T), up +4.04%; and Stantec Inc. (STN-T) up +3.89%.

Alimentation Couche-Tard Inc. (ATD-T) was the worst performer last week, down -3.41%.

SYMBOL COMPANY YLD PRICE YTD % DIV YTD % STREAK
ATD-T Alimentation Couche-Tard Inc. 1.2% $67.64 -14.43% $0.78 8.3% 15
BCE-T Bell Canada 9.6% $29.89 -10.83% $2.87 -28.1% 16
BIP-N Brookfield Infrastructure Partners 5.1% $33.57 5.37% $1.72 6.2% 17
CCL-B-T CCL Industries Inc. 1.6% $79.31 7.73% $1.28 10.3% 23
CNR-T Canadian National Railway 2.5% $141.65 -3.50% $3.55 5.0% 29
CTC-A-T Canadian Tire 3.9% $182.75 18.89% $7.10 1.4% 14
CU-T Canadian Utilities Limited 4.9% $37.40 7.53% $1.83 1.0% 53
DOL-T Dollarama Inc. 0.2% $190.19 35.66% $0.41 18.1% 14
EMA-T Emera 4.7% $61.59 15.06% $2.90 0.7% 18
ENB-T Enbridge Inc. 6.1% $61.40 -0.76% $3.77 3.0% 29
ENGH-T Enghouse Systems Limited 5.0% $23.00 -15.00% $1.16 16.0% 18
FNV-N Franco Nevada 0.9% $161.32 33.18% $1.52 5.6% 17
FTS-T Fortis Inc. 3.8% $64.64 8.42% $2.46 3.1% 51
GSY-T goeasy Ltd. 3.5% $164.86 -1.38% $5.84 24.8% 10
IFC-T Intact Financial 1.7% $312.34 18.77% $5.32 9.9% 20
L-T Loblaw Companies Limited 1.0% $223.58 17.54% $2.21 15.2% 13
MFC-T Manulife Financial 4.0% $43.83 -0.25% $1.76 10.0% 11
MGA-N Magna 5.0% $38.45 -7.88% $1.94 2.1% 15
MRU-T Metro Inc. 1.4% $106.18 17.76% $1.48 10.4% 30
RY-T Royal Bank of Canada 3.4% $177.70 3.15% $6.04 7.9% 14
SJ-T Stella-Jones Inc. 1.6% $78.51 7.56% $1.24 10.7% 20
STN-T Stantec Inc. 0.6% $150.21 32.80% $0.89 7.3% 13
T-T Telus 7.6% $21.68 10.44% $1.64 7.0% 21
TD-T TD Bank 4.2% $99.45 30.00% $4.20 2.9% 14
TFII-N TFI International 2.0% $90.29 -31.91% $1.80 12.5% 14
TIH-T Toromont Industries 1.7% $122.10 7.96% $2.08 8.3% 35
TRI-Q Thomson Reuters 1.2% $197.93 21.89% $2.38 10.2% 31
TRP-T TC Energy Corp. 5.1% $67.00 -1.79% $3.40 3.3% 24
WCN-N Waste Connections 0.7% $185.90 9.41% $1.26 7.7% 15
Averages 3.3% 7.6% 6.9% 21

Note: Stocks ending in “-N or -Q” 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.

PAID subscribers enjoy full access to our enhanced weekly newsletter, premium content, and easy-to-follow trade alerts so they can build DGI portfolios alongside ours. This service provides the resources to develop your DGI business plan confidently. We do the work; you stay in control!

It truly is the subscription that pays dividends!

The greatest investment you can make is in yourself. Are you ready to take that step? 

For more articles and the full newsletter, check us out on magicpants.substack.com.

MP Market Review – June 20, 2025

Last updated by BM on June 24, 2025

Summary

 

Welcome to this week’s MP Market Review – your go-to source for insights and updates on the Canadian dividend growth companies we track on The List! While we’ve expanded our watchlists to include U.S. companies The List-USA, our Canadian lineup remains the cornerstone of our coaching approach.

Don’t 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 – let’s dive in!

  • Last week, dividend growth stayed the same with an average return of +6.9% YTD (income).
  • Last week, the price of The List was down from the previous week with an average return of +6.3% YTD (capital).
  • Last week, there were no dividend announcements from companies on The List.
  • Last week, there were no earnings reports from companies on The List.
  • This week, one company on The List will report on earnings.

DGI Clipboard

 

“When you lose every second point, on average, you learn not to dwell on every shot. The goal isn’t to win every point. It’s to play the next one with full commitment.”

– Roger Federer

Focus on the Match, Not Every Point—Winning Without Perfection
Intro

 

In investing, success is often portrayed as the ability to consistently predict market moves, uncover the next Nvidia early, and exit just before a crash. But this image is not only unrealistic—it’s a harmful illusion that can derail good decision-making.

In 2021, BlackRock portfolio manager Ronald van Loon published research in the Journal of Portfolio Management that posed a simple question: How often do professional investors actually need to be right to beat the market?

His answer: not very often. In U.S. equities, a success rate just over 53% was enough to outperform. In fixed income, it was closer to 51%.

That aligns perfectly with a quote we’ve shared before from tennis legend Roger Federer:

“In tennis, perfection is impossible… In the 1,526 singles matches I played in my career, I won almost 80% of those matches… Now, I have a question for all of you… what percentage of the points do you think I won in those matches? Only 54%.”

That’s the key: You can win the match without winning every point.

Just like Federer, investors don’t need to be right all the time—they need to be right about the things that matter. With a sound process and a long-term focus, being “wrong” nearly half the time still leads to success.

Many investors fall into the trap of thinking every trade has to be spot on. But sustainable long-term success doesn’t come from flawless execution. It comes from consistency, patience, and the discipline to follow a sound investment process.

Our approach is grounded in owning high-quality dividend growth companies with the ability to compound cash flows for decades. We don’t try to win every trade—we focus on building portfolios with reliable, growing income and long-term capital appreciation.

As of last Friday:

  • Our Canadian model portfolio has a “point-win rate” of 66% (based on our timestamped trades).
  • Our U.S. model portfolio is even stronger at 74%.

A quick look at our Performance tab shows how this translates into consistent income growth and capital returns over time.

Takeaway

 

Roger Federer didn’t win every point, but he won the ones that mattered. Great investors do the same. Success doesn’t come from perfection; it comes from process. Trust it. Stick to it. Play the long game.

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)

 

The Magic Pants 2025 list includes 29 Canadian dividend growth stocks. Here are the criteria to be considered a candidate on ‘The List’:

  1. Dividend growth streak: 10 years or more.
  2. Market cap: Minimum one billion dollars.
  3. Diversification: Limit of five companies per sector, preferably two per industry.
  4. Cyclicality: Exclude REITs and pure-play energy companies due to high cyclicality.

Based on these criteria, companies are added or removed from ‘The List’ annually on January 1. Prices and dividends are updated weekly.

‘The List’ 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 ‘The List’. 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’

 

Last week, dividend growth stayed the same, with an average return of +6.9% YTD (income).

The price of ‘The List’ was down from the previous week, with an average YTD return of +6.3% (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 goeasy Ltd. (GSY-T), up +6.97%.; Canadian Tire (CTC-A-T), up +3.09%; and TD Bank (TD-T) up +2.72%.

Alimentation Couche-Tard Inc. (ATD-T) was the worst performer last week, down -4.23%.

SYMBOL COMPANY YLD PRICE YTD % DIV YTD % STREAK
ATD-T Alimentation Couche-Tard Inc. 1.1% $70.03 -11.41% $0.78 8.3% 15
BCE-T Bell Canada 9.6% $29.83 -11.01% $2.87 -28.1% 16
BIP-N Brookfield Infrastructure Partners 5.3% $32.53 2.10% $1.72 6.2% 17
CCL-B-T CCL Industries Inc. 1.6% $77.88 5.79% $1.28 10.3% 23
CNR-T Canadian National Railway 2.5% $140.05 -4.59% $3.55 5.0% 29
CTC-A-T Canadian Tire 3.9% $183.49 19.37% $7.10 1.4% 14
CU-T Canadian Utilities Limited 4.9% $37.65 8.25% $1.83 1.0% 53
DOL-T Dollarama Inc. 0.2% $188.06 34.14% $0.41 18.1% 14
EMA-T Emera 4.8% $60.90 13.77% $2.90 0.7% 18
ENB-T Enbridge Inc. 6.1% $61.53 -0.55% $3.77 3.0% 29
ENGH-T Enghouse Systems Limited 5.1% $22.81 -15.71% $1.16 16.0% 18
FNV-N Franco Nevada 0.9% $165.80 36.88% $1.52 5.6% 17
FTS-T Fortis Inc. 3.8% $64.62 8.39% $2.46 3.1% 51
GSY-T goeasy Ltd. 3.6% $163.48 -2.20% $5.84 24.8% 10
IFC-T Intact Financial 1.7% $305.34 16.11% $5.32 9.9% 20
L-T Loblaw Companies Limited 1.0% $222.36 16.90% $2.21 15.2% 13
MFC-T Manulife Financial 4.2% $42.13 -4.12% $1.76 10.0% 11
MGA-N Magna 5.2% $37.20 -10.88% $1.94 2.1% 15
MRU-T Metro Inc. 1.4% $103.66 14.96% $1.48 10.4% 30
RY-T Royal Bank of Canada 3.5% $174.84 1.49% $6.04 7.9% 14
SJ-T Stella-Jones Inc. 1.6% $75.21 3.04% $1.24 10.7% 20
STN-T Stantec Inc. 0.6% $144.58 27.82% $0.89 7.3% 13
T-T Telus 7.4% $21.98 11.97% $1.64 7.0% 21
TD-T TD Bank 4.3% $97.39 27.31% $4.20 2.9% 14
TFII-N TFI International 2.0% $88.04 -33.61% $1.80 12.5% 14
TIH-T Toromont Industries 1.8% $118.56 4.83% $2.08 8.3% 35
TRI-Q Thomson Reuters 1.2% $193.85 19.38% $2.38 10.2% 31
TRP-T TC Energy Corp. 5.2% $65.16 -4.49% $3.40 3.3% 24
WCN-N Waste Connections 0.7% $185.72 9.30% $1.26 7.7% 15
Averages 3.3% 6.3% 6.9% 21

Note: Stocks ending in “-N or -Q” 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.

PAID subscribers enjoy full access to our enhanced weekly newsletter, premium content, and easy-to-follow trade alerts so they can build DGI portfolios alongside ours. This service provides the resources to develop your DGI business plan confidently. We do the work; you stay in control!

It truly is the subscription that pays dividends!

The greatest investment you can make is in yourself. Are you ready to take that step? 

For more articles and the full newsletter, check us out on magicpants.substack.com.

MP Market Review – June 13, 2025

Last updated by BM on June 17, 2025

Summary

 

Welcome to this week’s MP Market Review – your go-to source for insights and updates on the Canadian dividend growth companies we track on The List! While we’ve expanded our watchlists to include U.S. companies The List-USA, our Canadian lineup remains the cornerstone of our coaching approach.

Don’t 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 – let’s dive in!

  • Last week, dividend growth stayed the same with an average return of +6.9% YTD (income).
  • Last week, the price of The List was up from the previous week with an average return of +7.3% YTD (capital).
  • Last week, there were no dividend announcements from companies on The List.
  • Last week, there was one earnings report from a company on The List.
  • This week, no company on The List will report earnings.

DGI Clipboard

 

“Current yield, using its own historic yield as a guide, is, in my view, a fine valuation measure.”

— Tom Connolly

Timely Ten: Top Dividend Growth Stocks You Need on Your Radar
Intro

 

Below are the ten most undervalued dividend growth companies (according to dividend yield theory) from our Canadian and American watchlists, based on last Friday’s closing prices.

One month typically isn’t sufficient for stocks in the Timely Ten to move entirely off the list unless they’re already positioned near the bottom. It’s more effective to monitor shifts in rankings to identify promising candidates that may be on the move.

Last month, we anticipated Toronto Dominion Bank’s (TD-T) upward momentum. As expected, TD has now exited the Timely Ten (CDN) list and continues to deliver strong performance. With our full position in this high-quality Canadian bank firmly established within the Wealth-Builder Model Portfolio-CDN, we’ll continue to benefit from its solid dividend growth and ongoing capital appreciation until it reaches overvalued territory.

Enbridge Inc. (ENB-T) has taken TD’s place in the tenth spot. Other positions from last month remain relatively stable, although Enghouse Systems Limited (ENGH-T) continues to hold the top undervalued position for several months in a row, signaling ongoing concerns.

The Timely Ten (USA) presents more noticeable changes. Starbucks (SBUX-Q) declined four spots to eighth due to a recent stock rally. Conversely, Essential Utilities (WTRG-N) advanced two positions on price weakness, while Domino’s Pizza Inc. (DPZ-Q) made the most significant jump, climbing from fifteenth to tenth place.

Significant jumps, such as last month’s UnitedHealth Group and Domino’s Pizza Inc., this month are worth a closer look. We always start our research with two valuation charts and then decide if a deeper dive is warranted.

The 10-Year Yield Chart for Domino’s Pizza highlights its current undervaluation, with the yield significantly above the decade-long average. Since yield and price move inversely, a reversion to the mean suggests potential upside for the stock.

The 10-Year Dividend Growth vs. Price Growth Chart also reveals that Domino’s stock price has recently lagged its historical alignment with dividend growth. This divergence increases the likelihood of future price appreciation.

With favorable results on both valuation metrics, we will proceed with deeper analysis on this high-quality dividend grower.

With a couple of notable shifts this month, the Timely Ten lists present compelling starting points for further research. Each stock has already passed our rigorous screening process, so much of the heavy lifting has been done. If you’d like to skip the research component and invest alongside us in our model portfolios, consider subscribing to our paid service.

Timely Ten

Here’s a recap on how we select our ‘Timely Ten’:

Step three in our process involves monitoring our quality dividend growers regularly, which can become quite challenging depending on the number of companies we track. Fortunately, we rely on ‘The List’ instead of the vast array of stocks in the index, which streamlines our task. Nevertheless, we continually seek methods to enhance our efficiency. Through dividend yield theory, we’ve discovered an approach that has proven remarkably effective in aiding us with our efforts over the years.

Dividend yield theory is a simple and intuitive approach to valuing dividend growth stocks. It suggests that the dividend yield of quality dividend growth stocks tends to revert to the mean over time, assuming that the underlying business model remains stable. In practical terms, if a stock pays a dividend yield above its ten-year average annual yield, its price will likely increase to return the yield to its historical average. Knowing that price and yield go in opposite directions, this theory helps us find stocks poised for a favourable price correction.

We have pre-screened our candidates using the criteria we initially laid out in building our watchlists. This helps us considerably narrow the universe of investable stocks.

  1. Dividend growth streak: 10 years or more.
  2. Market cap: Minimum one billion dollars.
  3. Diversification: Limit of five companies per sector, preferably two per industry.
  4. Cyclicality: Exclude REITs and pure-play energy companies due to high cyclicality.

Next, we rank our Canadian and American watchlists based on how far each stock’s price is below its fair value (Low Price), as determined by dividend yield theory. To find fair value, divide the current dividend (Dividend) by the stock’s historical high yield (High Yield).

Since price and yield move in opposite directions, a lower price results in a higher yield, and vice versa. The ten companies above the thick black line have a current price (Price) below fair value (Low Price). Put simply, these stocks have a current dividend yield higher than their historically high yield. According to dividend yield theory, these companies are sensibly priced and have the highest probability of a price increase in the shorter term. These are our ‘Timely Ten.’

Takeaway

 

When making investment decisions, always prioritize a company’s ‘quality’ over a ‘sensible price’. For more details on our quality indicators, download our Free Guide to Finding Quality Dividend Growth Stocks here.

If you’re a new investor looking to build positions in the ‘Timely Ten,’ there is no time like the present to start your research and act.

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)

 

The Magic Pants 2025 list includes 29 Canadian dividend growth stocks. Here are the criteria to be considered a candidate on ‘The List’:

  1. Dividend growth streak: 10 years or more.
  2. Market cap: Minimum one billion dollars.
  3. Diversification: Limit of five companies per sector, preferably two per industry.
  4. Cyclicality: Exclude REITs and pure-play energy companies due to high cyclicality.

Based on these criteria, companies are added or removed from ‘The List’ annually on January 1. Prices and dividends are updated weekly.

‘The List’ 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 ‘The List’. 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’

 

Last week, dividend growth stayed the same, with an average return of +6.9% YTD (income).

The price of ‘The List’ was up from the previous week, with an average YTD return of +7.3% (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 Dollarama Inc. (DOL-T), up +10.02%.; Bell Canada (BCE-T), up +3.99%; and Franco Nevada (FNV-N) up +2.72%.

Enghouse Systems Limited (ENGH-T) was the worst performer last week, down -4.82%.

SYMBOL COMPANY YLD PRICE YTD % DIV YTD % STREAK
ATD-T Alimentation Couche-Tard Inc. 1.1% $73.12 -7.50% $0.78 8.3% 15
BCE-T Bell Canada 9.3% $31.01 -7.49% $2.87 -28.1% 16
BIP-N Brookfield Infrastructure Partners 5.2% $32.96 3.45% $1.72 6.2% 17
CCL-B-T CCL Industries Inc. 1.6% $77.63 5.45% $1.28 10.3% 23
CNR-T Canadian National Railway 2.5% $141.09 -3.88% $3.55 5.0% 29
CTC-A-T Canadian Tire 4.0% $177.99 15.80% $7.10 1.4% 14
CU-T Canadian Utilities Limited 4.8% $38.10 9.55% $1.83 1.0% 53
DOL-T Dollarama Inc. 0.2% $193.74 38.19% $0.41 18.1% 14
EMA-T Emera 4.7% $61.38 14.66% $2.90 0.7% 18
ENB-T Enbridge Inc. 5.9% $63.37 2.42% $3.77 3.0% 29
ENGH-T Enghouse Systems Limited 5.1% $22.72 -16.04% $1.16 16.0% 18
FNV-N Franco Nevada 0.9% $171.76 41.80% $1.52 5.6% 17
FTS-T Fortis Inc. 3.8% $65.45 9.78% $2.46 3.1% 51
GSY-T goeasy Ltd. 3.8% $152.83 -8.57% $5.84 24.8% 10
IFC-T Intact Financial 1.7% $309.50 17.69% $5.32 9.9% 20
L-T Loblaw Companies Limited 1.0% $222.31 16.87% $2.21 15.2% 13
MFC-T Manulife Financial 4.2% $42.34 -3.64% $1.76 10.0% 11
MGA-N Magna 5.2% $37.32 -10.59% $1.94 2.1% 15
MRU-T Metro Inc. 1.4% $104.34 15.71% $1.48 10.4% 30
RY-T Royal Bank of Canada 3.5% $173.55 0.74% $6.04 7.9% 14
SJ-T Stella-Jones Inc. 1.6% $76.52 4.84% $1.24 10.7% 20
STN-T Stantec Inc. 0.6% $144.85 28.06% $0.89 7.3% 13
T-T Telus 7.5% $21.92 11.67% $1.64 7.0% 21
TD-T TD Bank 4.4% $96.23 25.79% $4.20 2.9% 14
TFII-N TFI International 2.0% $89.92 -32.19% $1.80 12.5% 14
TIH-T Toromont Industries 1.7% $121.55 7.47% $2.08 8.3% 35
TRI-Q Thomson Reuters 1.2% $195.20 20.21% $2.38 10.2% 31
TRP-T TC Energy Corp. 5.0% $67.35 -1.28% $3.40 3.3% 24
WCN-N Waste Connections 0.7% $190.67 12.22% $1.26 7.7% 15
Averages 3.3% 7.3% 6.9% 21

Note: Stocks ending in “-N or -Q” 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.

PAID subscribers enjoy full access to our enhanced weekly newsletter, premium content, and easy-to-follow trade alerts so they can build DGI portfolios alongside ours. This service provides the resources to develop your DGI business plan confidently. We do the work; you stay in control!

It truly is the subscription that pays dividends!

The greatest investment you can make is in yourself. Are you ready to take that step? 

For more articles and the full newsletter, check us out on magicpants.substack.com.

MP Market Review – June 6, 2025

Last updated by BM on June 10, 2025

Summary

 

Welcome to this week’s MP Market Review – your go-to source for insights and updates on the Canadian dividend growth companies we track on The List! While we’ve expanded our watchlists to include U.S. companies The List-USA, our Canadian lineup remains the cornerstone of our coaching approach.

Don’t 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 – let’s dive in!

  • Last week, dividend growth of The List stayed the same with an average return of +6.9% YTD (income).
  • Last week, the price of The List was down from the previous week with an average return of +7.0% YTD (capital).
  • Last week, there were no dividend announcements from companies on The List.
  • Last week, there was one earnings report from companies on The List.
  • This week, one company on The List will report on their off-cycle earnings.

DGI Clipboard

 

“Selling in a downturn to fund expenses is like trying to climb a hill while sliding backward.”

– Christine Benz, Director of Personal Finance & Retirement Planning at Morningstar, Inc.

The Retirement Risk No One Talks About and How DGI Solves It
Intro

 

The Silent Threat to Retirees: Understanding Sequence Risk Through a Dividend Growth Lens

Market volatility is a known challenge for investors, but for retirees, it carries a more dangerous form: sequence risk.

What Is Sequence Risk?

Sequence risk refers to the danger of poor investment returns early in retirement, just as you begin withdrawing income. When withdrawals coincide with market losses, your portfolio can suffer lasting damage, reducing its ability to recover and increasing the risk of outliving your savings.

Consider two retirees with identical portfolios and returns. If Retiree A sees losses early on and Retiree B experiences them later, A could run out of money much sooner—even with the same average return.

This isn’t just theory. Retirees in 2000 or 2008 saw how withdrawing during downturns locks in losses and shrinks the capital base needed for future growth.

Why Traditional Strategies Fall Short

Most retirement strategies rely on a 4% systematic withdrawal rule, selling stocks and bonds to generate income. But markets don’t deliver smooth returns. During downturns, retirees must sell more shares to meet income needs—especially damaging if losses persist.

Diversification can help, but in global sell-offs like 2008 or 2020, most assets fall together. Inflation adds further pressure, as rising withdrawals are needed to preserve purchasing power.

How Dividend Growth Investing Helps

Dividend Growth Investing (DGI) focuses on owning quality companies that consistently increase their dividends. This approach offers natural protection against sequence risk:

  1. Income Without Selling

DGI lets you live off dividends, reducing or eliminating the need to sell shares during downturns. Your income comes from business results, not market swings. Whether it’s 2025 or 2030, if dividends cover your expenses, volatility matters less.

  1. Steady Dividends in Tough Times

While stock prices fluctuate, dividends from high-quality companies are far more stable. Many Dividend Aristocrats raised payouts through the dot-com crash, 2008, and the pandemic. That consistency provides confidence and helps weather storms.

  1. Growing Income Beats Inflation

Dividend growth helps not just to maintain but increase purchasing power. If your dividends rise from $40,000 to $44,500 over a few years, you’re staying ahead of inflation—without touching your principal. That’s a sharp contrast to drawdown strategies, which risk faster depletion during poor market periods.

  1. A Psychological Advantage

Watching portfolio value drop while selling assets creates anxiety. But seeing dividends roll in provides peace of mind. Holding quality companies that reward shareholders allows you to tune out the noise and stay focused on income—not price.

This mindset shift helps investors avoid emotional mistakes that can derail retirement plans.

Important Considerations

No strategy is flawless. DGI requires selectivity. Not all dividend payers are reliable—some cut dividends in tough times. That’s why quality matters. Focus on companies with:

  • Consistent free cash flow
  • Conservative payout ratios
  • Long dividend growth histories
  • Strong competitive advantages

Also, a successful DGI portfolio takes time. Start early, reinvest dividends, and let compounding do its work.

Wrap Up

 

Sequence risk is real—and it can derail even the best retirement plans. But dividend growth investing offers a compelling alternative. By focusing on the growing income streams from world-class companies, you can build a retirement portfolio that’s resilient, predictable, and empowering.

You don’t have to guess where the market will go next. You just need to own great businesses and let them work for you—one dividend at a time.

If you’re worried about what sequence risk means for your retirement, take a second look at your investment approach. A portfolio built on growing income might be the safest path to peace of mind.

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)

 

The Magic Pants 2025 list includes 29 Canadian dividend growth stocks. Here are the criteria to be considered a candidate on ‘The List’:

  1. Dividend growth streak: 10 years or more.
  2. Market cap: Minimum one billion dollars.
  3. Diversification: Limit of five companies per sector, preferably two per industry.
  4. Cyclicality: Exclude REITs and pure-play energy companies due to high cyclicality.

Based on these criteria, companies are added or removed from ‘The List’ annually on January 1. Prices and dividends are updated weekly.

‘The List’ 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 ‘The List’. 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’

 

Last week, dividend growth stayed the same, with an average return of +6.9% YTD (income).

The price of ‘The List’ was down from the previous week, with an average YTD return of +7.0% (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 Stantec Inc. (STN-T), up +3.07%; goeasy Ltd. (GSY-T), up +2.72%; and TFI International (TFII-N), up +1.96%.

Enghouse Systems Limited (ENGH-T) was the worst performer last week, down -9.55%.

SYMBOL COMPANY YLD PRICE YTD % DIV YTD % STREAK
ATD-T Alimentation Couche-Tard Inc. 1.1% $72.14 -8.74% $0.78 8.3% 15
BCE-T Bell Canada 9.6% $29.82 -11.04% $2.87 -28.1% 16
BIP-N Brookfield Infrastructure Partners 5.1% $33.51 5.18% $1.72 6.2% 17
CCL-B-T CCL Industries Inc. 1.6% $78.15 6.15% $1.28 10.3% 23
CNR-T Canadian National Railway 2.5% $143.75 -2.06% $3.55 5.0% 29
CTC-A-T Canadian Tire 4.0% $177.30 15.35% $7.10 1.4% 14
CU-T Canadian Utilities Limited 4.9% $37.66 8.28% $1.83 1.0% 53
DOL-T Dollarama Inc. 0.2% $176.09 25.60% $0.41 18.1% 14
EMA-T Emera 4.8% $60.51 13.04% $2.90 0.7% 18
ENB-T Enbridge Inc. 5.9% $63.70 2.96% $3.77 3.0% 29
ENGH-T Enghouse Systems Limited 4.9% $23.87 -11.79% $1.16 16.0% 18
FNV-N Franco Nevada 0.9% $167.21 38.04% $1.52 5.6% 17
FTS-T Fortis Inc. 3.8% $65.04 9.09% $2.46 3.1% 51
GSY-T goeasy Ltd. 3.8% $153.53 -8.15% $5.84 24.8% 10
IFC-T Intact Financial 1.7% $311.94 18.62% $5.32 9.9% 20
L-T Loblaw Companies Limited 1.0% $221.58 16.49% $2.21 15.2% 13
MFC-T Manulife Financial 4.0% $44.42 1.09% $1.76 10.0% 11
MGA-N Magna 5.3% $36.62 -12.27% $1.94 2.1% 15
MRU-T Metro Inc. 1.4% $104.69 16.10% $1.48 10.4% 30
RY-T Royal Bank of Canada 3.5% $174.57 1.34% $6.04 7.9% 14
SJ-T Stella-Jones Inc. 1.6% $77.21 5.78% $1.24 10.7% 20
STN-T Stantec Inc. 0.6% $145.51 28.64% $0.89 7.3% 13
T-T Telus 7.3% $22.38 14.01% $1.64 7.0% 21
TD-T TD Bank 4.4% $96.35 25.95% $4.20 2.9% 14
TFII-N TFI International 2.1% $87.72 -33.85% $1.80 12.5% 14
TIH-T Toromont Industries 1.7% $119.70 5.84% $2.08 8.3% 35
TRI-Q Thomson Reuters 1.2% $195.00 20.09% $2.38 10.2% 31
TRP-T TC Energy Corp. 4.9% $69.48 1.85% $3.40 3.3% 24
WCN-N Waste Connections 0.7% $190.22 11.95% $1.26 7.7% 15
Averages 3.3% 7.0% 6.9% 21

Note: Stocks ending in “-N or -Q” 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.

PAID subscribers enjoy full access to our enhanced weekly newsletter, premium content, and easy-to-follow trade alerts so they can build DGI portfolios alongside ours. This service provides the resources to develop your DGI business plan confidently. We do the work; you stay in control!

It truly is the subscription that pays dividends!

The greatest investment you can make is in yourself. Are you ready to take that step? 

For more articles and the full newsletter, check us out on magicpants.substack.com.

MP Market Review – May 30, 2025

Last updated by BM on June 3, 2025

Summary

 

Welcome to this week’s MP Market Review – your go-to source for insights and updates on the Canadian dividend growth companies we track on The List! While we’ve expanded our watchlists to include U.S. companies The List-USA, our Canadian lineup remains the cornerstone of our coaching approach.

Don’t 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 – let’s dive in!

  • Last week, dividend growth of The List stayed the same with an average return of +6.9% YTD (income).
  • Last week, the price of The List was up from the previous week with an average return of +7.8% YTD (capital).
  • Last week, there was one dividend announcement from companies on The List.
  • Last week, there was one earnings report from companies on The List.
  • This week, one company on The List will report on their off-cycle earnings.

DGI Clipboard

 

“This is one of the keys to successful investing: focus on the companies, not on the stocks.”

– Peter Lynch

Own the Business, Not Just the Ticker
Intro

 

Owning the Business, Not Just the Stock

Last week, I sent out the latest performance summaries for our model portfolios. After three years of tracking our journey on the blog, timestamping every trade and documenting each move, it’s rewarding to see the results taking shape. Our capital and income are growing in tandem, and we’re well on our way to outperforming the indexes we track.

At the heart of our strategy is one powerful idea:

We’re not buying stocks. We’re buying businesses.

This ownership mindset shapes everything we do. We treat each investment as though we’re acquiring a meaningful stake in a real company—not just trading a ticker symbol. This mindset keeps us calm during volatility and focused on long-term value, not short-term noise.

It also forces us to go deeper—to truly understand the businesses we own, the quality of their management, and the durability of their cash flows. We focus on North America’s top companies, led by exceptional people and supported by teams of skilled employees. Their success is our success. When they grow, so does our financial freedom.

We don’t see our portfolio as a random collection of stocks. We see it as our personal asset management firm, where our assets are high-quality, dividend-growing businesses. These assets reward us with both rising income and capital appreciation. And because they’re built for the long term, we manage them with a “never sell” mindset.

Over time, we shift from working for our money to having our money work for us. That’s the transition we aim to make, from earners to owners.

Buffett’s Been Doing It for Decades

I recently read an article about the CEO of Coca-Cola, who earned roughly $24 million last year, including bonuses and stock awards.

Meanwhile, Warren Buffett’s Berkshire Hathaway owns 400 million shares of Coca-Cola, which will pay a $2.04 dividend per share this year. That’s more than $800 million in dividends—just for owning the stock.

Buffett didn’t need to run the company. He simply owned a great business and got paid over 30 times more than the CEO.

Next year, he’ll earn even more. Why? Because Coca-Cola has raised its dividend for 62 straight years.

Wrap Up

 

The lesson?

It’s better to own a great business than to work for one.

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)

 

The Magic Pants 2025 list includes 29 Canadian dividend growth stocks. Here are the criteria to be considered a candidate on ‘The List’:

  1. Dividend growth streak: 10 years or more.
  2. Market cap: Minimum one billion dollars.
  3. Diversification: Limit of five companies per sector, preferably two per industry.
  4. Cyclicality: Exclude REITs and pure-play energy companies due to high cyclicality.

Based on these criteria, companies are added or removed from ‘The List’ annually on January 1. Prices and dividends are updated weekly.

‘The List’ 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 ‘The List’. 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’

 

Last week, dividend growth stayed the same, with an average return of +6.9% YTD (income).

The price of ‘The List’ was up from the previous week, with an average YTD return of +7.8% (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 Canadian Tire (CTC-A-T), up +3.8%; Alimentation Couche-Tard Inc. (ATD-T), up +3.4%; and Loblaw Companies Limited (L-T), up +3.2%.

Royal Bank of Canada (RY-T) was the worst performer last week, down -1.2%.

SYMBOL COMPANY YLD PRICE YTD % DIV YTD % STREAK
ATD-T Alimentation Couche-Tard Inc. 1.1% $71.15 -9.99% $0.78 8.3% 15
BCE-T Bell Canada 9.6% $29.90 -10.80% $2.87 -28.1% 16
BIP-N Brookfield Infrastructure Partners 5.2% $33.11 3.92% $1.72 6.2% 17
CCL-B-T CCL Industries Inc. 1.6% $80.03 8.71% $1.28 10.3% 23
CNR-T Canadian National Railway 2.5% $144.26 -1.72% $3.55 5.0% 29
CTC-A-T Canadian Tire 4.1% $174.39 13.45% $7.10 1.4% 14
CU-T Canadian Utilities Limited 4.8% $38.38 10.35% $1.83 1.0% 53
DOL-T Dollarama Inc. 0.2% $176.50 25.89% $0.41 18.1% 14
EMA-T Emera 4.6% $62.91 17.52% $2.90 0.7% 18
ENB-T Enbridge Inc. 5.9% $63.87 3.23% $3.77 3.0% 29
ENGH-T Enghouse Systems Limited 4.4% $26.39 -2.48% $1.16 16.0% 18
FNV-N Franco Nevada 0.9% $168.80 39.35% $1.52 5.6% 17
FTS-T Fortis Inc. 3.7% $67.05 12.46% $2.46 3.1% 51
GSY-T goeasy Ltd. 3.9% $149.47 -10.58% $5.84 24.8% 10
IFC-T Intact Financial 1.7% $311.35 18.40% $5.32 9.9% 20
L-T Loblaw Companies Limited 1.0% $231.53 21.72% $2.21 15.2% 13
MFC-T Manulife Financial 4.0% $43.70 -0.55% $1.76 10.0% 11
MGA-N Magna 5.3% $36.28 -13.08% $1.94 2.1% 15
MRU-T Metro Inc. 1.4% $107.04 18.71% $1.48 10.4% 30
RY-T Royal Bank of Canada 3.5% $173.94 0.97% $6.04 7.9% 14
SJ-T Stella-Jones Inc. 1.6% $77.59 6.30% $1.24 10.7% 20
STN-T Stantec Inc. 0.6% $141.17 24.81% $0.89 7.3% 13
T-T Telus 7.3% $22.48 14.52% $1.64 7.0% 21
TD-T TD Bank 4.4% $94.77 23.88% $4.20 2.9% 14
TFII-N TFI International 2.1% $86.03 -35.13% $1.80 12.5% 14
TIH-T Toromont Industries 1.7% $119.01 5.23% $2.08 8.3% 35
TRI-Q Thomson Reuters 1.2% $198.65 22.34% $2.38 10.2% 31
TRP-T TC Energy Corp. 4.9% $69.54 1.93% $3.40 3.3% 24
WCN-N Waste Connections 0.6% $197.09 16.00% $1.26 7.7% 15
Averages 3.2% 7.8% 6.9% 21

Note: Stocks ending in “-N or -Q” 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.

PAID subscribers enjoy full access to our enhanced weekly newsletter, premium content, and easy-to-follow trade alerts so they can build DGI portfolios alongside ours. This service provides the resources to develop your DGI business plan confidently. We do the work; you stay in control!

It truly is the subscription that pays dividends!

The greatest investment you can make is in yourself. Are you ready to take that step? 

For more articles and the full newsletter, check us out on magicpants.substack.com.

We buy quality individual dividend growth stocks when they are sensibly priced and hold for the growing income.