Last updated by BM on December 3, 2024
Summary
This is a weekly installment of our MP Market Review series, which provides insights and updates on Canadian dividend growth companies we monitor on ‘The List’. To read all our newsletters and premium content be sure to check us out on magicpants.substack.com.
- This week, we find out how Canadian dividend growth stocks did in the Global Financial Crisis.
- Last week, dividend growth of ‘The List’ was up and has increased by +9.2% YTD (income).
- Last week, the price of ‘The List’ was up with a return of +14.2% YTD (capital).
- Last week, there was one dividend announcement from a company on ‘The List’.
- Last week, there was one earnings report from a company on ‘The List’.
- This week, three companies on ‘The List’ is due to report earnings.
DGI Clipboard
“I like to see that the company was capable of increasing its dividends in the good times and the bad so that I’m more comfortable relying on that income in the future.”
– Lowell Miller, The Single Best Investment: Creating Wealth with Dividend Growth
Long Dividend Streaks = High Quality
Intro
If you’re new to dividend growth investing, you’re beginning to see that our success isn’t just about total returns—it’s about the steady growth of our dividend income year over year. The ability to rely on this growing income, no matter what the market is doing, provides a sense of stability and peace of mind, especially in retirement.
Looking back at how well Canadian stocks with 10+ years of dividend growth streaks performed during the Global Financial Crisis solidified my confidence in this strategy. Despite one of the most challenging economic periods in recent history, their dividend income held strong. That resilience showed me that dividend growth investing isn’t just a strategy—it’s a reliable foundation for long-term financial security.
To illustrate, let’s look back at the Global Financial Crisis of 2008/2009, a period of extreme financial stress:
At the end of 2007, before the crisis began, there were 24 Canadian stocks with dividend growth streaks of 10+ years.
Of these 24 companies, how many do you think cut their dividends during the crisis?
The answer might surprise you.
The correct answer is none!
It’s worth noting that during this period, 57% of dividend-paying companies worldwide either reduced (43%) or eliminated (14%) their dividends. Following the 2008 global market decline, aggregate dividends dropped by 20%.
This highlights a crucial distinction: dividend-paying stocks are not the same as dividend growth stocks. Dividend growth companies are typically higher-quality names, with stronger fundamentals and a proven commitment to rewarding shareholders over time.
Wrap Up
By investing only in companies with a minimum of 10 consecutive years of dividend growth, we ensure our portfolio is built around high-quality businesses. These are the companies that demonstrate resilience, discipline, and the ability to navigate challenging economic times—exactly what you want when markets turn turbulent.
The good news? You don’t have to search far to find these reliable performers. We’ve done the work for you. Check out ‘The List’ right here on our blog, where we highlight companies with proven dividend growth streaks of 10+ years.
Become a PAID subscriber and start building your portfolio with confidence today. We do the work you stay in control!
DGI Scorecard
The List (2024)
The Magic Pants 2024 list includes 28 Canadian dividend growth stocks. Here are the criteria to be considered a candidate on ‘The List’:
- 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 ‘The List’ annually on January 1. Prices and dividends are updated weekly.
‘The List’ is not a portfolio; it is 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’.
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.
For those interested in something more, please upgrade to a paid subscriber; you get the enhanced weekly newsletter, access to premium content, full privileges on the new Substack website magicpants.substack.com and DGI alerts whenever we make stock transactions in our model portfolio.
Performance of ‘The List’
Last week, dividend growth of ‘The List’ was up and has increased by +9.2% YTD (income). How much did your salary go up this year?
Last week, the average price return of ‘The List’ was up with a return of +14.2% YTD (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 Alimentation Couche-Tard Inc. (ATD-T), up +4.22%; Emera (EMA-T), up +2.89%; and Canadian Tire (CTC-A-T), up +2.80%.
TC Energy Corp. (TRP-T) was the worst performer last week, down -2.00%.
| SYMBOL | COMPANY | YLD | PRICE | YTD % | DIV | YTD % | STREAK |
|---|---|---|---|---|---|---|---|
| ATD-T | Alimentation Couche-Tard Inc. | 0.9% | $81.91 | 6.7% | $0.72 | 20.8% | 14 |
| BCE-T | Bell Canada | 10.5% | $37.90 | -30.0% | $3.99 | 3.1% | 15 |
| BIP-N | Brookfield Infrastructure Partners | 4.6% | $34.97 | 13.9% | $1.62 | 5.9% | 16 |
| CCL-B-T | CCL Industries Inc. | 1.5% | $77.61 | 34.2% | $1.16 | 9.4% | 22 |
| CNR-T | Canadian National Railway | 2.2% | $156.34 | -6.3% | $3.38 | 7.0% | 28 |
| CTC-A-T | Canadian Tire | 4.5% | $154.37 | 11.4% | $7.00 | 1.4% | 13 |
| CU-T | Canadian Utilities Limited | 5.0% | $35.94 | 11.9% | $1.81 | 0.9% | 52 |
| DOL-T | Dollarama Inc. | 0.2% | $145.84 | 53.5% | $0.35 | 30.7% | 13 |
| EMA-T | Emera | 5.4% | $53.42 | 5.2% | $2.88 | 3.3% | 17 |
| ENB-T | Enbridge Inc. | 6.0% | $60.57 | 25.1% | $3.66 | 3.1% | 28 |
| ENGH-T | Enghouse Systems Limited | 3.4% | $29.17 | -14.1% | $1.00 | 18.3% | 17 |
| FNV-N | Franco Nevada | 1.2% | $122.62 | 11.3% | $1.44 | 5.9% | 16 |
| FTS-T | Fortis Inc. | 3.8% | $62.59 | 14.1% | $2.39 | 4.4% | 50 |
| IFC-T | Intact Financial | 1.8% | $266.67 | 31.2% | $4.84 | 10.0% | 19 |
| L-T | Loblaw Companies Limited | 1.1% | $181.70 | 41.3% | $1.92 | 10.0% | 12 |
| MFC-T | Manulife Financial | 3.6% | $45.07 | 56.1% | $1.60 | 9.6% | 10 |
| MGA-N | Magna | 4.2% | $45.14 | -18.7% | $1.90 | 3.3% | 14 |
| MRU-T | Metro Inc. | 1.5% | $91.23 | 33.2% | $1.34 | 10.7% | 29 |
| RY-T | Royal Bank of Canada | 3.2% | $176.16 | 32.4% | $5.72 | 7.1% | 13 |
| SJ-T | Stella-Jones Inc. | 1.6% | $71.54 | -6.6% | $1.12 | 21.7% | 19 |
| STN-T | Stantec Inc. | 0.7% | $121.27 | 15.9% | $0.83 | 7.8% | 12 |
| T-T | Telus | 7.0% | $21.80 | -8.1% | $1.53 | 7.1% | 20 |
| TD-T | TD Bank | 5.1% | $79.23 | -6.4% | $4.08 | 6.3% | 13 |
| TFII-N | TFI International | 1.1% | $151.68 | 15.6% | $1.60 | 10.3% | 13 |
| TIH-T | Toromont Industries | 1.7% | $115.00 | 1.9% | $1.92 | 11.6% | 34 |
| TRI-N | Thomson Reuters | 1.3% | $162.59 | 13.4% | $2.16 | 12.5% | 30 |
| TRP-T | TC Energy Corp. | 5.6% | $68.26 | 30.5% | $3.84 | 3.2% | 23 |
| WCN-N | Waste Connections | 0.6% | $192.47 | 29.9% | $1.17 | 11.4% | 14 |
| Averages | 3.2% | 14.2% | 9.2% | 21 |
Note: Stocks ending in “-N” 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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