Last updated by BM on August 19, 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.
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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 +9.7% YTD (capital).
- Last week, there were no dividend announcements from companies on The List.
- Last week, there were four earnings reports from companies on The List.
- This week, no companies from The List will report on earnings.
DGI Clipboard
“Success in investing has two parts: finding edge and fully taking advantage of it through proper position sizing. Almost all investment firms focus on edge, while position sizing generally gets much less attention.”
– Michael J. Mauboussin, Thirty Years: Reflections on the Ten Attributes of Great Investors
Balancing Opportunity and Risk: Position Sizing in the All-Canadian DGI Portfolio
Intro
Last week’s article in the MP Market Review (“The All-Canadian DGI Portfolio”) was a good primer for anyone looking to begin their dividend growth investing (DGI) journey with a lump sum investment.
This week, I decided to make my position sizing analysis available in the Free Subscriber section of the newsletter, rather than restricting it to Paid Subscribers. That said, our DGI Candidate List 2025 – Quality/Category/Sizing document remains exclusive to Paid Subscribers in the Premium Content section of our website. This ensures you’ll always have access to an up-to-date version if you are looking for options to put a lump sum to work using our valuation weighted strategy.
In this follow-up article, I’ll focus on how I might invest that lump sum today, with particular attention to current valuations.
Valuation is the second step in our three-step process. Once we’ve separated the “wheat from the chaff” by identifying quality companies, we turn to valuation.
First, we sort The All-Canadian DGI Portfolio by category (Core and Non-Core) and display our minimum and maximum position sizes for each stock, we now have a clear framework to guide allocation decisions.
We will then use our Dividend Yield Theory (DYT) valuation metric in this example to decide how much of our capital to deploy.
Dividend Yield Theory is a straightforward and intuitive way to value dividend growth stocks. The premise is simple: the dividend yield of quality companies tends to revert to its historical average over time, provided the business model remains stable. In practice, if a stock’s current yield is above its ten-year average, the price is likely undervalued and there is a higher probability it may rise to bring the yield back in line with its historical mean. Since price and yield move in opposite directions, DYT helps us identify stocks with the potential for favorable price appreciation.
When allocating capital, we assign larger position sizes to companies trading closer to their high yield. Conversely, when a stock trades at a lower yield relative to its history, we keep the position closer to our minimum. This approach ensures we stay consistently invested in quality dividend growers while managing risk and valuation discipline.
Takeaway
Position sizes may shift with market sentiment, but this approach provides a conservative way to put 50% of your capital to work today and kick-start your dividend growth investing journey.
Our DGI Alerts will guide you in deploying the remaining capital at sensible prices, while you also start collecting dividends that can be reinvested to accelerate long-term growth.
Become a paid partner, and I’ll show you exactly how I do it. With real money. In real stocks. In addition, gain full access to this post and exclusive, subscriber-only content. 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’:
- 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 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 +9.7% (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 Bell Canada (BCE-T), up +5.55%.; TFI International (TFII-N), up +5.22%; and Magna (MGA-N) up +4.33%.
Thomson Reuters (TRI-Q) was the worst performer last week, down -4.80%.
| SYMBOL | COMPANY | YLD | PRICE | YTD % | DIV | YTD % | STREAK |
|---|---|---|---|---|---|---|---|
| ATD-T | Alimentation Couche-Tard Inc. | 1.1% | $70.02 | -11.42% | $0.78 | 8.3% | 15 |
| BCE-T | Bell Canada | 8.1% | $35.37 | 5.52% | $2.87 | -28.1% | 16 |
| BIP-N | Brookfield Infrastructure Partners | 5.8% | $29.81 | -6.43% | $1.72 | 6.2% | 17 |
| CCL-B-T | CCL Industries Inc. | 1.6% | $80.64 | 9.54% | $1.28 | 10.3% | 23 |
| CNR-T | Canadian National Railway | 2.8% | $128.92 | -12.17% | $3.55 | 5.0% | 29 |
| CTC-A-T | Canadian Tire | 4.3% | $166.48 | 8.31% | $7.10 | 1.4% | 14 |
| CU-T | Canadian Utilities Limited | 4.8% | $38.22 | 9.89% | $1.83 | 1.0% | 53 |
| DOL-T | Dollarama Inc. | 0.2% | $192.31 | 37.17% | $0.41 | 18.1% | 14 |
| EMA-T | Emera | 4.4% | $66.17 | 23.61% | $2.90 | 0.7% | 18 |
| ENB-T | Enbridge Inc. | 5.8% | $65.01 | 5.08% | $3.77 | 3.0% | 29 |
| ENGH-T | Enghouse Systems Limited | 5.2% | $22.17 | -18.07% | $1.16 | 16.0% | 18 |
| FNV-N | Franco Nevada | 0.9% | $177.37 | 46.43% | $1.52 | 5.6% | 17 |
| FTS-T | Fortis Inc. | 3.5% | $70.15 | 17.66% | $2.46 | 3.1% | 51 |
| GSY-T | goeasy Ltd. | 2.9% | $204.34 | 22.24% | $5.84 | 24.8% | 10 |
| IFC-T | Intact Financial | 1.9% | $279.17 | 6.16% | $5.32 | 9.9% | 20 |
| L-T | Loblaw Companies Limited | 1.0% | $227.35 | 19.52% | $2.21 | 15.2% | 13 |
| MFC-T | Manulife Financial | 4.2% | $42.00 | -4.42% | $1.76 | 10.0% | 11 |
| MGA-N | Magna | 4.4% | $44.31 | 6.16% | $1.94 | 2.1% | 15 |
| MRU-T | Metro Inc. | 1.5% | $99.12 | 9.93% | $1.48 | 10.4% | 30 |
| RY-T | Royal Bank of Canada | 3.2% | $188.50 | 9.42% | $6.04 | 7.9% | 14 |
| SJ-T | Stella-Jones Inc. | 1.6% | $76.98 | 5.47% | $1.24 | 10.7% | 20 |
| STN-T | Stantec Inc. | 0.6% | $146.92 | 29.89% | $0.89 | 7.3% | 13 |
| T-T | Telus | 7.2% | $22.65 | 15.38% | $1.64 | 7.0% | 21 |
| TD-T | TD Bank | 4.1% | $102.35 | 33.79% | $4.20 | 2.9% | 14 |
| TFII-N | TFI International | 2.0% | $90.67 | -31.63% | $1.80 | 12.5% | 14 |
| TIH-T | Toromont Industries | 1.5% | $142.07 | 25.61% | $2.08 | 8.3% | 35 |
| TRI-Q | Thomson Reuters | 1.4% | $171.32 | 5.51% | $2.38 | 10.2% | 31 |
| TRP-T | TC Energy Corp. | 4.8% | $70.56 | 3.43% | $3.40 | 3.3% | 24 |
| WCN-N | Waste Connections | 0.7% | $184.77 | 8.75% | $1.26 | 7.7% | 15 |
| Averages | 3.1% | 9.7% | 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.
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