Last updated by BM on January 6, 2026
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!
This week, we introduce our 2026 version of ‘The List’. Our curated watchlist of Canadian dividend growth companies. We also provide the last update of our 2025 version as of December 31, 2025, in the DGI Scorecard section.
- Dividend growth of The List ended the year with an average return of +7.2% (income).
- The price of The List ended the year with an average return of +14.1% (capital).
- Last week, no company on The List made a dividend announcement.
- Last week, no company on The List released an earnings report.
- This week, no company from The List will report their earnings.
DGI Clipboard
“If you look for companies that can raise their dividends year after year without milking operations, you will automatically be lead to high quality stocks.”
– Edmund Faltermayer, Fortune magazine, October 1990
26 Stocks to Watch in 2026: Canada’s 2026 version of The List
Intro
As dividend growth investors, we think like asset managers, not stock pickers.
Our assets are not tickers.
They are high-quality businesses. The kind that generate durable cash flow, raise dividends consistently, and quietly compound wealth over time.
Every year, we begin with focus.
Not the most companies.
The best companies.
Businesses that are essential to the Canadian and U.S. economies. Businesses we can understand, track, and own with conviction. While much of the market is busy forecasting headlines and guessing outcomes, we stay anchored to what actually matters: cash flow. One dividend at a time.
This week, I’m unveiling the 2026 Canadian edition of The List, with the U.S. version coming in next week’s issue.
Why Focus Matters
One of the most powerful lessons I’ve learned, both in investing and in business, came from two of my greatest mentors.
When asked to write down the single word most responsible for their success, both chose the same word:
Focus.
Focus means concentration.
It means saying no far more often than yes.
It means ignoring noise so you can do the important work better than anyone else.
That idea is the foundation of The List.
It is a curated watchlist of quality dividend growth companies designed to help us think clearly, measure what matters, and manage risk in our model portfolios. We own some of these businesses. We do not own all of them. The List is not a portfolio. It is a coaching tool that helps us identify what to buy when valuation becomes compelling.
Changes to the 2026 Canadian Watchlist
Using last year’s List as our starting point, several changes were necessary.
Clear Removals
Bell Canada (BCE) cut its dividend in 2025 and has not committed to restoring the prior level within a defined timeframe. While management outlined a new, more flexible dividend framework tied to free cash flow, a broken dividend growth streak is a hard stop for us. That alone removes BCE from our watchlist for at least the next decade.
Telus (T) announced a pause in its dividend growth program. While the dividend remains intact and the company technically extended its growth streak in 2025, we decided to step back. The priority now is to repair the balance sheet and improve free cash flow. We’ll reassess once leverage is clearly moving in the right direction.
Coaching-Driven Removals
Canadian Utilities Limited (CU) has an extraordinary 54-year dividend growth streak, but recent growth has averaged roughly 1 percent annually. Our strategy has two engines: dividend growth and price growth, with the former setting the table for the latter. At this stage, we believe there are better opportunities to follow.
Enghouse Systems Limited (ENGH) was the hardest decision. Dividend growth has been exceptional, but the underlying business is no longer growing. A stagnant business paired with aggressive dividend metrics creates distortion. We want quality companies that grow both income and value.
A Key Addition for 2026
Our addition this year is Canadian Natural Resources (CNQ).
Historically, we excluded pure-play energy companies due to cyclicality. What changed is the data.
CNQ has delivered above-average dividend growth and capital returns over the past decade, operates as one of the lowest-cost producers globally, and generates free cash flow at oil prices that would bankrupt weaker competitors. That resilience matters.
Even more important is the company’s dividend framework. As net debt continues to decline, management has committed to directing a growing share of free cash flow toward dividends. That alignment between balance sheet strength and shareholder returns earns CNQ a place on The List.
Introducing the 2026 Canadian Dividend Growth Watchlist (The List):
Takeaway
This year’s version of The List reflects what we’ve always believed:
Quality over quantity
Cash flow over narratives
Focus over noise
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DGI Scorecard
The List (2025)
The Magic Pants 2025 list included 29 Canadian dividend growth stocks. Here were 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’
Dividend growth of The List ended the year with an average return of +7.2% (income).
The price of The List ended the year with an average return of +14.1% (capital).
Top Performers Last Week:
- Bell Canada (BCE-T), up +4.13%.
- Telus (T-T), up +3.37%
- Alimentation Couche-Tard Inc. (ATD-T) up +1.24%.
Worst Performer Last Week:
- Franco Nevada (FNV-N) down -4.66%.
| SYMBOL | COMPANY | YLD | PRICE | YTD % | DIV | YTD % | STREAK |
|---|---|---|---|---|---|---|---|
| ATD-T | Alimentation Couche-Tard Inc. | 1.1% | $74.96 | -5.17% | $0.80 | 11.1% | 15 |
| BCE-T | Bell Canada | 8.8% | $32.74 | -2.33% | $2.87 | -28.1% | 16 |
| BIP-N | Brookfield Infrastructure Partners | 5.0% | $34.74 | 9.04% | $1.72 | 6.2% | 17 |
| CCL-B-T | CCL Industries Inc. | 1.5% | $86.70 | 17.77% | $1.28 | 10.3% | 23 |
| CNR-T | Canadian National Railway | 2.6% | $135.75 | -7.51% | $3.55 | 5.0% | 29 |
| CTC-A-T | Canadian Tire | 4.1% | $173.94 | 13.16% | $7.10 | 1.4% | 14 |
| CU-T | Canadian Utilities Limited | 4.3% | $42.73 | 22.86% | $1.83 | 1.0% | 53 |
| DOL-T | Dollarama Inc. | 0.2% | $205.14 | 46.32% | $0.41 | 18.1% | 14 |
| EMA-T | Emera | 4.3% | $67.64 | 26.36% | $2.92 | 1.2% | 18 |
| ENB-T | Enbridge Inc. | 5.7% | $65.68 | 6.16% | $3.77 | 3.0% | 29 |
| ENGH-T | Enghouse Systems Limited | 5.7% | $20.36 | -24.76% | $1.16 | 16.0% | 18 |
| FNV-N | Franco Nevada | 0.7% | $207.28 | 71.12% | $1.52 | 5.6% | 17 |
| FTS-T | Fortis Inc. | 3.5% | $71.36 | 19.69% | $2.49 | 4.2% | 51 |
| GSY-T | goeasy Ltd. | 4.4% | $131.29 | -21.46% | $5.84 | 24.8% | 10 |
| IFC-T | Intact Financial | 1.9% | $285.73 | 8.65% | $5.32 | 9.9% | 20 |
| L-T | Loblaw Companies Limited | 0.9% | $62.05 | 30.47% | $0.55 | 15.2% | 13 |
| MFC-T | Manulife Financial | 3.5% | $49.84 | 13.43% | $1.76 | 10.0% | 11 |
| MGA-N | Magna | 3.6% | $53.30 | 27.70% | $1.94 | 2.1% | 15 |
| MRU-T | Metro Inc. | 1.5% | $98.79 | 9.56% | $1.48 | 10.4% | 30 |
| RY-T | Royal Bank of Canada | 2.6% | $233.99 | 35.83% | $6.04 | 7.9% | 14 |
| SJ-T | Stella-Jones Inc. | 1.5% | $85.13 | 16.63% | $1.24 | 10.7% | 20 |
| STN-T | Stantec Inc. | 0.7% | $129.52 | 14.51% | $0.89 | 7.3% | 13 |
| T-T | Telus | 9.1% | $18.09 | -7.85% | $1.64 | 7.0% | 21 |
| TD-T | TD Bank | 3.2% | $129.36 | 69.10% | $4.20 | 2.9% | 14 |
| TFII-N | TFI International | 1.7% | $103.35 | -22.06% | $1.80 | 12.5% | 14 |
| TIH-T | Toromont Industries | 1.3% | $166.05 | 46.82% | $2.08 | 8.3% | 35 |
| TRI-Q | Thomson Reuters | 1.8% | $131.89 | -18.78% | $2.38 | 10.2% | 31 |
| TRP-T | TC Energy Corp. | 4.5% | $75.58 | 10.79% | $3.40 | 3.3% | 24 |
| WCN-N | Waste Connections | 0.7% | $175.36 | 3.21% | $1.30 | 10.7% | 15 |
| Averages | 3.1% | 14.1% | 7.2% | 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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