Last updated by BM on March 11, 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 stayed the same, with an average return of +6.6% YTD (income).
- Last week, the price of ‘The List’ was down from the previous week with an average return of +1.18% YTD (capital).
- Last week, there were no dividend announcements made by companies on ‘The List’.
- Last week, there were no earnings reports from companies on ‘The List’.
- This week, two companies on ‘The List’ are due to report earnings.
DGI Clipboard
“In the long run, tariffs and trade barriers always hurt the country that imposes them the most.”
– Ronald Reagan
Defend Your Portfolio with Quality Dividend Growth Stocks
Intro
The United States has imposed new tariffs on goods from Canada, Mexico, and China, with more expected on the EU. In response, these countries have retaliated with their own tariffs, increasing costs and uncertainty for businesses.
The key takeaway? No one truly wins in a trade war.
Meanwhile, heightened inflation, persistent higher interest rates, and renewed market volatility have created a challenging environment, particularly for long-term investors with lower risk tolerance. In this landscape, dividend growth stocks are gaining prominence as a strategy that not only enhances returns but also dampens volatility, offering both resilience and opportunity.
The major North American markets have not responded well to all the tariff talk. As Ronald Reagan predicted, the U.S. is feeling the pain.
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Source: Magic Pants Dividend Growth Investing Model Portfolios
Wrap Up
As the trade war continues, many investors in Canada and the U.S. may once again grow frustrated with growth-only strategies and start seeking alternatives. With stocks pulling back to more reasonable valuations, now is an opportune time to start building a dividend growth portfolio—one that provides both stability and a rising income over time.
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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.
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 stayed the same, with an average return of +6.6% YTD (income).
Last week, the price of ‘The List’ was down from the previous week with an average YTD return of +1.18% (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 +6.55%; Enghouse Systems Limited (ENGH-T), up +5.04%; and Magna (MGA-N), up +4.36%.
Brookfield Infrastructure Partners (BIP-N) was the worst performer last week, down -9.65%.
| SYMBOL | COMPANY | YLD | PRICE | YTD % | DIV | YTD % | STREAK |
|---|---|---|---|---|---|---|---|
| ATD-T | Alimentation Couche-Tard Inc. | 1.1% | $72.75 | -7.97% | $0.78 | 8.3% | 15 |
| BCE-T | Bell Canada | 11.2% | $35.61 | 6.24% | $3.99 | 0.0% | 16 |
| BIP-N | Brookfield Infrastructure Partners | 6.0% | $28.66 | -10.04% | $1.72 | 6.2% | 17 |
| CCL-B-T | CCL Industries Inc. | 1.7% | $74.82 | 1.63% | $1.28 | 10.3% | 23 |
| CNR-T | Canadian National Railway | 2.4% | $145.24 | -1.05% | $3.55 | 5.0% | 29 |
| CTC-A-T | Canadian Tire | 4.9% | $146.20 | -4.89% | $7.10 | 1.4% | 14 |
| CU-T | Canadian Utilities Limited | 5.2% | $35.17 | 1.12% | $1.83 | 1.0% | 53 |
| DOL-T | Dollarama Inc. | 0.2% | $155.03 | 10.58% | $0.37 | 5.1% | 14 |
| EMA-T | Emera | 4.9% | $58.95 | 10.13% | $2.90 | 0.7% | 18 |
| ENB-T | Enbridge Inc. | 6.2% | $60.38 | -2.41% | $3.77 | 3.0% | 29 |
| ENGH-T | Enghouse Systems Limited | 3.9% | $26.70 | -1.33% | $1.04 | 4.0% | 18 |
| FNV-N | Franco Nevada | 1.1% | $143.28 | 18.29% | $1.52 | 5.6% | 17 |
| FTS-T | Fortis Inc. | 3.8% | $64.20 | 7.68% | $2.46 | 3.1% | 51 |
| GSY-T | goeasy Ltd. | 3.7% | $157.09 | -6.02% | $5.84 | 24.8% | 10 |
| IFC-T | Intact Financial | 1.8% | $290.40 | 10.43% | $5.32 | 9.9% | 20 |
| L-T | Loblaw Companies Limited | 1.1% | $192.63 | 1.27% | $2.05 | 7.0% | 13 |
| MFC-T | Manulife Financial | 4.2% | $42.08 | -4.23% | $1.76 | 10.0% | 11 |
| MGA-N | Magna | 5.1% | $38.02 | -8.91% | $1.94 | 2.1% | 15 |
| MRU-T | Metro Inc. | 1.5% | $96.13 | 6.61% | $1.48 | 10.4% | 30 |
| RY-T | Royal Bank of Canada | 3.6% | $165.38 | -4.00% | $5.92 | 5.7% | 14 |
| SJ-T | Stella-Jones Inc. | 1.8% | $68.97 | -5.51% | $1.24 | 10.7% | 20 |
| STN-T | Stantec Inc. | 0.7% | $118.80 | 5.03% | $0.89 | 7.3% | 13 |
| T-T | Telus | 7.1% | $22.72 | 15.74% | $1.61 | 5.2% | 21 |
| TD-T | TD Bank | 4.9% | $85.58 | 11.87% | $4.20 | 2.9% | 14 |
| TFII-N | TFI International | 2.1% | $83.84 | -36.78% | $1.80 | 12.5% | 14 |
| TIH-T | Toromont Industries | 1.8% | $117.37 | 3.78% | $2.08 | 8.3% | 35 |
| TRI-Q | Thomson Reuters | 1.3% | $177.66 | 9.41% | $2.38 | 10.2% | 31 |
| TRP-T | TC Energy Corp. | 5.2% | $65.93 | -3.36% | $3.40 | 3.3% | 24 |
| WCN-N | Waste Connections | 0.7% | $188.35 | 10.85% | $1.26 | 7.7% | 15 |
| Averages | 3.4% | 1.18% | 6.6% | 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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