Last updated by BM on November 18, 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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- Last week, dividend growth of The List stayed the same with an average return of +7.1% YTD (income).
- Last week, the price of The List was up from the previous week with an average return of +11.8% YTD (capital).
- Last week, no companies on The List made a dividend announcement.
- Last week, four companies on The List released earnings reports.
- This week, one company from The List will report on earnings.
DGI Clipboard
“Current yield, using its own historic yield as a guide, is, in my view, a fine valuation measure.”
— Tom Connolly
The Timely Ten: Finding Value Before The Crowd
Intro
Our Timely Ten lists remain the fastest way to spot potential value opportunities, which explains why they continue to be the most-read articles every month.
Timely Ten (CDN)
goeasy Ltd. climbed to the number three spot in this month’s Timely Ten after a sharp 25% pullback following its Q3 2025 earnings release. Investors clearly were not impressed, but the decline has pushed the stock into more attractive valuation territory.
Magna moved in the opposite direction, slipping to number eight from number five last month. The market responded favourably to its Q3 results.
Our two recent Canadian model portfolio additions, Metro Inc. (MRU-T) and Waste Connections (WCN-N), went in opposite directions with Metro Inc. moving down the list on price strength and Waste Connections cracking the Timely Ten on weakness.
Among this month’s Timely Ten, goeasy Ltd. stands out as the most compelling opportunity. A starting yield above 4.5 percent, a 25 percent dividend increase in 2025, and a payout ratio of under 40 percent all indicate a company that warrants further research from dividend growth investors.
Outside of a deeper dive on goeasy Ltd., we remain comfortable staying patient with our Canadian model portfolio and continue collecting our growing dividends. Unless something meaningfully shifts in the market, there is no need to force new positions.
Timely Ten (USA)
Most of the Timely Ten barely budged this month, with the top eight still firmly in undervalued territory. United Parcel Service remains in the number one spot, although a 17 percent gain since last month has made it slightly less attractive. There is plenty of debate around the safety of its dividend, so we are content to watch from the sidelines for now.
The real story this month is the movement from two exceptional dividend growth companies. One is a dividend king, the other one of the best compounders of the past twenty years. They now sit at number nine and ten on the list. For those new to dividend growth investing, a company earns the title of dividend king after raising its dividend for 50 consecutive years.
Automatic Data Processing jumped from number seventeen last month to number nine. In its most recent earnings release, both revenue and earnings increased, making the market’s negative reaction somewhat hard to explain. Some of the price weakness appears tied to concerns about AI-related disruption to its business model.
Visa, another long-term compounder, enters the Timely Ten in the tenth position. It is rare to find a company with Visa’s combination of sustained dividend growth and strong price appreciation trading above its average yield. When dividend growth and price growth align over long investment horizons, the results can be remarkable. Here is Visa’s ten-year dividend growth and price growth chart:
The price growth recently dropped below the dividend growth, which has historically been a good entry point for this quality dividend growth company.
Each month, the Timely Ten lists surface real, actionable ideas. Some require more research, while others are ready to act on today. This disciplined framework keeps us focused on quality and valuation, not market noise.
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.
- 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.
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 short term. These are our Timely Ten.
Takeaway
History shows the Timely Ten is fertile ground for finding attractive entry points into high-quality dividend growers. Whether or not you act on the names, the list serves its purpose: to surface opportunities when quality meets value.
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.
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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.
Performance of ‘The List’
Last week, dividend growth stayed the same, with an average return of +7.1% YTD (income).
The price of ‘The List’ was up from the previous week, with an average YTD return of +11.8% (capital).
Last week’s best performers on ‘The List’ were CCL Industries Inc. (CCL-B-T), up +10.89%.; Loblaw Companies Limited (L-T), up +6.87%; and TC Energy Corp. (TRP-T) up +5.72%.
goeasy Ltd. (GSY-T) was the worst performer last week, down -5.03%.
| SYMBOL | COMPANY | YLD | PRICE | YTD % | DIV | YTD % | STREAK |
|---|---|---|---|---|---|---|---|
| ATD-T | Alimentation Couche-Tard Inc. | 1.1% | $70.30 | -11.07% | $0.78 | 8.3% | 15 |
| BCE-T | Bell Canada | 9.0% | $32.01 | -4.50% | $2.87 | -28.1% | 16 |
| BIP-N | Brookfield Infrastructure Partners | 4.9% | $35.40 | 11.11% | $1.72 | 6.2% | 17 |
| CCL-B-T | CCL Industries Inc. | 1.5% | $87.74 | 19.18% | $1.28 | 10.3% | 23 |
| CNR-T | Canadian National Railway | 2.6% | $134.81 | -8.16% | $3.55 | 5.0% | 29 |
| CTC-A-T | Canadian Tire | 4.1% | $171.80 | 11.77% | $7.10 | 1.4% | 14 |
| CU-T | Canadian Utilities Limited | 4.3% | $42.40 | 21.91% | $1.83 | 1.0% | 53 |
| DOL-T | Dollarama Inc. | 0.2% | $194.93 | 39.04% | $0.41 | 18.1% | 14 |
| EMA-T | Emera | 4.3% | $67.13 | 25.41% | $2.92 | 1.2% | 18 |
| ENB-T | Enbridge Inc. | 5.6% | $67.16 | 8.55% | $3.77 | 3.0% | 29 |
| ENGH-T | Enghouse Systems Limited | 5.8% | $19.99 | -26.13% | $1.16 | 16.0% | 18 |
| FNV-N | Franco Nevada | 0.8% | $196.96 | 62.60% | $1.52 | 5.6% | 17 |
| FTS-T | Fortis Inc. | 3.4% | $73.33 | 23.00% | $2.49 | 4.2% | 51 |
| GSY-T | goeasy Ltd. | 4.7% | $122.95 | -26.45% | $5.84 | 24.8% | 10 |
| IFC-T | Intact Financial | 1.9% | $282.18 | 7.31% | $5.32 | 9.9% | 20 |
| L-T | Loblaw Companies Limited | 0.9% | $60.51 | 27.23% | $0.55 | 15.2% | 13 |
| MFC-T | Manulife Financial | 3.6% | $48.26 | 9.83% | $1.76 | 10.0% | 11 |
| MGA-N | Magna | 4.0% | $49.09 | 17.61% | $1.94 | 2.1% | 15 |
| MRU-T | Metro Inc. | 1.5% | $98.04 | 8.73% | $1.48 | 10.4% | 30 |
| RY-T | Royal Bank of Canada | 2.9% | $205.46 | 19.27% | $6.04 | 7.9% | 14 |
| SJ-T | Stella-Jones Inc. | 1.5% | $84.87 | 16.28% | $1.24 | 10.7% | 20 |
| STN-T | Stantec Inc. | 0.6% | $148.63 | 31.40% | $0.89 | 7.3% | 13 |
| T-T | Telus | 8.0% | $20.38 | 3.82% | $1.64 | 7.0% | 21 |
| TD-T | TD Bank | 3.7% | $114.05 | 49.08% | $4.20 | 2.9% | 14 |
| TFII-N | TFI International | 2.1% | $85.69 | -35.38% | $1.80 | 12.5% | 14 |
| TIH-T | Toromont Industries | 1.3% | $159.56 | 41.08% | $2.08 | 8.3% | 35 |
| TRI-Q | Thomson Reuters | 1.7% | $141.13 | -13.09% | $2.38 | 10.2% | 31 |
| TRP-T | TC Energy Corp. | 4.4% | $77.45 | 13.53% | $3.40 | 3.3% | 24 |
| WCN-N | Waste Connections | 0.8% | $168.63 | -0.75% | $1.30 | 10.7% | 15 |
| Averages | 3.1% | 11.8% | 7.1% | 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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