Last updated by BM on October 14, 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 down from the previous week with an average return of +10.0% YTD (capital).
- Last week, there were no dividend announcements from companies on The List.
- Last week, there were no earnings reports from companies on The List.
- This week, no companies from The List will report on earnings.
- This week, no companies 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
Timely Ten: Where Smart Dividend Growth Investors Are Looking Next
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)
There was little movement at the top of the Canadian list this month. We already own four of the top five names, so patience, not aggression, is the order of the day.
The biggest change came from goeasy Ltd., which dropped on the release of a short report on September 16. We took the opportunity to add to our position in the model portfolio. (You can read our full thesis in the weekend article.)
Enbridge Inc. also moved higher on price weakness and now sits at the tenth spot.
In the lower half of the list, both Waste Connections and Metro Inc. trended upward. We added to our position sizes in both companies. Detailed write-ups will be published over the next two weeks.
Timely Ten (USA)
The standout mover this month was Air Products and Chemicals, climbing from number thirteen to number eight. The company is facing some near-term challenges, but with 44 consecutive years of dividend growth, we are not counting it out. More research is underway.
On the flip side, NextEra Energy jumped 16% in price and fell from number eight to number thirteen on the list. Our patience in building this position in 2023 appears to be paying off.
We are also watching Automatic Data Processing closely. It has climbed from number nineteen to number seventeen in just 30 days and is approaching an attractive valuation zone. As a Dividend King with 50 consecutive years of increases and a history of double-digit annualized returns, it is firmly on our radar to add to the portfolio.
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.
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 down from the previous week, with an average YTD return of +10.0% (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 Loblaw Companies Limited (L-T), up +2.93%.; Emera (EMA-T), up +2.71%; and Bell Canada (BCE-T) up +2.64%.
Magna (MGA-N) was the worst performer last week, down -11.14%.
| SYMBOL | COMPANY | YLD | PRICE | YTD % | DIV | YTD % | STREAK |
|---|---|---|---|---|---|---|---|
| ATD-T | Alimentation Couche-Tard Inc. | 1.1% | $73.13 | -7.49% | $0.78 | 8.3% | 15 |
| BCE-T | Bell Canada | 8.6% | $33.46 | -0.18% | $2.87 | -28.1% | 16 |
| BIP-N | Brookfield Infrastructure Partners | 5.0% | $34.38 | 7.91% | $1.72 | 6.2% | 17 |
| CCL-B-T | CCL Industries Inc. | 1.7% | $75.82 | 2.99% | $1.28 | 10.3% | 23 |
| CNR-T | Canadian National Railway | 2.7% | $132.24 | -9.91% | $3.55 | 5.0% | 29 |
| CTC-A-T | Canadian Tire | 4.2% | $167.91 | 9.24% | $7.10 | 1.4% | 14 |
| CU-T | Canadian Utilities Limited | 4.7% | $39.04 | 12.25% | $1.83 | 1.0% | 53 |
| DOL-T | Dollarama Inc. | 0.2% | $174.88 | 24.74% | $0.41 | 18.1% | 14 |
| EMA-T | Emera | 4.2% | $68.61 | 28.17% | $2.92 | 1.2% | 18 |
| ENB-T | Enbridge Inc. | 5.6% | $66.77 | 7.92% | $3.77 | 3.0% | 29 |
| ENGH-T | Enghouse Systems Limited | 5.6% | $20.56 | -24.02% | $1.16 | 16.0% | 18 |
| FNV-N | Franco Nevada | 0.7% | $204.62 | 68.93% | $1.52 | 5.6% | 17 |
| FTS-T | Fortis Inc. | 3.4% | $71.46 | 19.86% | $2.46 | 3.1% | 51 |
| GSY-T | goeasy Ltd. | 3.7% | $158.29 | -5.31% | $5.84 | 24.8% | 10 |
| IFC-T | Intact Financial | 2.0% | $269.60 | 2.52% | $5.32 | 9.9% | 20 |
| L-T | Loblaw Companies Limited | 1.0% | $56.50 | 18.80% | $0.55 | 15.2% | 13 |
| MFC-T | Manulife Financial | 4.0% | $44.41 | 1.07% | $1.76 | 10.0% | 11 |
| MGA-N | Magna | 4.5% | $43.54 | 4.31% | $1.94 | 2.1% | 15 |
| MRU-T | Metro Inc. | 1.6% | $93.54 | 3.74% | $1.48 | 10.4% | 30 |
| RY-T | Royal Bank of Canada | 3.0% | $201.20 | 16.79% | $6.04 | 7.9% | 14 |
| SJ-T | Stella-Jones Inc. | 1.5% | $81.27 | 11.34% | $1.24 | 10.7% | 20 |
| STN-T | Stantec Inc. | 0.6% | $153.23 | 35.47% | $0.89 | 7.3% | 13 |
| T-T | Telus | 7.7% | $21.34 | 8.71% | $1.64 | 7.0% | 21 |
| TD-T | TD Bank | 3.8% | $109.78 | 43.50% | $4.20 | 2.9% | 14 |
| TFII-N | TFI International | 2.1% | $86.53 | -34.75% | $1.80 | 12.5% | 14 |
| TIH-T | Toromont Industries | 1.3% | $157.24 | 39.03% | $2.08 | 8.3% | 35 |
| TRI-Q | Thomson Reuters | 1.6% | $151.42 | -6.75% | $2.38 | 10.2% | 31 |
| TRP-T | TC Energy Corp. | 4.6% | $73.93 | 8.37% | $3.40 | 3.3% | 24 |
| WCN-N | Waste Connections | 0.7% | $172.85 | 1.73% | $1.26 | 7.7% | 15 |
| Averages | 3.2% | 10.0% | 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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