Over the past months, I have been doing regularStock Analysis and discussing different stocks and I realized that I had not shared the stocks that retain my attention. As such, I thought I’d go through my watch list and pull out the Top 20 Dividend Stocks based on my technical screening and thedividend yield. I watch about 100 stocks between the Canada and the US and I update my list as I find others that I believe worthy of being on my watch list. I have about 7 sectors on my watch list and I usually keep 6 to 12 stocks in each. The list is quite varied as it is composed of REITs, Income Trust and Companies with either small, medium or large caps.
Top 20 Dividend Stocks – Technical Screening
The technical screening is based on 4 criteria that I can easily fetch from Google Finance. Over time I should build enough data for historical trends but I don’t have it and I don’t have a team working for me 
I started looking at the Beta but I have not figured out how to mathematically weight it in yet… I am also not sure if I want to give it too much weight. I’d rather focus on the Debt-To-Equity ratio which I started entering but I am not done. For now, the following criteria are feeding the score.
I started looking at the Beta but I have not figured out how to mathematically weight it in yet… I am also not sure if I want to give it too much weight. I’d rather focus on the Debt-To-Equity ratio which I started entering but I am not done. For now, the following criteria are feeding the score.- P/E : Target is 15
- 52 Week Range : The lower in the range the higher the score
- Yield : Target is above 3% (this one is manual)
- Payout Ratio : Under 75%
| Ticker | Name | Stock | Market Cap | Yield | Score Max. 6 |
|---|---|---|---|---|---|
| RCI.B | Rogers Communication | $35.63 | $19.70 | 3.96% | 5.11 |
| SLF.TO | Sun Life Financial | $30.01 | $17.35 | 4.77% | 5.10 |
| RSI.TO | Rogers Sugar | $5.17 | $0.46 | 6.53% | 4.95 |
| BMO.TO | Bank of Montreal | $60.89 | $34.62 | 4.61% | 4.71 |
| REF.UN | Canadian REIT | $33.67 | $2.26 | 4.10% | 4.69 |
| T | AT&T | $31.06 | $183.94 | 5.48% | 4.60 |
| LMT | Lockheed Martin Corp. | $80.34 | $28.08 | 3.77% | 4.56 |
| TA.TO | TransAlta | $21.27 | $4.72 | 5.40% | 4.56 |
| LLY | Lilly | $39.15 | $45.32 | 5.03% | 4.53 |
| CPB | Campbell Soup | $35.17 | $11.26 | 3.18% | 4.53 |
| YLO.TO | Yellow Media | $4.57 | $2.40 | 14.71% | 4.50 |
| CINF | Cincinnati Financial Corp. | $30.92 | $5.04 | 5.18% | 4.43 |
| MSFT | Microsoft | $24.57 | $207.19 | 2.56% | 4.32 |
| BNS.TO | Scotia Bank | $57.61 | $62.13 | 3.62% | 4.30 |
| COS.TO | Canadian National Resources | $29.74 | $14.41 | 3.87% | 4.29 |
| HSE.TO | Husky | $27.87 | $25.00 | 4.32% | 4.26 |
| CM.TO | CIBC | $82.83 | $33.82 | 4.22% | 4.17 |
| VNR.TO | Valener | $16.34 | $0.61 | 6.18% | 4.12 |
| TD.TO | Toronto Dominion | $82.24 | $72.68 | 3.23% | 4.09 |
| POW.TO | Power Corporation | $28.18 | $11.58 | 4.09% | 4.09 |
Top 20 Dividend Stocks – Dividend Yield
Since I was compiling the list above, I thought I’d share the highest paying stock on my watch list so you can see the difference between simply looking at yield versus other elements. The yield by itself can be an indicator to look further into an investment but by itself, it should not signal a purchase.
I have purposely excluded REITs from this list. The yields are usually high for many of them and I did not feel they belonged with the others. When there isn’t a score, it’s because the P/E is negative.
| Ticker | Name | Stock | Market Cap | Yield | Score Max. 6 |
|---|---|---|---|---|---|
| YLO.TO | Yellow Media | $4.57 | $2.40 | 14.71% | 4.50 |
| JE.TO | Just Energy | $14.90 | $2.04 | 8.32% | 3.49 |
| ERF.TO | Enerplus Corp | $29.15 | $5.22 | 7.39% | 2.51 |
| KEG.UN | The Keg Royalty Income Fund | $13.28 | $0.15 | 7.26% | 3.41 |
| BA.TO | Bell Alliant | $27.10 | $6.17 | 7.02% | - |
| PBH.TO | Premium Brands Holding | $16.72 | $0.30 | 7.01% | 2.70 |
| LIQ.TO | Liquor Store | $15.50 | $0.35 | 6.99% | 3.22 |
| PPL.TO | Pembina Pipeline | $23.42 | $3.91 | 6.67% | 2.24 |
| RSI.TO | Rogers Sugar | $5.17 | $0.46 | 6.53% | 4.95 |
| CPG.TO | Crescent Point Energy | $44.56 | $12.04 | 6.19% | 2.15 |
| VNR.TO | Valener | $16.34 | $0.61 | 6.18% | 4.12 |
| KMP | Kinder Morgan Energy | $72.09 | $22.99 | 6.12% | 2.49 |
| DAY.TO | Daylight Energy | $10.21 | $2.15 | 5.85% | - |
| T | AT&T | $31.06 | $183.94 | 5.48% | 4.60 |
| BCE.TO | Bell Canada | $37.90 | $29.34 | 5.47% | 3.76 |
| AGF.B | AGF Management | $19.47 | $1.86 | 5.37% | 2.66 |
| CINF | Cincinnati Financial Corp | $30.92 | $5.04 | 5.18% | 4.43 |
| MBT.TO | Manitoba Telecom | $33.25 | $2.18 | 5.10% | 2.41 |
| CGX.TO | Cineplex Galaxy | $25.28 | $1.46 | 5.05% | 2.11 |
Thoughts
For those that follow Intel (INTC), when it was trading at around 19$-20$, it was at the top of the score list. I had no funds available unfortunately and I don’t sell holdings to chase other investments either. It was a missed opportunity but they come and go.
Yellow Media (YLO) is ranking high in both lists simply due to the fact that the stock has been beaten recently. The P/E is really low, it’s trading at the bottom of its 52-week range and the yield is just insane. The insane yield is, well, just insane … I have been watching this stock for a couple of years and it has always paid this much and I can’t believe that it is sustainable. The company appears to be re-inventing itself, and at some point they will need the money for expenditure I imagine …
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