Best Canadian Dividend Income Stocks…

There comes a point during our quest towards retirement, or financial freedom, that we must focus on income stream to pay for the bills. It’s a different strategy than growing a portfolio during the accumulation years where you can take on some more risks.

Finding the appropriate stock that gives you the best income with the best dividend stability is no small task.

Best Dividend Income Stocks

The Dividend Snapshot Screener is setup to quickly narrow down on a short list. Filter by the income fit, the yield, the Chowder score and any other metrics you want.

Each of the holdings below will pay you more than 4% and grow their dividends at a faster rate than the inflation so you can keep up with inflation. As a note, REITs are excluded from the filter. I am not a fan and there are safer options to generate income and have dividend growth keeping up with inflation.

#1 – Algonquin Power & Utilities Corp

Algonquin Power & Utilities is a diversified utility company in North America with $10 billion in total assets. The company engages in the generation, transmission, and distribution of water, gas, and electricity to communities across the U.S. It also has renewable energy business. As a growing renewable energy company, Algonquin Power owns a strong portfolio of long term contracted wind, solar and hydroelectric assets with 1.5 GW of total installed capacity. The company through its subsidiaries owns an equity interest in more than 39 clean energy facilities. Algonquin Power operates through two subsidiaries: Liberty Utilities (64% of 2018 earnings) and Liberty Power (36%). The company has more than 50 power generation facilities and 20 utilities across North America. Algonquin’s utility business serves nearly 770,000 customers in twelve states across the U.S., through 1,200 miles of electrical transmission lines and 100 miles of natural gas transmission pipelines. Investment Data

#2 – TC Energy

TC Energy is a leading North American infrastructure company. It supplies more than 25% of natural gas consumed daily across North America. The company has a strong portfolio of diversified assets, storage facilities and power generation plants and operates one of North America’s largest natural gas pipelines networks extending to more than 57,500 miles. TC Energy operates three complementary energy infrastructure businesses across three major geographies in North America. By generation type, TC’s assets can be divided into nuclear, natural gas and wind. The USA, Canada and Mexico are its core geographies and the company has access to North America’s two most prolific natural gas supply basins. With more than 65 years of service, TC Energy is known for delivering energy in a safe and sustainable manner. Ownership of low-risk regulated cost-of-service businesses and long-term contracted energy infrastructure assets differentiate TC Energy from its peers. Investment Data

#3 – Scotia Bank

Scotiabank is a leading international bank in Canada and a leading financial services provider in the Americas. The bank has a presence in personal and commercial, corporate and investment banking, wealth management and capital markets, and serves 25 million customers worldwide. With a rich history of 185 years, the bank has developed an extensive network of over 960 branches and more than 3,600 automated banking machines in Canada, and 1,800 international branches. Scotiabank has a wide geographic presence in attractive markets in Latin America (71% of revenues), Caribbean & Central America (25%) and Asia (4%). It operates through Canadian banking (49% of earnings), international banking (36%) and global banking and markets (15%) business lines. Scotiabank is highly diversified by products, customers and geographies, which reduces risk and volatility. The bank generates nearly 80% of its earnings from high quality and stable businesses which gives stability to cash flows.

Investment Data

#4 – Emera

Emera Inc. is a leading North American diversified energy and services company with assets worth $30 billion. The company engages in the generation, transmission, and distribution of electricity and gas, and provides other utility energy services. Emera Inc. has operations in Canada, the USA and in four Caribbean countries. The company serves a diverse base of residential, commercial as well as industrial customers. It operates a balanced and diversified portfolio consisting of ~90% regulated assets in electric utilities, gas LDCs; and unregulated gas-fired generation across North America. Emera reports its results in six operating segments: Emera Florida and New Mexico, Nova Scotia Power Inc., Emera Maine, Emera Caribbean, Emera Energy, and corporate & other. The company invests in electricity generation, transmission and distribution, gas transmission and distribution, and utility energy services. It also has investments in renewable energy assets. Investment Data

#5 – Canadian Utilities

Canadian Utilities is one of the largest utility companies in Canada. It is a subsidiary of ATCO. By geography, Canada is its principal place of business accounting for 94% of revenues, followed by Australia (5%) and other countries (1%). The company owns regulated electric and gas distribution and transmission assets worth $22 billion serving more than two million customers around the world. About 86% of Canadian Utilities’ earnings comes from regulated sources, and the remaining 14% is derived from long-term contracted assets. Canadian Utilities has core investments in electricity, pipelines & liquids and retail energy business units, as well as its international operations in Australia and Latin America. Its segments are Electricity (70% of 2018 earnings), Pipelines & Liquids (40%) and Corporate & other (-10%). The company owns an extensive network consisting of 87,000 km electrical powerlines, 64,500 km pipelines, 21 global generating plants, water infrastructure capacity of 85,200 cubic meters per day, and natural gas and hydrocarbon storage capacities. Investment Data

#6 – Genworth MI Canada Inc.

Genworth is the largest private residential mortgage insurer in Canada providing mortgage default insurance to Canadian residential mortgage lenders. The company offers both transactional and portfolio mortgage insurance. Genworth is known for delivering value at every stage of the mortgage process. The company operates through its subsidiary, Genworth Financial Mortgage Insurance Company Canada (Genworth Canada). With more than two decades of experience, Genworth has developed deep relations with lenders, brokers, realtors, etc. and has built a broad underwriting and distribution platform across Canada. Genworth provides tailored mortgage insurance products which help customers buy homes with a minimum 5% down payment. The company has helped more than 1.5 million families buy their own homes. Genworth has a strong capital position with a track record of annual dividend increases and share buybacks. Superior customer service, a robust risk management framework and innovative processing technology form a deep moat around Genworth’s business. Investment Data

#7 – CIBC

CIBC or Canadian Imperial Bank of Commerce is a leading North American financial institution, formed as a result of the merger between the Canadian Bank of Commerce and the Imperial Bank of Canada in 1961. The bank operates through its four strategic business units Canadian Personal and Small Business Banking (48% of latest net income), Canadian Commercial Banking and Wealth Management (24%), U.S. Commercial Banking and Wealth Management (13%), and Capital Markets (15%). The bank caters to 11 million individual, small business, commercial, corporate and institutional clients in Canada, the U.S. and around the world. CIBC has a strong client focused culture and operational efficiencies which drive shareholder value and aid growth across different platforms. CIBC’s investment in technology and digital platforms should also meet the evolving needs of its clients. The bank caters to 11 million individual, small business, commercial, corporate and institutional clients in Canada, the U.S. and around the world. Investment Data

#8 – Atco Ltd

ATCO is a diversified company providing services and business solutions globally. It is Alberta’s largest natural gas distribution company, serving approximately 1.2 million customers in nearly 300 communities. ATCO has manufacturing facilities in Canada, the US, Chile, and Australia. The company serves more than two million customers in over 100 countries around the world. It provides integrated solutions in structures & logistics, electricity, pipelines & liquids, commercial real estate and retail energy. ATCO owns an impressive asset base comprising of 21 power plants with a generation capacity of 2500+ MW, 87,000 km electric power lines, huge hydrocarbon storage capacity, 64,500 km natural gas pipelines, etc. Its regulated earnings have doubled to 93% in 2017 from 45% in 2012. The company’s operating segments are Canadian Utilities (electricity, pipelines & liquids, and corporate) which accounted for 78% of total earnings (Q3’18) followed by structures & logistics (4%), Neltume Ports (1%) and corporate and others (17%). Investment Data

#9 – Telus

TELUS Corp. is a leading telecom company in Canada. It is the second largest in Canada and provides a wide range of communications products and services such as data, IP, voice, television, entertainment, and video. It is also Canada’s largest healthcare IT provider. TELUS has a strong presence in the personal, business and healthcare segments which provides a diversified stream of income. Wireless is the larger segment accounting for 57% of total revenue while the wireline segment constitutes the remaining 43%.

The company has industry leading wireless churn rates of below 1%. TELUS serves more than 13 million customer connections, including 8.9 million wireless subscribers, 1.7 million Internet subscribers, 1.3 million residential network access lines and 1.1 million TELUS TV customers. TELUS Corporation is a leading network provider catering to 99% of Canadians. The company generates recurring monthly fees from its subscribers, which are growing in number, and is well positioned to benefit from a growing appetite for data.

Investment Data

#10 – BCE

Bell Canada Enterprises is Canada’s largest telecommunications company. It provides an extensive range of products and solutions for its customers’ communication needs. The company owns Canada’s largest network of data centers, retail outlets, as well as Bell LTE, Canada’s national network. BCE is a leading residential communications provider offering fiber-based Fibe TV and Fibe Internet, Connected Home services and home phones in seven provinces. It also provides national wireless services, and a wide range of business communications services including data hosting and cloud computing across the country. Bell Canada caters to a diversified customer base which includes retail consumers, businesses and government customers. Moreover, its multimedia company, Bell Media is Canada’s premier media company hosting the No.1 sports channel TSN. The company operates through Bell Wireline (52% of Q4’18 revenues), Bell Wireless (35%) and Bell Media (13%) segments. By revenues, wireline is its largest segment, with revenues comprising of data, voice and other services (90% of wireline revenues) and products (10%). Investment Data