The List of Canadian Dividend Aristocrats in 2022

The 2022 Canadian Dividend Aristocrats are Canadian stocks that have grown their dividend for 5+ years in a row. There are about 94 stocks on the list as of February 28, 2022. However, five years or more of dividend growth does not by itself qualify a stock as a Canadian Dividend Aristocrat. To be included on the list, a company must meet three criteria:

• Be a member of the S&P Canada BMI and Toronto Stock Exchange
• Increased the regular dividend per share for 5+ consecutive years but can maintain the same dividend for a maximum of two consecutive years within that five-year period. For new additions, the company must have increased its dividend in the first year of the prior five years.
• Have a market capitalization of at least $300 CAD million

In addition, the Canadian Dividend Aristocrats follow these rules.

• The Index is weighted by dividend yield.
• Individual stocks are capped at an 8% weighting and subject to a basket liquidity maximum weight. BL maximum weight is determined by dividing the three-month average daily value traded by the BL amount of CAD 100 million.

The Index is updated annually in January.

Notably, these criteria are very different from those used to determine the list of Dividend Aristocrats in the US. These stocks can be found in the S&P 500 Dividend Aristocrats Index. There are currently 66 constituents of the US index.

On the other hand, there are currently 86 constituents in the Canadian Index. These stocks can be found in the S&P/TSX Canadian Dividend Aristocrats Index. Note that some of the Canadian Dividend Aristocrats trade on other exchanges.

Canadian Dividend Aristocrats 2022

Market Update of the Canadian Dividend Aristocrats 2022

The Canadian Dividend Aristocrats 2021 currently (as of February 28, 2022) has a yield of about 4.04%, and the average forward price-to-earnings (P/E) ratio is approximately 13.2X.

The mean market capitalization is roughly $24,869 million (all dollar values are in CAD), and the median market capitalization is approximately $7,484 million. The market cap ranges between about $510 million to $199,795 million. The total market capitalization is roughly $2,337,643 million.

In 2021, the Canadian Dividend Aristocrats provided a total return of 25.9%. This return was the highest return since 2019 and the second-highest return in the past decade. The price return was 20.93%. This performance was slightly worse than the performance of the S&P 500 Index in 2021 at 28.71%.

Historical Performance

As a group, the Canadian Dividend Aristocrats have exhibited slightly higher total annualized returns than the benchmark index, the S&P/TSX Composite Index.

Over the past decade, the Canadian Dividend Aristocrats have had an annualized total return of 8.55% and a standard deviation of 12.6%, while the benchmark (the S&P/TSX Composite Index) had annualized total returns of 8.48% and a standard deviation of 11.32%.

Over the trailing 5-years, the Canadian Dividend Aristocrats have had an annualized total return of 8.8% and a standard deviation of 15.95%, while the benchmark has had annualized total returns of 9.78% and a standard deviation of 13.82%.

The table below the calendar year performance from 2012 to 2021.

Changes to the Canadian Dividend Aristocrats in 2022

On January 24, 2022, the S&P Dow Jones Indices announced the list would be changed effective February 1, 2022. Ten stocks were added, and two stocks were deleted from the list of Canadian Dividend Aristocrats. There were 94 companies on the list after the changes were completed.

Changes to the Canadian Dividend Aristocrats in 2021

On January 22, 2021, the S&P Dow Jones Indices announced that the list would be changed effective February 1, 2021. This action added nine stocks and deleted three stocks from the list of Canadian Dividend Aristocrats for a net gain of six stocks. There were 85 companies on the list once the change took effect.

Additions to the Canadian Dividend Aristocrats in 2020

The sector composition has changed with time due to changes in the index composition. The Index was updated on February 3, 2020, when 14 stocks were added to the Canadian Dividend Aristocrats list.

Deletions to the Canadian Dividend Aristocrats in 2020

On April 23, 2020, eight stocks were deleted from the list due to dividend cuts or suspensions. The deletions were effective on May 1, 2020.

On May 25, 2020, another five stocks were deleted from the list due to dividend cuts or suspensions. The deletions were effective June 1, 2020.

On June 23, 2020, one stock was deleted from the list due to a dividend cut or suspension. The deletion was effective on July 1, 2020.

Other Dividend Stock Lists

For US stocks, I have previously provided the following lists:

For UK stocks, I have written about:

Other dividend stock lists

Details on the Canadian Dividend Aristocrats 2021

The list of Canadian Dividend Aristocrats 2022 is relatively select since it comprises only 94companies. This number is out of the over 1,600 companies listed on the Toronto Stock Exchange at the end of January 2020.

Canadian Dividend Aristocrats Sector Breakdown

The chart below shows the sector breakdown for the Canadian Dividend Aristocrats 2022 is seen in the chart below as of February 28, 2022.

Stocks from the Financials sector have the most significant representation on the list of Dividend Aristocrats at about 25.6%. Stocks in the Financial sector tend to have somewhat more volatile earnings and cash flows that depend on the stock market valuation and interest rates.

The sector with the second highest representation is Energy at approximately 13.7%. The Energy sector tends to have fluctuating revenue, earnings, and cash flow but can generate decent returns over time. So, its presence in the top three is not surprising. Note that this relative ranking changed in 2020 as energy stocks have cut or suspended dividends; this sector’s relative ranking has dropped. However, the addition of some companies in 2021 has caused this sector’s relative ranking to rise again.

The third sector is Real Estate at about 10.6%. Real Estate stocks have been performing better since the sub-prime mortgage crisis. Many are now more conservatively managed. In addition, real estate investment trusts (REITs) had a good decade, except for the downturn in 2020.

These three sectors make up the majority of the Canadian Dividend Aristocrats at 51.7% of the total.

The sector ranking for the Canadian Dividend Aristocrats 2022 is unlike the US Dividend Aristocrats, which have Consumer Staples, Industrials, and Materials as the top three sectors.

Unlike the UK High Yield Dividend Aristocrats, it has Financials, Industrials, and Consumer Staples as the top three sectors.

Market Size of the Canadian Dividend Aristocrats 2022

The largest Canadian Dividend Aristocrat by market capitalization is the Royal Bank of Canada (TSE: RY), with a market capitalization of about $151,718 million (this section uses US dollars). Conversely, the stock with the smallest market capitalization is Fiera Capital (TSE:FSZ), with roughly $815 million market capitalization. Combined, the 94 Canadian Dividend Aristocrats have a total market capitalization of over $2.337 trillion.

Other Statistics

Canadian Utilities (TSE: CU) is the Canadian Dividend Aristocrat with the longest streak of increasing the dividend at 49 years. Fortis Inc (TSE:FTS) has the second-longest streak of consecutive dividend increases at 48 years.

List of Canadian Dividend Aristocrats in 2022 – Updated 02/28/22

On average, the Canadian Dividend Aristocrats 2022 have a distribution yield of about 3.41% and a 12-month trailing yield of 3.15%, which are higher than that of the US Dividend Aristocrats.

The top 10 members make up about 23.7% of the Index and list.

Analyses on Stocks in the Canadian Dividend Aristocrats 2021

The List of Canadian Dividend Aristocrats in 2022

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