Canadian Dividend All-Stars For Week Of Feb. 1

The markets are once again in unprecedented territory. In 2020, it was the pandemic that sent the markets crashing and heading into considerable volatility. In 2021? It is WallStreetBets vs. the hedge funds.

The battle is having an impact on the broader markets as retail investors are beating notable short sellers at their own game. How it ends, no one knows. But volatility has returned.

The good news for dividend growth investors? This time, dividend growth is unlikely to be impacted. February is the busiest month of the year for dividend growth in Canada, as ~25% of All-Stars announced their annual raise in February last year.

Before we jump into that, let’s first take a look at the action from popular Canadian dividend stocks last week. Of note, all figures are in Canadian dollars unless otherwise noted.

Recent Dividend All-Star Updates

Last week, two of the most reliable dividend stocks in the country came through for investors. Canadian National Railway (CNI) and Metro (MTRAF) both announced their annual raises.

Company

EST DGR

EST Increase

Actual DGR

Actual Increase

New Div

CNI

~7%

$0.04

6.96%

$0.04

$0.615

MTRAF

11.11%

$0.025

11.11%

$0.025

$0.25

First up, we have CN Railway which raised the quarterly dividend inline with expectations. The 7% quarterly bump was the same as last year’s raise and is reflective of a more cautious tone. The company also disappointed with guidance, so it is not surprising to see the company take a more tempered approach to dividend growth.

As for Metro, it too rose within my expectations. The attractive 11.11% is a reflection of Metro’s low payout ratio and its status as a defensive option in these times of uncertainty. Despite its low yield, it remains a premiere dividend growth stock.

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Disclaimer: The writer of this article may have positions in the securities mentioned in this article. The fact they hold positions in securities has had no impact on the production of this ...

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