Top 3 Fast Growing Canadian Dividend Stocks For 2020

As a dividend growth investor, my favorite picks are the ones that grow fast in all categories. Here are my top 3 fastest growing Canadian dividend stocks for 2020.

Those are super-powered companies showing strong stock price jump potential along with solid dividend increases. While they are sometimes a little riskier than “good old Canadian banks”, they add some spice to my investment recipe.

Keep in mind that my 3 top fast-growing stocks for 2020 show low dividend yield, but they also come with a high single-digit to double-digit dividend growth perspective.

The selection methodology of those companies is explained in this article: What a Dividend Growth Investor Buys in 2020?

Here are some great stock ideas for 2020:


CAE training

Market cap: 9B

Yield: 1.21%

Revenue growth (5yr, annualized): 9.72%

EPS growth rate ((5yr, annualized): 11.00%

Dividend growth rate (5yr, annualized): 12.13%

CAE is a world leader in simulation and training for the civil aviation and defense markets. Since both industries are growing and expected to grow significantly in the coming years, CAE will continue to surf on this strong tailwind. Management estimated that over the next 10 years, 300,000 pilots will become new first officers and 215,000 will have been upgraded to captain and will have to be trained to support airline fleet growth and to replace retiring pilots. The total active pilot population will grow to 530,000 in 2028 from 360,000 in 2018 creating a much larger market to support CAE’s recurring training services.

CAE business segment

Source: Investors presentation

The growth potential is similar in the defense & security industry as many countries are increasing their spending in these categories. While the company enjoys a strong core based on these two sectors, it is currently expanding its services through healthcare training.

The beauty of CAE’s business model is that training is never over. There are always new methods, processes and technologies to learn and master. Therefore, the company is sitting on an almost infinite source of recurring revenues. The company can use its reputation and expertise to expand into other training markets. By using its strong cash flows, it can buy other businesses in the same field such as Bombardier’s Aviation Training business (closed in 2019). This is a great way to add recurring business to its model with little risk.

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