Friday, January 15, 2021

11 Monthly Paying Canadian Dividend Growers for 2021

"Do you know the only thing that gives me pleasure? It's to see my dividends coming in."
- John D. Rockefeller

If like Mr. Rockefeller, you get pleasure from seeing your dividends coming in each month, and you'd like to see them grow over time, the below table might interest you. Using the Canadian Dividend All-Star list from December 31, 2020, I determined the monthly dividend growers for 2021.   To be included, companies had to pay a monthly dividend, increase their distribution at least once in the last 12 months, and have a minimum 5-year history of annually increasing their payouts. Much like in similar posts in 202020192018,  2017 and 2016, there was some additional filtering to come up with the below table. From the 100 companies appearing on the initial Canadian Dividend All-Star list, there were only 18 who paid dividends monthly. Sadly, I had to remove seven companies (ticker symbols: EIF, KEY, CAR.UN, PPL, SGR.UN, SRU.UN, MRG.UN) who had not raised their distributions in the past twelve months. The negative impacts of the covid-19 pandemic can be seen since the remaining 11 companies were much less than the 18 monthly dividend growers in 2020, and the 17 in 2019 and 2018, down from 20 in 2017, but only slightly lower than the 12 in 2016. The resulting 11 companies included six real estate investment trusts (REITs). As the payout ratios and valuations of REITs are usually calculated based on funds from operations (FFO) or adjusted funds from operations (AFFO), I decided to separate the resulting list in two so as not to confuse any casual readers. For your browsing pleasure, the resulting 11 monthly dividend payers are.

StreakCADDiv.Dividend Growth RatesEPS PayoutP/E
CompanyYearsYieldCurr.1-yr3-yr5-yr10-yrRatio %TTM
First National Financial Corp95.06CAD7.
Parkland Fuel Corporation83.01CAD1.71.72.4-0.493.831.2
Savaria Corporation83.32CAD4.417.822.418.786.725.97
Global Water Resources Inc.72.01USD1.01.83.1N/A599.02311.73
Badger Daylighting Ltd.51.58CAD5.31210.63.553.3333.57
Granite Real Estate Investment Trust103.85CAD3.33.74.818.959.6112.17
Allied Properties Real Estate Investment Trust94.36CAD3.
Firm Capital Property Trust98.04CAD1.94.44.4N/A68.098.38
InterRent Real Estate Investment Trust92.38CAD5.08.17.11012.735.32
CT Real Estate Investment Trust85.13CAD2.04.23.6N/A230.5744.61
Chartwell Retirement Residences65.47CAD2.

As with any other screen, the above list is simply a starting point for further research.  Clearly, a deeper dive is required based on the average EPS payout ratio of 130.86% and the pricey trailing average P/E of 49.44X. As indicated on my Investment Holdings tab, I currently own twor monthly paying Canadian Dividend All-Stars (Granite REIT and CT REIT). Of the remaining nine companies, First National and Allied Properties both look interesting to me based on the metrics above. The psychological boost I get from holding a couple monthly dividend payers in my portfolio helps me relate to the pleasure Mr. Rockefeller felt about receiving regular dividend payments.

Do you hold or are you interested in purchasing any of the 11 monthly payers?

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