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The coronavirus pandemic saw investors take refuge in stocks that come with the promise of regular dividend payouts. While many companies cancelled or reduced their dividends as the COVID outbreak ate into their earnings, others continued to distribute regular dividends through the rough times.
Here’s a look at a list of stocks on the Toronto Stock Exchange (TSX), which came with a track record of regular and good dividend payouts in 2020.
1. Enbridge (TSX: ENB)
Canadian energy distributor Enbridge Inc has been paying dividends for more than 65 years. The company said its dividend grew at an average compound yearly rate of 11 per cent in the last 25 years.
Enbridge’s current quarterly dividend is C$ 0.835, which is payable on 3 January 2021. It has an yield of 7.804 per cent at the moment, as per TMX.
Stocks of Enbridge Inc climbed nearly four per cent in the last six months and about six per cent in December so far.
2. BCE Inc (TSE:BCE)
BCE Inc is set to go ex-dividend in a few days on December 14. Its quarterly dividend of C$ 0.833 is payable on January 15 and currently has an yield of 5.756 per cent, as per TMX.
The telecommunications company paid C$ 3.33 in dividends in total last year. Its dividend growth for the last three years was 4.41 and that for the last five years was 4.78.
BCE stocks, which are trending high on the TSX, climbed by over two per cent in the last three months and almost three per cent in December so far.
© Kalkine Group Image
3. Canadian Imperial Bank Of Commerce (TSX: CM)
Canadian Imperial Bank Of Commerce, one of the top banks of the country, has been paying dividends regularly since 1868. It currently pays a dividend of C$ 1.46 on a quarterly basis and its yield at the moment is 5.23 per cent, according to the TMX portal. Its ex-dividend date comes in a few days on December 24, and its payable next year on January 28.
CIBC’s dividend growth stood at 4.7 in the last three years and 6.04 in the last five years.
Stocks of CIBC are currently rallying on the TSX. The scrips leapt over three per cent this year and nearly 13 per cent in the last six months.
4. Royal Bank of Canada (TSX: RY)
Trending on the TSX for its high dividend yield, the Royal Bank of Canada announced its latest quarterly common share dividend of C$ 1.08 earlier in December. The dividend will be payable on February 24 next year to shareholders who purchase the stock by January 26, 2021.
Its current dividend yield is 4.083 per cent, as per TMX. In the last three years, the dividend has grown 7.3.
5. Toronto-Dominion Bank (TSX: TD)
The Toronto-Dominion Bank, on December 3, announced a dividend of 79 cents per share that will be payable on January 31, next year. Its ex-dividend is January 7, 2021.
The quarterly dividend currently has an yield of 4.418 per cent. TD recorded a dividend growth of 9.88 in the last three years.
6. Canadian Natural Resources Limited (TSX: CNQ)
Oil and gas company Canadian Natural Resources Limited (CNQ) initiated trading ex-dividend on Tuesday, December 8. Its quarterly dividend of C$ 0.425 is scheduled to be paid early next year on January 5. At the current stock price of C$ 31.41, the dividend yield Canadian Natural Resources Limited stands at is 5.412 per cent.
The CNQ shares are currently ranked high on the TSX among trending stocks with high trading activities. Its dividend growth stood at 13.5 in the last three years and at 12.99 in the last five years.
7. Open Text Corporation (TSX:OTEX)
Software company Open Text Corporation distributes a quarterly dividend of US$ 0.201, which currently has a dividend yield of 1.789 per cent.
With the pandemic going on, Open Text did not raise its dividend in April this year as it usually does. The company began trading its ex-dividend on December 3, which will be payable on December 22, 2020.
8. Absolute Software Corporation (TSX:ABT)
Absolute Software Corporation distributes a quarterly dividend of C$ 0.08. While the software company does not have a record of regular dividend growths, it currently has a strong yield of 2.408 per cent for a smallcap firm.
Absolute began its ex-dividend trading on November 12, and paid it to shareholders on November 30.
Absolute Software recorded a dividend growth of 1.79 in the last five years.
Investors should keep in mind that companies can choose to stop paying dividends at any point of time, so they should make their investment decisions accordingly.
