In this article, we will be taking a look at the top 5 Canadian dividend aristocrats to buy now. To read our detailed analysis on Canadian dividend stocks, you can go directly to see the Top 10 Canadian Dividend Aristocrats to Buy Now.
5. Algonquin Power & Utilities Corp. (NYSE:AQN)
Number of Hedge Fund Holders: 13
Dividend Yield: 5.3%
Number of Years of Dividend Growth: 11
Algonquin Power & Utilities Corp. (NYSE:AQN) is a utility company operating in Canada. The company owns and operates assets in the US, Chile, and Bermuda, alongside Canada. It generates and sells electrical energy using primarily renewable energy power generation facilities. With a dividend yield crossing 5%, it is a lucrative dividend investing opportunity on our list of the top Canadian dividend aristocrats to buy now.
National Bank analyst Rupert Merer holds a Sector Perform rating on shares of Algonquin Power & Utilities Corp. (NYSE:AQN) as of this May.
The company’s EPS in the fiscal first quarter of 2022 was $0.2, in line with estimates. Algonquin Power & Utilities Corp.’s (NYSE:AQN) revenue was $735.7 million, beating estimates by $26.1 million.
In the first quarter of 2022, 13 hedge funds were long Algonquin Power & Utilities Corp. (NYSE:AQN), while 16 hedge funds were long the stock in the previous quarter. Their total stake values were $177 million and $141 million respectively.
4. TC Energy Corporation (NYSE:TRP)
Number of Hedge Fund Holders: 16
Dividend Yield: 5.4%
Number of Years of Dividend Growth: 22
TC Energy Corporation (NYSE:TRP), an energy company, is next on our list of the top Canadian dividend aristocrats to buy now. The company operates a network of natural gas pipelines spanning 93,000 km which transports natural gas from supply basins to local distribution companies, power generation plants, industrial facilities, and more. Its dividend growth history spanning over two decades makes it a top pick on our list.
CIBC analyst Robert Catellier upgraded shares of TC Energy Corporation (NYSE:TRP) just this May from Neutral to Outperformer.
The company hiked its quarterly dividend by about 3.4% just this February, ensuring its shareholders continued to receive a sizable dividend payout. The company is expected to raise its dividend annually by about 3% to 5% for the years to come as well.
According to our first quarter of 2022 hedge fund data, 16 hedge funds held stakes in TC Energy Corporation (NYSE:TRP) in that quarter. Their total stake value was $138 million.
3. Manulife Financial Corporation (NYSE:MFC)
Number of Hedge Fund Holders: 19
Dividend Yield: 5.4%
Number of Years of Dividend Growth: 8
Manulife Financial Corporation (NYSE:MFC) is a life and health insurance company providing financial products and services in Asia, Canada, the US, and otherwise globally as well. The company has paid out consistent dividends at a rising percentage for about eight years now, making it a sturdy choice on our list of the top Canadian dividend aristocrats to buy now.
RBC Capital’s Darko Mihelic holds a Sector Perform rating on Manulife Financial Corporation (NYSE:MFC) shares as of this May.
According to Barclays analyst John Aiken at the start of this year, the company could still be seen to benefit from a considerable upside as it retained its leverage to a rising rate environment. Aiken added that Manulife Financial Corporation (NYSE:MFC) had continued to expand its businesses offering high growth and high profitability, which prompted him to place an Overweight rating on the stock this February.
Out of 912 hedge funds, 19 hedge funds were long Manulife Financial Corporation (NYSE:MFC) in the first quarter of 2022. Their total stake value was $517 million. This is compared to 15 hedge funds that were long the stock in the previous quarter, with a total stake value of $346 million.
2. BCE Inc. (NYSE:BCE)
Number of Hedge Fund Holders: 11
Dividend Yield: 6.1%
Number of Years of Dividend Growth: 14
BCE Inc. (NYSE:BCE) is an integrated telecommunication services company, and next on our list of the top Canadian dividend aristocrats to buy now because of its whopping dividend yield of over 6%. The company operates through its Bell Wireless, Bell Wireline, and Bell Media segments to provide wireless, wireline, internet, and television services to consumers across Canada.
Jerome Dubreuil, an analyst as Desjardins, reiterated a Hold rating on the stock just this May.
BCE Inc. (NYSE:BCE) had an EPS of $0.7 in the fiscal first quarter of 2022, beating estimates by $0.06. The company’s revenue was $4.6 billion.
Our hedge fund data shows 11 hedge funds long BCE Inc. (NYSE:BCE) in the first quarter of 2022, with a total stake value of $77.7 million.
1. Enbridge Inc. (NYSE:ENB)
Number of Hedge Fund Holders: 24
Dividend Yield: 6.6%
Number of Years of Dividend Growth: 27
Enbridge Inc. (NYSE:ENB) is another energy company on our list of the top Canadian dividend aristocrats to buy now, having raised its dividend yield without fail for the past 27 years. The company invests in natural gas pipelines and gathering and processing facilities in the US and Canada, alongside providing services related to energy infrastructure.
Patrick Kenny, an analyst at National Bank, holds an Outperform rating on shares of Enbridge Inc. (NYSE:ENB) as of this May.
In the fiscal first quarter of 2022, Enbridge Inc. (NYSE:ENB) had an EPS of $0.6, beating the previous quarter’s EPS of $0.5. The company’s revenue was $11.7 billion, also beating the previous quarter’s revenue of $9.8 billion.
Out of 912 hedge funds, 24 hedge funds were long Enbridge Inc. (NYSE:ENB) in the first quarter of 2022, with a total stake value of $2.4 billion. In comparison, 21 hedge funds held stakes in the stock in the previous quarter, with a total stake value of $550 million.
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