I'm a big fan of dividend growth stocks because they delivered me solid returns and a growing passive income over the recent years.
My main focus was on U.S. stocks, which is generally good because the American capitalism works fine, but outside the US are also good stocks with a predictable business and stable growing dividends.
This week, I look at companies in Canada that have had a history of growing dividends, but more importantly, have the capacity to continue to grow these dividends in the future.
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A key measure of this sustainability can be observed through the payout ratio, which is the ratio of dividends paid to either cash flows or earnings.
A company paying out too high of a percentage in dividends is likely unable to continue to do so in the future. Attached are 11 of my top picks from the results.
I hope you can find there some new ideas. Please share your thoughts about the results. Thank you.
Here are some of my results...
Suncor Energy -- Yield: 3.02%
Suncor Energy (TSE:SU) employs 13,980 people, generates revenue of $40,490 million and has a net income of $2,699 million. The current market capitalization stands at $53.63 billion.
Suncor Energy's earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $13,054 million. The EBITDA margin is 32.24% (the operating margin is 11.34% and the net profit margin 6.67%).
Financials: The total debt represents 16.73% of Suncor Energy assets and the total debt in relation to the equity amounts to 32.04%. Due to the financial situation, a return on equity of 6.52% was realized by Suncor Energy.
Twelve trailing months earnings per share reached a value of $1.83. Last fiscal year, Suncor Energy paid $1.02 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 20.31, the P/S ratio is 1.32 and the P/B ratio is finally 1.29. The dividend yield amounts to 3.02%. Â
See more here: 3 Canadian Dividend Stocks You Should Consider....
