Canadian-listed dividend-paying stocks that align with the methodology behind Trading Central’s Quantamental indexes, developed in partnership with Solactive.
We are leveraging a systematic 20-factor model that combines valuation, growth, quality, momentum and income to identify companies with strong fundamentals and market leadership. In today’s volatile market environment, this rules-based approach helps remove emotional bias and maintain consistent exposure to proven factors. By integrating dividend screening into this framework, the goal is to uncover Canadian equities that offer both sustainable income and long-term outperformance potential.
We began by setting a minimum market capitalization threshold of $5-billion to focus on larger, more established companies with stronger balance sheets, more predictable earnings, and lower volatility than smaller-cap stocks.
Next, our criteria focused on companies with a Trading Central Quantamental Rating of at least 50 out of 100, ensuring balanced strength across multiple factors. We also required an Income Factor Rating of 50 or higher, targeting companies with sustainable and reliable dividend profiles based on yield, dividend growth and payout ratios.
To ensure sufficient trading liquidity, we included stocks with a minimum 90-day average trading volume of 200,000 shares.
Finally, we narrowed our search to stocks trading within 10 per cent of their 52-week highs, favouring companies exhibiting relative strength and positive price momentum.We have also included year-to-date and one-year price performance for your reference.
Trading Central is a global leader in financial market research and investment analytics for retail online brokers and institutions. Its product suite provides actionable trading ideas based on technical and fundamental research covering stocks, exchange-traded funds, indexes, forex, options and commodities. Strategy Builder, our stock screener is available through leading retail brokers in Canada and worldwide.
Topping our list is Canadian Natural Resources Ltd. CNQ-T, one of Canada’s largest energy producers. The company offers a dividend yield of 3.9 per cent, supported by a dividend growth rate of 4.44 per cent over the past year and an annualized 24.05-per-cent increase over the past five years.
Cenovus Energy Inc. CVE-T a Canadian integrated oil and natural gas company with upstream production and downstream refining operations, also stands out with a dividend yield of 2.23 per cent, supported by strong growth dynamics. The company increased its dividend by 11.11 per cent over the past year, while delivering an annualized growth rate of 74.26 per cent over the past five years, reflecting a significant expansion in shareholder returns. With a relatively low payout ratio of 36.28 per cent, the dividend appears well-covered, leaving room for continued growth.
Within financials, Canadian Imperial Bank of Commerce CM-T, and Bank of Montreal BMO-T, highlight the strength of Canada’s banking sector, offering dividend yields above 3 per cent alongside steady earnings and balanced factor exposure.
Sun Life Financial Inc. SLF-T, a global financial services company providing asset management, insurance, and private wealth management, stands out among insurers with the highest Quantamental Rating in the group at 63 and a strong Income Factor Rating of 70, reflecting its consistent dividend profile and stable fundamentals.
This quantitative approach is now accessible through the recently launched Trading Central Quant Canada 50 Equity Index ETF (TCCA-T), in partnership with LongPoint ETFS, which tracks the Solactive TC Quant Canadian 50 Index and provides a simple, rules-based way to gain diversified exposure to Canadian equities. The result is a systematic portfolio built on the same strategy highlighted in this Number Cruncher, offering investors an efficient way to implement a disciplined, multifactor approach.
The investment ideas presented here are for information only. They do not constitute advice or a recommendation by Trading Central in respect of investing in financial instruments. Investors should conduct further research before investing.
Gary Christie is head of North American research at Trading Central in Ottawa.
