What are we looking for?
Top Canadian-listed dividend growth stocks combining solid fundamentals, manageable debt and strong momentum.
The S&P/TSX Composite Index continues to trade near record levels as investors weigh the outlook for interest rate cuts and sector rotation heading into the year-end. In this environment, companies with consistent dividend growth, strong financial discipline and positive price momentum may continue to attract investor interest.
Our team employed Trading Central’s Quantamental methodology to identify Canadian-listed stocks demonstrating robust fundamental and technical characteristics, highlighting those best positioned to deliver income growth and potential capital appreciation.
The screen
We used Trading Central Strategy Builder to uncover Canadian dividend growers with sustainable balance sheets and strong price trends.
The criteria included:
a market capitalization of at least $1-billion, focusing on established, investable companies;
For context, we’ve also included year-to-date and one-year performance.
More about Trading Central
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.
What we found
Topping our list is Agnico Eagle Mines Ltd. AEM-T, one of Canada’s largest gold producers, with mining operations spanning Canada, Finland and Mexico. The stock has been a standout performer this year, rising 105 per cent year-to-date and 128 per cent over the past 12 months amid a rally in precious-metal prices.
Agnico Eagle boasts a TC Quantamental rating of 72 and a Momentum Factor rating of 96, reflecting strong technical and fundamental alignment. With a five-year dividend growth rate of 10.9 per cent and an exceptionally low debt-to-equity ratio of 0.01, the company’s disciplined capital management and robust free-cash-flow generation underpin its ability to sustain and increase shareholder returns.
Another notable name is Kinross Gold Corp. K-T, a globally diversified gold miner with key assets in the Americas and West Africa. The stock has surged 156 per cent year-to-date and 181 per cent over the past year, making it the top performer on our list.
Kinross carries a TC Quantamental rating of 70 and a Momentum Factor rating of 96, supported by strong production growth and improving cost efficiencies. With a five-year dividend growth rate of 15.5 per cent and a conservative debt-to-equity ratio of 0.16, Kinross continues to strengthen its balance sheet while rewarding investors through consistent dividend increases.
iA Financial Corp. IAG-T stands out as one of Canada’s leading life and health insurance companies with a growing wealth-management division. The stock offers the highest dividend yield on our list at 2.37 per cent, coupled with a five-year dividend growth rate of 14.1 per cent. Its TC Quantamental rating of 55 and Momentum Factor rating of 72 highlight steady fundamental quality and positive investor sentiment. iA Financial’s debt-to-equity ratio of 0.20 underscores its disciplined financial structure, supporting sustainable dividend growth and earnings stability.
Trading Central Strategy Builder provides a backtesting capability to evaluate how well an investing strategy would have worked in the past. Using a five-year historical period with quarterly rebalancing, the screen described had a 25-per-cent annualized return, compared with 13 per cent for the S&P/TSX Composite Index.
The investment ideas presented here are for information only. They do not constitute advice or a recommendation by Trading Central with respect to investment in financial instruments. Investors should conduct further research before investing.
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