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Best-In-Class Dividend Stocks

Veer Mallick

First National Financial is one of our top dividend-paying companies that can help boost the investment income in your portfolio. These stocks are a safe way to create wealth as their stable and constant yields generally hedge against economic uncertainty and deliver downside protection. Dividends play a key role in compounding returns over time and can form a large part of our portfolio return. I’ve made a list of other value-adding dividend-paying stocks for you to consider for your investment portfolio.

First National Financial Corporation (TSX:FN)

First National Financial Corporation, through its subsidiaries, originates, underwrites, and services residential and commercial mortgages in Canada. The company size now stands at 937 people and has a market cap of CAD CA$1.64B, putting it in the small-cap stocks category.

FN has a large dividend yield of 6.74% and their current payout ratio is 53.96% . FN’s dividends have seen an increase over the past 10 years, with payments increasing from CA$1.25 to CA$1.85 in that time. They have been dependable too, not missing a single payment in this time. The company recorded earnings growth of 4.97% in the past year, comparing favorably with the ca mortgage industry average of 3.45%. Continue research on First National Financial here.

TSX:FN Historical Dividend Yield May 12th 18

Laurentian Bank of Canada (TSX:LB)

Laurentian Bank of Canada, together with its subsidiaries, provides banking services to individuals, small and medium-sized enterprises, and independent advisors in Canada and the United States. Founded in 1846, and run by CEO François Desjardins, the company currently employs 3,771 people and with the company’s market cap sitting at CAD CA$2.07B, it falls under the mid-cap category.

LB has a great dividend yield of 5.08% and the company has a payout ratio of 45.06% . In the case of LB, they have increased their dividend per share from CA$1.28 to CA$2.52 so in the past 10 years. Much to the delight of shareholders, the company has not missed a payment during this time. Continue research on Laurentian Bank of Canada here.

TSX:LB Historical Dividend Yield May 12th 18

Bank of Montreal (TSX:BMO)

Bank of Montreal provides diversified financial services primarily in North America. Founded in 1817, and headed by CEO William White, the company provides employment to 45,200 people and with the company’s market cap sitting at CAD CA$64.47B, it falls under the large-cap group.

BMO has a nice dividend yield of 3.69% and their current payout ratio is 50.43% . In the case of BMO, they have increased their dividend per share from CA$2.80 to CA$3.72 so in the past 10 years. During this period, the company has not missed a dividend payment – as you would expect from a company increasing their dividend. More on Bank of Montreal here.

TSX:BMO Historical Dividend Yield May 12th 18

For more solid dividend paying companies to add to your portfolio, explore this interactive list of top dividend payers.


To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned.