Each week CanadaStockChannel.com screens through their coverage universe of dividend paying Canadian stocks, and look at a variety of data — dividend yield, book value, quarterly earnings — and compare it to the stock’s trading data to come up with certain calculations about profitability and about the stock’s valuation (whether it looks ”cheap” or ”expensive”).
History has shown that the bulk of the stock market’s returns are delivered by dividends, and so the site pays special attention to dividend history. And of course, only consistently profitable companies can afford to keep paying dividends, so profitability is of critical importance. Dividend investors should be most interested in researching the strongest most profitable companies, that also happen to be trading at an attractive valuation — maybe there is a company-specific reason causing the stock to be ”cheap” or maybe the entire sector is taking a hit, but whatever the reason, CanadaStockChannel thinks there is great value in ranking their coverage universe weekly using their proprietary DividendRank formula, and sharing the top stocks with subscribers, neatly divided into 17 sectors/categories.
These are the three stocks in each category that their DividendRank system has identified as the top most ”interesting” … this is meant purely as a research tool to generate ideas that merit further research.