Methodology: How we chose Canada’s best dividend stocks 2025

To every of those, we awarded three scores primarily based on publicly obtainable knowledge: 

• The yield rating displays each the present dividend yield and the expansion of the dividend over the previous 5 years. 
• The steadiness rating takes under consideration the businesses’ debt-to-equity ratio, return on fairness, five-year earnings development, and ratio of earnings per share to dividends. 
• The valuation rating considers the inventory’s earnings yield (the inverse of price-to-earnings) and price-to-book worth. 

We then added up all three scores to find out every inventory’s whole rating, giving a 40% weighting to every of the yield and stability scores and a 20% weighting to valuation. The information used to attain the securities was collected and was present as of November 29, 2024.

The total checklist of the Top 100 dividend stocks represents the lowest-scoring 100 shares out of the 168 eligible. High performers earn the bottom scores, reflecting their relative rank beneath every of the factors. 

From that, we derived the letter-grade system and the A-Crew and B-Crew of Canada’s 20 finest dividend shares, detailed in our Best dividend stocks in Canada for 2025 overview. The A-Crew firms scored effectively for all three standards. The B-Crew represents firms additionally value taking a look at to fill inventory sector gaps in a portfolio. Corporations with greater scores tended to fall quick on a number of of our measurement standards, however they nonetheless had attributes superior to these excluded from the checklist of 100. Take into account this system doesn’t think about all elements of a inventory’s suitability in your portfolio. It doesn’t bear in mind components akin to the standard of an organization’s administration, model fairness or whether or not the corporate has a aggressive “moat.” These finest dividend shares we’ve recognized are supposed to be a place to begin for additional due diligence. To see how our 2024 high dividend shares carried out, try the top dividends past performance summary.

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About Michael McCullough

Michael is a monetary author and editor in Duncan, B.C. He’s a former managing editor of Canadian Enterprise and editorial director of Canada Large Media. He additionally writes for The Globe and Mail and BCBusiness.