As we enter 2023, numerous investors are seeking to optimize their portfolios for success in the new year. Stocks represent ownership in a corporation and entitle the holder to a portion of its earnings and assets. However, with a plethora of industries and companies to select from, identifying the most promising opportunities for growth and returns can be a challenge.
When evaluating potential stocks to purchase, it’s crucial to monitor earnings announcements that could influence stock prices. Furthermore, familiarizing oneself with the sector and specific stocks being considered is essential.
While it’s impossible to predict the future with complete accuracy, certain companies possess strong fundamentals, growth potential, and the resilience to withstand market fluctuations.
The Top 5 Canadian Dividend Stocks for 2023
- CNQ.TO: Canadian Natural Resources Limited
- FTS.TO: Fortis Inc.
- NWC.TO: The North West Company Inc.
- RCI-B.TO: Rogers Communications Inc.
- RUS.TO: Russel Metals Inc.
The 5 Best Canadian Dividend Stocks
Here is a table listing my favourite Canadian dividend stocks and important metrics and their definition.
| Logo |  |  |  |  | |
| Ticker | CNQ.TO | RCI-B.TO | NWC.TO | FTS.TO | RUS.TO |
| Sector | Energy | Communication | Staple | Utilities | Industrial |
| Earnings Date | Mar 01, 2023 – Mar 06, 2023 | Apr 18, 2023 – Apr 24, 2023 | Apr 11, 2023 – Apr 17, 2023 | May 02, 2023 – May 08, 2023 | May 08, 2023 |
| Price | $80.93 | $64.59 | $35.65 | $55.39 | $33.85 |
| 52-Week Range | $57.54 – $86.37 | $50.53 – $80.85 | $30.55 – $40.08 | $48.45 – $65.26 | $23.80 – $36.15 |
| Market Cap | $89 Billion | $32 Billion | $1 Billion | $26 Billion | $2 Billion |
| Beta | 2.01 | 0.39 | 0.62 | 0.17 | 1.56 |
| EV/EBITDA | 4.52 | 11.24 | 8.43 | 13.16 | 3.09 |
| P/E | 7.89 | 19.45 | 14.09 | 19.92 | 5.73 |
| Yield (%) | 4.20% | 3.10% | 4.26% | 4.08% | 4.49% |
| Payout | 27.66% | 60.24% | 58.89% | 78.06% | 25.72% |
| Ex-Dividend | Dec 15, 2022 | Mar 09, 2023 | Dec 29, 2022 | Feb 14, 2023 | Feb 27, 2023 |
| Dividend Date | Jan 05, 2023 | Apr 02, 2023 | Jan 16, 2023 | Mar 01, 2023 | Mar 14, 2023 |
| P/B | 2.30 | 2.92 | 3.10 | 1.39 | 1.48 |
| P/S | 2.03 | 2.03 | 0.80 | 2.55 | 0.36 |
| C/S | 1.00 | 1.32 | 1.28 | 0.82 | 2.96 |
| Current | 0.78 | 2.49 | 2.07 | 0.62 | 3.21 |
| Margin (%) | 54.23 | 40.17 | 32.81 | 38.00 | 28.46 |
| 1YR (%) | 24.45 | -1.43 | 0.51 | -6.17 | -1.71 |
| ROIC (%) | 4.92 | 5.96 | 9.06 | 4.46 | 12.67 |
| REV Y/Y (%) | 60.71 | 4.56 | N/A | 38.46 | 37.12 |
- Beta – the measure of the volatility of a stock compared to the market
- C/S: Cash per Share – the percentage of a company’s share price available to spend on growing the corporation
- Current: Current Ratio – a liquidity ratio that measures a company’s ability to pay short-term obligations or those due within one year
- Dividend Date – the date that a company announces it is paying a dividend
- Earnings: Earnings Date – the next release of a company’s financial report
- EV/EBITDA: Enterprise Value to Earnings Before Interest, Taxes, Depreciation, and Amortization – this ratio compares the value of a company, including debt, to the company’s cash earnings less non-cash expenses
- Ex-Dividend: Ex-Dividend Date – the dividend will be received if bought at least one day before this date
- Margin (%): Gross Margin – the percentage of money a corporation has left after subtracting all direct costs of producing or purchasing the goods or services it sells
- Market Cap: Market Capitalization – the total value of all a corporation’s stock
- N/A: Not Applicable or Not Available
- Payout: Payout Ratio – the percentage of net income a firm pays in dividends
- P/B: Price-to-Book – this ratio measures the market’s valuation of a company relative to its book value
- P/E: Price-to-Earnings – this ratio relates a corporation’s share price to its earnings per share
- P/S: Price-to-Sales – this ratio divides the stock price by the underlying corporation’s sales per share
- Price: Stock Price – current value to buyers and sellers
- REV Y/Y (%): Yearly Revenue Growth – the percentage growth of the corporation’s revenue over the trailing twelve months
- ROIC (%): Return on Invested Capital – assess a corporation’s efficiency in allocating capital to profitable investments
- Yield (%): Dividend Yield – the percentage of a corporation’s stock price that it pays in dividends annually
- Yield: Dividend Yield – the percentage of a corporation’s stock price that it pays in dividends annually
- 1YR (%): 1-Year Performance
- 52-Week Range – the lowest and highest price at which a stock has traded during the previous 52-weeks
RUS.TO: Russel Metals Inc.
RUS.TO is the ticker symbol for Russel Metals Inc., which is a Canadian metals distribution and processing company. The company operates through its three business segments: metals service centers, energy products, and steel distributors.
Russel Metals Inc. provides a wide range of metals products, including carbon steel, stainless steel, aluminum, and specialty alloys, to customers in several industries, including construction, manufacturing, and oil and gas. The company also provides value-added services, including cutting, welding, and painting, to meet the specific needs of its customers.
The company has a strong track record of growth and profitability, driven by its focus on operational efficiency and strategic acquisitions. It has also implemented several sustainability initiatives, including reducing waste, conserving energy, and investing in renewable energy.
Russel Metals Inc. is known for its focus on customer service and has established long-term relationships with many of its customers. The company has a strong financial position and has consistently delivered strong results to its shareholders. It has a solid track record of dividend payments, having increased its dividend for 10 consecutive years, making it an attractive option for income-oriented investors seeking a steady stream of dividend income.
Overall, RUS.TO is considered a solid investment option for those looking for exposure to the metals distribution and processing sector. The company’s focus on customer service, strong financial performance, and commitment to sustainability make it an attractive option for long-term investors. However, as with any investment, it is important to conduct thorough research and analysis before making any investment decisions.
Conclusion
When taking a close look at these dividend-paying stocks, the company I believe with the most upside potential is RUS.TO: Russel Metals Inc.
