NUMBER CRUNCHER
Canadian dividend
stocks with attractive
valuations
GARY CHRISTIE
SPECIAL TO THE GLOBE AND MAIL
PUBLISHED 38 MINUTES AGO
UPDATED 13 MINUTES AGO
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What are we looking for?
Canadian stocks with strong dividends
and efficient capital use.
This week, we searched for Canadian
stocks with appealing valuations and
steady dividend income to help find
value in a volatile market.
The screen
We used Trading Central’s Strategy
Builder to screen for Canadian stocks
with attractive dividends and return on
equity.
STORY CONTINUES BELOW ADVERTISEMENT
We began by setting a minimum market
capitalization of $1-billion to ensure a
focus on more stable and established
companies with less volatility than
smaller-cap stocks.
Next, we targeted companies with a
price-to-earnings (P/E) ratio below the
average P/E of the S&P TSX 60 Index,
which sits at 19.44, to help find stocks
with reasonable valuations.
To ensure companies are using capital
efficiently to generate returns, we
screened for stocks with a minimum
return on equity of 10 per cent.
Finally, we added two dividend filters.
Stocks must have a dividend yield of at
least 2.5 per cent and a five-year
dividend growth rate of 10 per cent or
higher. This approach targets companies
that not only provide steady income but
also demonstrate a commitment to
increasing payouts over time.
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We have also included year-to-date and
one-year price performance for each
stock for your reference.
More about Trading Central
Trading Central is a global leader in
financial market research and
investment analytics for retail online
brokers and institutions. Trading
Central’s product suite provides
actionable trading ideas based on
technical and fundamental research
covering stocks, ETFs, indices, forex,
options and commodities. Strategy
Builder, our stock screener, is available
through leading retail brokers in Canada
and worldwide.
What did we find?
Stocks
Stocks with
with attractive
attractive dividends
dividends and
and
efficient
efficient use
use of
of capital
capital
RANK
COMPANY
TICKER
MKT.CAP.
($BIL)
11
Quebecor
Quebecor Inc.
Inc.
QBRB-T
7.99
22
Imperial
Imperial Oil
Oil Ltd.
Ltd.
IMO-T
48.33
33
Whitecap
Whitecap Resources
Resources
Inc.
Inc.
WCP-T
5.42
44
Secure
Secure Waste
Waste
Infrastructure
Infrastructure Corp.
Corp.
SES-T
3.12
55
Suncor
Suncor Energy
Energy Inc.
Inc.
SU-T
62.87
66
Peyto
Peyto Exploration
Exploration &
&
Development
Development Corp.
Corp.
PEY-T
3
77
National
National Bank
Bank of
of
Canada
Canada
NA-T
45.95
88
Canadian
Canadian Natural
Natural
Resources
Resources Ltd.
Ltd.
CNQ-T
82.37
99
Freehold
Freehold Royalties
Royalties Ltd.
Ltd.
FRU-T
1.98
10
10
ARC
ARC Resources
Resources Ltd.
Ltd.
ARX-T
15.02
11
11
Cenovus
Cenovus Energy
Energy Inc.
Inc.
CVE-T
32.3
Source: Trading Central
Topping our list is Quebecor Inc.
QBR-B-T +0.62%  , a Canadian
telecommunications and media
company offering wireless, internet, TV
and publishing services, primarily in
Quebec. The company tops our list due
to its strong return on equity of 38.49
per cent, reflecting efficient capital
usage and strong profitability. Quebecor
also boasts a 4.09-per-cent dividend
yield, above the average of the S&P/TSX
Composite Index, which sits at 3.24 per
cent, combined with a five-year
dividend growth rate of 23.16 per cent,
demonstrating a solid commitment to
shareholder returns. With a P/E ratio of
10.6, it trades at an attractive valuation
relative to the broader market.
Additionally, the stock has
outperformed year-to-date, gaining 8.6
per cent, and is up 9.8 per cent over the
past year, highlighting its resilience in a
choppy market. The stock is currently
trading at a new record high at the time
of this writing.
Secure Waste Infrastructure Corp.
SES-T -0.07%  , headquartered in
Calgary, provides environmental and
waste management solutions,
specializing in resource recovery and
industrial waste disposal. The company
stands out on our list for having the
lowest P/E ratio at 6.0, indicating a
potentially undervalued stock relative to
earnings. Additionally, it boasts the
highest return on equity at 52.24 per
cent, reflecting exceptional efficiency in
generating profits from shareholder
capital. Despite its strong fundamentals,
the stock has faced recent pressure,
declining 16.7 per cent year-to-date.
However, with a five-year dividend
growth rate of 25.44 per cent, it
demonstrates a commitment to
increasing shareholder returns, making
it an intriguing option for value-focused
investors.
Cenovus Energy Inc. CVE-T +2.37%  ,
an integrated oil and gas company
headquartered in Calgary, offers a solid
dividend yield of 4.06 per cent, with an
impressive five-year dividend growth
rate of 52.52 per cent, signalling strong
shareholder returns. However, despite
these strengths, the stock has struggled,
declining 19.6 per cent year-to-date and
25.7 per cent over the past year, making
it one of the weaker performers on the
list. With a P/E ratio of 10.62, Cenovus
trades at a reasonable valuation, but its
near-term price action suggests investor
caution amid volatility in the energy
sector.
Trading Central Strategy Builder
provides a back-testing 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 an
11-per-cent annualized total return,
compared with 10 per cent for the
S&P/TSX 60 Index.
The investment ideas presented here are
for information only. They do not
constitute advice or a recommendation
by Trading Central with respect to
investing in financial instruments.
Investors should conduct further
research before investing.
Stock prices are as of Tuesday’s close.
Gary Christie is head of North
American research at Trading Central
in Ottawa.
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Tickers mentioned in this story
Study and track financial data on any traded entity:
click to open the full quote page. Data updated as of
06/03/25
06/03/25 4:00pm
4:00pm EST
EST.
Symbol
Name
% change
QBR-B-T
Quebecor Inc Cl B Sv
+0.62%
IMO-T
Imperial Oil
+1.18%
WCP-T
Whitecap Resources Inc
+0.33%
SES-T
Secure Energy Services
Inc
-0.07%
SU-T
Suncor Energy Inc
+1.02%
PEY-T
Peyto Exploration and
Dvlpmnt Corp
-0.32%
NA-T
National Bank of Canada
-0.34%
CNQ-T
Canadian Natural
Resources Ltd.
+1.37%
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