Several Canadian corporations routinely distribute significant stock dividends - some with a dividend yield above 15 percent. Still many other Canadian companies have solid financial standing. It is important to do your research before investing in any stock, and Canadian stocks are no exception.
Instructions
1. Look for published lists of Canadian dividend-paying stocks from reputable resources to begin your search. This step should save you a lot of time up front and any list that is used may be combined with other lists and narrowed down further based on your research. A list published by the Mergent is one good place to start.
2. Investigate any income trusts that make up a large portion of Canadian dividend-paying stocks. Be careful and do your research on these investments before you purchase anything. Most of these companies are set up as trusts and may payout higher dividends than the money they bring in. Also check for tax implications when investing in these types of securities.
3. Run a stock screen for Canadian dividend-paying stocks, searching for companies with good indications of future growth, strong cash flow and a strong history of raising dividends. Cross-reference your results against published lists found in Step 1. Further analyze potential purchases before making a decision.
4. Consider exchange-traded funds that have a high dividend payout as a way to diversify your investments. Doing so allows you to avoid being tied directly to just a few stocks.
5. Search for quality Canadian dividend-paying stocks by reviewing blogs and websites that specialize in such information. Do your own research before making any purchase and be confident with your trade.
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