Scotiabank Scotiabank strategist Jean-Michel Gauthier is touting dividend strategies and provides options for investors,
“The difference between cash yield and S&P 500 dividend yield has shrunk from 4% (i.e. cash was yielding 4% above the S&P 500 dividend yield) as recently as June to 3.4% in October, with further drops expected as the Fed eases further. Likewise in Canada, the gap has shrunk from +2.3% in favour of cash towards only +0.8%. With cash return falling, dividend paying companies are starting to look attractive again … flows into Dividend strategies ETFs have picked up dramatically over the summer (highest since 2022) just as flows into Growth/Momentum/Quality have slowed visibly … A simple factor of being long the highest yielding dividend payers while shorting those with the lowest yield (or no div. yield) has typically outperformed over the long run. Still, Technology’s dominance since 2010 has definitely limited outperformance recently”
The top dividend-payer list of stocks is Endeavour Mining PLC, B2Gold, Toronto-Dominion Bank, Magna, Quebecor, Whitecap Resources, iA Financial Corp, Suncor Energy, Imperial Oil, Bank of Nova Scotia, Atco, Great-West Lifeco, Manulife Financial, Empire, Canadian National Railway, Parkland, Gildan Activewear, BCE, Metro, CCL Industries, Open Text, Canadian Imperial Bank of Commerce, Canadian Tire, Canadian Utilities, Allied Properties REIT, Fortis, Hydro One, Canadian Natural Resources, Emera and TC Energy.