BMO chief investment strategist Brian Belski is predicting a big surge in Canadian dividend payouts,
“As we begin to ponder the stock market outlook for 2022 and beyond, we believe recent earnings strength places Canadian companies in a strong position to begin redeploying excess cash balances and cash flow in the form of both investments and cash distribution. In fact, the TSX has exhibited an epic positive surprise cycle that has translated into one of the sharpest earnings rebounds on record. This, according to our work, is likely to generate an impressive, if not ambitious dividend growth cycle that could see overall dividend growth surge well above historical averages over the next 12-24 months. As such, we believe investors should begin positioning in areas that are likely to increase dividends and share buybacks.”
Mr. Belski included his 40-member top stock picks list for North American dividend growth. The Canadian names [in alphabetical order] are Algonquin Power and Utilities Corp., BCE Inc., Brookfield Infrastructure Partners LP, Canadian National Railways Co., Enbridge Inc., Manulife Financial Corp., Power Corp. of Canada , Restaurant Brands International Inc., Royal Bank of Canada, Telus Corp., Toronto-Dominion Bank, and TC Energy Corp.”