Dividend-paying Canadian stocks show resilience and room to grow

A Trading Central screen found only oil and gas firms met the screen's dividend, growth and low-debt criteria; the article mentions Suncor Energy, Freehold Royalties and Peyto Exploration among the top matches.

Canadian dividend-paying stocks are being screened for yield, dividend growth and low leverage to identify firms with sustainable payouts. The screen used Trading Central's Strategy Builder and focused on established companies with market caps of at least $2 billion. Screening thresholds included a minimum dividend yield, multi-year dividend growth, an income-factor score and a cap on debt-to-equity to emphasize financial resilience. With the S&P/TSX Composite near record highs, the exercise highlights income characteristics amid a resilient market. Key findings: - The screen required market capitalization of at least $2 billion, a minimum dividend yield of 2.5 per cent, and five-year dividend growth of at least 10 per cent. - The Trading Central Income factor threshold was set at 50 out of 100 and the debt-to-equity ratio was capped at 0.50. - All companies that passed the screen were in the oil and gas sector, reflecting the industry's cash-flow support for dividends. - The article mentions Suncor Energy Inc. with a reported $75-billion market cap, a price-to-earnings ratio of 14.62, a 3.83% dividend yield, a one-year return of 13.8% and a 0.32 debt-to-equity ratio. - The article mentions Freehold Royalties Ltd. with a reported $2.4-billion market cap, the highest Income factor rating on the list at 70, a 7.38% dividend yield, a 0.28 debt-to-equity ratio and 28.79% five-year dividend growth. - The article mentions Peyto Exploration & Development Corp. with a reported $4.3-billion market cap, a 6.23% dividend yield, a one-year return of 22.8% and 80.12% five-year dividend growth, with a 0.45 debt-to-equity ratio. Summary: The results emphasize that, under the chosen screening rules, oil and gas companies currently meet the combination of yield, dividend growth and low leverage. Undetermined at this time.