Canadian Dividend Aristocrats – Strong Performance in a Big Storm with a Solid Diversification Strategy

Since we added the Canadian Dividend Aristocrat Portfolio, it has gained over 23% over it’s first two and half months. The yield is just a tad under 7% at 6.95%. With our no cost quarterly rebalancing, we just added two high yielding banks (CIBC, TD Bank) and removed two other banks (Bank of Montreal and Nova Scotia Banks). You can see that TD or Toronto Dominion Bank not only has a high yield but outperformed the Bank of Montreal (BMO) over a five year period.  Both banks have excellent quality in a diversified portfolio.

The Canadian Dividend Aristocrats has significantly outperformed their counterparts in the US, including the S&P Dividend Aristocrats and the Dogs of the Dow.  You must realize this performance is over a very short time period and that even diversified portfolios can and do have significant price movements in both directions.

Over a 10 year period, Canadian aristocrat companies have outperform their peers significantly.

It is a nice feeling owning a company that has a focus on raising the dividend, even under these very challenging times for Canada and the entire world.  This is a very good way to own companies who value their shareholders with a long term focus.

With almost a 7% dividend rate today, and with each company raising their dividend each year, and Durig quarterly rebalancing, the dividend yield over time should continue to be superior to most dividend investments.  We know Canadian Divided Dogs and Canadian Dividend Aristocrats are establishing a record of performance superior to most investments including the S&P Dividend Aristocrats and other Dogs of the Dow Portfolios.  This performance backdrop has become valuable during the COVID 19 pandemic and we believe it is proving to be a very solid approach for those seeking income with growth in very good as well as very bad times.

A US alternative is Durig’s Dogs of the Dow


We believe this is an outstanding way to increase your investment diversification in mostly high quality income paying Canadian companies.  We also see that the Canadian economy is in a position to rebound as the global market is starting to expand and Canadian raw materials could achieve both a higher price and increase volumes.

Let’s put the high 6.95% yield into perspective:

The 10 year treasury current yield is .70%

The 5 year treasury current yield is .88%

The best 5 year CIT CD is 1.60%

Durig’s Dividend Aristocrats is 4.88%

Durig’s Canadian Aristocrats is 6.95%

With the Canadian Dividend Aristocrats you receive a superior dividend income for taking Canadian quality company’s risk and rewards, plus you receive over 6 more points than the 10 year treasury.  This is an incredibly high premium for a Canadian growing dividend portfolio.

Canadian Dividend Aristocrats

Annual Cost: 0.50% or 1/8 of a percent per quarter.

Average Dividend Yield of About: 6.95%

Minimum Investment: $25,000

Minimum Holding Period: None

Other Durig Portfolios

For Advisors:

We offer our successful investment strategies of Fixed Income 2 (FX2) Portfolio, Dividend Aristocrats, the Income Aristocrats Portfolio along with are many Dogs Portfolios to other Charles Schwab Registered Investment Advisors through segregated accounts.

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Dividend Aristocrats

The stated goal for this strategy is to introduce investors to the high quality dividends of blue-chip equity, all contained within a well diversified, individualized, and very low cost portfolio, with lower volatility. Over time, this strategy is designed to produce both growth of principal while also gradually growing tax advantaged dividend income.

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