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| Canadian Dividend Yield Breakpoints | ||||||||
| Low | 2 | 3 | 4 | Middle | 6 | 7 | 8 | High |
| 1.14% | 1.71% | 2.37% | 3.08% | 3.78% | 4.56% | 5.47% | 6.68% | 8.47% |
| Data Source: Bloomberg, Sept. 24, 2015 | ||||||||
Safer Canadian Dogs
Investors following the Dogs of the Dow strategy want to buy the 10 highest yielding stocks in the Dow Jones Industrial Average (DJIA), hold them for a year, and then move into the new list of top yielders. The Dogs of the TSX works the same way but swaps the DJIA for the S&P/TSX 60, which contains 60 of the largest stocks in Canada. My safer variant of the Dogs of the TSX tracks the 10 stocks in the index with the highest dividend yields provided they also pass a series of safety tests, such as having positive earnings. The idea is to weed out companies that might cut their dividends in the near term. Just be warned, it’s a task that’s easier said than done. Here’s the updated Safer Dogs of the TSX, representing the top yielders as of Sept. 24. The list is a good starting point for those who want to put some money to work this week. Just keep in mind, the idea is to hold the stocks for at least a year after purchase–barring some calamity.| Name | Price | P/B | P/E | Earnings Yield | Dividend Yield |
|---|---|---|---|---|---|
| Potash (POT) | $28.04 | 2.06 | 13.08 | 7.64% | 7.21% |
| National Bank (NA) | $41.86 | 1.52 | 9.26 | 10.80% | 4.97% |
| Bank of Nova Scotia (BNS) | $57.24 | 1.42 | 10.7 | 9.35% | 4.89% |
| CIBC (CM) | $92.66 | 1.85 | 10.36 | 9.65% | 4.83% |
| BCE (BCE) | $53.86 | 3.79 | 18.32 | 5.46% | 4.83% |
| TransCanada (TRP) | $43.67 | 1.85 | 17.9 | 5.59% | 4.76% |
| Bank of Montreal (BMO) | $69.79 | 1.26 | 11.01 | 9.08% | 4.70% |
| Shaw (SJR.B) | $25.61 | 2.47 | 15.81 | 6.33% | 4.63% |
| Power (POW) | $27.25 | 1.04 | 7.45 | 13.43% | 4.57% |
| Royal Bank (RY) | $71.43 | 1.87 | 10.87 | 9.20% | 4.42% |
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