Top 100 retirement stocks
* Sept 9,2011
** Five-year average annual growth
How to use this table:
We've packed a plethora of information about each of Canada's largest dividend stocks into the Retirement 100 tables. Use them to learn more about high-grade income stocks and to find out how your current stock holdings stack up.
We've awarded grades to all 100 stocks based on hard data, starting with the dividend yield. Stocks with high divident yields get high grades because we like the income. We're also keen on stocks that have a record of boosting their dividends over the last five years. Both of these important metrics are shown in separate columns along with the other figures which informed our assessment.
While we like income that grows, we also want to sleep well at night. That's why we reward firms that earn more than the pay out in dividends. The dividends/earnings ratio column lets you spot such companies. We also want to avoid firms that have larded up their balance sheets with debt. For this measure, stocks with low debt/equity ratios compared to their industry peers are given higher grades because some industries—electric utilities for example—can more easily shoulder largers debt loads than others. (You can find a firm's peers via the industry column.)
Sometimes a great company might not be a great stock to buy right now. That's because superb firms can trade at a very high prices, which means they are unlikely to enrich investors in the future. That's why we awarded higher grades to stocks trading at modest price/book value and price/earnings rations.
We combine all of these factors to determine each stock's grade with the best scoring an A. Good candidates land a B while solid firms get a C. Those lacking in the aforementioned qualities take home a D or even an F. Just remember, our grades are based purely on the numbers. Intangible and more qualitative considerations don't enter into it.
We include even more information in our tables for the curious. The market capitalization of each stock (share outstanding times price per share) makes for a handy measure of a stock's size. We also know value investors like to check a stock's price/cash flow ration. We round out the tables with columns showing five-year total returns which allow you to quickly get a sense of where a stock has been.
The best way to use these tables is as a starting point for your own investigations. Focus on the facts and figures that mean the most to you.
We've awarded grades to all 100 stocks based on hard data, starting with the dividend yield. Stocks with high divident yields get high grades because we like the income. We're also keen on stocks that have a record of boosting their dividends over the last five years. Both of these important metrics are shown in separate columns along with the other figures which informed our assessment.
While we like income that grows, we also want to sleep well at night. That's why we reward firms that earn more than the pay out in dividends. The dividends/earnings ratio column lets you spot such companies. We also want to avoid firms that have larded up their balance sheets with debt. For this measure, stocks with low debt/equity ratios compared to their industry peers are given higher grades because some industries—electric utilities for example—can more easily shoulder largers debt loads than others. (You can find a firm's peers via the industry column.)
Sometimes a great company might not be a great stock to buy right now. That's because superb firms can trade at a very high prices, which means they are unlikely to enrich investors in the future. That's why we awarded higher grades to stocks trading at modest price/book value and price/earnings rations.
We combine all of these factors to determine each stock's grade with the best scoring an A. Good candidates land a B while solid firms get a C. Those lacking in the aforementioned qualities take home a D or even an F. Just remember, our grades are based purely on the numbers. Intangible and more qualitative considerations don't enter into it.
We include even more information in our tables for the curious. The market capitalization of each stock (share outstanding times price per share) makes for a handy measure of a stock's size. We also know value investors like to check a stock's price/cash flow ration. We round out the tables with columns showing five-year total returns which allow you to quickly get a sense of where a stock has been.
The best way to use these tables is as a starting point for your own investigations. Focus on the facts and figures that mean the most to you.
