Canadian Dividend Growth Strategy

TSX Composite Total Return

Written by Nitin Manohar
January 27, 2015

The CPMS Canadian Dividend Growth Strategy is suited for income-oriented investors seeking to buy profitable companies that are growing their dividends. The strategy holds up to 20 stocks in its simulated portfolios, with a maximum of 5 stocks in one industry group. The strategy emphasizes stocks with high expected dividend yields and dividend growth. Importance is also placed on stocks with high cash flow momentum and return on equity. Stocks are screened to ensure that they have minimum liquidity, analyst coverage, expected dividend yield and earnings estimate revision as well as a limit on dividend payout ratio. Stocks are also screened to be included in the top 250 stocks within the CPMS Universe.

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