5 new Canadian Dividend Aristocrats announced for 2023

On January 24, 2023, S&P Dow Jones Indices announced its annual index changes for the Canadian Dividend Aristocrats Index. Five new companies are added and seven companies will be deleted.

Earlier on we reported about the 3 new US Dividend Aristocrats for 2023 that were announced by index composer S&P Dow Jones Indices, part of Dividend Aristocrat S&P Global (that just announced its own 50th consecutive year of dividend increases).

For Canada, a country with about 10 true Dividend Aristocrats (with 25 or more consecutive years of dividend growth) S&P also announced its index changes for 2023 with more stocks being deleted than added, which actually displays that there aren't as many eligable Aristocrats compared to leading country The United States.

Anyway, S&P did its index review and will add the five stocks below to its Canadian Dividend Aristocrats Index on February 1, 2023.

NEW CANADA DIVIDEND ARISTOCRATS

• Hydro One Limited
• Minto Apartment REIT
• Nutrien
• Tourmaline Oil
• Waste Connections

Of these five new stocks Minto actually pays a monthly dividend, just like its US peer Realty Income. Below we have displayed the 7 Canadian Dividend Aristocrats that will be cut from the renown index on Feb. 1, 2023. We also would like to note that a stock such as electric utility Hydro One has only raised its dividend 6 consecutive years with a 5% dividend hike being announced in 2022. The company only initiated a dividend in 2016 based on our own research.

DELETED ARISTOCRATS FOR CANADA IN 2023

• Algonquin Power & Utilities
• Innergex Renewable Energy
• Keyera
• Onex Corp
• Slate Grocery REIT
• SmartCentres REIT
• Tecsys

We are actually quite surprised with these actions, because software company Tecsys hiked its dividend by 7.1% in 2022, marking 15 consecutive years of increased dividends. Why this results in the deletion from the Canadian Dividend Aristocrats Index is not clear to us.

As said above, Canada does not have many true Aristocrats with more than 25 consecutive years of increased dividends. The leading stock in Canada is Canadian Utilities with now 51 consecutive years of increased dividend. Dividend growth for the utility company is not good, with 1% dividend hikes announced in both 2022 and 2021.