In 2017, 2019, 2020, and 2021, I shared a list of Canadian companies that provide dividend growth guidance. I've decided to update this list as I find dividend growth guidance, specifically when it is expressed as a percentage, useful in helping me assess the capital allocation plans for companies, introducing a soft control by which to judge management's actions, and assisting me in projecting the organic dividend growth rate of my portfolio for 2023.
The table below could be considered a starting point for further research. Please, let me know of any other Canadian companies that provide dividend growth guidance. I'll gladly update the table with your input.
TC Energy Corp (TRP - 7.4%) | Dividend growth of 3-5% |
Emera Inc (EMA - 3.9%) | Dividend growth of 4-5% per year through 2025 |
Telus Corp (T - 5.2%) | Dividend growth of 7-10% per year through 2025 |
Capital Power Corp (CPX 6.8%) | Dividend growth of 6% per year through 2025 |
Fortis Inc (FTS - 5.9%) | Dividend growth of 4% - 6% per year to 2027 |
Brookfield Renewable Partners (BEP.UN - 5.0%) | Annual distribution increases of 5-9% |
Brookfield Infrastructure Partners (BIP.UN - 5.2%) | Annual distribution increases of 5-9% |
In what was a tough year for the Canadian stock market, it is promising to note that none of the seven companies that provided dividend growth guidance in 2021 stopped doing so in 2022. I'm also cautiously optimistic that Brookfield's "BAM" units might start issuing distribution guidance sometime in 2023. Lastly, it's worth noting that perhaps Algonquin Power & Utilities Corp's move away from providing percentage based dividend growth guidance in 2021, could have been a red flag in retrospect.
Here's wishing everyone a healthy and prosperous 2023!
