3 Surefire Dividend Aristocrats That Are No-Brainer Buys in 2023

Looking down the list of Canadian Dividend Aristocrats with the longest dividend-growth streaks, I find these best Canadian stocks to be quite attractive for long-term investment.

Canadian Western Bank

The Canadian economy is not in the best of shape. Canadian Western Bank (TSX:CWB) is also not one of the Big Six Canadian banks that together enjoy approximately 90% of the country’s deposits. In fact, it is categorized as a “regional bank.” This term potentially has a negative connotation to it at the present time, because of the banking crisis in U.S. regional banks.

In reality, the Canadian bank’s loan portfolio is primarily in British Columbia (32% of loans), Alberta (31%), and Ontario (25%). Its loan types are as follows: general commercial loans (35% of total loans), commercial mortgages (20%), personal loans and mortgages (20%), equipment financing and leasing (15%), real estate project loans (9%), and oil and gas production loans (<1%).

Interestingly, CWB stock has the longest dividend-growth streak of 31 consecutive years among the publicly traded Canadian bank stocks. For your reference, its 10-year dividend-growth rate is 6.8%. In the trailing 12 months (TTM), the bank stock’s payout ratio was sustainable at about 43% of net income available to common shareholders.

At $24.22 per share at writing, the bank stock trades at about 6.7 times earnings with the potential to climb more than 80% over the next few years on a reversion to the mean. Meanwhile, it offers a juicy dividend yield of 5.3%.


If you prefer a name that’s less sensitive to the business cycle, ATCO (TSX:ACO.X) may be a Canadian Dividend Aristocrat you should consider. The utility stock has posted 29 consecutive years of dividend growth with a five-year dividend-growth rate of 7.1%.

At $44.90 per share at writing, it offers a nice dividend yield of 4.2%. ATCO enjoys an investment-grade S&P credit rating of BBB+. Its TTM payout ratio is 57% of net income available to common shareholders. From the perspective of cash flow generation, ATCO trades at its lowest valuation in a decade! The analyst consensus 12-month price target suggests a discount of about 19% is available. So, it seems like a winning investment for long-term investors.


It’s also rare to find grocery store stocks on sale. Empire (TSX:EMP.A) seems to be the top Canadian food stock that offers good value in the space. You might notice its low margins. Particularly, its TTM operating margin is 3.8%, which cut thinner at a net margin of just south of 2.5%.

Low margins are typical for grocery store stocks, though, as their business model aims for high sales volume with a low margin because many of their products are perishable goods. It’s good to see that Empire’s return on equity was decent — averaging 13.3% — over the last five years.

At $36.50 per share, analysts believe the consumer staples stock trades at a discount of 11%. Empire has increased its dividend for 28 consecutive years with a 10-year dividend-growth rate of 7.3%.

Investor takeaway

Given the uncertainties we’ve been experiencing in the economy today, these three dividend stocks that offer good value could be surefire investments for success over the next three to five years.

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