Dividend growth investing is a popular strategy for identifying high-quality companies with strong fundamentals as businesses that consistently increase dividends typically demonstrate resilience, robust profitability, and a solid return on equity (ROE). For investors, this means a reliable income stream and long-term capital appreciation.
The Solactive Canada Dividend Elite Champions Index, which is tracked by the HAMILTON CHAMPIONS™ Canadian Dividend Index ETF (CMVP), selects companies that have raised their dividends for at least six consecutive years without interruption. This focus on consistency highlights firms with strong cash flows and prudent capital management. The index has delivered an impressive 10% annualized dividend growth[1], outperforming the S&P/TSX 60 with higher yield, lower volatility, and shallower drawdowns.
| CMVP Index | S&P/TSX 60 | ||
| Yield [2] | Higher Monthly Income | 3.7% | 3.1% |
| Annualized Return [3] | Similar Returns | 9.2% | 7.3% |
| Standard Deviation [4] | Lower Volatility | 16.4% | 17.9% |
| Max Drawdown [5] | Lower Peak-to-Trough Drawdown | (45.5%) | (48.1%) |
| Time to Recovery [6] | Faster Recovery from Trough-to-Peak | 632 days | 1709 days |
SOURCE
Meet the HAMILTON CHAMPIONS™
Below are a few standout companies that exemplify sustainable dividend growth and financial strength in Canada.
Wheaton Precious Metals Corp. (WPM)
- Sector: Materials
- Established: 2004
- Market Cap: $49.5 Billion
- Annualized Dividend Growth (10 Years): 9.9% [7]
- Annualized Return (10 Years): 14.7% (compared to S&P/TSX 60: 9.1%) [7]
Wheaton Precious Metals operates as a leading streaming company, providing upfront financing to miners in exchange for the right to purchase gold, silver, and palladium at discounted prices. This capital-light model ensures steady cash flow, supporting consistent dividend growth.
Alimentation Couche-Tard Inc. (ATD)
- Sector: Consumer Staples
- Established: 1980
- Market Cap: $67.7 Billion
- Annualized Dividend Growth (10 Years): 24.1% [7]
- Annualized Return (10 Years): 13.0% (compared to S&P/TSX 60: 9.1%) [7]
Alimentation Couche-Tard is a global leader in convenience stores and fuel retail. With a strong international presence and a track record of strategic acquisitions, Couche-Tard continues to expand its footprint while focusing on innovation and operational efficiency, making it a key player in the retail and fuel distribution sector.
Loblaw Companies Ltd. (L)
- Sector: Consumer Staples
- Established: 1919
- Market Cap: $61.0 Billion
- Annualized Dividend Growth (10 Years): 7.7% [7]
- Annualized Return (10 Years): 16.1% (compared to S&P/TSX 60: 9.1%) [7]
Loblaw, Canada’s largest grocery and pharmacy retailer, benefits from the stability of essential consumer spending. With strong brand recognition and a diversified retail portfolio, Loblaw has maintained steady dividend growth through all economic cycles.
Manulife Financial Corp. (MFC)
- Sector: Financials
- Established: 1887
- Market Cap: $78.0 Billion
- Annualized Dividend Growth (10 Years): 9.9% [7]
- Annualized Return (10 Years): 12.0% (compared to S&P/TSX 60: 9.1%) [7]
Manulife is a global financial services provider with a strong presence in Canada, the U.S., and Asia. Its diversified business model and strong cash flow generation have enabled it to sustain consistent dividend increases.
Canadian Natural Resources LTD (CNQ)
- Sector: Energy
- Established: 1994
- Market Cap: $93.6 Billion
- Annualized Dividend Growth (10 Years): 17.4% [7]
- Annualized Return (10 Years): 14.6% (compared to S&P/TSX 60: 9.1%) [7]
Canadian Natural Resources LTD is one of Canada’s largest oil and natural gas producers. As a dominant player in the energy sector, CNQ benefits from a diverse asset base, strong cash flow generation, and a commitment to shareholder returns, positioning it as a resilient leader amid fluctuating commodity prices.
HAMILTON CHAMPIONS™ Canadian Dividend Index ETF (CMVP)
Investors looking to gain exposure to these high-quality Canadian dividend growers can consider the HAMILTON CHAMPIONS™ Canadian Dividend Index ETF (CMVP). CMVP is the only ETF in Canada that tracks the Solactive Canada Dividend Elite Champions Index, providing diversified access to established dividend growth companies. With a 0% management fee through January 31, 2026, CMVP is a tax-efficient solution for investors seeking quality and long-term dividend growth. By focusing on companies with a proven track record of increasing dividends, CMVP offers a compelling investment option for those looking to combine income stability with strong total returns.
To learn more about our HAMILTON CHAMPIONS™ suite of ETFs, check out our HAMILTON CHAMPIONS™ Dividend Growth Playbook.
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Commissions, management fees and expenses all may be associated with investments in exchange traded funds (ETFs) managed by Hamilton ETFs. Please read the prospectus before investing. Indicated rates of return are the historical annual compounded total returns including changes in per unit value and reinvestment of all dividends or distributions and does not take into account sales, redemptions, distribution or optional charges or income taxes payable by any securityholder that would have reduced returns. Only the returns for periods of one year or greater are annualized returns. ETFs are not guaranteed, their values change frequently and past performance may not be repeated.
Certain statements contained in this website may constitute forward-looking information within the meaning of Canadian securities laws. Forward-looking information may relate to a future outlook and anticipated distributions, events or results and may include statements regarding future financial performance. In some cases, forward-looking information can be identified by terms such as “may”, “will”, “should”, “expect”, “anticipate”, “believe”, “intend” or other similar expressions concerning matters that are not historical facts. Actual results may vary from such forward-looking information. Hamilton ETFs undertakes no obligation to update publicly or otherwise revise any forward-looking statement whether as a result of new information, future events or other such factors which affect this information, except as required by law.
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[1] Source: Bloomberg, Solactive AG. Data from May 8, 2006, to March 31, 2025.
[2] Yield: The annual dividend income expressed as a percentage of the share price on March 31, 2025.
[3] Annualized Return: The annualized total rate of return
[4] Standard Deviation: A measure of an investment’s return volatility, indicating the degree of variation from its average return;
[5] Max Drawdown: The largest percentage drop from an investment’s peak value to its lowest point
[6] Time to Recovery: The time it takes for an investment to recover from a drawdown and reach its previous peak value;
These projections are uncertain and may be influenced by factors such as market volatility, economic conditions, and company performance. Past performance is not indicative of future results. Investors cannot directly invest in the index. All performance data assumes reinvestment of distributions, and excludes management fees, transaction costs, and other expenses which would have impacted an investor’s results. Solactive Canada Dividend Elite Champions Index data prior to December 31, 2024 is hypothetical back-tested data using actual historical market data. Actual performance may have been different had the index been live during that period.
[7] As at March 31, 2025. Source: Bloomberg