The are many reasons why investors could be looking for dividends. From a capital allocation point of view, dividends protect investors from poor management decisions, such as prioritizing growth at any cost or engaging in buybacks at unattractive valuations. Both actions destroy shareholder value over the long term.
Investors are encouraged to consult a tax specialist to understand how different types of income may affect their tax obligations and social benefits.We screened for Canadian companies with a market capitalization greater than $1-billion with: Investors are advised to do further research before investing in any of the companies listed in the accompanying table.Anthony Ménard, CFA, is vice-president of data management at Inovestor.