Dividend stocks make cash payouts that serve as a way for companies to share the wealth they’ve accumulated. These payouts are drawn from earnings and cash flow and paid to the shareholders of the company. Typically, these dividends are paid quarterly, although they may be paid annually or even monthly as well.
Dividends can produce as much as a third of your total return over long periods, and you can even retire on dividends.
There are 4 key stock dividend dates that are involved with dividend payments:
1- The Declaration Date is several weeks in advance of a dividend payment—it’s when company’s board of directors sets the amount and timing of the proposed payment.
2- The Payable Date is the date set by the board on which the dividend will actually be paid out to shareholders.
3- The Record Date is for shareholders who hold the stock before the payable date and receive the dividend payment. That date is set any number of weeks before the payable date.
4-The Ex-Dividend Date is two business days before the record date and it’s when the shares begin to trade without their dividend. If you buy stocks one day or more before their ex-dividend date, you will still get the dividend. That’s when a stock is said to trade cum-dividend. If you buy on the ex-dividend date or later, you won’t get the dividend. The ex-dividend date is in place to allow pending stock trades to settle.
We think very highly of stocks that have been paying dividends for five or more years, at TSI Network. Many of these stocks fit in well with our three-part Successful Investor philosophy:
1- Invest mainly in well-established companies;
2- Spread your money out across most if not all of the five main economic sectors (Manufacturing & Industry; Resources & Commodities; Consumer; Finance; and Utilities);
3- Downplay or avoid stocks in the broker/media limelight.
 How Successful Investors Get RICHLearn everything you need to know in ‘The Canadian Guide on How to Invest in Stocks Successfully’ for FREE from The Successful Investor. How to Invest In Stocks Guide: Find 10 factors that make your investments safer and stronger. |
CISCO SYSTEMS INC. $48 is a buy. The company (Nasdaq symbol CSCO; High-Growth Dividend Payer Portfolio, Manufacturing sector; Shares outstanding: 4.1 billion; Market cap: $196.8 billion; Dividend yield: 3.3%; Dividend Sustainability Rating: Above Average; www.cisco.com) makes hardware and software to link and manage computer networks.
With the April 2024 payment,… Read More
High-yielding utility stocks like Telus have suffered in the past few months as investors shift to bonds. High interest rates are also adding to their debt servicing costs. However, rates will probably come down in the next few months. As well, Telus’s improving cash flow… Read More
TRAVEL + LEISURE CO. $46 is a buy. The company (New York symbol TNL; Cyclical-Growth Payer Portfolio, Consumer sector; Shares outstanding: 71.0 million; Market cap: $3.3 billion; Dividend yield: 4.3%; Dividend Sustainability Rating: Average; www.travelandleisureco.com) is now the world’s largest vacation-ownership and exchange company with more than 245 timeshare… Read More
T. ROWE PRICE GROUP INC. $111 is a buy. The asset manager (Nasdaq symbol TROW; High-Growth Dividend Payer Portfolio, Finance sector; Shares outstanding: 223.7 million; Market cap: $24.8 billion; Dividend yield: 4.5%; Dividend Sustainability Rating: Above Average; www.troweprice.com) provides financial advice and products to individuals and institutions worldwide.
T. Rowe… Read More
CANADIAN NATIONAL RAILWAY CO. $168 is a buy. Canada’s largest railway (Toronto symbol CNR; Conservative-Growth Payer Portfolio, Manufacturing & Industry sector; Shares outstanding: 637.6 million; Market cap: $107.1 billion; Dividend yield: 2.0%; Dividend Sustainability Rating: Highest; www.cn.ca) raised your quarterly dividend by 7.0% with the March 2024 payment. The… Read More
Dividend-seeking investors tend to shy away from small-cap stocks as they feel their payments are less secure than large cap firms. However, these two small caps dominate their niche markets, which offsets your risk.
CALIAN GROUP LTD. $55 is a buy. The company (Toronto symbol CGY; High-Growth Dividend… Read More
PROCTER & GAMBLE CO. $163 is a buy. The stock (New York symbol PG; Income-Growth Portfolio, Consumer sector; Shares outstanding: 2.4 billion; Market cap: $391.2 billion; Dividend yield: 2.5%; Dividend Sustainability Rating: Highest; www.pg.com) is one of the world’s largest makers of household and personal-care goods.
With the May 2024… Read More
These two U.S. beverage-related stocks are taking steps to improve their long-term sales. We still like the outlook for both, as these actions should let them keep raising your dividends. However, we feel Starbucks, with its strong customer loyalty and international growth plans, is less… Read More
Accounting rules are forcing these two banks to set aside more funds for potential loan defaults in the current high interest rate environment. While that has hurt their earnings and pushed up their dividend payout ratios, savings from recent cost cuts should improve those ratios… Read More
POWER CORP. OF CANADA $37 is a buy. The conglomerate (Toronto symbol POW; Conservative-Growth Dividend Payer Portfolio, Finance sector; Shares outstanding: 652.2 million; Market cap: $24.1 billion; Dividend yield: 6.1%; Dividend Sustainability Rating: Above Average; www.powercorporation.com) has several primary investments, including controlling stakes in Canadian financial services firms Great-West… Read More
These two REITs focus mainly on retail shopping malls, which adds risk. However, their high-quality properties continue to attract new tenants and help retain existing ones. As a result, both REITs recently raised their distributions.
RIOCAN REAL ESTATE INVESTMENT TRUST $18 is a buy. The REIT (Toronto symbol… Read More
AUTOMOTIVE PROPERTIES REIT $10 (Toronto symbol APR.UN; Units outstanding: 39.7 million; Market cap: $397.0 million; Dividend yield: 8.0%; www.automotivereit.ca) is a real estate investment trust that owns 77 commercial properties across cities in Ontario, Saskatchewan, Manitoba, Alberta, B.C. and Quebec.
The REIT’s properties offer 2.9 million square feet… Read More
In May 2018, Choice Properties REIT acquired Canadian REIT (old symbol REF.UN) for $1.85 billion in cash and 182.8 million units. The merger helped diversify its operations with 209 industrial and office properties.
Choice has since sold its office properties to focus on retail stores and… Read More
Both North West Company and WELL Health are leaders in their respective niche markets. That bodes well for their future prospects and share prices. We see each as a buy.
NORTH WEST COMPANY, $38.66, is a buy. This retailer (Toronto symbol NWC; TSINetwork Rating: Extra Risk) (www.northwest.ca; Shares… Read More
AltaGas took on significant risk with a huge U.S. acquisition in July 2018. The company nonetheless stuck to its promise of selling its non-core assets to pay down the debt it took on. At the same time, its regulated cash flows expanded. We still believe in… Read More
BCE’s shares are down 17% since the start of 2024. That’s mainly due to concerns over the sustainability of its dividend as those payments exceed its free cash flow. However, capital spending is declining now that it has completed a major upgrade of its networks… Read More
Parent company Power Corp. is now simplifying the operations of its two main subsidiaries—Great-West Lifeco and IGM Financial. The plan will benefit investors in both firms, but we still prefer IGM for your new buying.
GREAT-WEST LIFECO INC. $41 is a hold. The insurer (Toronto symbol GWO; Conservative… Read More
BANK OF NOVA SCOTIA, $67.98, is a buy. The lender, (Toronto symbol BNS; Shares outstanding: 1.2 billion; Market cap: $82.7 billion; TSINetwork Rating: Above Average; Dividend yield: 6.2%; www.scotiabank.com) due to current economic uncertainty and higher interest rates/inflation, set aside $962 million to cover future loan losses in… Read More
With their clean, renewable power, these two companies have strong conceptual appeal for investors. But just as important is their mix of hydroelectric, wind and solar power. That diversity, along with their long-term contracts, provides stable cash flows. It also lets these utility firms continue… Read More
PRIMARIS REIT, $13.37, is a buy. The trust (Toronto symbol PMZ.UN; Units outstanding: 96.5 million; Market cap: $1.3 billion; TSINetwork Rating: Average; Yield: 6.3%; www.primarisreit.com) owns 39 enclosed and open air shopping malls in Canada totalling 12.5 million square feet. The occupancy rate is 94.2%.
Primaris’s properties include its… Read More
