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.
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Both Wajax and Russel Metals were hurt by the decline in economic activity because of the pandemic. But Wajax has now regained all the ground it lost after its big drop in March 2020, and Russel has gone on to reach new highs. We see… Read More
RIOCAN REAL ESTATE INVESTMENT TRUST $22 is a buy. The REIT (Toronto symbol REI.UN; Aggressive Growth Portfolio, Manufacturing & Industry sector; Units outstanding: 309.9 million; Market cap: $6.8 billion; Price-to-sales ratio: 5.4; Distribution yield: 4.9%; TSINetwork Rating: Average; www.riocan.com) owns all or part of 193 shopping centres and… Read More
While rising interest rates have spurred income-seeking investors to buy bonds, we still prefer high-quality utilities like these four. Their regulated businesses cut your risk and give them lots of cash flow for dividends. Canadian investors also benefit from the dividend tax credit.
ENBRIDGE INC. $53… Read More
BCE INC., $60.21, is a buy. The company (Toronto symbol BCE; Shares outstanding: 911.9 million; Market cap: $55.1 billion; TSINetwork Rating: Above Average; Dividend yield: 6.4%) is Canada’s largest traditional telephone service provider. It also offers wireless services and high-speed Internet access. That’s in addition to owning TV… Read More
SUN LIFE FINANCIAL, $66.30, is a buy. This Canadian insurance giant (Toronto symbol SLF; Shares outstanding: 586.3 million; Market cap: $38.7 billion; TSINetwork Rating: Above Average; Dividend yield: 4.3%; www.sunlife.ca) has formed an exclusive 15-year partnership in Hong Kong.
Sun Life will be the exclusive provider of life insurance solutions… Read More
PRIMARIS REIT, $15.07, is a buy. The trust (Toronto symbol PMZ.UN; Units outstanding: 97.3 million; Market cap: $1.5 billion; TSINetwork Rating: Average; Yield: 5.4%; www.primarisreit.com) owns 35 enclosed and open air shopping malls in Canada totalling 11.3 million square feet. The occupancy rate is 87.5%.
Primaris is working with… Read More
The market plunge at the start of the COVID-19 crisis lowered the unit price of most REITs. That’s because the pandemic forced many businesses—and REIT tenants—to temporarily close. However, the pandemic has waned, and rental markets are recovering. That will let these two REITs maintain,… Read More
TD BANK, $90.66, (Toronto symbol TD; Shares outstanding: 1.8 billion; Market cap: $165.5 billion; TSINetwork Rating: Above Average; Dividend yield: 4.0%; www.td.com) closed the acquisition of U.S. investment bank Cowen Inc. (Nasdaq symbol COWN) for $1.3 billion U.S. on March 1, 2023.
Cowen gives TD access to its… Read More
The plan to upgrade Telus wireless networks to high-speed 5G is nearing completion after several years. The investment promises to lift long-term earnings—as will Telus’s other growth businesses. They include the now-independent call-centre business Telus International, as well as the ADT smart-home security unit. Telus… Read More
FORTIS INC. $55 is a buy. The company (Toronto symbol FTS; Income-Growth Portfolio, Utilities sector; Shares outstanding: 482.2 million; Market cap: $26.5 billion; Dividend yield 4.1%; Dividend Sustainability Rating: Highest; www.fortisinc.com) is the main supplier of electrical power in Newfoundland and PEI. It also owns electrical and gas utilities… Read More
AbbVie’s earnings will likely drop 20% in 2023 as its main drug, Humira, faces new competition in the U.S. from generics. However, the company has several promising drugs in its development pipeline that should spur its revenue and earnings for years to come. That should… Read More
RUSSEL METALS INC. $36 is a buy. The company (Toronto symbol RUS; Cyclical-Growth Dividend Payer Portfolio, Manufacturing & Industry sector; Shares outstanding: 62.1 million; Market cap: $2.2 billion; Dividend yield: 4.2%; Dividend Sustainability Rating: Above Average; www.russelmetals.com) is one of the largest metals distributors in North America with more… Read More
ANDREW PELLER LTD. $5.01 (A shares) remains a buy. Canada’s second-largest winemaker (Toronto symbol ADW.A; Conservative Growth Payer Portfolio, Consumer sector; Shares outstanding: 43.1 million; Market cap: $215.9 million; Dividend yield: 4.9%; Dividend Sustainability Rating: Above Average; www.andrewpeller.com) last raised your quarterly dividend by 10% with the July 2021… Read More
TRANSCONTINENTAL INC. $15 is still a buy. Canada’s largest commercial printing company (Toronto symbol TCL.A; Cyclical-Growth Portfolio, Consumer sector; Shares outstanding: 86.6 million; Market cap: $1.3 billion; Dividend yield: 6.0%; Dividend Sustainability Rating: Above Average; www.tctranscontinental.com) last raised your dividend with the April 2020 payment. Investors now receive $0.225… Read More
The improving outlook for cyclical commodity prices is prompting mining firms to order more equipment from Finning and Toromont. Both firms are also benefitting as governments spend more on infrastructure projects. Those higher orders will fuel their profits—and your dividends.
FINNING INTERNATIONAL INC. $35 is a.. Read More
Top insurers Manulife and Sun Life recently rewarded investors with sizeable dividend hikes. That’s partly due to the contributions of recent acquisitions. We feel these purchases will continue to pay off. Moreover, both stocks trade at attractive multiples to their projected earnings.
MANULIFE FINANCIAL CORP. $27… Read More
MCDONALD’S CORP. $269 is a buy. This company (New York symbol MCD; Income-Growth Dividend Payer Portfolio, Consumer sector; Shares outstanding: 732.4 million; Market cap: $197.0 billion; Dividend yield: 2.3%; Dividend Sustainability Rating: Highest; www.mcdonalds.com) is the world’s largest fast-food chain with over 40,000 restaurants in 119 countries. It serves… Read More
So far, U.S. consumer confidence has held up in the face of rising inflation and interest rates. However, there are signs that higher rates could cut spending in 2023, which would likely weigh on the profit growth of these two consumer-products giants. Even so, their… Read More
T. ROWE PRICE GROUP INC. $112 is a buy. The asset manager (Nasdaq symbol TROW; High-Growth Dividend Payer Portfolio, Finance sector; Shares outstanding: 224.3 million; Market cap: $25.1 billion; Dividend yield: 4.4%; Dividend Sustainability Rating: Above Average; www.troweprice.com) provides financial advice and products to individuals and institutions worldwide.
The company… Read More
Thanks to the re-opening of offices and shopping malls with the end of COVID-19 restrictions, these two REITs are rewarding investors with higher distributions.
ALLIED PROPERTIES REAL ESTATE INVESTMENT TRUST $28 is a buy. The REIT (Toronto symbol AP.UN; Cyclical-Growth Dividend Payer Portfolio, Manufacturing sector; Units outstanding: 128.0… Read More
