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. |
We’re always disappointed when our recommendations cut their dividends, such as Innergex and Dream Office REIT. However, both of those stocks moved up on the news, as the lower payouts will give the companies room to keep improving their businesses. Even though their yields remain… Read More
ISHARES S&P/TSX CANADIAN DIVIDEND ARISTOCRATS INDEX ETF $32 (Toronto symbol CDZ; Units outstanding: 28.1 million; Market cap: $899.2 million; Dividend yield: 3.95%; www.blackrock.com/ca) aims to mirror the performance of the S&P/TSX Canadian Dividend Aristocrats Index.
The ETF holds 91 stocks. Its top 10 holdings are Fiera Capital, 3.4%;… Read More
TC Energy plans to spinoff of its oil pipeline operations as a separate firm later this year. The remaining firm will focus on its natural gas pipelines and electrical power plants.
Studies show that spun-off stocks, and the companies that spin them off, tend to do… Read More
We see both Wajax and Calian rising even higher given their prospects and in-demand services. Meanwhile, they offer sustainable yields for investors. Both are buys.
WAJAX CORP., $31.57, is a buy. The company (Toronto symbol WJX; TSINetwork Rating: Extra Risk) (www.wajax.ca; Shares outstanding: 21.5 million; Market cap: $682.1… Read More
High interest rates tend to increase the appeal of bonds and hurt the shares of high-quality utility stocks, including the four we analyze below. We feel they are particularly attractive buys right now as it looks like the Bank of Canada will cut interest rates… Read More
Telus is down 11% in the past year. That’s largely due to rising interest rates, which tend to increase costs for utilities and so reduce their appeal with investors—despite their high yields. Lower earnings at Telus’s publicly traded Telus International, which helps businesses manage their… Read More
TC ENERGY INC., $55.39, is a buy. The company (Toronto symbol TRP; Shares o/s: 1.0 billion; Market cap: $55.3 billion; TSINetwork Rating: Above Average; Dividend yield: 7.2%; www.tcenergy.com) operates a pipeline network that pumps natural gas from Alberta to eastern Canada and the U.S. Its other operations include… Read More
POWER CORP., $38.91, is a buy. The conglomerate (Toronto symbol POW; Shares o/s: 600.8 million; Market cap: $25.5 billion; TSINetwork Rating: Above Average; Dividend yield: 5.4%) owns 61.8% of IGM Financial (symbol IGM on Toronto).
IGM has two main businesses: Mackenzie Financial sells funds and ETFs through independent brokers; and… Read More
BCE INC., $50.42, is a buy. The company (Toronto symbol BCE; Shares o/s: 912.3 million; Market cap: $46.1 billion; TSINetwork Rating: Above Average; Yield: 7.9%) will now cut 9% of its workforce. It’s also selling 45 of its 103 radio stations. This should cut its costs by $150… Read More
While rising interest rates have increased the appeal of bonds and hurt REITs in the past year, Choice Properties and RioCan remain excellent ways for investors to earn income. We see both as buys.
CHOICE PROPERTIES REIT, $13.45, is a buy. Canada’s biggest REIT (Toronto symbol CHP.UN; Units o/s:… Read More
Rising interest rates boost the appeal of bonds and so can hurt the share prices of competing high-yield utility stocks like Enbridge. It’s important to note, however, that bond investors must treat interest payments they receive as regular income. As a result, they pay higher… Read More
FORTIS INC. $54 is a buy. The company (Toronto symbol FTS; Income-Growth Portfolio, Utilities sector; Shares outstanding: 490.6 million; Market cap: $26.5 billion; Dividend yield: 4.4%; Dividend Sustainability Rating: Highest; www.fortisinc.com) began supplying electricity to St. John’s, Newfoundland, in 1885. It is now the main power utility in that… Read More
McDonald’s shares recently hit a new all-time high of $302, thanks to the success of its four-pronged “4D” growth strategy. That should continue to let the company keep raising your dividend, as it has each year since it became a public company in 1976.
MCDONALD’S CORP. $294 is… Read More
TOROMONT INDUSTRIES LTD. $125 is a buy. The company (Toronto symbol TIH; High-Growth Dividend Payer Portfolio; Manufacturing & Industry sector; Shares outstanding: 82.3 million; Market cap: $10.3 billion; Dividend yield: 1.5%; Dividend Sustainability Rating: Above Average; www.toromont.com) distributes a range of industrial equipment, including Caterpillar machinery, in eastern Canada… Read More
MOLSON COORS CANADA INC. is a hold. The brewer (Toronto symbols TPX.A $84 and TPX.B $85; Conservative Growth Payer Portfolio, Consumer sector; Shares o/s: 213.3 million; Market cap: $18.1 billion; Dividend yield: 2.8%; Dividend Sustainability Rating: Average; www.molsoncoors.com) will raise your quarterly dividend with the March 2024 payment by… Read More
SAPUTO INC. $28 is a hold. The company (Toronto symbol SAP; High-Growth Payer Portfolio, Consumer sector; Shares outstanding: 424.2 million; Market cap: $11.9 billion; Dividend yield: 2.6%; Dividend Sustainability Rating: Above Average; www.saputo.com) is Canada’s largest producer of dairy products. It also operates dairies in the U.S., Australia, the… Read More
Here are two small-cap firms using acquisitions and spinoffs to improve their prospects. These moves should give them more room to increase their dividends.
LEON’S FURNITURE LTD. $21 is a buy. The retailer (Toronto symbol LNF; High-Growth Payer Portfolio, Consumer sector; Shares outstanding: 68.0 million; Market cap: $1.4… Read More
These two U.S. telecom firms have now completed major upgrades to their wireless networks. Those upgrades should help them attract new users. As well, the lower capital spending bodes well for dividend increases.
AT&T INC. $17 is a buy. The company (New York symbol T; Income-Growth Portfolio, Utilities… Read More
TEXAS INSTRUMENTS INC. $164 is a buy. The company (Nasdaq symbol TXN; High-Growth Dividend Payer Portfolio, Manufacturing sector; Shares outstanding: 909.3 million; Market cap: $149.1 billion; Dividend yield: 3.2%; Dividend Sustainability Rating: Above Average; www.ti.com) makes analog computer chips, which convert touch, sound and pressure into electronic signals.
With the… Read More
These two foodmakers have held steady their dividends in the past few years as they adapt their businesses to changing consumer tastes. As a result, their current dividends look safe.
CAMPBELL SOUP CO. $43 is a buy. The company (New York symbol CPB; Conservative-Growth Payer Portfolio, Consumer sector;… Read More
