Dividend Stocks

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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CANADIAN PACIFIC RAILWAY LTD. $129 (Toronto symbol CP; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 175.0 million; Market cap: $22.6 billion; Price-to-sales ratio: 3.9; Dividend yield: 1.1%; TSINetwork Rating: Above Average; www.cpr.ca) expects to ship 70,000 carloads of crude oil in 2013, up sharply from just 13,000 in 2011.

However, the crash could hurt the oil-by-rail boom. (Note: Montreal, Maine and Atlantic Ltd., operated the train involved in the crash, not CP.)

It seems likely that regulators will require railways to replace their current tanker cars with models that can better withstand collisions. They may also demand that railways place more workers on their trains, and install automatic-braking equipment.
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TRANSCANADA CORP. $46 (Toronto symbol TRP; Conservative Growth Portfolio, Utilities sector; Shares outstanding: 707.0 million; Market cap: $32.5 billion; Priceto- sales ratio: 3.9; Dividend yield: 4.0%; TSINetwork Rating: Above Average; www.transcanada.com) operates a 57,000- kilometre pipeline network that pumps natural gas from Alberta to Eastern Canada and the U.S. The company’s pipelines supply 20% of North America’s natural gas. In 2012, they provided 53% of TransCanada’s revenue and 60% of its earnings.

The company also owns or invests in 21 power plants in Alberta, Ontario, Quebec and the northeastern U.S. In all, these facilities have over 11,800 megawatts of generating capacity. TransCanada’s electricity operations now supply 34% of its revenue and 21% of its earnings.

In 2011, the company started up its oil-pipeline division. This business mainly consists of the Keystone pipeline, which pumps oil from Alberta to refineries in Illinois, and a distribution hub in Cushing, Oklahoma. Oil pipelines supply the remaining 13% of TransCanada’s revenue and 19% of its earnings.
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Telus braces for challenge from Verizon
TELUS (Toronto symbol T; www.telus.com) has 7.7 million wireless subscribers across Canada. It gets much more of its revenue from wireless than major competitor BCE—54% compared to BCE’s 32%. Telus gets the remaining 46% of its revenue from its traditional phone business, which has 3.4 million customers in B.C., Alberta and eastern Quebec. Telus also has 1.3 million Internet subscribers and 712,000 Telus TV subscribers....
FINNING INTERNATIONAL INC. $22 (www.finning.com) has increased its quarterly dividend by 8.9%, to $0.1525 a share from $0.14. The new annual rate of $0.61 yields 2.8%. Finning sells heavy equipment to the mining industry, and lower commodity prices have hurt the stock....
IGM FINANCIAL INC. $45 (www.igmfinancial.com) reported that it had $127.1 billion of assets under management on May 31, 2013, up 8.6% from $117.0 billion a year earlier. Improving stock markets were the main reason for the increase: IGM’s fee income rises and falls with the value of the investments it manages, and the market rose 5.3% in the past year....
$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$ CAE INC. $10 (www.cae.com) has sold six flight simulators to airlines in Turkey and Azerbaijan. These are the company’s first simulator sales in its 2014 fiscal year, which ends March 31, 2014....
TIM HORTONS INC. $54 (Toronto symbol THI; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 153.4 million; Market cap: $8.3 billion; Price-to-sales ratio: 2.6; Dividend yield: 1.9%; TSINetwork Rating: Average; www.timhortons.com) is the largest fast-food company in Canada, with 3,453 outlets that mainly serve coffee and donuts. The company also has 808 U.S. stores.

The stock has moved up lately in response to demands from Highfields Capital Management, a U.S.-based activist investment firm that owns 1.5% of Tim Hortons’ shares. Highfields has proposed several ways to boost shareholder value, including slowing Tim Hortons’ expansion in the U.S., where it faces intense competition from larger chains like McDonald’s, Dunkin’ Donuts and Starbucks.


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BOMBARDIER INC. (Toronto symbols BBD.A $4.68 and BBD.B $4.67; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 1.7 billion; Market cap: $7.9 billion; Price-to-sales ratio: 0.5; Dividend yield: 2.1%; TSINetwork Rating: Average; www.bombardier.com) plans to begin test flights of its new CSeries jet planes by the end of June 2013.

The company’s plan to test the plane both in flight and using simulators should let it deliver the first CSeries in mid-2014.

The subordinate-voting class B shares are the better choice because of their slightly better liquidity and higher dividend yield.
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SUNCOR ENERGY INC. $31 (Toronto symbol SU; Conservative Growth Portfolio, Resources sector; Shares outstanding: 1.5 billion; Market cap: $46.5 billion; Price-to-sales ratio: 1.2; Dividend yield: 2.6%; TSINetwork Rating: Average; www. suncor.com) has resumed normal operations at its oil refinery in Edmonton after it closed the facility for six weeks for unplanned maintenance.

The shutdown led to minor shortages at the company’s Petro-Canada gas stations in Western Canada. However, it also pushed up gas prices, which helped Suncor offset the lost sales.

Suncor is a buy.

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LINAMAR CORP. $28 ( T o r o n t o s y mb o l L N R ; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 64.7 million; Market cap: $1.8 billion; Price-to-sales ratio: 0.6; Dividend yield: 1.1%; TSINetwork Rating: Extra Risk; www.linamar.com) is buying three plants in Germany that make automotive camshafts for various carmakers.

The company didn’t say how much it will pay for these facilities or when the deal will close. However, this purchase will add roughly $35 million to Linamar’s yearly sales of $3.2 billion. As well, the company plans to use this business’s expertise to improve its camshaft operations.

Linamar is a buy.

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