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.
[text_ad use_category="243"]
Read More
Close
TORONTO-DOMINION BANK $81 (Toronto symbol TD; Conservative Growth Portfolio, Finance sector; Shares outstanding: 922.1 million; Market cap: $74.7 billion; Price-to-sales ratio: 2.4; Dividend yield: 4.0%; TSINetwork Rating: Above Average; www.td.com) is Canada’s second-largest bank, with $826.4 billion of assets.
In the three months ended April 30, 2013, TD’s earnings rose 5.8%, to $1.8 billion from $1.7 billion a year earlier. Because of more shares outstanding, earnings per share rose 4.4%, to $1.90 from $1.82.
Revenue increased 4.3%, to $6.0 billion from $5.75 billion. Revenue at TD’s Canadian retail banking division (which supplies 44% of the bank’s overall revenue) rose 1.5%, as its credit card holders spent more and demand rises for home mortgages and car loans.
...
In the three months ended April 30, 2013, TD’s earnings rose 5.8%, to $1.8 billion from $1.7 billion a year earlier. Because of more shares outstanding, earnings per share rose 4.4%, to $1.90 from $1.82.
Revenue increased 4.3%, to $6.0 billion from $5.75 billion. Revenue at TD’s Canadian retail banking division (which supplies 44% of the bank’s overall revenue) rose 1.5%, as its credit card holders spent more and demand rises for home mortgages and car loans.
...
ROYAL BANK OF CANADA $59 (Toronto symbol RY; Conservative Growth Portfolio, Finance sector; Shares outstanding: 1.4 billion; Market cap: $82.6 billion; Price-to-sales ratio: 2.3; Dividend yield: 4.3%; TSINetwork Rating: Above Average; www.rbc.com) is Canada’s largest bank, with $867.5 billion of assets.
Royal recently paid $3.7 billion for Ally Financial’s Canadian operations. This business mainly provides car loans through over 1,600 dealerships across the country. It also offers no-fee savings accounts and consumer and business loans.
If you exclude unusual items, such as the cost of integrating this business, Royal earned $2.0 billion in the quarter ended April 30, 2013. That’s up 13.4% from $1.7 billion a year earlier. Earnings per share rose 14.2%, to $1.29 from $1.13, on fewer shares outstanding. The Ally business contributed $12 million to Royal’s latest earnings. As well, more of Royal’s borrowers are repaying their loans on time. The bank set aside $288 million for potential bad loans, down 17.2% from $348 million a year earlier.
...
Royal recently paid $3.7 billion for Ally Financial’s Canadian operations. This business mainly provides car loans through over 1,600 dealerships across the country. It also offers no-fee savings accounts and consumer and business loans.
If you exclude unusual items, such as the cost of integrating this business, Royal earned $2.0 billion in the quarter ended April 30, 2013. That’s up 13.4% from $1.7 billion a year earlier. Earnings per share rose 14.2%, to $1.29 from $1.13, on fewer shares outstanding. The Ally business contributed $12 million to Royal’s latest earnings. As well, more of Royal’s borrowers are repaying their loans on time. The bank set aside $288 million for potential bad loans, down 17.2% from $348 million a year earlier.
...
TECK RESOURCES LTD. $24 (Toronto symbol TCK.B; Conservative Growth Portfolio, Resources sector; Shares outstanding: 580.1 million; Market cap: $13.9 billion; Price-tosales ratio: 1.3; Dividend yield: 3.8%; TSINetwork Rating: Average; www. teck.com) is down 35% since we made it our Stock of the Year for 2013.
The drop is mainly because slowing industrial activity in China and elsewhere has hurt prices for its metallurgical coal, which is a key ingredient in steelmaking. In 2012, coal accounted for 45% of Teck’s revenue, and 51% of its earnings.
In response to the weaker demand, Teck and other coal producers are cutting production. That should support prices as steelmakers use up their inventories. Moreover, Teck has built strong relationships with its major customers, so they are unlikely to switch to other coal suppliers. Teck’s high-quality coal also helps steelmakers improve their efficiency.
...
The drop is mainly because slowing industrial activity in China and elsewhere has hurt prices for its metallurgical coal, which is a key ingredient in steelmaking. In 2012, coal accounted for 45% of Teck’s revenue, and 51% of its earnings.
In response to the weaker demand, Teck and other coal producers are cutting production. That should support prices as steelmakers use up their inventories. Moreover, Teck has built strong relationships with its major customers, so they are unlikely to switch to other coal suppliers. Teck’s high-quality coal also helps steelmakers improve their efficiency.
...
BANK OF NOVA SCOTIA $56 (Toronto symbol BNS; Conservative Growth Portfolio, Finance sector; Shares outstanding: 1.2 billion; Market cap: $67.2 billion; Price-to-sales ratio: 2.4; Dividend yield: 4.3%; TSINetwork Rating: Above Average; www.scotiabank.com) is Canada’s third-largest bank, with assets of $754.2 billion.
The bank has recovered strongly from the 2008 financial crisis. Revenue rose 65.9%, from $11.9 billion in 2008 to $19.7 billion in 2012 (fiscal years end October 31). Earnings gained 98.6%, from $3.0 billion in 2008 to $6.0 billion in 2012. Due to more shares outstanding, earnings per share rose at a slower pace of 71.1%, from $3.05 to $5.22. Without a one-time gain on the sale of real estate, it would have earned $4.61 a share in 2012.
Much of this growth is due to acquisitions. In the past six years, Bank of Nova Scotia has spent over $14 billion buying smaller financial services firms. It purchased most of these assets from banks that wanted to exit certain markets, so it probably got many of them at bargain prices.
...
The bank has recovered strongly from the 2008 financial crisis. Revenue rose 65.9%, from $11.9 billion in 2008 to $19.7 billion in 2012 (fiscal years end October 31). Earnings gained 98.6%, from $3.0 billion in 2008 to $6.0 billion in 2012. Due to more shares outstanding, earnings per share rose at a slower pace of 71.1%, from $3.05 to $5.22. Without a one-time gain on the sale of real estate, it would have earned $4.61 a share in 2012.
Much of this growth is due to acquisitions. In the past six years, Bank of Nova Scotia has spent over $14 billion buying smaller financial services firms. It purchased most of these assets from banks that wanted to exit certain markets, so it probably got many of them at bargain prices.
...
IGM FINANCIAL INC. (Toronto symbol IGM; www.igmfinancial.com) is Canada’s largest independent mutual fund company, with $125.8 billion of assets under management. Power Financial owns 58.4% of IGM....
PENGROWTH ENERGY CORP. $5.07 (www.pengrowth.com) continues to develop its Lindbergh oil sands project in Alberta. When this operation begins commercial production late next year, it should produce 12,500 barrels a day. That’s equal to 14% of the 89,702 barrels a day that Pengrowth produced in the first three months of 2013....
BELL ALIANT INC. $28 (www.bellaliant.ca) earned $0.43 a share in the three months ended March 31, 2013, unchanged from a year earlier. Revenue rose 0.3%, to $683.6 million from $681.8 million. Strong demand for high-speed Internet and TV services offset lower local and long-distance revenue....
MOLSON COORS CANADA INC. (Toronto symbols TPX.A $49 and TPX.B $49; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 181.7 million; Market cap: $8.9 billion; Price-to-sales ratio: 2.4; Dividend yield: 2.6%; TSINetwork Rating: Average; www.molsoncoors.com) is one of the world’s leading brewers. Its main brands include Coors Light, Molson Canadian and Carling.
The company’s sales fell 36.5%, from $4.8 billion in 2008 to $3.0 billion in 2009 (all amounts except share prices and market cap in U.S. dollars). That’s because it merged its U.S. brewing operations with those of rival SABMiller to form MillerCoors. Each company has a 50% voting interest in this joint venture, but Miller gets 58% of the profits while Molson Coors gets 42%. Because it owns less than half of MillerCoors, accounting rules forced Molson Coors to stop including the sales from this business in its overall sales.
...
The company’s sales fell 36.5%, from $4.8 billion in 2008 to $3.0 billion in 2009 (all amounts except share prices and market cap in U.S. dollars). That’s because it merged its U.S. brewing operations with those of rival SABMiller to form MillerCoors. Each company has a 50% voting interest in this joint venture, but Miller gets 58% of the profits while Molson Coors gets 42%. Because it owns less than half of MillerCoors, accounting rules forced Molson Coors to stop including the sales from this business in its overall sales.
...
METRO INC. $70 (Toronto symbol MRU; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 95.2 million; Market cap: $6.7 billion; Price-to-sales ratio: 0.6; Dividend yield: 1.4%; TSINetwork Rating: Average; www.metro.ca) earned $100.5 million in the 12 weeks ended March 16, 2013. This figure excludes a $266.4-million gain on the sale of about half its stake in Alimentation Couche-Tard Inc. (Toronto symbol ATD.B), which operates convenience stores in North America and Norway. The latest earnings are also up 4.4% from $96.3 million a year earlier. Metro used the sale proceeds to buy back shares. As a result, earnings per share rose 8.5%, to $1.02 from $0.94.
Sales fell 2.6%, to $2.5 billion from $2.6 billion, as the company closed some unprofitable supermarkets in Ontario. As well, the year-earlier quarter, which began on December 18, 2011, included the busy week before Christmas. Same-store sales were flat.
Metro is a buy....
Sales fell 2.6%, to $2.5 billion from $2.6 billion, as the company closed some unprofitable supermarkets in Ontario. As well, the year-earlier quarter, which began on December 18, 2011, included the busy week before Christmas. Same-store sales were flat.
Metro is a buy....
CANADIAN IMPERIAL BANK OF COMMERCE $81 (Toronto symbol CM; Conservative Growth Portfolio, Finance sector; Shares outstanding: 401.9 million; Market cap: $32.5 billion; Price-to-sales ratio: 1.9; D i v i d e n d y i e l d : 4 . 6 % ; TSINetwork Rating: Above Average; www.cibc.com) is buying Atlantic Trust Private Wealth Management, which sells portfolio management services to wealthy clients in the U.S.
CIBC will pay $210 million U.S. when the deal closes later this year. To put that in context, it earned $895 million (Canadian), or $2.15 a share, in the three months ended January 31, 2013. Atlantic Trust will add $20 billion U.S. to the $223 billion (Canadian) in assets that CIBC’s wealth management division already has under administration.
CIBC is a buy....
CIBC will pay $210 million U.S. when the deal closes later this year. To put that in context, it earned $895 million (Canadian), or $2.15 a share, in the three months ended January 31, 2013. Atlantic Trust will add $20 billion U.S. to the $223 billion (Canadian) in assets that CIBC’s wealth management division already has under administration.
CIBC is a buy....