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
BANK OF NOVA SCOTIA $53 (Toronto symbol BNS; Conservative Growth Portfolio, Finance sector; Shares outstanding: 1.1 billion; Market cap: $58.3 billion; Price-to-sales ratio: 3.4; Dividend yield: 4.2%; TSINetwork Rating: Above Average; www.scotiabank.com) is Canada’s third-largest bank, with assets of $659.7 billion.
Scotia’s overseas operations now supply 30% of its earnings. It prefers to focus on fast-growing regions like Asia and Latin America instead of Europe. The bank holds $2.5 billion of securities from troubled European countries, mainly Italy and Spain, down from $2.6 billion six months ago.
To put these figures in context, Bank of Nova Scotia earned $1.5 billion in the three months ended April 30, 2012. That’s up 16.1% from $1.3 billion a year earlier. Earnings per share rose 8.5%, to $1.15 from $1.06, on more shares outstanding. Revenue rose 1.4%, to $4.7 billion from $4.6 billion.
...
Scotia’s overseas operations now supply 30% of its earnings. It prefers to focus on fast-growing regions like Asia and Latin America instead of Europe. The bank holds $2.5 billion of securities from troubled European countries, mainly Italy and Spain, down from $2.6 billion six months ago.
To put these figures in context, Bank of Nova Scotia earned $1.5 billion in the three months ended April 30, 2012. That’s up 16.1% from $1.3 billion a year earlier. Earnings per share rose 8.5%, to $1.15 from $1.06, on more shares outstanding. Revenue rose 1.4%, to $4.7 billion from $4.6 billion.
...
TORONTO-DOMINION BANK $80 (Toronto symbol TD; Conservative Growth Portfolio, Finance sector; Shares outstanding: 908.2 million; Market cap: $72.7 billion; Price-to-sales ratio: 3.2; Dividend yield: 3.6%; TSINetwork Rating: Above Average; www.td.com) is Canada’s second-largest bank, with total assets of $773.2 billion.
TD is also cutting its exposure to troubled European countries. It held $691 million of investments from these nations on April 30, 2012, down from $1.0 billion on October 31, 2011.
The bank earned $1.7 billion in its second quarter, up 13.9% from $1.5 billion a year earlier. Earnings per share rose 11.7%, to $1.82 from $1.63, on more shares outstanding. These gains are largely the result of TD’s recent $6.8-billion purchase of MBNA’s Canadian credit card business. Revenue rose 11.5%, to $5.8 billion from $5.2 billion.
...
TD is also cutting its exposure to troubled European countries. It held $691 million of investments from these nations on April 30, 2012, down from $1.0 billion on October 31, 2011.
The bank earned $1.7 billion in its second quarter, up 13.9% from $1.5 billion a year earlier. Earnings per share rose 11.7%, to $1.82 from $1.63, on more shares outstanding. These gains are largely the result of TD’s recent $6.8-billion purchase of MBNA’s Canadian credit card business. Revenue rose 11.5%, to $5.8 billion from $5.2 billion.
...
BOMBARDIER INC. (Toronto symbols BBD.A $4.06 and BBD.B $4.01; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 1.7 billion; Market cap: $6.9 billion; Price-to-sales ratio: 0.4; Dividend yield: 2.5%; TSINetwork Rating: Average; www.bombardier.com) has traditionally been a maker of smaller aircraft, such as business jets and regional planes.
The company is now adding larger models, such as its upcoming CSeries jets, which seat between 100 and 150 passengers. Bombardier is still developing and testing the CSeries, but it aims to deliver the first plane in the next 18 months.
Even with the current economic uncertainty, the company recently announced new orders for a total of 35 CSeries planes.
...
The company is now adding larger models, such as its upcoming CSeries jets, which seat between 100 and 150 passengers. Bombardier is still developing and testing the CSeries, but it aims to deliver the first plane in the next 18 months.
Even with the current economic uncertainty, the company recently announced new orders for a total of 35 CSeries planes.
...
METRO INC. $53 (Toronto symbol MRU; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 98.9 million; Market cap: $5.2 billion; Price-to-sales ratio: 0.5; Dividend yield: 1.6%; TSINetwork Rating: Average; www.metro.ca) is Canada’s third-largest supermarket operator, after Loblaw and Sobeys. The company has about 600 supermarkets in Quebec and Ontario. It also operates 260 drugstores under the Brunet, The Pharmacy and Drug Basics banners.
Metro’s sales rose 7.4%, from $10.6 billion in 2007 to $11.4 billion in 2011 (fiscal years end September 30). Earnings fell 5.0%, from $295.6 million in 2007 to $280.8 million in 2008. Metro is an aggressive buyer of its own shares. Because of fewer shares outstanding, per-share earnings fell 2.4%, from $2.54 to $2.48.
However, earnings turned around in 2009, rising 27.8%, to $359.0 million, or $3.23 share. That’s mainly because the company lowered its advertising costs by converting its various banners in Ontario to the Metro brand. Earnings continued to rise, and reached $400.6 million, or $3.87 a share, in 2011.
...
Metro’s sales rose 7.4%, from $10.6 billion in 2007 to $11.4 billion in 2011 (fiscal years end September 30). Earnings fell 5.0%, from $295.6 million in 2007 to $280.8 million in 2008. Metro is an aggressive buyer of its own shares. Because of fewer shares outstanding, per-share earnings fell 2.4%, from $2.54 to $2.48.
However, earnings turned around in 2009, rising 27.8%, to $359.0 million, or $3.23 share. That’s mainly because the company lowered its advertising costs by converting its various banners in Ontario to the Metro brand. Earnings continued to rise, and reached $400.6 million, or $3.87 a share, in 2011.
...
When we go through the many comments we receive from TSI Network readers, the subject that seems to come up most often is dividend stocks. That’s not surprising, perhaps, since the first principle in our 3-part investment strategy is to mainly buy well-established, dividend-paying stocks. Another subject that draws many questions and strong opinions from our readers is retirement planning. And the idea of planning your retirement around dividends is one that appeals to many investors. When Pat replied to a specific question on this strategy two and a half months ago, it became the most watched of the weekly videos he has posted on the network over the past four months. It seems like a good time to have another look at this video, particularly because Pat’s answer holds a word of caution for investors: simply buying and holding dividend stocks may not be quite enough to accomplish your goals....
We’ve always placed a high value on a strong record of paying dividends, mainly because it provides something of a pedigree for stocks we recommend. After all, you can’t fake a record of dividends. It takes a lot of success and high-quality management for a company to have the cash and the determination to declare and pay a dividend every year for five or 10 years or more. It’s not something you can create on the spur of the moment. Now many investors have come to share our high regard for dividends, especially as a source of retirement income. However, some take this reliance on dividend stocks to extremes. They put too much faith in a history of dividend payments. They think of a stock with a good dividend history as the next best thing to a government bond....
BCE INC. $42 (Toronto symbol BCE; Conservative Growth Portfolio, Utilities sector; Shares outstanding: 775.9 million; Market cap: $32.6 billion; Priceto- sales ratio: 1.6; Dividend yield: 5.5%; TSINetwork Rating: Above Average; www.bce.ca) has 5.4 million telephone customers in Ontario and Quebec, as well as 2.1 million high-speed Internet subscribers and 2.2 million TV clients. In addition, the company’s wireless business now has 7.7 million subscribers across Canada. BCE also owns 45% of Bell Aliant (see box this page).
In the three months ended June 30, 2013, the company’s earnings fell 20.5%, to $594 million, or $0.77 a share. A year earlier, it earned $747 million, or $0.97. The drop is mainly due to non-cash losses on hedges the company uses to cut the risk of its employee stock option plans.
Revenue rose 1.5%, to $5.0 billion from $4.9 billion. Revenue from its wireline division (traditional telephone, Internet and TV; 48% of total revenue) fell 0.9%. That’s partly because more of its customers are switching to wireless service. Revenue at BCE’s wireless division (28% of revenue) rose 5.4%, thanks to strong demand for smartphones and rising mobile data use.
...
In the three months ended June 30, 2013, the company’s earnings fell 20.5%, to $594 million, or $0.77 a share. A year earlier, it earned $747 million, or $0.97. The drop is mainly due to non-cash losses on hedges the company uses to cut the risk of its employee stock option plans.
Revenue rose 1.5%, to $5.0 billion from $4.9 billion. Revenue from its wireline division (traditional telephone, Internet and TV; 48% of total revenue) fell 0.9%. That’s partly because more of its customers are switching to wireless service. Revenue at BCE’s wireless division (28% of revenue) rose 5.4%, thanks to strong demand for smartphones and rising mobile data use.
...
CANADA BREAD CO. LTD. $48 (www.canadabread.ca) is seeing lower demand for its fresh baked goods. At the same time, its costs for wheat and other ingredients are rising. As a result, its earnings fell 62.5% in the first quarter of 2012, to $0.21 a share from $0.56 a year earlier....
CAE INC. $9.88 (www.cae.com) has won several contracts from military clients for flight simulators and other training equipment. In all, these deals are worth $110 million, which is equal to 6% of CAE’s annual revenue of $1.8 billion. Best Buy.
FINNING INTERNATIONAL INC. $23 (www.finning.com) earned $0.39 a share in the three months ended March 31, 2012. That’s down 7.1% from $0.42 a year earlier. If you exclude the costs of installing a new computer system that will make its Canadian operations more efficient, Finning would have earned $0.48 a share in the latest quarter....