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
CGI GROUP INC. $21 (Toronto symbol GIB.A; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 258.5 million; Market cap: $5.4 billion; Price-to-sales ratio: 1.3; No dividends paid; TSINetwork Rating: Extra Risk; www.cgi.com) gets about 11% of its revenue from clients in the health care industry. The company mainly helps these customers convert patient records to electronic formats and audit Medicare and Medicaid claims in the U.S.
The company’s health-care-related revenue could suffer if the U.S. Supreme Court overturns Obamacare, as recent changes to the American health care system are known. Even so, CGI’s long-term outlook remains bright, because its services help its clients cut their costs and improve efficiency.
CGI Group is a buy.
...
The company’s health-care-related revenue could suffer if the U.S. Supreme Court overturns Obamacare, as recent changes to the American health care system are known. Even so, CGI’s long-term outlook remains bright, because its services help its clients cut their costs and improve efficiency.
CGI Group is a buy.
...
RIOCAN REAL ESTATE INVESTMENT TRUST $27 (Toronto symbol REI.UN; Aggressive Growth Portfolio, Manufacturing & Industry sector; Units outstanding: 280.8 million; Market cap: $7.6 billion; Priceto- sales ratio: 5.0; Dividend yield: 5.1%; TSINetwork Rating: Average; www.riocan.com) reports that its cash flow rose 14.4% in the three months ended March 31, 2012, to $103 million from $90 million a year earlier. Cash flow per unit rose 5.7%, to $0.37 from $0.35, on more units outstanding. Revenue rose 15.6%, to $274 million from $237 million.
The trust continues to acquire and open new shopping malls and expand existing ones. This was the main reason for the improved results. RioCan’s occupancy rate is a high 96.9%. Moreover, well-established national chains, such as Wal-Mart and Metro, supply 85.7% of its revenue.
RioCan is a buy.
...
The trust continues to acquire and open new shopping malls and expand existing ones. This was the main reason for the improved results. RioCan’s occupancy rate is a high 96.9%. Moreover, well-established national chains, such as Wal-Mart and Metro, supply 85.7% of its revenue.
RioCan is a buy.
...
ENBRIDGE INC. $40 (Toronto symbol ENB; Conservative Growth Portfolio, Utilities sector; Shares outstanding: 785.0 million; Market cap: $31.4 billion; Price-to-sales ratio: 1.6; Dividend yield: 2.8%; TSINetwork Rating: Above Average; www.enbridge.com) owns 100% of Enbridge Gas New Brunswick Inc. (EGNB), which distributes natural gas to 11,000 customers in that province. Enbridge is now expanding EGNB’s system to connect to an additional 30,000 clients.
However, the New Brunswick government recently enacted new regulations that limit the rates that EGNB can charge its customers. That makes it harder for Enbridge to recoup the funds that it has already invested in this business. As a result, the company will write down this investment by $262 million. That’s equal to 24% of the $1.1 billion, or $1.48 a share, that Enbridge earned in 2011.
Enbridge is still a buy.
...
However, the New Brunswick government recently enacted new regulations that limit the rates that EGNB can charge its customers. That makes it harder for Enbridge to recoup the funds that it has already invested in this business. As a result, the company will write down this investment by $262 million. That’s equal to 24% of the $1.1 billion, or $1.48 a share, that Enbridge earned in 2011.
Enbridge is still a buy.
...
FINNING INTERNATIONAL INC. $26 (Toronto symbol FTT; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 171.9 million; Market cap: $4.5 billion; Price-to-sales ratio: 0.8; Dividend yield: 2.2%; TSINetwork Rating: Above Average; www.finning.com) has won a contract to supply U.K.-based Hargreaves Services plc with heavy equipment made by Caterpillar, including four hydraulic excavators and 19 trucks. Finning will start delivering this equipment later this year.
The deal is worth $96 million, which is just 2% of its annual revenue of $5.9 billion. However, this was Finning’s first sale from its new distribution and support businesses in western Canada, South America and the U.K. Finning bought these operations from Bucyrus International for $465 million U.S. in May 2012.
Finning is a buy.
...
The deal is worth $96 million, which is just 2% of its annual revenue of $5.9 billion. However, this was Finning’s first sale from its new distribution and support businesses in western Canada, South America and the U.K. Finning bought these operations from Bucyrus International for $465 million U.S. in May 2012.
Finning is a buy.
...
ATCO LTD. (Toronto symbols ACO.X [class I non-voting] $74 and ACO.Y [class II voting] $74; Income Portfolio, Utilities sector; Shares outstanding: 57.7 million; Market cap: $4.3 billion; Priceto- sales ratio: 1.1; Dividend yield: 1.8%; TSINetwork Rating: Above Average; www.atco.com) is a holding company. Its main subsidiary is 52.7%-owned Canadian Utilities (see left). It also owns 75.5% of ATCO Structures & Logistics, which builds temporary buildings for construction companies and energy exploration firms; Canadian Utilities owns the remaining 24.5%.
In the three months ended March 31, 2012, ATCO’s revenue rose 9.1% to $1.1 billion from $1.0 billion a year earlier. That’s mainly because new contracts pushed up revenue at the structures division by 32.2%. Earnings rose 10.0%, to $121 million from $110 million. Earnings per share rose 10.6%, to $2.09 from $1.89, on fewer shares outstanding.
Based on current prices, you can buy a share of ATCO for $74 and get roughly $83 worth of Canadian Utilities. That means you get ATCO’s non-utility businesses for free.
...
In the three months ended March 31, 2012, ATCO’s revenue rose 9.1% to $1.1 billion from $1.0 billion a year earlier. That’s mainly because new contracts pushed up revenue at the structures division by 32.2%. Earnings rose 10.0%, to $121 million from $110 million. Earnings per share rose 10.6%, to $2.09 from $1.89, on fewer shares outstanding.
Based on current prices, you can buy a share of ATCO for $74 and get roughly $83 worth of Canadian Utilities. That means you get ATCO’s non-utility businesses for free.
...
CANADIAN UTILITIES LTD. (Toronto symbols CU [class A non-voting] $72 and CU.X [class B voting] $72; Income Portfolio, Utilities sector; Shares outstanding: 127.6 million; Market cap: $9.2 billion; Price-to-sales ratio: 3.0; Dividend yield: 2.5%; TSINetwork Rating: Above Average; www.canadianutilities.com) distributes electricity and natural gas in Alberta. It also operates 19 power plants in Canada, Australia and the U.K. ATCO Ltd. (see below) owns 52.7% of the company.
In July 2011, Canadian Utilities paid $1.1 billion for a company that distributes natural gas in Perth, Australia. This purchase helped push up revenue by 3.5% in the first quarter of 2012, to $837 million from $809 million a year earlier. Earnings rose 9.7%, to $193 million from $176 million. Because it had more shares outstanding, its earnings per share rose at a slower pace of 8.3%, to $1.44 from $1.33.
Canadian Utilities will probably earn $4.06 a share in 2012. The stock trades at 17.7 times that estimate. The company has raised its dividend every year since 1972. The current rate of $1.77 a share yields 2.5%.
...
In July 2011, Canadian Utilities paid $1.1 billion for a company that distributes natural gas in Perth, Australia. This purchase helped push up revenue by 3.5% in the first quarter of 2012, to $837 million from $809 million a year earlier. Earnings rose 9.7%, to $193 million from $176 million. Because it had more shares outstanding, its earnings per share rose at a slower pace of 8.3%, to $1.44 from $1.33.
Canadian Utilities will probably earn $4.06 a share in 2012. The stock trades at 17.7 times that estimate. The company has raised its dividend every year since 1972. The current rate of $1.77 a share yields 2.5%.
...
SAPUTO INC. $44 (Toronto symbol SAP; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 199.2 million; Market cap: $8.8 billion; Price-to-sales ratio: 1.3; Dividend yield: 1.7%; TSINetwork Rating: Average; www.saputo.com) is Canada’s largest producer of dairy products, including milk, butter and cheese. It also makes snack cakes and tarts. The company operates in the U.S., Argentina and Europe.
In its fiscal 2012 third quarter, which ended December 31, 2011, Saputo’s earnings rose 15.8%, to $129.8 million from $112.1 million a year earlier. Earnings per share rose 18.5%, to $0.64 from $0.54, on fewer shares outstanding. Sales rose 17.1%, to $1.8 billion from $1.5 billion.
These gains mainly reflect the contribution of DCI Cheese, a specialty cheese distributor in the U.S., which Saputo bought for $270.5 million in March 2011. Higher selling prices for cheese in Canada and Argentina also contributed to the sales increase. However, the milk pricing formula in California recently changed; that’s hurting profit margins at Saputo’s U.S. operations.
...
In its fiscal 2012 third quarter, which ended December 31, 2011, Saputo’s earnings rose 15.8%, to $129.8 million from $112.1 million a year earlier. Earnings per share rose 18.5%, to $0.64 from $0.54, on fewer shares outstanding. Sales rose 17.1%, to $1.8 billion from $1.5 billion.
These gains mainly reflect the contribution of DCI Cheese, a specialty cheese distributor in the U.S., which Saputo bought for $270.5 million in March 2011. Higher selling prices for cheese in Canada and Argentina also contributed to the sales increase. However, the milk pricing formula in California recently changed; that’s hurting profit margins at Saputo’s U.S. operations.
...
CENOVUS ENERGY INC. $33 (Toronto symbol CVE; Conservative Growth Portfolio, Resources sector; Shares outstanding: 755.6 million; Market cap: $24.9 billion; Price-to-sales ratio: 1.5; Dividend yield: 2.7%; TSINetwork Rating: Extra Risk; www.cenovus.com) produced an average of 156,850 barrels of oil per day in the three months ended March 31, 2012. That’s up 14.2% from 137,355 barrels a day a year earlier.
The gain is mostly the result of Cenovus’s ongoing expansion of its Alberta oil sands properties. Production of conventional oil also rose 10.2%.
The company recently started shipping oil to Asia. That lets it sell this oil at international prices, which are higher than what it can get from North American refineries.
...
The gain is mostly the result of Cenovus’s ongoing expansion of its Alberta oil sands properties. Production of conventional oil also rose 10.2%.
The company recently started shipping oil to Asia. That lets it sell this oil at international prices, which are higher than what it can get from North American refineries.
...
TRANSCANADA CORP. $43 (Toronto symbol TRP; Conservative Growth Portfolio, Utilities sector; Shares outstanding: 704.0 million; Market cap: $30.3 billion; Price-to-sales ratio: 3.3; Dividend yield: 4.1%; TSINetwork Rating: Above Average; www.transcanada.com) has settled on a new route for its proposed Keystone XL pipeline that would avoid environmentally sensitive areas in Nebraska. When the pipeline is finished, it will pump crude oil from Alberta’s oil sands to refineries on the U.S. Gulf Coast.
The U.S. government initially refused to approve the project, but TransCanada feels this new route will help it win the necessary permits. The company aims to begin building the pipeline in early 2013. It could begin operating by the end of 2014.
TransCanada is a buy.
...
The U.S. government initially refused to approve the project, but TransCanada feels this new route will help it win the necessary permits. The company aims to begin building the pipeline in early 2013. It could begin operating by the end of 2014.
TransCanada is a buy.
...
TORSTAR CORP. $9.95 (Toronto symbol TS.B; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 79.5 million; Market cap: $791.0 million; Price-to-sales ratio: 0.5; Dividend yield: 5.3%; TSINetwork Rating: Above Average; www.torstar.com) publishes The Toronto Star, Canada’s largest daily newspaper by circulation. It also publishes three other daily newspapers and over 110 weeklies, mainly in Southern Ontario. Torstar’s newspapers and related websites provide about 70% of its revenue and 60% of its earnings.
The company’s other main business is wholly owned Harlequin Enterprises Ltd., the world’s leading romance novel publisher. Harlequin publishes over 110 titles a month in 34 languages in 114 countries. It gets 95% of its revenue from outside of Canada.
Torstar continues to expand its websites. That’s helping it offset weaker advertising revenue at its newspapers.
...
The company’s other main business is wholly owned Harlequin Enterprises Ltd., the world’s leading romance novel publisher. Harlequin publishes over 110 titles a month in 34 languages in 114 countries. It gets 95% of its revenue from outside of Canada.
Torstar continues to expand its websites. That’s helping it offset weaker advertising revenue at its newspapers.
...