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
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.
...
TRANSCONTINENTAL INC. $11 (Toronto symbol TCL.A; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 81.0 million; Market cap: $891.0 million; Price-to-sales ratio: 0.5; Dividend yield: 5.3%; TSINetwork Rating: Average; www.tctranscontinental.com) is the largest commercial printer in Canada, and the fourthbiggest in North America. It also publishes newspapers and magazines.
Transcontinental continues to invest heavily in its online division. The company now has over 1,000 websites, which supply 10% of its revenue. Their contribution will continue to rise over the next few years as advertisers spend more on the Internet than on printed publications.
The company recently swapped its printing plants in Mexico for six facilities in Canada. This deal should ultimately add $230 million to Transcontinental’s yearly revenue.
...
Transcontinental continues to invest heavily in its online division. The company now has over 1,000 websites, which supply 10% of its revenue. Their contribution will continue to rise over the next few years as advertisers spend more on the Internet than on printed publications.
The company recently swapped its printing plants in Mexico for six facilities in Canada. This deal should ultimately add $230 million to Transcontinental’s yearly revenue.
...
THOMSON REUTERS CORP. $30 (Toronto symbol TRI; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 829.2 million; Market cap: $24.9 billion; Price-to-sales ratio: 1.7; Dividend yield: 4.3%; TSINetwork Rating: Above Average; www.thomsonreuters.com) gets 58% of its revenue and 48% of its earnings by selling news and information products to professionals in the banking industry and the legal (25%, 32%), accounting (10%, 11%) and scientific research (7%, 9%) fields.
Over 85% of the company’s revenue comes from products it sells under subscriptions and contracts. That gives it predictable revenue streams and cuts its risk. As well, more of its customers are switching from printed to electronic products; that’s lowering its printing and postage costs.
Thomson Reuters recently agreed to sell its health care business, which provides data and software that helps hospitals and clinics lower their costs and cut fraud. This business supplied 6% of the company’s revenue. Thomson Reuters will get $1.25 billion when the sale closes by the end of 2012 (all amounts except share price and market cap in U.S. dollars).
...
Over 85% of the company’s revenue comes from products it sells under subscriptions and contracts. That gives it predictable revenue streams and cuts its risk. As well, more of its customers are switching from printed to electronic products; that’s lowering its printing and postage costs.
Thomson Reuters recently agreed to sell its health care business, which provides data and software that helps hospitals and clinics lower their costs and cut fraud. This business supplied 6% of the company’s revenue. Thomson Reuters will get $1.25 billion when the sale closes by the end of 2012 (all amounts except share price and market cap in U.S. dollars).
...
HOME CAPITAL GROUP INC. $45 (Toronto symbol HCG; Aggressive Growth Portfolio, Finance sector; Shares outstanding: 34.8 million; Market cap; $1.6 billion; Price-to-sales ratio: 2.3; Dividend yield: 2.0%; TSINetwork Rating: Average; www.homecapital.com) offers mortgages and other loans to borrowers who don’t meet the stricter criteria of larger, traditional lenders.
The company is seeing higher demand for mortgages. That’s mainly because fears of higher interest rates and slowing housing prices have prompted Canada’s big banks to make fewer loans to riskier borrowers.
In the three months ended March 31, 2012, Home Capital’s revenue rose 16.3%, to $214.7 million from $184.6 million a year earlier. Earnings per share rose 16.0%, to $1.52 from $1.31.
...
The company is seeing higher demand for mortgages. That’s mainly because fears of higher interest rates and slowing housing prices have prompted Canada’s big banks to make fewer loans to riskier borrowers.
In the three months ended March 31, 2012, Home Capital’s revenue rose 16.3%, to $214.7 million from $184.6 million a year earlier. Earnings per share rose 16.0%, to $1.52 from $1.31.
...
CANADIAN TIRE CORP. $67 (Toronto symbol CTC.A; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 81.5 million; Market cap: $5.5 billion; Price-to-sales ratio: 0.5; Dividend yield: 1.8%; TSINetwork Rating: Above Average; www.canadiantire.ca) gets 90% of its revenue and 80% of its earnings from its various retail stores.
These outlets include 488 Canadian Tire stores, which specialize in automotive, household and sporting goods. The company owns these stores, but franchisees operate most of them. Canadian Tire also operates 289 gas stations and 87 PartSource auto parts stores.
The company has added a number of new product lines by purchasing other retailers. For example, in 2001 it bought the Mark’s Work Wearhouse chain of casual clothing stores. The company now has 385 Mark’s stores and carries a variety of Mark’s products in its main Canadian Tire stores.
...
These outlets include 488 Canadian Tire stores, which specialize in automotive, household and sporting goods. The company owns these stores, but franchisees operate most of them. Canadian Tire also operates 289 gas stations and 87 PartSource auto parts stores.
The company has added a number of new product lines by purchasing other retailers. For example, in 2001 it bought the Mark’s Work Wearhouse chain of casual clothing stores. The company now has 385 Mark’s stores and carries a variety of Mark’s products in its main Canadian Tire stores.
...
Pipelines have been in the news. Canada’s largest pipeline company, TransCanada Corporation (symbol TRP on Toronto) has made headlines with its ongoing disagreement with the U.S. government over the completion of its Keystone XL pipeline to the Gulf Coast. The Obama administration blocked the Nebraska section of the project last November, citing environmental concerns. TransCanada has submitted a proposal for a re-routing of the pipeline and is awaiting a new environmental review. Pembina Pipelines had attracted much less attention until it came up with some interesting news of its own this year: the purchase of a firm with significant assets in natural gas liquids (NGL)....
