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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Peller is Canada’s second-largest wine producer, after Vincor International, but few brokers cover it due to its relatively small market cap. Even so, it has a long history of rising earnings and dividends.
In its 2015 fiscal year, which ended March 31, 2015, Peller’s sales rose 6.0%, to $315.7 million from $297.8 million in 2014. That’s mainly because it launched several new products, including its skinnygrape spritzers and Panama Jack cocktails.
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In the past decade, Fortis has used acquisitions to expand to other parts of Canada. In May 2004, it paid $1.5 billion for regulated power companies in Alberta and B.C. In May 2007, it added Terasen (now called Fortis BC Energy), which distributes natural gas to nearly one million customers in B.C. Fortis paid $3.7 billion for this business.
The company is also buying utilities outside Canada. In June 2013, it paid $1.5 billion U.S. for CH Energy Group, which delivers electricity to 300,000 clients in New York State’s Mid-Hudson River Valley. CH doesn’t own power plants; instead, it buys power from other producers. It also distributes natural gas to 77,000 users.
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Low interest rates continue to fuel mortgage demand. As a result, Home Capital’s revenue rose 47.6%, from $687.2 million in 2010 to $1.01 billion in 2014. Earnings jumped 86.4%, from $154.8 million to $288.4 million, while per-share profits gained 84.2%, from $2.22 to $4.09. In the first quarter of 2015, the company’s revenue rose 0.5%, to $249.2 million from $247.9 million a year earlier. Earnings gained 3.7%, to $72.3 million, or $1.03 a share, from $69.7 million, or $1.00.
Humans beat computers
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The company has shut down less profitable wells in response to weak oil and gas prices. That’s why its average production fell 7.7% in the first quarter of 2015, to 69,334 barrels a day (52% oil and liquids, 48% gas) from 75,102 a year earlier. Without unusual items, Pengrowth earned $64.8 million, compared to a loss of $2.8 million. Cash flow per share fell 22.2%, to $0.21 from $0.27.
For the remainder of 2015, the company has hedged 78% of its oil production at $93.87 (Canadian) a barrel, well above today’s price of $60.16 U.S. It has also hedged 57% of its gas output at $3.72 (Canadian) per thousand cubic feet, compared to the current price of $2.94 U.S. The company’s hedges were worth $354.3 million as of March 31, 2015.
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The total value of these deals—$55 million U.S.—is equal to 3% of the company’s 2014 revenue of $1.9 billion (Canadian). ShawCor expects to complete these jobs in early 2016.
ShawCor is a buy.
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