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.
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ATCO LTD. (Toronto symbols ACO.X [class I non-voting] $46 and ACO.Y [class II voting] $46; Income Portfolio, Utilities sector; Shares outstanding: 115.1 million; Market cap: $5.3 billion; Price-to-sales ratio: 1.2; Dividend yield: 2.2%; TSINetwork Rating: Above Average; www.atco.com) owns 50% of Torngait Services, a partnership with a Labradorbased aboriginal firm.
Torngait recently won a contract to provide support services to 1,000 workers building a line that will transmit power from Labrador’s Muskrat Falls to the island of Newfoundland. Under the deal, Torngait will supply catering, laundry and janitorial services until mid-2018.
The contract is worth $40 million to $45 million; using the midpoint of that range, ATCO’s share is worth $21.25 million. That’s small next to the company’s revenue of $1.2 billion in the quarter ended December 31, 2014. However, deals like this enhance ATCO’s already strong reputation and should help it win more contracts in this region. The class I (X) non-voting shares are more liquid than the class II (Y) voting shares.
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Torngait recently won a contract to provide support services to 1,000 workers building a line that will transmit power from Labrador’s Muskrat Falls to the island of Newfoundland. Under the deal, Torngait will supply catering, laundry and janitorial services until mid-2018.
The contract is worth $40 million to $45 million; using the midpoint of that range, ATCO’s share is worth $21.25 million. That’s small next to the company’s revenue of $1.2 billion in the quarter ended December 31, 2014. However, deals like this enhance ATCO’s already strong reputation and should help it win more contracts in this region. The class I (X) non-voting shares are more liquid than the class II (Y) voting shares.
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p>MOLSON COORS CANADA INC. (Toronto symbols TPX.A $94 and TPX.B $99; Conservative Growth and Income Portfolios, Consumer sector; Shares outstanding: 185.9 million; Market cap: $18.4 billion; Price-to-sales ratio: 3.5; Dividend yield: 2.1%; TSINetwork Rating: Average; www.molson coors.com) has paid an undisclosed sum for Mount Shivalik Breweries, which operates two breweries in India. As a result, Molson now has three breweries in that country. The company’s brewing expertise should make Shivalik more efficient. The move will also help it launch and distribute its own brands, including Coors Light, in India.
The class B shares have less voting power to elect directors than the class A shares, but they are more liquid and receive the same dividend.
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The class B shares have less voting power to elect directors than the class A shares, but they are more liquid and receive the same dividend.
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ENCANA CORP. $15 (Toronto symbol ECA; Conservative Growth Portfolio, Resources sector; Shares outstanding: 839.6 million; Market cap: $12.6 billion; Price-to-sales ratio: 1.4; Dividend yield: 2.3%; TSINetwork Rating: Average; www.encana.com) recently sold 98.5 million shares for $14.60 (Canadian) each, increasing the number outstanding by 13%. (All amounts except share price and market cap in U.S. dollars.)
As well, Encana has sold natural gas pipelines and compression facilities in B.C.’s Montney region for $461 million (Canadian).
It will use the total proceeds of $1.9 billion (Canadian) to pay down its long-term debt of $7.3 billion (as of December 31, 2014), which is a high 73% of its market cap.
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As well, Encana has sold natural gas pipelines and compression facilities in B.C.’s Montney region for $461 million (Canadian).
It will use the total proceeds of $1.9 billion (Canadian) to pay down its long-term debt of $7.3 billion (as of December 31, 2014), which is a high 73% of its market cap.
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CENOVUS ENERGY INC. $22 (Toronto symbol CVE; Conservative Growth Portfolio, Resources sector; Shares outstanding: 824.5 million; Market cap: $18.1 billion; Price-to-sales ratio: 1.1; Dividend yield: 4.8%; TSINetwork Rating: Average) gets 35% of its revenue from its oil sands projects and conventional oil and gas wells in Western Canada.
Refining supplies the remaining 65% of Cenovus’s revenue. The company ships its oil to its 50%-owned refineries in Illinois and Texas. Phillips 66 (New York symbol PSX) owns the other 50% of these operations. These refineries help cut Cenovus’s exposure to falling oil prices, as cheaper crude cuts their operating costs.
Cenovus continues to expand its 50%-owned Christina Lake and Foster Creek oil sands operations; ConocoPhilips (New York symbol COP) owns the remaining 50%.
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Refining supplies the remaining 65% of Cenovus’s revenue. The company ships its oil to its 50%-owned refineries in Illinois and Texas. Phillips 66 (New York symbol PSX) owns the other 50% of these operations. These refineries help cut Cenovus’s exposure to falling oil prices, as cheaper crude cuts their operating costs.
Cenovus continues to expand its 50%-owned Christina Lake and Foster Creek oil sands operations; ConocoPhilips (New York symbol COP) owns the remaining 50%.
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p>BLACKBERRY LTD. $12 (Toronto symbol BB; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 528.8 million; Market cap: $6.3 billion; Price-to-sales ratio: 1.9; No dividends paid; TSINetwork Rating: Speculative; www.blackberry.com) is best known for its BlackBerry smartphones. However, competition from Apple’s iPhone and Android-powered devices has cut the number of BlackBerry users worldwide to 37 million from 85 million in 2013. (All amounts except share price and market cap in U.S. dollars.) The company also earns fees on software it installs on its clients’ email servers. These programs let its businesses and government clients manage their employees’ phones and encrypt sensitive data.
In response to its shrinking smartphone sales, BlackBerry has cut jobs and sold surplus real estate. If you exclude unusual items, the company lost $45 million, or $0.09 a share, in its 2015 fiscal year, which ended February 28, 2015. However, that’s a big improvement over its 2014 loss of $711 million, or $1.35 a share.
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In response to its shrinking smartphone sales, BlackBerry has cut jobs and sold surplus real estate. If you exclude unusual items, the company lost $45 million, or $0.09 a share, in its 2015 fiscal year, which ended February 28, 2015. However, that’s a big improvement over its 2014 loss of $711 million, or $1.35 a share.
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p>FORTIS INC. $39 (Toronto symbol FTS; Conservative Growth and Income Portfolios, Utilities sector; Shares outstanding: 276.3 million; Market cap: $10.8 billion; Price-to-sales ratio: 2.5; Dividend yield 3.5%; TSINetwork Rating: Above Average; www.fortis.ca) is the main electricity supplier in Newfoundland and P.E.I. It also distributes natural gas in B.C. and operates power plants in other parts of Canada, the U.S. and the Caribbean. Fortis plans to spend $9.0 billion to expand its operations over the next five years. That’s equal to 83% of its current market cap. Regulated utilities account for 93% of Fortis’s assets, so regulators will let it recover most of these outlays through rate increases.
Fortis is also looking at selling or spinning off its properties division, which consists of commercial real estate and 23 hotels. The company expects to make a final decision by June 2015.
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Fortis is also looking at selling or spinning off its properties division, which consists of commercial real estate and 23 hotels. The company expects to make a final decision by June 2015.
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SUNCOR ENERGY INC. $39 (Toronto symbol SU; Conservative Growth Portfolio, Resources sector; Shares outstanding: 1.5 billion; Market cap: $58.5 billion; Price-to-sales ratio: 1.8; Dividend yield: 2.9%; TSINetwork Rating: Average; www.suncor.com) produced 598,000 barrels a day in the first quarter of 2015, up 9.7% from 545,300 barrels a year earlier. The increase came from both its oil sands and conventional properties.
The oil-price drop has prompted Suncor to cut its planned 2015 capital spending by $1 billion, to between $6.2 billion and $6.8 billion. It also laid off 1,000 workers, or 7% of its workforce.
The company expects its job cuts and other cost controls to save it $600 million to $800 million in 2015, a year earlier than planned; Suncor’s cash flow was $9.1 billion in 2014.
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The oil-price drop has prompted Suncor to cut its planned 2015 capital spending by $1 billion, to between $6.2 billion and $6.8 billion. It also laid off 1,000 workers, or 7% of its workforce.
The company expects its job cuts and other cost controls to save it $600 million to $800 million in 2015, a year earlier than planned; Suncor’s cash flow was $9.1 billion in 2014.
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>TORSTAR CORP. $6.77 (Toronto symbol TS.B; Conservative Growth and Income Portfolios, Consumer sector; Shares outstanding: 80.3 million; Market cap: $543.6 million; Price-to-sales ratio: 0.8; Dividend yield: 7.8%; TSINetwork Rating: Average; www.torstar.com) publishes The Toronto Star, Canada’s largest daily newspaper by circulation. It also publishes three other dailies and over 100 weeklies. Torstar lost $49.6 million, or $0.62 a share, in 2014. That’s better than the 2013 loss of $58.0 million, or $0.73 a share.
These figures include costs related to job cuts and other measures Torstar took in response to falling advertising revenue at its newspapers. Since 2012, these moves have cut the company’s annual expenses by $60.4 million. Torstar expects savings to reach $77.1 million a year by 2017.
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These figures include costs related to job cuts and other measures Torstar took in response to falling advertising revenue at its newspapers. Since 2012, these moves have cut the company’s annual expenses by $60.4 million. Torstar expects savings to reach $77.1 million a year by 2017.
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TRANSCONTINENTAL INC. $18 (Toronto symbol TCL.A; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 78.1 million; Market cap: $1.4 billion; Price-to-sales ratio: 0.8; Dividend yield: 3.8%; TSINetwork Rating: Average; www.tctranscontinental.com) is Canada’s leading printer of flyers, magazines, newspapers and books. It also publishes magazines and newspapers.
In its 2015 first quarter, which ended January 31, 2015, the company earned $36.1 million, up 36.7% from $26.4 million a year earlier. Earnings per share gained 35.3%, to $0.46 from $0.34, on more shares outstanding.
The gains mainly came from two recent acquisitions: in May 2014, Transcontinental bought U.S.- based Capri Packaging, a maker of plastic bags and pouches for cheese and other dairy products, for $146.1 million. And in June 2014, it paid Sun Media $78.8 million for 74 weekly newspapers in Quebec.
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In its 2015 first quarter, which ended January 31, 2015, the company earned $36.1 million, up 36.7% from $26.4 million a year earlier. Earnings per share gained 35.3%, to $0.46 from $0.34, on more shares outstanding.
The gains mainly came from two recent acquisitions: in May 2014, Transcontinental bought U.S.- based Capri Packaging, a maker of plastic bags and pouches for cheese and other dairy products, for $146.1 million. And in June 2014, it paid Sun Media $78.8 million for 74 weekly newspapers in Quebec.
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THOMSON REUTERS CORP. $52 (Toronto symbol TRI; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 791.8 million; Market cap: $41.2 billion; Price-to-sales ratio: 3.3; Dividend yield: 3.2%; TSINetwork Rating: Above Average; www.thomsonreuters.com) sells specialized information products in four main areas: financial (53% of 2014 revenue, 39% of earnings); legal (28%, 39%); tax (11%, 12%); and intellectual property and science (8%, 10%). (All amounts except share price and market cap in U.S. dollars.)
The Americas supplied 60% of Thomson’s 2014 revenue, followed by Europe (30%) and Asia (10%).
Many banks and financial services firms cut spending on the company’s products following the 2008 financial crisis. In response, it laid off staff and simplified its operations.
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The Americas supplied 60% of Thomson’s 2014 revenue, followed by Europe (30%) and Asia (10%).
Many banks and financial services firms cut spending on the company’s products following the 2008 financial crisis. In response, it laid off staff and simplified its operations.
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