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
POTASH CORP. OF SASKATCHEWAN $42 (Toronto symbol POT; Aggressive Growth Portfolio, Resources sector; Shares outstanding: 832.1 million; Market cap: $34.9 billion; Price-to-sales ratio: 5.3; Dividend yield: 4.5%; TSINetwork Rating: Average; www.potashcorp.com) has suffered two recent setbacks. (All amounts except share price and market cap in U.S. dollars.)

First, the Saskatchewan government decided to change the timing of certain tax breaks for new potash mines and expansion projects. The province is also reviewing how it taxes potash producers.

Potash Corp. expects the new rules to cut its pre-tax earnings by $75 million to $100 million (Canadian) in 2015. To put that in context, it earned $1.5 billion, or $1.82 a share, in 2014.

...
AGRIUM INC. $132 (Toronto symbol AGU; Aggressive Growth Portfolio, Resources sector; Shares outstanding: 144.0 million; Market cap: $19.0 billion; Price-to-sales ratio: 1.2; Dividend yield: 3.0%; TSINetwork Rating: Average; www.agrium.com) gets 75% of its sales and 60% of its earnings from its retail stores, which consist of 1,450 locations in North America, South America and Australia. These outlets sell seed, fertilizer and other products to farmers. (All amounts except share price and market cap in U.S. dollars.)

The company gets the remaining 25% of its sales and 40% of its earnings by making nitrogen-based fertilizers from natural gas. It also operates potash and phosphate fertilizer mines. In the past few years, Agrium has built up its retail business through acquisitions. In December 2010, it paid $1.2 billion for AWB Ltd., which operated 220 stores in Australia In October 2013, the company added 210 stores in Western Canada and Australia in a $485-million deal with Viterra Inc.

These acquisitions, along with rising fertilizer prices, pushed up Agrium’s sales by 49.2%, from $10.7 billion in 2010 to $16.0 billion in 2012. Declining fertilizer prices cut its 2013 sales to $15.7 billion, but they improved to $16.0 billion in 2014.

...
One of Canada’s last income trusts, Chemtrade Logistics turns industrial waste services and a big acquisition into a high dividend yield.
Despite pessimistic media forecasts, Canada’s banks remain strong and international exposure helps make Scotiabank a best buy.
TRANSCANADA CORP. $54 (www.transcanada.com) has increased its quarterly dividend by 8.3%, to $0.52 a share from $0.48. The new annual rate of $2.08 yields 3.9%. TransCanada has raised its payout each year since 2000. Best Buy.


ENBRIDGE INC. $58 (www.enbridge.com) plans to increase the capacity of a proposed pipeline project that will pump crude from oil sands projects in Alberta. It will mainly do this by increasing the diameter of part of the pipeline and boosting another section’s pumping power....
TELUS CORP. $42 (www.telus.com) is paying $1.5 billion for new radio frequencies (or spectrum) covering urban and rural areas in Western Canada, Ontario and Quebec. The price is slightly more than the $1.49 billion, or $2.41 a share, that Telus earned in 2014....
RIOCAN REAL ESTATE INVESTMENT TRUST $28 (Toronto symbol REI.UN; Aggressive Growth Portfolio, Manufacturing & Industry sector; Units outstanding: 315.4 million; Market cap: $8.8 billion; Price-to-sales ratio: 7.0; Dividend yield: 5.0%; TSINetwork Rating: Average; www.riocan.com) owns all or part of 292 shopping centres in Canada, including 15 under development. These holdings account for 84% of the REIT’s rental revenue. The remaining 16% comes from 48 malls in the U.S.

In the past few years, RioCan took advantage of lower property values and interest rates to expand its portfolio. As a result, its revenue jumped 39.8%, from $882 million in 2010 to $1.2 billion in 2014.

Due to gains and losses on property sales, earnings fell from $6.04 a unit (or a total of $1.5 billion) in 2010 to $3.25 (or $873 million) in 2011. Earnings rebounded to $4.57 a unit (or $1.3 billion) in 2012 but declined to $2.10 a unit (or $663 million) in 2014.

...
LINAMAR CORP. $75 (Toronto symbol LNR; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 65.1 million; Market cap: $4.9 billion; Price-to-sales ratio: 1.2; Dividend yield: 0.5%; TSINetwork Rating: Average; www.linamar.com) saw its sales rise 16.0% in 2014, to a record $4.2 billion from $3.6 billion in 2013.

Sales at its powertrain and driveline division (83% of the total) rose 14.7%, thanks to acquisitions and higher new car sales, which increased demand for Linamar’s transmissions and other auto parts. Sales at the industrial products division (17%) gained 23.3%, mainly due to strong demand for the company’s Skyjack selfpropelled, scissor-type elevating work platforms.

Earnings jumped 48.2% during the year, to a record $4.95 a share from $3.34. Linamar’s earnings could rise to $5.54 a share in 2015, and the stock trades at a moderate 13.5 times that forecast. The $0.40 dividend yields 0.5%.

...
BLACKBERRY LTD. $13 (Toronto symbol BB; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 528.8 million; Market cap: $6.9 billion; Price-to-sales ratio: 1.8; No dividends paid; TSINetwork Rating: Speculative; www.blackberry.com) plans to launch four new smartphones in 2015, including the Leap, which features a five-inch high-definition touch-screen display. The Leap features the company’s latest encryption technology, which should appeal to BlackBerry’s corporate and government clients.

The company has also extended its partnership with Samsung Electronics. Under the deal, Samsung will integrate BlackBerry’s mobile security software into its smartphones and tablets.

BlackBerry is a hold.

...