dividend growth

Hartford Canadian Dividend Growth Fund holds mostly large-capitalization, dividend-paying Canadian stocks. The fund is okay to hold. Hartford U.S. Dividend Growth Fund is okay to hold for U.S. exposure. Mackenzie Sentinel Income Fund is a balanced fund that holds 39.8% of its assets in stocks, 58.4% in bonds and 2.2% in cash. AGF World Balanced Fund is also a balanced fund. It holds 70% of its assets in stocks and 30% in bonds....

Stone & Co. Dividend Growth Class Canada Fund holds mostly high-quality Canadian large-cap stocks, well balanced across the five main economic sectors. All of the stocks that the fund holds pay a dividend. The fund is a “class” fund, which means that it’s “tax-advantaged.” These funds let you switch within a family of tax-advantaged funds without realizing capital gains. However, tax-advantaged funds generally have higher costs and lower returns. One reason for this is that these funds must hold larger cash balances in order to fund more frequent redemptions. (Stone & Co. Dividend Growth Class Canada Fund holds 13.4% of its assets in cash). In addition, these funds may need to buy and sell more often, to accommodate holders who want a tax-deferred switch. This extra trading increases brokerage commissions and other costs....

ISHARES DIVIDEND INDEX FUND $14.89 (Toronto symbol XDV; buy or sell through a broker) currently holds the 30 highest yielding Canadian stocks. Stocks are included in the index based on their dividend growth, yield and average payout ratio. The weight of any one stock in the fund is limited to 10% of the fund’s assets. Its MER is 0.50%. The fund now yields 5.2%. The fund’s top holdings are: CIBC at 7.6%; Bank of Montreal, 6.4%; National Bank, 6.1%; Manitoba Telecom at 5.6%; TD Bank, 5.5%; IGM Financial, 4.8%; Bank of Nova Scotia, 4.4%; Royal Bank, 4.3%; Russel Metals, 4.3%; Telus Corp., 4.1%, TMX Group, 3.5%; and Sun Life Financial, 3.4%....

ISHARES DIVIDEND INDEX FUND $20.44 (Toronto symbol XDV; buy or sell through a broker) began trading in December, 2005. The fund currently holds the 30 highest yielding Canadian stocks. These stocks are included in the index based on their dividend growth, yield and average payout ratio. The weight of any one stock in the fund is limited to 10% of the fund’s assets. Its MER is 0.50%. The fund now yields 3.8%. The fund’s top holdings are: CIBC at 7.3%; Manitoba Telecom at 5.6%; National Bank, 5.6%; Bank of Montreal, 5.5%; Russel Metals, 5.3%; TD Bank, 4.7%; Royal Bank, 4.5%; Transcontinental Inc., 4.3%; Bank of Nova Scotia, 4.0%; IGM Financial, 3.8%; and Telus Corp., 3.8%....

H&R BLOCK INC. $25 (New York symbol HRB; Conservative Growth Portfolio, Finance sector; Shares outstanding: 329.2 million; Market cap: $8.2 billion; WSSF Rating: Above average) is best known for its income tax return preparation business. The company provides these services through over 14,500 company- owned and franchised offices in the United States, Canada and Australia. It also sets up temporary offices in major retailers such as Sears and Wal-Mart in the weeks before the April 15 tax deadline. The tax preparation business accounts for about 70% of the company’s total revenue. H&R Block also provides tax, accounting and consulting services to businesses through wholly owned RSM McGladrey Inc., which is the fifth-largest accounting firm in the U.S. Services to businesses account for 20% of H&R Block’s revenue....

H&R Block recently sold its home mortgage and financial advisory operations. It now aims to grow by focusing on its two main businesses— tax preparation and accounting services. This strategy may limit H&R Block’s growth. However, we feel it will give the company steadier revenue and earnings, with much less risk. H&R BLOCK INC. $25 (New York symbol HRB; Conservative Growth Portfolio, Finance sector; Shares outstanding: 329.2 million; Market cap: $8.2 billion; WSSF Rating: Above average) is best known for its income tax return preparation business....

ISHARES DIVIDEND INDEX FUND $20.28 (Toronto symbol XDV; buy or sell through a broker) began trading in December, 2005. The fund currently holds the 30 highest yielding Canadian stocks. These stocks are included in the index based on their dividend growth, yield and average payout ratio. The weight of any one stock in the fund is limited to 10% of the fund’s assets. Its MER is 0.50%. iShares Dividend Index Fund now yields 3.2%. The fund’s top holdings are: CIBC at 7.6%; Manitoba Telecom at 5.7%; Bank of Montreal, 5.7%; National Bank, 5.2%; TD Bank, 5.0%; Royal Bank, 4.5%; Russel Metals, 4.4%; Telus Corp., 4.1%; Bank of Nova Scotia, 3.9%; IGM Financial, 3.7%; Rothmans, 3.5%; TransCanada Corporation, 3.3%; BCE Inc., 3.3%; Laurentian Bank, 3.2%; and Enbridge, 3.1%....

ISHARES DIVIDEND INDEX FUND $24.12 (Toronto symbol XDV; buy or sell through a broker) began trading in December, 2005. The fund currently holds the 30 highest yielding Canadian stocks. These stocks are included in the index based on their dividend growth, yield and average payout ratio. The weight of any one stock in the fund is limited to 10% of the fund’s assets. Its MER is 0.50%. iShares Dividend Index Fund now yields 2.9%. The fund’s top holdings are CIBC at 6.8%; Manitoba Telecom at 6.4%; Bank of Montreal, 5.4%; TD Bank, 4.7%; Teck Cominco, 4.7%; Russel Metals, 4.4%; BCE Inc., 4.2%; IGM Financial, 4.0%; Laurentian Bank, 3.9%; and Magna International, 3.9%....

CANADIAN NATIONAL RAILWAY CO. $56 (Toronto symbol CNR; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 510.2 million; Market cap: $28.6 billion; SI Rating: Average) operates a 32,000-km freight railway network across Canada, and south to the Gulf of Mexico. It hauls a variety of goods, including oil, metals, grain, forest products and manufactured products. CN’s revenue fell from $6.1 billion in 2002 to $5.9 billion in 2003, but grew to $7.7 billion in 2006 partly due to acquisitions. Per-share profits rose from $0.91 in 2002 to $3.40 in 2006.

Prince Rupert has big growth potential

Perhaps CN’s most important purchase in the past few years was BC Rail Ltd. The deal expanded CN’s presence in Western Canada, and gave it exclusive rail access to the port of Prince Rupert, which is closer to Asia than other west coast ports....

ISHARES DIVIDEND INDEX FUND $23.50 (Toronto symbol XDV; buy or sell through a broker) began trading in December, 2005. The fund currently holds the 30 highest yielding Canadian stocks. These stocks are included in the index based on their dividend growth, yield and average payout ratio. The weight of any one stock in the fund is limited to 10% of the fund’s assets. Its MER is 0.50%. iShares Dividend Index Fund now yields 2.8%. The fund’s top holdings are Manitoba Telecom at 6.8%; CIBC, 6.8%; Bank of Montreal, 6.2%; Russel Metals, 4.6%; TD Bank, 4.7%; National Bank, 4.5%; Teck Cominco, 4.3%; IGM Financial, 4.1%; Royal Bank, 4.0%; and BCE Inc., 3.9%....