monthly dividend
AltaGas Ltd., $26.60, symbol ALA on Toronto (Shares outstanding: 81.9 million; Market cap: $2.2 billion; www.altagas.ca), mainly extracts, processes and distributes natural gas. It also processes natural-gas liquids and generates power in Alberta. AltaGas pays an $0.11 monthly dividend, which yields 5.0% on a yearly basis. The company gets most of its revenue under long-term contracts. These deals give it stable, predictable cash flow. AltaGas is trying to cut its reliance on the natural-gas business, but its growth-by-acquisition strategy, and investments in areas like wind and geothermal, add risk. However, power prices are rising in Alberta. That should push up the company’s cash flow....
Northland Power Inc., $16.93, symbol NPI on Toronto (Shares outstanding: 97.7 million; Market cap: $1.9 billion; www.northlandpower.ca), is the new name of Northland Power Income Fund after it converted from an income trust to a corporation on January 1, 2011. Northland owns interests in nine power projects in Canada, the U.S. and Germany. These projects include natural-gas-fired plants, as well as renewable-power projects, such as wind farms and biomass operations. In all, the company generates over 1,050 megawatts of electricity a year. Northland sells almost all of its power under long-term contracts with an average length of 14 years. The company is building a number of new plants in Canada. These include the 86-megawatt Spy Hill natural-gas-fired plant; the 260-megawatt natural-gas-fired North Battleford project; and the 100-megawatt Mont Louis wind farm....
AEROPOSTALE INC., $19.08, symbol ARO on New York, is a mall-based retailer of casual clothing and accessories. The company has 974 Aeropostale stores in the U.S., Canada and Puerto Rico. It mainly sells its clothing to 14-to-17-year-olds. Aeropostale’s 57 “P.S. from Aeropostale” stores in the U.S. are aimed at seven-to-12-year-old elementary-school children. In the three months ended April 30, 2011, Aeropostale’s sales rose 1.2% to $469.2 million from $463.6 million. Same-store sales declined 7%, compared with an increase of 8% a year earlier. Sales from the company’s e-commerce business jumped 18.5%, to $28.2 million from $23.8 million. Despite the higher sales, Aeropostale’s earnings dropped 63.9%, to $16.4 million from $45.4 million a year earlier. During the quarter, the company bought back 4.2 million of its shares for $100.1 million. Due to fewer shares outstanding, earnings per share fell 58.3%, to $0.20 from $0.48....
TRILOGY ENERGY CORP. $22.12 (Toronto symbol TET; TSINetwork Rating: Speculative) (403-290-2900; www.trilogy.com; Shares outstanding: 84.4 million; Market cap: $1.9 billion; Dividend yield: 1.9%) owns oil and gas properties in the Kaybob and Grande Prairie areas of central Alberta. About 78% of Trilogy’s production is natural gas. The remaining 22% is oil. In the three months ended December 31, 2010, Trilogy produced 21,544 barrels of oil equivalent per day (including natural gas). That was down 4.1% from 22,462 barrels a year earlier....
AltaGas Ltd., $25.56, symbol ALA on Toronto (Shares outstanding: 83.0 million; Market cap: $2.1 billion; www.altagas.ca), mainly extracts, processes and distributes natural gas. It also processes natural-gas liquids and generates power in Alberta. AltaGas pays an $0.11 monthly dividend, which yields 5.2% on a yearly basis. The company gets most of its revenue under long-term contracts. These give it stable, predictable cash flow. AltaGas is trying to cut its reliance on the natural-gas business, but its growth-by-acquisition strategy, and investments in areas like wind and geothermal, add risk. However, power prices are rising in Alberta. That should increase the company’s cash flow....
Dividend 15 Split Corp., $12.30, symbol DFN on Toronto (Shares outstanding: 13.6 million; Market cap: $167.3 million; www.dividend15.com), is a split-share investment corporation that holds shares of 15 companies: BCE Inc., CI Financial Corporation, Bank of Nova Scotia, Thomson Reuters, National Bank of Canada, TransAlta Corporation, Sun Life Financial, Canadian Imperial Bank of Commerce, TransCanada Corporation, Manulife Financial, TD Bank, Royal Bank of Canada, Bank of Montreal, Telus Corporation and Enbridge. The company can also invest up to 15% of its portfolio in other stocks. Dividend 15 Split Corp. has two share classes: Dividend 15 Split Corp. capital shares (Toronto symbol DFN), and Dividend 15 Split Corp. preferred shares (Toronto symbol DFN.PR.A)....
CML Healthcare Inc., $12.00, symbol CLC on Toronto (Shares outstanding: 89.7 million; Market cap: $1.1 billion; www.cmlhealthcare.com) was formerly CML Healthcare Income Fund before it converted to a corporation on January 4, 2011. CML (or Canadian Medical Laboratories) is one of Canada’s largest health-care diagnostic services providers. CML has two main business segments: Laboratory Services and Imaging Services. Laboratory Services accounts for 45% of CML’s revenue, and performs a wide range of medical tests through its Ontario laboratory network, which includes the company’s central laboratory in Mississauga and 120 specimen-collection centres. The size of CML’s lab network lets it take advantage of economies of scale that are not available to smaller labs. About 85% of the company’s lab revenues are fixed by an agreement with the Ontario Ministry of Health....
TRILOGY ENERGY CORP. $14.29 (Toronto symbol TET; TSINetwork Rating: Speculative) (403-290-2900; www.trilogyenergy.com; Shares outstanding: 84.2 million; Market cap: $1.2 billion; Dividend yield: 2.9%) owns oil and gas properties in the Kaybob and Grande Prairie areas of central Alberta. About 81% of Trilogy’s production is natural gas. The remaining 19% is oil. In the three months ended September 30, 2010, Trilogy produced 22,462 barrels of oil equivalent per day (this figure includes natural gas). That was down 6.7% from 24,087 barrels a year earlier....
ZARGON OIL & GAS $21.61 (Toronto symbol ZAR; TSINetwork Rating: Speculative) (403-264-9992; www.zargon.ca; Shares outstanding: 23.8 million; Market cap: $513.5 million; Dividend yield: 7.8%) is the new name of Zargon Energy Trust following its conversion to a dividend-paying corporation on January 7, 2011. The move is in response to Ottawa’s new tax on income trust distributions, which came into effect on January 1, 2011. Zargon must now pay corporate taxes. As a result, it plans to lower its monthly dividend by 22.2%, to $0.14 a share, with the February 2011 payment. That will give the stock a 7.8% yield. The company produces oil and natural gas in Alberta, Manitoba, Saskatchewan and North Dakota. Its output is weighted 58% to oil and 42% to natural gas. This diversification helps cut its risk....
PLEASE NOTE: Next week, Stock Pickers Digest will reveal its #1 pick for 2011. Don’t miss this unique opportunity to profit. ZARGON OIL & GAS LTD., $21.90, symbol ZAR on Toronto, is the new name of Zargon Energy Trust following its conversion to a dividend-paying corporation on January 7, 2011. The move is in response to Ottawa’s new tax on income trust distributions, which came into effect on January 1, 2011. Zargon must now pay corporate taxes. As a result, it plans to lower its monthly dividend by 22.2% with the February 2011 payment. That will give the stock a 7.7% yield....