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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Dividend Stocks Library Archive
H&R REAL ESTATE INVESTMENT TRUST $12 is a buy. The REIT (Toronto symbol HR.UN; Cyclical-Growth Dividend Payer Portfolio, Manufacturing sector; Units outstanding: 262.6 million; Market cap: $3.2 billion; Distribution yield: 5.0%; Dividend Sustainability Rating: Average; www.hr-reit.com) has 365 residential, industrial, office and retail properties in Canada and the U.S. Its occupancy rate is a solid 93.0%.


The REIT plans to sell its office and retail properties over the next few years. That will let it focus on its more-promising residential properties in Toronto, Vancouver, Montreal and U.S. Sun Belt and Gateway cities (generally, cities that are home to corporate headquarters, and large educational and cultural institutions).
CANOE EIT INCOME FUND $15.36 (Toronto symbol EIT.UN; Units o/s: 183.8 million; Market cap: $2.8 billion; Divd. yield: 7.8%; www.canoefinancial.com) is a closed-end fund that invests in a portfolio of dividend paying stocks. Canadian stocks account for 52.3% of its holdings, followed by U.S. stocks at 44.2%.


Canoe pays a monthly distribution of $0.10 a unit; the stock yields a high 7.8%. However, the fund’s yield may only be sustainable if stock markets keep rising. Canoe EIT’s portfolio does not pay enough dividend income to cover its distributions to its unitholders, after allowing for management expenses and fees.
LEON’S FURNITURE LTD. $29 is a buy. The retailer (Toronto symbol LNF; High-Growth Payer Portfolio, Consumer sector; Shares outstanding: 68.3 million; Market cap: $2.0 billion; Dividend yield: 3.3%; Dividend Sustainability Rating: Average; www.leons.ca) operates 300 stores, mainly under the Leon’s, The Brick, and Appliance Canada banners. Those locations sell furniture and home appliances. Franchisees operate 98 (32.7%) of the outlets.
BCE INC. $33 is a buy. The company (Toronto symbol BCE; Conservative Growth and Income Portfolios, Utilities sector; Shares outstanding: 932.5 million; Market cap: $30.8 billion; Price-to-sales ratio: 2.1; Dividend yield: 5.3%; TSINetwork Rating: Above Average; www.bce.ca) has now completed its purchase of Ziply Fiber, which offers high-speed Internet access and telephone services through a fibre-optic network to 1.3 million residential and business customers in Washington State, Oregon, Idaho and Montana. BCE paid $3.65 billion U.S. in cash ($5.04 billion Canadian) for this business. It also assumed $2.65 billion (Canadian) of Ziply’s debt.
SOUTH BOW CORP. $38 is a hold. The company (Toronto symbol SOBO; Conservative Growth and Income Portfolios, Utilities sector; Shares outstanding: 208.2 million; Market cap: $7.9 billion; Price-to-sales ratio: 2.8; Dividend yield: 7.3%; TSINetwork Rating: Average; www.southbow.com) operates a 4,900-kilometre pipeline network that pumps crude oil from Alberta to refineries in Illinois, Oklahoma and the U.S. Gulf Coast. That network includes the Keystone pipeline, which ships about 20% of Western Canadian oil to the U.S.
TC ENERGY INC., $71.88 is a buy. The company (Toronto symbol TRP; Shares o/s: 1.0 billion; Market cap: $74.7 billion; TSINetwork Rating: Above Average; Dividend yield: 4.7%; tcenergy.com) now plans to spend $27.7 billion on new projects and upgrades through 2031.


Those projects include the $3.8 billion U.S. Southeast Gateway pipeline. This 715-kilometre offshore pipeline will pump natural gas from existing lines in southeast Mexico.
H&R REIT, $11.91, is a buy. The trust (Toronto symbol HR.UN; Units outstanding: 262.6 million; Market cap: $3.1 billion; TSINetwork Rating: Average; Dividend yield: 5.0%; www.hr-reit.com) has announced the sale of the Canadian Pacific Building. That’s a landmark office property at 69 Yonge Street, Toronto. The price was $20.2 million.

The property, originally constructed in 1913 and designated as a heritage site, will be redeveloped into a 127-unit condominium. Zoning approvals are in place for expansion to a 21-storey mixed-use building, combining residential units and retail space.
BROOKFIELD RENEWABLE PARTNERS L.P., $33.95, is a buy. The partnership (Toronto symbol BEP.UN; Units outstanding: 646.0 million; Market cap: $21.9 billion; TSINetwork Rating: Extra Risk; Dividend yield: 6.0%; www.bep.brookfield.com) will now invest up to $1 billion to increase its equity interest to approximately 38% in Isagen S.A. E.S.P.


Isagen generates contracted cash flows from its large fleet of hydro assets on Colombia. In addition, Isagen also has a pipeline of renewable power projects.
BCE and CPKC are leading competitors in their respective markets; look for that to cut your ongoing risk. We see both as buys.