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
BCE INC. $57 (Toronto symbol BCE; Conservative Growth and Income Portfolios, Utilities sector; Shares outstanding: 849.4 million; Market cap: $48.4 billion; Price-to-sales ratio: 2.3; Dividend yield: 4.6%; TSINetwork Rating: Above Average; www.bce.ca) continues to benefit from strong demand for its wireless and high-speed Fibe Internet and TV services. In the quarter ended September 30, 2015, BCE’s earnings rose 21.9%, to $790 million from $648 million a year earlier. Per-share profits gained just 12.0%, to $0.93 from $0.83, on more shares outstanding. Revenue rose 2.9%, to $5.3 billion from $5.2 billion. The company added 77,655 new wireless subscribers under long-term contracts, net of cancellations, beating the consensus forecast of 77,400. Most of these customers use smartphones, which generate higher monthly fees than regular cellphones....
CENOVUS ENERGY INC. $20 (Toronto symbol CVE; Conservative Growth Portfolio, Resources sector; Shares outstanding: 833.3 million; Market cap: $16.7 billion; Price-to-sales ratio: 1.2; Dividend yield: 3.2%; TSINetwork Rating: Average; www.cenovus.com) has cut jobs in response to sharply lower oil and natural gas prices. It has also lowered its 2015 capital spending by 40%, to between $1.8 billion and $1.9 billion. These moves, along with more efficient drilling, will save it $400 million in 2015, up from its earlier forecast of $280 million. Cenovus now plans more job cuts, which should save it a further $100 million a year starting in 2016. Meanwhile, Cenovus’s oil production rose 5.7% in the three months ended September 30, 2015, to 210,422 barrels a day from 199,089 a year earlier. That’s due to the start up of new phases at its 50%-owned Foster Creek and Christina Lake oil sands projects in northern Alberta; U.S.-based ConocoPhillips (New York symbol COP) owns the other 50%....
The new Liberal government in Ottawa plans to spend more on roads, bridges and public transit over the next three years. SNC-Lavalin, below, is already working on big public works projects, including a transit line in Toronto and a bridge in Montreal, so it should gain from this new spending. The Liberals are also in favour of certain new pipelines, which should help ShawCor (see next article). SNC-LAVALIN GROUP INC. $42 (Toronto symbol SNC; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 149.8 million; Market cap: $6.3 billion; Price-to-sales ratio: 0.6; Dividend yield: 2.4%; TSINetwork Rating: Average; www.snclavalin.com) is narrowing its focus to engineering projects in the oil and gas, mining and water-treatment industries....
SHAWCOR LTD. $28 (Toronto symbol SCL; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 64.5 million; Market cap: $1.8 billion; Price-to-sales ratio: 1.0; Dividend yield: 2.1%; TSINetwork Rating: Average; www.shawcor.com) makes sealants and coatings that keep oil and gas pipelines from rusting. It also manufactures industrial products, such as electrical wire and protective sheaths. In the three months ended September 30, 2015, ShawCor’s revenue rose 3.4%, to $485.4 million from $469.6 million a year earlier. Favourable exchange rates added $42.5 million to its revenue in the latest quarter. Earnings gained 21.3%, to $38.1 million from $31.4 million. Per-share profits rose 15.7%, to $0.59 from $0.51, on fewer shares outstanding. As of September 30, 2015, ShawCor’s backlog was $556 million. Its strong reputation should keep helping it win contracts; it has a total of $600 million worth of bids underway on new jobs....
MANITOBA TELECOM SERVICES INC. $29 (Toronto symbol MBT; Conservative Growth and Income Portfolios, Utilities sector; Shares outstanding: 78.9 million; Market cap: $2.3 billion; Price-to-sales ratio: 1.4; Dividend yield: 4.5%; TSINetwork Rating: Average; www.mtsallstream.com) has expanded its recent restructuring plan, under which it is cutting 25% of its Allstream subsidiary’s workforce and lowering this business’s capital spending by 20% to 30%. Allstream sells phone and Internet services to companies across Canada. Manitoba Telecom now aims to improve the performance of its MTS division, which has 1.3 million phone, wireless and TV customers in Manitoba. The company will cut jobs and capital spending at MTS and use some of the savings to improve its customer service and billing processes. Restructuring MTS should cut Manitoba Telecom’s annual costs by up to $25 million. To put that in context, it earned $26.7 million, or $0.34 a share, in the third quarter of 2015....
MAPLE LEAF FOODS INC. $21 (Toronto symbol MFI; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 136.6 million; Market cap: $2.9 billion; Price-to-sales ratio: 0.9; Dividend yield: 1.5%; TSINetwork Rating: Average; www.mapleleaf.ca) will soon complete a multi-year restructuring that mainly involves closing older meat-processing plants and shifting their operations to newer facilities. Thanks to these actions, Maple Leaf’s gross profit margin (gross profits as a percentage of revenue) jumped to 7.1% in the third quarter of 2015 from 0.5% a year earlier. However, the company has faced delays and higher-than-expected costs to start up these new plants, so it now expects to reach its goal of raising its gross profit margin to at least 10% in 2016 instead of 2015. Maple Leaf Foods is a hold.
BANK OF MONTREAL $77 (Toronto symbol BMO; Conservative Growth and Income Portfolios, Finance sector; Shares outstanding: 642.5 million; Market cap: $49.5 billion; Price-to-sales ratio: 2.9; Dividend yield: 4.3%; TSINetwork Rating: Above Average; www.bmo.com) is Canada’s fourth-largest bank, with $672.4 billion of assets. The bank has steadily expanded beyond Canada in recent years. For example, in 2011, it acquired Wisconsin-based banking firm Marshall & Ilsley for $4.0 billion in stock. That more than doubled the number of branches Bank of Montreal operates in the U.S. and added two million customers. In 2014, it paid $1.3 billion for U.K.-based wealth management firm F&C Asset Management, which sells investment services to individuals and institutional clients, such as pension plans and insurance companies....
ENBRIDGE INC. $50 (www.enbridge.com) is paying $750 million for 24.9% of the 400-megawatt Rampion offshore wind project in the English Channel. To put that price in context, Enbridge earned $399 million, or $0.79 a share, in the third quarter of 2015....
TRANSCANADA CORP., $43.32, Toronto symbol TRP, fell 4% on Friday after the U.S. rejected its proposed Keystone XL pipeline, which would have pumped crude from Alberta’s oil sands to refineries on the U.S. Gulf Coast. So far, TransCanada has spent $2.4 billion U.S. on this $8.0-billion U.S. project. However, it can use some of the line’s equipment on other projects, which would minimize a writedown. Meanwhile, the company’s earnings fell 2.2% in the three months ended September 30, 2015, to $440 million (Canadian), or $0.62 a share, though that was still ahead of the consensus estimate of $0.60. A year earlier, it earned $450 million, or $0.63....
BOMBARDIER INC., Toronto symbols BBD.A $1.50 and BBD.B $1.42, announced this week that it will form a new joint venture with the government of Quebec.
Under the deal, the government pay $1.0 billion for 49.5% of a partnership that will own the CSeries passenger jet business (all amounts except share prices in U.S. dollars). Bombardier will own the remaining 50.5%.
The company is also giving Quebec warrants to buy up to 200 million class B subordinate voting shares at the U.S. dollar equivalent of $2.21 (Canadian) each. The warrants expire in five years. If Quebec exercises all of them, the extra shares would equal 8.18% of the total class A and B shares currently outstanding.
Bombardier has also promised to keep its headquarters and CSeries plants in Quebec for the next 20 years.
The cash from this sale will help Bombardier finish certifying the CSeries; flight tests are now 97% complete. Quebec’s backing should also help attract more buyers. The company has firm orders for 243 CSeries planes but hasn’t received any new orders in the past year.
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Under the deal, the government pay $1.0 billion for 49.5% of a partnership that will own the CSeries passenger jet business (all amounts except share prices in U.S. dollars). Bombardier will own the remaining 50.5%.
The company is also giving Quebec warrants to buy up to 200 million class B subordinate voting shares at the U.S. dollar equivalent of $2.21 (Canadian) each. The warrants expire in five years. If Quebec exercises all of them, the extra shares would equal 8.18% of the total class A and B shares currently outstanding.
Bombardier has also promised to keep its headquarters and CSeries plants in Quebec for the next 20 years.
The cash from this sale will help Bombardier finish certifying the CSeries; flight tests are now 97% complete. Quebec’s backing should also help attract more buyers. The company has firm orders for 243 CSeries planes but hasn’t received any new orders in the past year.
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