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
FINNING INTERNATIONAL INC. $22 (Toronto symbol FTT; Conservative Growth Portfolio, Manufacturing& Industry sector; Shares outstanding:171.4 million; Market cap: $3.8 billion; Price-to-salesratio: 0.6; Dividend yield: 3.3%; TSINetwork Rating:Above Average; www.finning.com) started up in1933 and is now the world’s largest dealer of tractors, bulldozers and trucks made by Caterpillar Inc. (New York symbol CAT). It also sells heavy equipment made by other firms. Finning’s clients are mainly in the mining, forest products and construction industries. Western Canada (B.C., Alberta, Yukon, Northwest Territories and parts of Nunavut) supplied 53%of Finning’s revenue in 2014, followed by South America (Argentina, Chile, Uruguay and Bolivia),which contributed 32%, and the U.K. and Ireland(15%). Big growth in services...
CAE INC. $14 (www.cae.com) has won several contracts for flightsimulators and related equipment from airlines in China, SouthKorea, Russia and the U.S. In all, these deals are worth $130million, or 6% of the company’s $2.2 billion of annual revenue. CAEhas now sold 15 flight simulators in its 2016 fiscal year, whichbegan April 1, 2015, after selling 41 in fiscal 2015. The stock is our#1 buy for 2015. BCE INC. $54 (www.bce.ca) recently started offering tri-band LTEadvanced (LTE-A) service, which is 1.9 times faster than its mainLTE network, in Halifax, Hamilton, Oakville and Toronto. Fasterwireless service should prompt more of its subscribers to upgradeto smartphones, which generate higher profits than regularcellphones. Best Buy. ENCANA CORP. $9.24 (www.encana.com) is selling its Haynesvillenatural gas properties in northern Louisiana. These assetsaccount for 9% of the company’s production but less than 3% of itscash flow. Selling them will let Encana focus on its more profitableproperties (two in Canada and two in the U.S.), which producelarge amounts of oil and natural gas liquids, such as propane andbutane. That cuts the company’s reliance on natural gas. Buy.
PENGROWTH ENERGY CORP., $1.58, Toronto symbol PGF, continues to cut costs as low oil and natural gas prices hurt its earnings and cash flow. This week, the company said it would pay its final monthly dividend of $0.02 a share on September 15, 2015. It will then shift to a quarterly payout of $0.01 a share starting in December 2015. The new annual rate of $0.04 a share, down 83.3% from $0.24, yields 2.5%. Pengrowth will also suspend its dividend reinvestment plan with the December 2015 payment. Participants will then receive their dividends in cash until the company reinstates the plan....
TORONTO-DOMINION BANK, $52.91, Toronto symbol TD, reported that its earnings rose 5.4% in its fiscal 2015 third quarter, which ended July 31, 2015, to $2.3 billion from $2.2 billion a year earlier. Earnings per share rose at a slower rate of 4.3%, to $1.20 from $1.15, on more shares outstanding. These figures exclude several unusual items, such as investment gains and a recovery of costs related to a lawsuit settlement. On that basis, the latest earnings beat the consensus estimate of $1.18. Earnings at the Canadian banking division (63% of the total) rose 7.9%, thanks to strong loan demand and gains from its wealth-management and insurance businesses. The U.S. banking division’s earnings (27%) jumped 16.5%, largely because the low Canadian dollar enhanced this business’s profits. The wholesale banking division (10%) saw its earnings rise 10.6% on higher trading volumes, stronger demand for corporate loans and higher advisory fees on mergers and acquisitions....
ENBRIDGE INC., $52.32, Toronto symbol ENB, continues to move ahead with the major reorganization it announced in December 2014. The company plans to transfer its pipelines to 19.9%-owned affiliate Enbridge Income Fund Holdings Inc. (Toronto symbol ENF). This company owns 42% of Enbridge Income Fund (Enbridge Inc. owns the remaining 58%), which holds a variety of businesses, including oil and gas pipelines and solar and wind farms. Under the proposal, Enbridge will transfer pipelines that pump oil sands crude to the U.S., along with wind farms in Alberta and Quebec, to Enbridge Income Fund....
CAE INC., $14.81, Toronto symbol CAE, earned $50.6 million in its fiscal 2016 first quarter, which ended June 30, 2015, up 15.5% from $43.8 million a year earlier. Earnings per share rose at a slower pace of 11.8%, to $0.19 from $0.17, on more shares outstanding. That beat the consensus estimate of $0.18. Revenue gained 5.9%, to $557.0 million from $526.2 million, but that fell short of the consensus forecast of $571.1 million. About 90% of the company’s revenue comes from overseas, so it’s benefiting from the lower Canadian dollar. CAE gets 60% of its sales by selling flight simulators and pilot-training services to airlines, and this business’s revenue rose 8.8%. The company sold eight simulators during the period and expects its full-year total to be near the 41 it sold in fiscal 2015....
Oil prices have dropped 50% in the past year, but Imperial Oil’s shares are down just 10%. That’s mainly because cheaper crude cuts its refineries’ input costs and increases their profit margins. New oil sands projects are also adding to its production. In addition to low oil prices, Imperial faces potentially higher royalties and tougher environmental regulations. Still, we feel the company’s high-quality reserves will help it overcome these short-term challenges. Plus, its operating costs per barrel will keep falling as its new projects reach full capacity....
SNC-LAVALIN GROUP INC. $40 (Toronto symbol SNC; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 150.6 million; Market cap: $6.0 billion; Price-to-sales ratio: 0.6; Dividend yield: 2.5%; TSINetwork Rating: Average; www.snclavalin.com) earned $26.5 million in the second quarter of 2015, down 17.3% from $32.1 million a year earlier. Earnings per share declined 19.0%, to $0.17 from $0.21, on fewer shares outstanding. The drop was largely because SNC ran into unstable soil while building a mass-transit project, which increased its costs. Expenses at a separate highway project were also higher than expected, further hurting its earnings. However, revenue jumped 32.7%, to $2.25 billion from $1.7 billion, thanks to U.K.-based Kentz, which SNC bought in August 2014. Kentz provides engineering and construction services to the oil and gas industry and now supplies a third of SNC’s revenue....
The past year’s plunge in oil prices has forced all three of these producers to slash their costs and delay new projects. Like Imperial Oil (see page 81), Suncor and Cenovus have refineries that help offset oil’s drop. Encana doesn’t have refineries, but it has narrowed its operations to four main projects that give it a better balance between oil and natural gas. We see all three firms as buys for patient investors. SUNCOR ENERGY INC. $37 (Toronto symbol SU; Conservative Growth Portfolio, Resources sector; Shares outstanding: 1.4 billion; Market cap: $51.8 billion; Price-to-sales ratio: 1.6; Dividend yield: 3.1%; TSINetwork Rating: Average; www.suncor.com) gets 80% of its crude production from its huge Alberta oil sands projects. The remaining 20% comes from traditional oil and gas wells....
PENGROWTH ENERGY CORP. $1.71 (Toronto symbol PGF; Aggressive Growth and Income Portfolios, Resources sector; Shares outstanding: 540.7 million; Market cap: $924.6 million; Price-to-sales ratio: 0.9; Dividend yield: 14.0%; TSINetwork Rating: Average; www.pengrowth.com) plans to spend $190 million to $210 million on its oil and gas properties in 2015, down from its earlier forecast of $220 million to $240 million. The company also wants to sell $600 million worth of less important assets. It will use the cash to pay down its debt of $1.9 billion, which is a high 2.1 times its market cap. Meanwhile, Pengrowth continues to benefit from its hedging program, which locks in selling prices above today’s low oil and gas prices. That should help it keep paying monthly dividends of $0.02 a share. The annual rate of $0.24 yields a high 14.0% due to the stock’s depressed price....