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
TRANSCANADA CORP. $48 (Toronto symbol TRP; Conservative Growth and Income Portfolios, Utilities sector; Shares outstanding: 709.0 million; Market cap: $34.0 billion; Price-to-sales ratio: 3.2; Dividend yield: 4.3%; TSINetwork Rating: Above Average; www.transcanada.com) wants to build the Energy East pipeline, which would pump oil from Alberta to Eastern Canadian refineries. In response to environmental concerns and political opposition, TransCanada has adjusted the route and scrapped plans to build an export terminal in Quebec. These moves will certainly increase Energy East’s $12-billion cost; the company has already spent $700 million on the project. If regulators approve, the new pipeline could begin operating in 2020. TransCanada is a buy.
THOMSON REUTERS CORP. $54 (Toronto symbol TRI; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 784.1 million; Market cap: $42.3 billion; Price-to-sales ratio: 3.3; Dividend yield: 3.2%; TSINetwork Rating: Above Average; www.thomsonreuters.com) sells specialized information products in four main areas: financial (53% of 2014 revenue, 39% of earnings); legal (28%, 39%); tax (11%, 12%); and intellectual property and science (8%, 10%). The company continues to see rising demand for its financial-information products in the wake of the 2008 financial crisis. It’s also doing a good job of getting traders and portfolio managers to upgrade their older electronic terminals, through which Thomson supplies them with news and financial data, to its new Eikon platform. In the three months ended June 30, 2015, Thomson’s revenue fell 3.8%, to $3.0 billion from $3.2 billion (all amounts except share price and market cap in U.S. dollars). Without the negative impact of the high U.S. dollar on its overseas operations (40% of the total), revenue rose 2%....
These two banks are making timely acquisitions south of the border. We feel these purchases will help both profit from an improving U.S. economy, while the lower Canadian dollar enhances these businesses’ revenue and profits. ROYAL BANK OF CANADA $76 (Toronto symbol RY; Conservative Growth and Income Portfolios, Finance sector; Shares outstanding: 1.4 billion; Market cap: $106.4 billion; Price-to-sales ratio: 3.2; Dividend yield: 4.1%; TSINetwork Rating: Above Average; www.rbc.com) continues to sell its less promising overseas operations as it shifts its international focus to the U.S., U.K. and Asia. For example, it recently sold its retail banking business in the country of Suriname, South America....
IGM FINANCIAL INC. $38 (Toronto symbol IGM; Conservative Growth Portfolio, Finance sector; Shares outstanding: 247.5 million; Market cap: $9.4 billion; Price-to-sales ratio: 3.1; Dividend yield: 5.9%; TSINetwork Rating: Above Average; www.igmfinancial.com) had $137.9 billion worth of assets under management as of July 31, 2015, down 3.0% from $142.1 billion a year earlier. The company’s fee income rises and falls with the value of the mutual funds and other securities it manages, so its revenue and earnings decline when the price of these assets falls. However, IGM sells most of its funds through its own salesforce. This leaves it less dependent on selling through the brokerage industry than its competitors. This salesforce also lets IGM form close relationships with clients, and keep redemption rates down. IGM Financial is a buy.
POTASH CORP. OF SASKATCHEWAN $34 (Toronto symbol POT; Aggressive Growth Portfolio, Resources sector; Shares outstanding: 834.7 million; Market cap: $28.4 billion; Price-to-sales ratio: 4.5; Dividend yield: 5.8%; TSINetwork Rating: Average; www.potashcorp.com) has offered to buy leading German fertilizer producer K+S AG for around $8.6 billion U.S. K+S has rejected the offer, as it feels the price discounts the potential value of its new Legacy potash mine in Saskatchewan, which will open in 2016. As a result, K+S has indicated that Potash Corp. would have to raise its bid by roughly 22%. In response, Potash Corp. may launch a hostile takeover offer. However, German regulators would probably block an acquisition, particularly if Potash Corp. plans to close some of K+S’s mines. Potash Corp. is still a hold....
LINAMAR CORP. $71 (Toronto symbol LNR; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 65.1 million; Market cap: $4.6 billion; Price-to-sales ratio: 1.0; Dividend yield: 0.6%; TSINetwork Rating: Average; www.linamar.com) saw its sales rise 23.8% in the three months ended June 30, 2015, to a record $1.4 billion from $1.1 billion a year earlier. Sales at the company’s powertrain and driveline division (79% of the total) rose 22.5%, thanks to acquisitions and the launch of new transmissions and other automotive products. The industrialproducts division’s sales (21%) gained 28.9%, mainly due to strong demand for the company’s Skyjack self-propelled, scissor-type elevating work platforms. Earnings jumped 33.3%, to a record $1.84 a share from $1.38. In addition to the higher sales, Linamar’s earnings benefited from efficiency improvements and favourable currency exchange rates....
GREAT-WEST LIFECO INC. $35 (Toronto symbol GWO; Conservative Growth and Income Portfolios, Finance sector; Shares outstanding: 996.9 million; Market cap: $35.0 billion; Priceto- sales ratio: 1.0; Dividend Yield: 3.7%; TSINetwork Rating: Above Average; www.greatwestlifeco.com) is Canada’s second-largest insurance company, after Manulife Financial (Toronto symbol MFC). It also offers mutual funds, retirement planning and wealth management. Power Financial (Toronto symbol PWF) owns 67.1% of Great-West. As of June 30, 2015, the company had $1.15 trillion of assets under administration, up 7.9% from $1.06 trillion at the end of 2014. Diversified operations cut risk...
MOLSON COORS CANADA INC. $94 (www.molsoncoors.com) earned $1.41 a share in the three months ended June 30, 2015, down 10.2% from $1.57 a year earlier (all amounts expect share price in U.S. dollars). Its worldwide beer volumes fell 1.9%, mainly due to the termination of deals to brew certain beers in Canada and the U.K....
BCE INC., $54.14, Toronto symbol BCE, continues to see strong demand for its wireless, high-speed Internet and Fibe TV services. In the three months ended June 30, 2015, the company’s earnings rose 14.8%, to $735 million from $640 million a year earlier. Per-share profits gained just 6.1%, to $0.87 from $0.82, on more shares outstanding. These figures exclude unusual items, such as costs to integrate BCE’s November 2014 purchase of the 56% of Bell Aliant it didn’t already own. On that basis, the latest earnings matched the consensus estimate....
BOMBARDIER INC., Toronto symbols BBD.A $1.75 and BBD.B $1.63, has denied media reports that it’s planning to merge its passenger-railcar business (Bombardier Transportation) with Germany-based Siemens AG. However, the company still plans to sell shares in Bombardier Transportation through an initial public offering later this year—though it will continue to own a majority stake. Bombardier will probably use the cash from this sale to pay down its $8.9-billion U.S. long-term debt, which is a high 315% of its $3.7-billion (Canadian) market cap....