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
TRANSCONTINENTAL INC. $15 (Toronto symbol TCL.A; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 78.1 million; Market cap: $1.2 billion; Price-to-sales ratio: 0.6; Dividend yield: 4.5%; TSINetwork Rating: Average; www.tctranscontinental.com) saw its earnings rise 13.7% in the quarter ended April 30, 2015, to $39.1 million, or $0.50 a share, from $34.4 million, or $0.44, a year ago. The gain largely came from two recent acquisitions: in May 2014, the company bought U.S.-based Capri Packaging, a maker of plastic bags and pouches for cheese and other dairy products, for $146.5 million. And in June 2014, it paid Sun Media $78.8 million for 74 weekly newspapers in Quebec. Revenue rose 2.7%, to $490.5 million from $477.5 million. Contributions from acquisitions offset lower revenue from printing flyers, particularly after Target closed its 133 Canadian stores....
IGM FINANCIAL INC. $40 (Toronto symbol IGM; Conservative Growth Portfolio, Finance sector; Shares outstanding: 248.5 million; Market cap: $9.9 billion; Price-to-sales ratio: 3.4; Dividend yield: 5.6%; TSINetwork Rating: Above Average; www.igmfinancial.com) had $136.0 billion of assets under management as of June 30, 2015. That’s down 3.9% from $141.4 billion a year earlier. The drop resulted from the recent decline in major stock markets; IGM’s fee income rises and falls with the value of the mutual funds and other securities it manages. Even with the current volatility, IGM’s overall mutual fund sales, net of redemptions, rose by $66.5 million in June. Net gains at the company’s Investors Group (up $74.2 million) and Counsel (up $12.3 million) subsidiaries offset $20.0 million of net redemptions at its Mackenzie division....
TECK RESOURCES LTD. $12 (Toronto symbol TCK.B; Conservative Growth Portfolio, Resources sector; Shares outstanding: 576.2 million; Market cap: $6.9 billion; Price-to-sales ratio: 0.8; Dividend yield: 2.5%; TSINetwork Rating: Average; www.teck.com) has postponed its plan to develop its 100%-owned Frontier oil sands project in Alberta due to weak crude prices. The company had planned to start construction in 2019 and complete it in 2021. However, it now feels commercial production will begin in 2026. If Teck decides to build Frontier, it will cost $20.6 billion. Meanwhile, the company continues to work on its 20.0%-owned Fort Hills oil sands project; Suncor Energy (Toronto symbol SU) owns 40.8% of Fort Hills, while France’s Total SA holds the remaining 39.2%. Teck’s share of Fort Hills’ development costs is $2.94 billion. This project should begin operating in late 2017, and its reserves should last 50 years....
EMERA INC. $42 (Toronto symbol EMA; Income Portfolio, Utilities sector; Shares outstanding: 144.8 million; Market cap: $6.1 billion; Price-to-sales ratio: 2.1; Dividend yield: 3.8%; TSINetwork Rating: Average; www.emera.com) owns 100% of Nova Scotia Power, that province’s main electricity supplier. This business supplies 45% of Emera’s revenue and a third of its earnings. In the past few years, the company has steadily expanded into other regions, mainly through acquisitions. It now owns or invests in several power plants and natural gas pipelines in the U.S. and the Caribbean. Thanks to these new operations, Emera’s revenue rose 85.0%, from $1.6 billion in 2010 to $3.0 billion in 2014. Erratic earnings history...
RESTAURANT BRANDS INTERNATIONAL INC. $51 (www.rbi.com) has joined McDonald’s and KFC in bringing back old mascots. The company’s Burger King chain is now using its big-headed “King” mascot for the first time since 2011....
FORTIS INC., $36.28, Toronto symbol FTS, began supplying electricity to St. John’s, Newfoundland, in 1885. The company is now the main power utility in Newfoundland and PEI. As part of diversification plan, Fortis acquired other power utilities in other parts of Canada, as well as in the U.S. and Caribbean. It also invested in office buildings and hotels. The company now wants to focus on its highly successful utilities. As a result, it recently sold its commercial real estate operations for $430 million. This business’s properties, located in New Brunswick, Nova Scotia and Newfoundland and Labrador, included 10 office buildings, one mixed-use office complex and three shopping centres....
CENOVUS ENERGY INC., $19.44, Toronto symbol CVE, has agreed to sell its royalty lands to the Ontario Teachers’ Pension Plan. The company collects royalties from firms that drill for oil and gas on these properties, which total 4.8 million acres in Alberta, Saskatchewan and Manitoba. It also gets some of the oil these drillers recover: in the first quarter of 2015, these wells supplied 7,800 barrels a day, or 3.6% of the Cenovus’s daily oil production of 218,020 barrels. Cenovus will receive $3.3 billion when it completes the sale, probably before July 31, 2015. To put that in context, its market cap (or the value of all of its outstanding shares) is $16.1 billion....
POTASH CORP. OF SASKATCHEWAN, $38.61, Toronto symbol POT, has offered to buy German fertilizer producer K+S AG for $8 billion U.S. That’s equal to 31% of its $32.2-billion (Canadian) market cap. The company sells most of its products to customers in the U.S. and Asia, so a takeover would greatly expand its presence in Europe. It would also gain access to K+S’s new Legacy potash mine in Saskatchewan, which will open in 2016. Merging Legacy’s operations with its five existing mines in Saskatchewan would give Potash Corp. an opportunity to cut costs. K+S will probably reject the offer, so Potash Corp. may have to raise its bid....
IMPERIAL OIL LTD., $46.95, Toronto symbol IMO, has started up the second phase of its Kearl oil sands project in northern Alberta. The company owns 71% of Kearl; ExxonMobil (New York symbol XOM) holds the remaining 29%. Exxon also owns 69.9% of Imperial. Kearl’s first phase began operating in April 2013 and produced an average of 95,000 barrels a day (67,000 to Imperial) in the three months ended March 31, 2015. Imperial’s share of Kearl’s output represented 20% of the company’s overall production of 333,000 barrels. This new phase will ultimately double Kearl’s capacity to 220,000 barrels a day (156,200 to Imperial). The company spent $9 billion on the expansion, which is equal to 23% of its $39.8-billion market cap (or the value of all of its outstanding shares). However, Kearl’s reserves should last 40 years....
TRANSCONTINENTAL INC., $16.06, Toronto symbol TCL.A, fell 12% this week after reporting lower-than-expected earnings. In its 2015 second quarter, which ended April 30, 2015, the company’s earnings rose 13.7%, to $39.1 million, or $0.50 a share. That fell short of the consensus estimate of $0.54. A year earlier, Transcontinental earned $34.4 million, or $0.44 a share. The gain largely came from two recent acquisitions: in May 2014, the company bought U.S.-based Capri Packaging, a maker of plastic bags and pouches for cheese and other dairy products, for $146.5 million. And in June 2014, it paid Sun Media $78.8 million for 74 weekly newspapers in Quebec....