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
ENCANA CORP. $15 (Toronto symbol ECA; Conservative Growth Portfolio, Resources sector; Shares outstanding: 839.6 million; Market cap: $12.6 billion; Price-to-sales ratio: 1.4; Dividend yield: 2.3%; TSINetwork Rating: Average; www.encana.com) recently sold 98.5 million shares for $14.60 (Canadian) each, increasing the number outstanding by 13%. (All amounts except share price and market cap in U.S. dollars.) As well, Encana has sold natural gas pipelines and compression facilities in B.C.’s Montney region for $461 million (Canadian). It will use the total proceeds of $1.9 billion (Canadian) to pay down its long-term debt of $7.3 billion (as of December 31, 2014), which is a high 73% of its market cap....
MOLSON COORS CANADA INC. (Toronto symbols TPX.A $94 and TPX.B $99; Conservative Growth and Income Portfolios, Consumer sector; Shares outstanding: 185.9 million; Market cap: $18.4 billion; Price-to-sales ratio: 3.5; Dividend yield: 2.1%; TSINetwork Rating: Average; www.molson coors.com) has paid an undisclosed sum for Mount Shivalik Breweries, which operates two breweries in India. As a result, Molson now has three breweries in that country. The company’s brewing expertise should make Shivalik more efficient. The move will also help it launch and distribute its own brands, including Coors Light, in India. The class B shares have less voting power to elect directors than the class A shares, but they are more liquid and receive the same dividend....
TRANSCANADA CORP. $55 (Toronto symbol TRP; Conservative Growth and Income Portfolios, Utilities sector; Shares outstanding: 708.9 million; Market cap: $39.0 billion; Price-to-sales ratio: 4.7; Dividend yield: 3.8%; TSINetwork Rating: Above Average; www.transcanada.com) has decided not to build an oil-export terminal at Cacouna, Quebec, due to concerns that it could endanger beluga whales in the St. Lawrence River. This terminal was one of two (the other is near Saint John, New Brunswick) that are part of TransCanada’s proposed Energy East pipeline project, which would pump crude oil from Alberta to refineries in Eastern Canada. TransCanada is now looking for an alternative site. That will delay Energy East for at least two years, to 2020, and add to its $12-billion cost. However, cancelling the Cacouna terminal makes it more likely that regulators will approve the project....
CANADIAN PACIFIC RAILWAY LTD. $232 (Toronto symbol CP; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 164.2 million; Market cap: $38.1 billion; Price-to-sales ratio: 7.1; Dividend yield: 0.6%; TSINetwork Rating: Above Average; www.cpr.ca) transports freight over a 22,000-kilometre rail network between Montreal and Vancouver, as well as hubs in the U.S. Midwest and Northeast. The U.S. supplies 40% of its revenue. CP’s shares have soared 236.2% since we made it our Stock of the Year for 2012, when it was trading at $69. That’s mainly due to a major restructuring that has improved its efficiency with new locomotives, better tracks and software that optimizes train loads and speeds. Speedier service boosted results...
BOMBARDIER INC. $2.70 (www.bombardier.com) has 243 firm orders for its new CSeries passenger jet. If customers exercise their options to buy an additional 360 aircraft, the 603-plane total would be worth about $43 billion U.S. That’s equal to 2.1 times Bombardier’s 2014 revenue of $20.1 billion U.S. The company now plans to begin delivering these planes in early 2016 instead of its previous target of the second half of 2015. That’s because airlines need the extra time to train their pilots and mechanics to handle the new plane. Buy. RESTAURANT BRANDS INTERNATIONAL INC. $49 (www.rbi.com) is testing a new premium coffee blend from Colombia at five of its Tim Hortons outlets in Canada. The company hopes this new blend is as successful as its dark roast blend, which it launched in mid-2014 and now accounts for 15% of Tim Hortons’ coffee sales. Hold. METRO INC. $36 (www.metro.ca) split its shares on a 3-for-1 basis in February 2015. That will improve the stock’s liquidity. The company also recently raised its dividend payout target to 25% of earnings from 20%. The current annual dividend of $0.47 a share (adjusted for the split) yields 1.3%. Buy.
PLEASE NOTE: Our next Hotline will go out on Friday, April 10, 2015. RIOCAN REAL ESTATE INVESTMENT TRUST, $29.47, Toronto symbol REI.UN, has agreed to swap some properties with U.S.-based Kimco Realty (New York symbol KIM). Under the deal, RioCan will acquire Kimco’s 50% interests in a mall in Calgary and another in Mississauga for a total of $87.5 million. That will give the trust 100% of both malls, making it easier for it to expand or redevelop them....
PLEASE NOTE: Due to the Good Friday holiday, our next Hotline will go out on Thursday, April 2, 2015. CAE INC., $14.86, Toronto symbol CAE, announced this week that it has sold five flight simulators to WestJet and other customers. In all, these orders are worth $70 million, or 3% of CAE’s $2.2 billion of annual revenue. The company has now sold 36 simulators in its 2015 fiscal year, which began April 1, 2014. It sold a record 48 simulators in fiscal 2014....
POTASH CORP. OF SASKATCHEWAN, $40.70, Toronto symbol POT, fell 2% this week after the Saskatchewan government said it would change the timing of certain tax breaks for new potash mines and expansion projects. The province is also reviewing how it taxes potash producers. Potash Corp. expects the new rules to cut its pre-tax earnings by $75 million to $100 million (Canadian) in 2015. To put that in context, Potash Corp. (which reports its results in U.S. dollars) earned $1.5 billion, or $1.82 a share, in 2014. The company expects to complete its current $6-billion U.S. expansion plan in 2016, so the new rules will have little impact on next year’s earnings....
TORONTO-DOMINION BANK $54 (Toronto symbol TD; Conservative Growth and Income Portfolios, Finance sector; Shares outstanding: 1.8 billion; Market cap: $97.2 billion; Price-to-sales ratio: 3.4; Dividend yield: 3.8%; TSINetwork Rating: Above Average; www.td.com) gets 65% of its revenue and earnings from its Canadian retail banking division, which serves 15 million customers through 1,164 branches.
In the U.S., the bank operates 1,301 branches along the east coast from Maine to Florida. This business supplies 25% of its revenue and earnings. The remaining 10% comes from TD’s wholesale banking division, which offers securities trading and investmentbanking services, such as stock underwriting.
TD’s revenue jumped 53.1%, from $19.6 billion in 2010 to $30.0 billion in 2014 (fiscal years end October 31).
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In the U.S., the bank operates 1,301 branches along the east coast from Maine to Florida. This business supplies 25% of its revenue and earnings. The remaining 10% comes from TD’s wholesale banking division, which offers securities trading and investmentbanking services, such as stock underwriting.
TD’s revenue jumped 53.1%, from $19.6 billion in 2010 to $30.0 billion in 2014 (fiscal years end October 31).
...
LOBLAW COMPANIES LTD., $61.78, Toronto symbol L, operates around 1,140 supermarkets across Canada, mainly under the Loblaw, Provigo, Real Canadian Superstore and No Frills banners. In March 2014, it purchased Shoppers Drug Mart, which operates 1,300 drugstores. This week, the company announced that it would build 50 new stores and renovate 100 others in 2015. In addition, it continues to expand its e-commerce operations. In all, Loblaw expects to spend $1.2 billion on these projects. That’s equal to the $1.2 billion, or $3.22 a share, it earned in 2014, excluding costs to integrate Shoppers....