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
TIM HORTONS INC., $96.97, Toronto symbol THI, shareholders will vote on the friendly takeover offer from BURGER KING WORLDWIDE INC., $34.81, New York symbol BKW, on Tuesday, December 9, 2014. If the deal is approved, Tim Hortons investors will have a number of options: They can sell their shares on the Toronto exchange and receive the current trading price of $96.97 (less brokerage commissions). If they don’t do that, they can opt for one of the three choices below by notifying their brokers no later than 5:00 p.m. ET on Tuesday, December 9, 2014....
ROYAL BANK OF CANADA, $83.16, Toronto symbol RY, plans to close its wealth management operations in the Caribbean, as the region’s slowing growth and high unemployment have hurt this business’s prospects. Royal recently sold its retail banking operations in Jamaica for the same reasons. The bank did not say how much it expects to pay in severance and other costs. However, this move will free up cash it can use to expand its faster-growing wealth management operations in Canada, the U.S., the U.K. and Asia. In the quarter ended July 31, 2014, earnings at Royal’s wealth management division rose 22.3% from a year earlier and accounted for 11.9% of its total earnings. Royal Bank is a buy....
SUNCOR ENERGY INC., $40.52, Toronto symbol SU, plans to spend between $7.2 billion and $7.8 billion to expand and upgrade its operations in 2015. To put these figures in context, the company’s cash flow was $7.6 billion in the first nine months of 2014. Suncor will invest 55% of the 2015 estimate, or $4.3 billion, in its oil sands and other growth projects. The remaining 45% will go to refineries and conventional oil and gas properties. The midpoint of the 2015 range is 10.3% higher than the $6.8 billion the company expects to spend this year—even though oil prices have fallen by more than 20% in the past six months. Suncor feels its new oil sands projects can still generate positive cash flow at today’s prices....
CAE INC., $14.58, Toronto symbol CAE, earned $42.0 million in its fiscal 2015 second quarter, which ended September 30, 2014. That’s up 9.9% from $38.2 million a year earlier. Per-share earnings rose at a slower rate of 6.7%, to $0.16 from $0.15, on more shares outstanding. These figures exclude earnings from CAE’s mining operations, which make simulators that train workers to operate underground trucks, loaders and drills. The company recently announced plans to sell this business, as weak commodity prices have prompted mining firms to cut spending on exploration and expansion projects. On this basis, the latest earnings matched the consensus estimate....
Five years ago, the old EnCana Corp. split itself into two new firms: the new Encana, which focuses on natural gas, and Cenovus Energy, which owns oil sands properties and refineries. Lower gas prices have cut Encana’s share price by 30% since the split. Due to the recent drop in oil prices, Cenovus’s stock has gained about 9% in the last five years. Energy prices could fall further, as new production techniques, particularly hydraulic fracturing (or fracking) and horizontal drilling, add to supplies. However, a colder-thannormal winter would boost oil and gas demand for heating....
CANADIAN TIRE CORP. $126 (Toronto symbol CTC.A; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 78.1 million; Market cap: $9.8 billion; Price-to-sales ratio: 0.8; Dividend yield: 1.7%; TSINetwork Rating: Above Average; www.canadiantire.ca) continues to add new locations and renovate older stores. It’s also benefiting from its 2011 purchase of the Forzani Group of sporting goods stores, including the popular Sport Chek banner. These moves are helping it compete with U.S.-based retailers like Wal-Mart. In the quarter ended September 27, 2014, Canadian Tire’s earnings rose 18.4%, to $172.2 million from $145.5 million a year earlier. Earnings per share gained 21.2%, to $2.17 from $1.79, on fewer shares outstanding. Overall sales rose 3.9%, to $3.1 billion from $3.0 billion. Same-store sales at the 493 Canadian Tire outlets gained 3.2% on strong demand for summer goods, like garden tools and patio furniture, and automotive products and services....
Canada’s big five banks will likely report record earnings in 2014, as low interest rates keep fueling loan demand. The improving economy also means the banks are dealing with fewer bad loans, giving them more room for dividend hikes. Every Canadian investor should own at least two of our banks. For new buying, TD and Bank of Nova Scotia remain our top picks. TORONTO-DOMINION BANK $57 (Toronto symbol TD; Conservative Growth and Income Portfolios, Finance sector; Shares outstanding: 1.8 billion; Market cap: $102.6 billion; Price-to-sales ratio: 3.0; Dividend yield: 3.3%; TSINetwork Rating: Above Average; www.td.comtarget="_blank”) is Canada’s largest bank, with $921.8 billion of assets....
HOME CAPITAL GROUP INC. $50 (Toronto symbol HCG; Aggressive Growth Portfolio, Finance sector; Shares outstanding: 70.1 million; Market cap; $3.5 billion; Price-to-sales ratio: 3.5; Dividend yield: 1.6%; TSINetwork Rating: Average; www.homecapital.com) caters to borrowers who don’t meet the stricter standards of traditional banks. Its clients include recent immigrants with limited credit histories, and the self-employed. However, Home Capital continues to do a good job of identifying problem loans early and adjusting the payment terms. That keeps its loan losses down. In the three months ended September 30, 2014, earnings rose 10.5%, to $1.05 a share from $0.95 a year earlier. Revenue gained 6.5%, to $255.0 million from $239.4 million. Bad loans were just 0.27% of the Home Capital’s total loans, down from 0.35%....
TELUS CORP. $42 (Toronto symbol T; Conservative Growth and Income Portfolios, Utilities sector; Shares outstanding: 612.0 million; Market cap: $25.7 billion; Price-to-sales ratio: 2.2; Dividend yield: 3.8%; TSINetwork Rating: Above Average; www.telus.com) added 113,000 new wireless subscribers, net of cancellations, in the three months ended September 30, 2014, up 8.7% from a year earlier. It now has 8.0 million wireless subscribers. In addition, it continues to attract high-speed Internet and digital TV users. As a result, its revenue rose 5.4%, to $3.0 billion from $2.9 billion. Earnings gained 6.0%, to $387 million from $365 million. Telus spent $164 million on share buybacks in the latest quarter, so its per-share earnings rose 10.3%, to $0.64 from $0.58. The company also raised its quarterly dividend by 11.1%, to $0.40 a share from $0.36. The new annual rate of $1.60 yields 3.8%. This was the eighth hike since May 2011....
TORSTAR CORP. $6.20 (Toronto symbol TS.B; Conservative Growth and Income Portfolios, Consumer sector; Shares outstanding: 80.2 million; Market cap: $497.2 million; Price-to-sales ratio: 0.4; Dividend yield: 8.5%; TSINetwork Rating: Average; www.torstar.com) has teamed up with the publisher of Montreal’s La Presse newspaper to launch a free version of the Toronto Star specifically for tablet computers. La Presse launched its own tablet version in 2013. So far, it has attracted over 450,000 users. Under this agreement, Torstar will use La Presse’s technology. The two companies will also jointly sell online ads, which should appeal to national advertisers that aim to reach both English and French readers....