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
Maple Leaf Foods is nearing the end of its multi-year plan to unload less profitable businesses and modernize its meat-processing plants. The plan’s costs have depressed the company’s earnings, but it greatly improves its prospects. We also have a high opinion of Saputo (see box), but its growth relies on buying dairy producers in other countries, which adds risk. MAPLE LEAF FOODS INC. $19 (Toronto symbol MFI; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 142.1 million; Market cap: $2.7 billion; Price-to-sales ratio: 0.7; Dividend yield: 0.8%; TSINetwork Rating: Average; www.mapleleaf.ca) is Canada’s largest food processing company. It mainly sells its products, including fresh and prepared meats and poultry, under the Maple Leaf and Schneider brands....
SAPUTO INC. $32 (Toronto symbol SAP; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 390.7 million; Market cap: $12.5 billion; Price-to-sales ratio: 1.3; Dividend yield: 1.6%; TSINetwork Rating: Average; www.saputo.com) earned $155.7 million in its fiscal 2015 second quarter, which ended September 30, 2014. That’s up 16.8% from $133.3 million a year earlier. Earnings per share gained 14.7%, to $0.39 from $0.34, on more shares outstanding (all per-share amounts adjusted for a 2-for-1 stock split in September 2014). Sales rose 21.1%, to $2.7 billion from $2.3 billion. That’s mainly because of Warrnambool Cheese and Butter Factory, an Australian maker of milk, cheese, butter and other dairy products; Saputo bought 87.92% of Warrnambool for $449.6 million in January 2014. Higher selling prices for cheese and butter in the U.S. also contributed to the gain....
LOBLAW COMPANIES LTD. $60 (Toronto symbol L; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 412.4 million; Market cap: $24.7 billion; Price-to-sales ratio: 0.6; Dividend yield: 1.6%; TSINetwork Rating: Above Average; www.loblaw.ca) has sold 15 stores and one warehouse to Choice Properties Real Estate Investment Trust (Toronto symbol CHP.UN). Loblaw received $211.9 million, which is equal to 57% of the $371.0 million, or $0.90 a share, that it earned in the three months ended October 4, 2014. That total included $112.2 million of Choice Properties’ units. As a result, Loblaw now owns 83.0% of this REIT. Loblaw is a buy....
RIOCAN REAL ESTATE INVESTMENT TRUST $27 (Toronto symbol REI.UN; Aggressive Growth Portfolio, Manufacturing & Industry sector; Units outstanding: 308.9 million; Market cap: $8.3 billion; Price-to-sales ratio: 5.8; Dividend yield: 5.2%; TSINetwork Rating: Average; www.riocan.com) continues to open new malls and, with partners, mixed-use properties with office and residential space. The trust is also selling less profitable properties. In the third quarter of 2014, RioCan’s net leasable area shrank by 2.5%, to 71.6 million square feet from 73.5 million a year earlier. But thanks to strong demand from retailers, it’s renewing leases at higher rental rates. That’s why its cash flow rose 7.4% in the latest quarter, to $131 million from $122 million. Cash flow per unit gained 5.0%, to $0.42 from $0.40, on more units outstanding. The units trade at a reasonable 15.9 times RioCan’s expected 2014 cash flow of $1.70 a unit. The $1.41 distribution yields 5.2%....
CAE INC. $15 (Toronto symbol CAE; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 265.3 million; Market cap: $4.0 billion; Price-to-sales ratio: 1.8; Dividend yield: 1.9%; TSINetwork Rating: Average; www.cae.com) gets 55% of its revenue by selling flight simulators and pilot-training services to commercial airlines. Another 40% comes from simulators and training for military clients, mainly in the U.S. CAE gets the remaining 5% of its sales by making medical-simulation products, such as mannequins, for training nurses and medical students. Steady growth in revenue, earnings...
GREAT-WEST LIFECO INC. $33 (www.greatwestlifeco.com) earned $687 million, or $0.69 a share, in the three months ended September 30, 2014, up 31.4% from $523 million, or $0.52 a share, a year earlier....
TRANSCANADA CORP., $56.05, Toronto symbol TRP, rose this week in response to the U.S. mid-term elections, which gave the Republican Party control of the Senate. That makes it more likely that the U.S. government will approve the company’s Keystone XL pipeline, which would pump crude from Alberta’s oil sands to refineries on the U.S. Gulf Coast. Due to various delays, the company now expects Keystone XL to cost $8.0 billion U.S., up 48.1% from its 2008 estimate of $5.4 billion U.S. To date, it has spent $2.4 billion U.S. on this project. TransCanada also plans to spend $2.7 billion to expand its Nova pipeline network in Western Canada to handle rising shale gas production in Alberta and B.C. In addition, it will invest $475 million to upgrade its Ontario gas pipelines. The company expects to complete these projects in 2016 and 2017....
BOMBARDIER INC., Toronto symbols BBD.A $3.77 and BBD.B, $3.71, reported better-than-expected quarterly results this week. Without costs related to its recent restructuring, which included laying off 2% of its workforce, Bombardier’s earnings rose 34.5% in the quarter ended September 30, 2014, to $222 million, or $0.12 a share (all amounts except share prices in U.S. dollars). That beat the consensus estimate of $0.10 a share. A year earlier, the company earned $165 million, or $0.09 a share. Overall revenue gained 20.9%, $4.9 billion from $4.1 billion, also beating the consensus forecast of $4.82 billion....
CANADIAN PACIFIC RAILWAY LTD., $230.28, Toronto symbol CP, earned a record $400 million in the three months ended September 30, 2014, up 20.8% from $331 million a year earlier. Earnings per share rose 22.9%, to $2.31 from $1.88, on fewer shares outstanding. Even so, that missed the consensus estimate of $2.39 a share. Revenue rose 8.9%, to a record $1.67 billion from $1.53 billion. CP saw strong revenue gains from shipping grain, crude oil, metals and consumer products. That offset declines in shipments of fertilizer, coal and automotive products....
CANADIAN PACIFIC RAILWAY LTD., $224.99, Toronto symbol CP, recently offered to merge with CSX Corp. (New York symbol CSX), the third-largest railway in the U.S. CSX has rejected the proposal. A merger would help CP ship more crude oil from producers in North Dakota’s Bakken region to refineries in the Midwest and on the U.S. east coast. It would also help CP speed up shipments, because the company would not have to transfer railcars to another railway. The combined firm would be one of North America’s largest railways. However, regulators would have likely blocked the merger or required CP and CSX to sell significant parts of their operations. Still, the prospect of a future deal adds to CP’s long-term appeal....