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
GREAT-WEST LIFECO INC. $27 (Toronto symbol GWO; Conservative Growth Portfolio, Finance sector; Shares outstanding: 950.6 million; Market cap: $25.7 billion; Price-to-sales ratio: 0.8; Dividend Yield: 4.6%; TSINetwork Rating: Above Average; www.greatwestlifeco.com) is Canada’s secondlargest insurance company after Manulife, with $545.8 billion of assets under administration....
PENGROWTH ENERGY CORP. $5.16 (www.pengrowth.com) has completed the sale of its 10.02% stake in the Weyburn oil project in Saskatchewan. It received $316.0 million, which is equal to 59% of its 2012 cash flow of $538.8 million, or $1.20 a share. The company used the cash to pay down its long-term debt....
TRANSCANADA CORP., $47.92, Toronto symbol TRP, continues to move ahead with its plan to convert its main natural gas pipeline, which pumps gas from Alberta to markets in central and eastern Canada, to handle crude oil. That’s because rising production of shale gas in the northeastern U.S. has lowered this pipeline’s volumes and hurt its profitability. The company is now signing up oil producers. If demand is strong, it will begin converting the pipeline. TransCanada did not say how much this would cost, but it should complete the project by late 2017. Converting this pipeline to oil would also improve TransCanada’s long-term prospects, particularly if the U.S. government rejects its proposed Keystone XL pipeline, which would pump crude oil from Alberta’s oil sands to refineries on the U.S. Gulf Coast....
AGRIUM INC., $95.09, Toronto symbol AGU, continues to resist pressure from activist investment firm Jana Partners to set up its retail business as a separate company. Jana owns 7.5% of Agrium’s shares. Agrium’s management wants to hang on to the retail business, because they believe its steady revenue streams help offset the cyclical nature of the company’s fertilizer operations. At next week’s annual meeting, Jana wants to replace five of Agrium’s 12 directors with its own nominees. In our March 22, 2013 Successful Investor Hotline, we recommended that shareholders vote in favour of Jana. Since then, however, we have re-considered the situation and changed our view....
BLACKBERRY INC., $15.09, Toronto symbol BB, rose 2% on Thursday after the company reported much better-than-expected earnings. In its 2013 fourth quarter, which ended March 2, 2013, BlackBerry earned $114 million, or $0.22 a share (all amounts except share price in U.S. dollars). These figures exclude charges related to a restructuring plan that includes cutting the company’s workforce and simplifying its product lines. On that basis, the latest results easily beat the consensus forecast of a $0.34-a-share loss. A year earlier, BlackBerry lost $118 million, or $0.23 a share. Revenue fell 35.9%, to $2.7 billion from $4.2 billion. That’s mainly because customers were waiting for the company to launch new smartphones that use its BlackBerry 10 software. The company began selling these devices in Canada, the U.K. and other markets in February 2013. It started selling them in the U.S. on March 22, 2013....
TECK RESOURCES LTD., $28.73, Toronto symbol TCK.B, fell 6% this week, along with other mining stocks, partly due to concerns about the outlook for prices of coal, copper and other commodities. China is a major resource consumer, and growth in the country has slowed along with its exports to Europe and the U.S. China’s inflation rate is also rising, which could make it more difficult to spur growth through stimulus spending or lower interest rates. As well, investors are concerned that Teck may buy control of privately held Iron Ore Company of Canada (IOC); Rio Tinto (New York symbol RIO) is IOC’s largest shareholder, with a 58.7% stake. This company mines and processes iron ore in Labrador City, Newfoundland. Trains then take the iron ore pellets to the port of Sept-Îles, Quebec, for shipment to steel mills around the world....
TRANSCONTINENTAL INC., $12.40, Toronto symbol TCL.A, is the largest commercial printer in Canada and the third-largest in North America. It also publishes newspapers and magazines. The company plans to pay a special dividend of $1.00 a share on April 26, 2013, to shareholders of record on April 5. That’s in addition to its regular quarterly payout of $0.145 a share, for a 4.7% annualized yield. Meanwhile, Transcontinental earned $28.5 million in its fiscal 2013 first quarter, which ended January 31, 2013. That’s up 5.2% from $27.1 million a year earlier. Earnings per share rose 12.1%, to $0.37 from $0.33, on fewer shares outstanding....
TORSTAR CORP., $7.03, Toronto symbol TS.B, fell 11% this week after the company reported lower-than-expected earnings. In 2012, Torstar’s earnings fell 52.6%, to $103.2 million, or $1.30 a share. In 2011, it earned $217.7 million, or $2.74 a share. If you exclude writedowns and other unusual items, earnings per share would have declined 25.0%, to $1.35 from $1.80. On that basis, the latest earnings missed the consensus estimate of $1.48 a share. Overall revenue fell 4.1%, to $1.49 billion from $1.55 billion. Revenue at the newspaper division, which supplies 71% of the total, fell 2.8%. The slow economy continues to hurt advertising revenue at the company’s newspapers, particularly The Toronto Star, its flagship paper. As well, its 50%-owned Workopolis.com job-search website is facing rising competition, and employers are advertising fewer positions. As a result, Torstar has written down the value of this investment by $11.0 million....
Enbridge still hopes to begin building its Northern Gateway pipeline in 2014. This $5.5-billion project would pump crude from Alberta’s oil sands to Kitimat, B.C. From there, tankers would ship the oil to customers in Asia. However, growing opposition from environmentalists and First Nations will probably prompt regulators to reject the project.
Even without Northern Gateway, Enbridge’s long-term outlook remains bright....
Even without Northern Gateway, Enbridge’s long-term outlook remains bright....
TORSTAR CORP. $7.00 (Toronto symbol TS.B; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 79.7 million; Market cap: $557.9 million; Price-to-sales ratio: 0.4; Dividend yield: 7.5%; TSINetwork Rating: Above Average; www- .torstar.com) continues to struggle with falling newspaper ad sales, particularly at The Toronto Star, its flagship paper....