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.
[text_ad]
Read More
Close
Dividend Stocks Library Archive
CENOVUS ENERGY INC., $34.42, Toronto symbol CVE, has agreed to buy oil sands properties in northern Alberta and Saskatchewan held by Oilsands Quest, which went bankrupt in November 2011. Cenovus will pay $10 million when the sale closes next week. This is a small purchase for the company, which reported cash flow of $925 million, or $1.22 a share, in the three months ended June 30, 2012. Most of these new properties are next to to Cenovus’s 100%-owned Telephone Lake oil sands project. If regulators approve, the company could begin developing Telephone Lake in 2014....
RESEARCH IN MOTION LTD., $7.52, Toronto symbol RIM, jumped 20% this week, mainly because the company reported a lower-than-expected loss in its latest quarter. Its revenue was also higher than the consensus estimate. In its fiscal 2013 second quarter, which ended September 1, 2012, RIM lost $235 million, or $0.45 a share (all amounts except share price in U.S. dollars). The latest results include a $93-million (after-tax) charge related to RIM’s restructuring plan, which includes laying off 30% of its workforce and simplifying its product lines. Without these costs, the company would have lost $0.27 a share in the latest quarter. That’s much better that consensus estimate of a $0.47-a-share loss. A year earlier, RIM earned $329 million, or $0.63 a share....
CANADIAN PACIFIC RAILWAY LTD., $80.03, Toronto symbol CP, continues to make progress with its plan to improve its efficiency with new trains and streamlined schedules. This week, the company launched its new transcontinental service for intermodal containers (which can be shipped by rail, ship or truck). This new service uses a more direct route with fewer stops. As a result, CP can now ship containers from Vancouver to Toronto in four days instead of five. Shipping to Chicago also takes four days, down from six. CP is our #1 buy for 2012....
AGRIUM INC., $100.74, Toronto symbol AGU, is buying back up to 9.5 million, or 6%, of its 158.0 million outstanding common shares through a Dutch auction process. It will spend a total of $900 million on these repurchases. The company makes fertilizers from natural gas. It then sells them, along with other agricultural and industrial goods, through its more than 1,200 stores in North America, South America and Australia. Under the Dutch auction buyback plan, shareholders who want to sell their Agrium shares must offer them for between $95.00 and $107.00 by October 19, 2012. The final price will be the lowest amount within that range at which Agrium can buy $900 million of its shares. The company will then pay that price for all shares tendered at or below it. If you tender at a higher price, Agrium will return your shares. The transactions are...
Over the past 10 years, Telus has spent over $16.5 billion on upgrades to its telecommunication networks. Thanks to these investments, wireless subscribers jumped to 7.4 million from 2.6 million, while high-speed Internet users soared to 1.2 million from 215,000. These gains have helped it offset a drop in traditional phone customers, to 3.5 million from 5.0 million. These upgrades are the main reason why Telus’s stock has soared 480% for us in the past decade. Even so, we feel it still has lots of growth ahead. That’s because ongoing investments in its networks will help Telus attract more new customers. TELUS CORP. (Toronto symbols T $63 and T.A $62; Conservative Growth Portfolio, Utilities sector; Shares outstanding: 325.8 million; Market cap: $20.4 billion; Priceto- sales ratio: 1.9; Dividend yield: 3.9%; TSINetwork Rating: Above Average; www.telus.com) continues to expand its wireless business. Its 7.4 million subscribers across Canada now supply 53% of its revenue and 63% of earnings....
NORDION INC. $6.87 (Toronto symbol NDN; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 62.0 million; Market cap: $425.9 million; Price-to-sales ratio: 1.0; Dividend suspended in September 2012; TSINetwork Rating: Extra Risk; www.nordion.com) fell 30% after it lost its arbitration case against government-owned Atomic Energy of Canada Ltd. It may also have to pay part of Atomic Energy’s legal costs. Nordion gets 40% of its revenue from selling isotopes for medical research and cancer treatments. Most of its isotopes come from Atomic Energy’s 53-year old Chalk River nuclear reactor near Ottawa. In 1996, the company hired Atomic Energy to build two new reactors, called MAPLE, which would replace Chalk River. In 2006, Atomic Energy bought MAPLE and agreed to supply isotopes to Nordion for 40 years. However, Atomic Energy shut down MAPLE in 2008 due to rising costs....
All three of these telecom firms are using their steady cash flows to upgrade their networks with the latest technology. That’s letting them launch profitable new services, such as Internet TV and video calling, that are cutting their reliance on their shrinking telephone (or land line) businesses. These popular services are also helping all three companies maintain their high dividends. BCE INC. $44 (Toronto symbol BCE; Conservative Growth Portfolio, Utilities sector; Shares outstanding: 773.9 million; Market cap: $34.1 billion; Priceto- sales ratio: 1.6; Dividend yield: 5.2%; TSINetwork Rating: Above Average; www.bce.ca) has 5.9 million telephone customers in Ontario and Quebec, as well as 2.1 million high-speed Internet subscribers and 2.1 million TV clients. In addition, the company’s wireless business now has 7.5 million subscribers across Canada. BCE continues to expand its media division, which includes the 28-station CTV Television Network, 30 specialty channels and 33 radio stations. The company recently agreed to buy Astral Media (Toronto symbols ACM.A and ACM.B), which owns 22 TV stations, 84 radio stations and several pay TV and specialty channels, such as The Movie Network, Family Channel and Teletoon. Astral also owns billboards and sells other outdoor advertising in Quebec, Ontario and B.C....
SHAWCOR LTD. $43 (Toronto symbol SCL.A; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 70.2 million; Market cap: $3.0 billion; Price-to-sales ratio: 2.4; Dividend yield: 0.9%; TSINetwork Rating: Average; www.shawcor.com) jumped over 20% in early September after it announced that it will conduct a strategic review of its operations. This could lead to a sale of the company. ShawCor makes sealants and coatings that keep oil and natural gas pipelines from rusting. It also manufactures industrial products, such as electrical wire and protective sheaths. However, there is no deadline for this review, so any takeover offer could still be months away....
ENBRIDGE INC. $38 (Toronto symbol ENB; Conservative Growth Portfolio, Utilities sector; Shares outstanding: 797.1 million; Market cap: $30.3 billion; Price-to-sales ratio: 1.3; Dividend yield: 3.0%; TSINetwork Rating: Above Average; www.enbridge.com) plans to spend $600 million to expand its natural gas distribution system in the Greater Toronto Area. To put this figure in context, Enbridge earned $653 million, or $0.86 a share, in the first half of 2012. These upgrades will help the company sell more gas in the fast-growing communities outside Toronto. Enbridge aims to complete this project in 2015. Enbridge is a buy.
FINNING INTERNATIONAL INC. $24 (Toronto symbol FTT; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 171.9 million; Market cap: $4.1 billion; Price-to-sales ratio: 0.6; Dividend yield: 2.3%; TSINetwork Rating: Above Average; www.finning.com) sells, rents and repairs heavy equipment, such as tractors, bulldozers and trucks, made by Caterpillar Inc. (New York symbol CAT). Finning’s major customers are in the mining, forest products and construction industries in Western Canada, the U.K. and South America. In July 2011, Caterpillar bought Milwaukee based Bucyrus International, which makes equipment that is used for mining and in the development of the oil sands. In May 2012, Finning paid Caterpillar $305.8 million U.S. for Bucyrus’s distribution and support businesses in South America and the U.K. The company will buy Bucyrus’s Canadian operations for $159.2 million U.S. in October 2012....