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
BOMBARDIER INC. (Toronto symbols BBD.A $3.90 and BBD.B $3.76; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 1.7 billion; Market cap: $6.4 billion; Price-to-sales ratio: 0.3; Dividend yield: 2.6%; TSINetwork Rating: Average; www.bombardier.com) has received a firm order for 20 of its Q400 turboprop planes from WestJet Airlines Ltd. (Toronto symbol WJA); WestJet is a recommendation of Stock Pickers Digest, our newsletter that focuses on aggressive investing. WestJet will use these planes for its new regional airline, which will serve smaller Canadian cities. Bombardier will begin delivering these planes in 2013. The order is worth $683 million (all amounts except share price and market cap in U.S. dollars). If WestJet exercises all of its options to buy an additional 25 planes, the entire order would be worth $1.6 billion. That’s equal to 9% of Bombardier’s 2011 revenue of $18.3 billion....
POTASH CORP. OF SASKATCHEWAN $42 (Toronto symbol POT; Aggressive Growth Portfolio, Resources sector; Shares outstanding: 859.1 million; Market cap: $36.1 billion; Price-to-sales ratio: 4.2; Dividend yield: 1.3%; TSINetwork Rating: Average; www.potashcorp.com) is the world’s largest fertilizer producer. Its six potash mines in Saskatchewan and one in New Brunswick account for 20% of global potash capacity. Four of its mines have reserves of between 75 and 108 years. It also makes fertilizers from nitrogen and phosphate. Results reflect erratic fertilizer prices The company’s sales and earnings vary with volatile fertilizer prices. That’s why its sales jumped from $5.2 billion in 2007 to $9.4 billion in 2008, but dropped to $4.0 billion in 2009 (all amounts except share price and market cap in U.S. dollars). Sales recovered to $6.5 billion in 2010, and rose to $8.7 billion in 2011....
ATCO LTD. $74 (www.atco.com) earned $73 million, or $1.28 a share, in the three months ended June 30, 2012. That’s up 19.7% from $61 million, or $1.07 a share, a year earlier. The company reported strong earnings at its structures business, which builds temporary shelters for resource-exploration firms, and its natural gas distribution operations in Australia....
ENBRIDGE INC., $39.86, Toronto symbol ENB, has finished repairing a leaking pipeline in Wisconsin. This line pumps crude oil from Western Canada to refineries in the U.S. Midwest. However, U.S. regulators have stopped Enbridge from restarting the pipeline until the company submits a new plan outlining its environmental and maintenance procedures. This delay is not likely to have a meaningful impact on Enbridge’s growth. Meanwhile, the company earned $277 million in the three months ended June 30, 2012. That’s up 7.4% from $258 million a year earlier. Earnings per share rose 5.9%, to $0.36 from $0.34, on more shares outstanding....
CANADIAN PACIFIC RAILWAY LTD., $83.18, Toronto symbol CP, reported higher-than-expected earnings this week. That caused the stock to rise 10%. In the three months ended June 30, 2012, the company’s earnings fell 19.5%, to $103 million, or $0.60 a share. It earned $128 million, or $0.75 a share, a year earlier. A nine-day strike by CP’s locomotive engineers, conductors and yard workers cut its earnings by around $0.30 a share in the latest quarter. In addition, the company paid severance costs to its previous CEO and other expenses related to the hiring of Hunter Harrison as its new chief executive. These costs cut CP’s earnings by a further $0.30 a share....
CANADIAN PACIFIC RAILWAY LTD., $75.49, Toronto symbol CP, has formed a partnership with Smart Sand Inc., a private company that sells sand to oil and gas producers. These clients pump this sand, along with water and other chemicals, into shale rock formations. This fractures the rock and releases the oil and gas. Under the deal, CP and Smart Sand will build a new facility in North Dakota that will load the sand onto CP’s trains. From there, CP will deliver the sand to Smart Sand’s customers in the Williston Basin, which covers parts of North and South Dakota, Montana and Saskatchewan. CP did not say how much this new facility would cost, but it should begin operating in early 2013....
POTASH CORP. OF SASKATCHEWAN, $44.49, Toronto symbol POT, is the world’s largest fertilizer producer. It has six potash mines in Saskatchewan and one in New Brunswick. The company sells its potash to customers outside of Canada and the U.S. through Canpotex, a marketing and exporting firm that is equally owned by Potash Corp., Agrium (see below) and Mosaic Co. (New York symbol MOS). This week, a U.S. court agreed to hear a lawsuit that accuses Canpotex, as well as potash producers in Russia and Belarus, of colluding, or working together, to cut production and push up prices. However, cases like this are often difficult to prove....
Next year, U.S. retailing giant Target Corp. (New York symbol TGT) will open around 130 stores in Canada. That could put pressure on Canadian supermarket operators like Metro. However, Target stores will mainly focus on clothing and household goods, not food. Moreover, Metro has a long history of successfully competing with other big American chains, such as Wal-Mart and Costco. METRO INC. $53 (Toronto symbol MRU; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 98.9 million; Market cap: $5.2 billion; Price-to-sales ratio: 0.5; Dividend yield: 1.6%; TSINetwork Rating: Average; www.metro.ca) is Canada’s third-largest supermarket operator, after Loblaw and Sobeys. The company has about 600 supermarkets in Quebec and Ontario. It also operates 260 drugstores under the Brunet, The Pharmacy and Drug Basics banners....
BOMBARDIER INC. (Toronto symbols BBD.A $4.06 and BBD.B $4.01; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 1.7 billion; Market cap: $6.9 billion; Price-to-sales ratio: 0.4; Dividend yield: 2.5%; TSINetwork Rating: Average; www.bombardier.com) has traditionally been a maker of smaller aircraft, such as business jets and regional planes. The company is now adding larger models, such as its upcoming CSeries jets, which seat between 100 and 150 passengers. Bombardier is still developing and testing the CSeries, but it aims to deliver the first plane in the next 18 months. Even with the current economic uncertainty, the company recently announced new orders for a total of 35 CSeries planes....
The sovereign debt problems in Europe, particularly among the so-called PIIGS countries (Portugal, Italy, Ireland, Greece and Spain), have held back the shares of Canada’s big five banks in the past few months. However, their exposure to these troubled countries remains small in relation to their earnings and market caps. Every investor should aim to hold at least two of Canada’s big banks. For new buying, Bank of Nova Scotia (see next page) remains our favourite. ROYAL BANK OF CANADA $53 (Toronto symbol RY; Conservative Growth Portfolio, Finance sector; Shares outstanding: 1.4 billion; Market cap: $74.2 billion; Price-to-sales ratio: 2.7; Dividend yield: 4.3%; TSINetwork Rating: Above Average; www.rbc.com) is Canada’s largest bank, with $800.4 billion of assets....