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
MOLSON COORS CANADA INC. (Toronto symbols TPX.A $40 and TPX.B $40; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 181.1 million; Market cap: $7.2 billion; Price-to-sales ratio: 2.1; Dividend yield: 3.3%; TSINetwork Rating: Average; www.molsoncoors.com) hopes to spur sales this summer with Coors Light Iced T, a new beer mixed with tea and lemon. Innovative products like this should help the company compete with makers of flavoured vodka and wine drinks. Molson also aims to attract more consumers who don’t typically drink beer, particularly women. Molson Coors is a buy. The class B shares are the better choice.
CANADIAN IMPERIAL BANK OF COMMERCE $71 (Toronto symbol CM; Conservative Growth Portfolio, Finance sector; Shares outstanding: 404.9 million; Market cap: $28.7 billion; Price-to-sales ratio: 1.8; Dividend yield: 5.1%; TSINetwork Rating: Above Average; www.cibc.com) continues to profit by focusing on retail banking, which accounts for 76% of its business. That cuts its reliance on its more-volatile corporate-lending and securities-trading divisions. In its fiscal 2012 second quarter, which ended April 30, 2012, the bank earned $766 million, or $1.90 a share. That’s up 6.1% from $722 million, or $1.80 a share, a year earlier. Without unusual items, such as losses on securities that CIBC holds, earnings per share would have risen 9.3%, to $2.00 from $1.83. Revenue rose 2.3%, to $3.1 billion from $3.0 billion. CIBC is a buy....
BCE INC. $42 (Toronto symbol BCE; Conservative Growth Portfolio, Utilities sector; Shares outstanding: 773.6 million; Market cap: $32.5 billion; Price-to-sales ratio: 1.6; Dividend yield: 5.2%; TSINetwork Rating: Above Average; www.bce.ca) is joining a consortium of investors, including the Ontario Teachers’ Pension Plan, to buy privately held Q9 Networks Inc., which provides data-storage and web-hosting services to businesses across Canada. Q9 has 11 data centres in Ontario, Alberta and B.C. This investment will help BCE take advantage of growing demand from business clients for reliable cloud-computing services. BCE already operates six data centres. It will open a seventh later this year. BCE will pay $180 million for a 30% stake in Q9 when the deal closes, probably by the end of 2012. The purchase price is equal to 31% of the $580 million, or $0.75 a share, that BCE earned in the three months ended March 31, 2012....
EMERA INC. $33 (Toronto symbol EMA; Income Portfolio, Utilities sector; Shares outstanding: 123.5 million; Market cap: $4.1 billion; Price-to-sales ratio: 1.9; Dividend yield: 4.1%; TSINetwork Rating: Average; www.emera.com) gets 75% of its revenue and 65% of its earnings from Nova Scotia Power Inc., which is that province’s main electricity supplier. Emera also continues to expand outside Nova Scotia. The company owns the Brunswick Pipeline, which pumps natural gas from the U.S. to a liquefied natural gas plant in Saint John, New Brunswick. It has also acquired electrical utilities in the U.S. and the Caribbean. Revenue and earnings have soared...
FINNING INTERNATIONAL INC. $23 (www.finning.com) earned $0.39 a share in the three months ended March 31, 2012. That’s down 7.1% from $0.42 a year earlier. If you exclude the costs of installing a new computer system that will make its Canadian operations more efficient, Finning would have earned $0.48 a share in the latest quarter. Revenue rose 15.5%, to $1.5 billion from $1.3 billion, as higher commodity prices prompted mining companies to buy more heavy equipment. The company also raised its quarterly dividend by 7.7%, to $0.14 a share from $0.13. The new annual rate of $0.56 yields 2.4%. Buy. CAE INC. $9.88 (www.cae.com) has won several contracts from military clients for flight simulators and other training equipment. In all, these deals are worth $110 million, which is equal to 6% of CAE’s annual revenue of $1.8 billion. Best Buy. CANADA BREAD CO. LTD. $48 (www.canadabread.ca) is seeing lower demand for its fresh baked goods. At the same time, its costs for wheat and other ingredients are rising. As a result, its earnings fell 62.5% in the first quarter of 2012, to $0.21 a share from $0.56 a year earlier. Sales rose just 0.4%, to $371.8 million from $370.2 million. Hold.
CANADIAN PACIFIC RAILWAY LTD., $73.54, Toronto symbol CP, has resumed normal operations now that Ottawa has ended an eight-day strike by its locomotive engineers, conductors and yard workers. The strike probably cut CP’s earnings per share by around $0.20 in the second quarter of 2012. The company earned $0.82 a share in the first quarter. At CP’s recent annual meeting, U.S.-based activist investment firm Pershing Square Capital Management, which owns 14.2% of the company, succeeded in replacing seven of CP’s 16 directors with its own nominees....
CGI GROUP INC., $23.37, Toronto symbol GIB.A, jumped 13% this week after it agreed to buy Logica plc, a U.K.-based firm that provides computer outsourcing services in 36 countries. Logica gets 60% of its sales from the U.K. government. CGI will pay roughly $2.8 billion for Logica. That’s equal to 52% of CGI’s $5.4-billion market cap, so it’s a major acquisition for the company. But Logica is a good fit with CGI, which is Canada’s largest provider of computer outsourcing services. Both companies’ services automate certain routine functions, like accounting and buying supplies. That makes their clients more efficient and lets them focus on their main businesses....
BANK OF MONTREAL, $54.50, Toronto symbol BMO, reported higher-than-expected earnings for its latest quarter. In the bank’s fiscal 2012 second quarter, which ended April 30, 2012, its earnings rose 27.5%, to $982 million from $770 million a year earlier. That mainly reflects the contribution from U.S. banking firm Marshall & Ilsley Corp., which Bank of Montreal bought for $4.0 billion in stock in July 2011. Because of the extra shares the bank issued to pay for Marshall & Ilsley, its earnings per share rose at a slower pace of 15.2%, to $1.44 from $1.25. These figures exclude unusual items, such as costs to integrate the new acquisition. On this basis, the latest earnings beat the consensus forecast of $1.36 a share....
CANADIAN PACIFIC RAILWAY LTD., $74.11, Toronto symbol CP, rose 1% this week after U.S.-based activist investment firm Pershing Square Capital Management, which owns 14.2% of the company, succeeded in replacing seven of CP’s 16 directors with its own nominees. CP’s chairman, John Cleghorn, and chief executive officer, Fred Green, also resigned. Pershing Square will probably try to install Hunter Harrison, the successful former CEO of CN Rail, as CP’s new chief executive officer. Even if CP hires someone other than Mr. Harrison, the company will continue to work on improving its efficiency by purchasing new locomotives, upgrading its tracks and streamlining its schedules....
TELUS CORP., Toronto symbols T $59.83 and T.A $58.10, has dropped its plan to merge its common shares and its non-voting class A shares into a single class. The company had proposed to convert each non-voting share into one common share. However, the plan had little chance of succeeding, because U.S.-based hedge fund Mason Capital, which now owns around 19% of Telus’s common shares and a small portion of the non-voting shares, said it would vote against the proposal. Mason is using a complex stock-trading strategy that would let it lock in a profit if shareholders reject the plan. Telus still wants to eliminate the dual-class structure, and will probably reintroduce the proposal sometime in the next few months. One step it could take to help ensure the plan’s approval would be to have less time between the reintroduction of the plan and the vote. That way, Mason and other big investors who oppose the proposal would have less time to buy shares and block it....