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
ANDREW PELLER LTD. $9.08 (Toronto symbol ADW.A; Income Portfolio, Consumer sector; Shares outstanding: 14.9 million; Market cap: $135.3 million; Price-to-sales ratio: 0.5; Dividend yield: 4.0%; TSINetwork Rating: Above Average; www.andrewpeller.com) has formed a joint venture with the winery owned by hockey star Wayne Gretzky. Peller feels it can use its marketing and distribution expertise to increase sales of Gretzky wines in Canada. Meanwhile, Peller’s sales rose 1.4% in the three months ended September 30, 2011, to $70.0 million from $69.0 million a year earlier. That’s mainly because it is seeing strong demand for its new products and its more-profitable premium brands. Peller earned $3.4 million, or $0.24 a share, up 80.7% from $1.9 million, or $0.13 a share, a year earlier quarter. If you exclude gains on hedging contracts that the company uses to lock in foreignexchange rates, earnings would have risen 8.4%. Andrew Peller is a buy.
CANADIAN NATIONAL RAILWAY CO. $79 (Toronto symbol CNR; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 444.9 million; Market cap: $35.1 billion; Price-to-sales ratio: 4.0; Dividend yield: 1.6%; TSINetwork Rating: Above Average; www.cn.ca) operates the largest freight rail network in Canada. It also serves 16 U.S. states. Ottawa nationalized CN in 1918 because of the vital role the company played in Canada’s early growth. CN became a publicly traded company in 1995. Revenue and earnings look set to rise Railways are highly cyclical, which explains CN’s erratic revenue and earnings history. CN’s revenue fell slightly, from $7.93 billion in 2006 to $7.90 billion in 2007, but rose 7.4%, to $8.5 billion, in 2008. The recession cut revenue by 13.1%, to $7.4 billion, in 2009. But CN’s 2010 revenue surged 12.6%, to $8.3 billion, and its 2011 revenue should rise to around $8.9 billion....
ROYAL BANK OF CANADA $50 (www.rbc.com) reported record earnings for fiscal 2011 due to strong growth at its Canadian banking, wealth management and insurance divisions. That’s helping it offset slower growth at its securities-trading operations. In the year ended October 31, 2011, earnings per share rose 16.5%, to $4.45 from $3.82 in 2010. As well, loan-loss provisions fell 21.4%, as more people are repaying their loans on time. Buy. CAE INC. $10 (www.cae.com) continues to benefit as airlines upgrade their fleets. It recently received an order from Emirates Airlines for two flight simulators. The $34-million value of this contract is equal to 2% of CAE’s annual revenue of $1.7 billion. Including these new orders, CAE has sold 21 flight simulators in its 2012 fiscal year, which ends March 31, 2012. It sold 29 simulators in fiscal 2011, up from 20 in 2010. Best Buy. CENOVUS ENERGY INC. $34 (www.cenovus.com) reported that its cash flow per share rose 54.4% in the third quarter of 2011, to $1.05 from $0.68 a year earlier. A 9.6% increase in oil prices was the main reason for the gain. The stock trades at 8.0 times Cenovus’s forecast 2011 cash flow of $4.27 a share. That’s a reasonable multiple in light of its high-quality reserves. Buy.
RESEARCH IN MOTION LTD., $17.08, Toronto symbol RIM, fell 9% on Friday after it said it would write down its inventory of unsold BlackBerry PlayBook tablet computers. RIM recently cut the price of the PlayBook by 60% to spur sales. The writedown will cut RIM’s after-tax earnings in its 2012 third quarter, which ended November 26, 2011, by $360 million (all amounts except share price in U.S. dollars). RIM earned $329 million, or $0.63 a share, in the second quarter of fiscal 2012. The company shipped 14.1 million BlackBerry smartphones in the third quarter, which was in line with its forecast of 13.5 to 14.5 million. It also shipped 150,000 PlayBooks....
SHAWCOR LTD., $24.80, Toronto symbol SCL.A, won two major contracts this week. The company makes sealants and coatings that protect onshore and offshore oil and natural gas pipelines from corrosion. It also makes industrial equipment, such as electrical wire and protective sheaths. One of these new deals is a $400 million U.S. agreement to provide coatings and other services to a natural gas pipeline on the Ichthys gas field off the northern coast of Australia. ShawCor did not say when the work would begin or how long the job would take....
TRANSCANADA CORP., $41.57, Toronto symbol TRP, has agreed to reroute its proposed Keystone XL oil pipeline around an environmentally sensitive aquifer in Nebraska’s Sandhills region. The state government will work closely with TransCanada to find an acceptable route. That should speed up the environmental approval process. Keystone XL will pump oil from the Alberta oil sands through Oklahoma to refineries on the U.S. Gulf Coast. Last week, the U.S. State Department postponed a final decision on the project until 2013 to give TransCanada time to find a better route through Nebraska. This compromise makes it less likely that TransCanada will have to write off the $1.9 billion U.S. that it has already spent on the $7-billion U.S. project. To put these figures in context, the company’s cash flow was $2.8 billion (Canadian), or $3.97 a share, in the first nine months of 2011....
TRANSCANADA CORP., $40.81, Toronto symbol TRP, fell 4% this week after the U.S. State Department said it wants the company to re-route its proposed Keystone XL oil pipeline around underground water tables in Nebraska. Keystone XL will pump oil from oil-sands projects in Alberta through Oklahoma to refineries on the U.S. Gulf Coast. TransCanada had hoped to receive final approval for the project by the end of 2011, but finding an acceptable new route will take around 18 months. These delays would add to Keystone XL’s $7-billion U.S. cost, and might prompt oil shippers and refineries to cancel their commitments....
New technologies are helping to unlock the vast reserves of the oil sands and shale-gas fields in North America. However, the extra production could hold back oil and natural gas prices. That’s why we feel it’s a great time to own our favourite integrated oil producer Imperial Oil. Besides drilling for oil, Imperial also owns refineries which convert crude oil into gasoline and other fuels. These operations profit when oil prices fall, because they pay less for the crude they refine. Imperial also operates 1,850 Esso gas stations. That helps diversify the company’s business, and further cuts its risk. IMPERIAL OIL LTD. $42 (Toronto symbol IMO; Shares outstanding: 847.6 million; Market cap: $35.6 billion; Price-to-sales ratio: 1.3; Dividend yield: 1.0%; TSINetwork Rating: Average; www.imperialoil.ca) is Canada’s third-largest publicly traded oil company, after Suncor Energy Inc. and Canadian Natural Resources Ltd. Imperial is a 69.6%-owned subsidiary of U.S.-based ExxonMobil Corp. (New York symbol XOM)....
TRANSCANADA CORP. $41 (Toronto symbol TRP; Conservative Growth Portfolio, Utilities sector; Shares outstanding: 703.0 million; Market cap: $28.8 billion; Price-to-sales ratio: 3.2; Dividend yield: 4.1%; TSINetwork Rating: Above Average; www.transcanada.com) may have to kill its proposed Keystone XL pipeline, which will pump oil from oil-sands projects in Alberta through Oklahoma to refineries on the U.S. Gulf Coast. That’s mainly because the Governor of Nebraska now wants TransCanada to re-route the pipeline around underground water tables. As well, the U.S. State Department is reviewing its recent decision that Keystone XL will have no significant impact on the environment. These delays would add to Keystone XL’s $7-billion U.S. cost, and might prompt oil shippers and refineries to cancel their commitments....
Canada’s big five banks avoided the problems with subprime mortgages and European sovereign debt that have crippled many of the world’s largest financial firms. The big banks are now using their strong balance sheets to make acquisitions, often at bargain prices, and to upgrade their holdings. ROYAL BANK OF CANADA $45 (Toronto symbol RY; Conservative Growth Portfolio, Finance sector; Shares outstanding: 1.4 billion; Market cap: $63.0 billion; Price-to-sales ratio: 1.8; Dividend yield: 4.8%; TSINetwork Rating: Above Average; www.rbc.com) is Canada’s largest bank, with $730.6 billion of assets....