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
POTASH CORP. OF SASKATCHEWAN $56 (Toronto symbol POT; Aggressive Growth Portfolio, Resources sector; Shares outstanding: 854.8 million; Market cap: $47.9 billion; Price-to-sales ratio: 6.4; Dividend yield: 0.5%; TSINetwork Rating: Average; www.potashcorp.com) sells its potash fertilizer to customers outside of North America through Canpotex, a marketing and exporting firm that is equally owned by Potash Corp. and rival producers AGRIUM INC. $85 (Toronto symbol AGU; Aggressive Growth Portfolio, Resources sector; Shares outstanding: 158.0 million; Market cap: $13.4 billion; Price-to-sales ratio: 1.1; Dividend yield: 0.1%; TSINetwork Rating: Average; www.agrium.com) and Mosaic Co. (New York symbol MOS). Canpotex recently agreed to sell potash to China for $470 U.S. a tonne. That’s 4.4% higher than the previous contract, and higher than the consensus forecast price of $450 U.S. a tonne. This contract should make it easier for Canpotex to demand similar prices from buyers in India and other countries. Potash Corp. is still a hold, but Agrium is a buy....
SNC-LAVALIN GROUP INC. $57 (Toronto symbol SNC; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 150.8 million; Market cap: $8.6 billion; Price-to-sales ratio: 1.3; Dividend yield: 1.5%; TSINetwork Rating: Average; www.snclavalin.com) is buying the money-losing Candu nuclearreactor business of Atomic Energy of Canada Ltd. from the federal government. Reactor demand has suffered in the wake of the Japanese earthquake and tsunami, which damaged the Fukushima nuclear plant and allowed radiation to escape. Moreover, Germany recently announced plans to shut down all of its nuclear reactors by 2022. However, the $15-million price is just 20.3% of the $73.9 million, or $0.49 a share, that SNC earned in the three months ended March 31, 2011. As well, Candu is nearly finished refurbishing three reactors. Once they’re completed, SNC will cut Candu’s workforce of 2,000 by 40%. The resulting lower costs should make Candu more profitable....
THOMSON REUTERS CORP. $35 (Toronto symbol TRI; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 835.6 million; Market cap: $29.2 billion; Price-to-sales ratio: 2.1; Dividend yield: 3.4%; TSINetwork Rating: Above Average; www.thomsonreuters.com) has two main divisions: Markets (which supplied 57% of its 2010 revenue and 48% of its earnings) sells financialinformation products to banks and other financial institutions. Professional (43%, 52%) sells specialized information to professionals in the legal, accounting, scientific and health-care fields. Merger sent results soaring The company’s revenue rose 96.8%, from $6.6 billion in 2006 to $13.1 billion in 2010. That’s mainly because it bought the U.K.-based Reuters news agency for $16 billion in cash and shares in 2008 (all amounts except share price and market cap in U.S. dollars)....
BOMBARDIER INC. $6.51 (www.bombardier.com) may close its train plant in the U.K. That’s because the company lost a $2.2-billion contract to supply 1,200 passenger cars to a rail system near London (all amounts except share price in U.S. dollars). Even so, Bombardier’s rail division has an order backlog of $33.5 billion. That’s twice the company’s overall revenue of $17.7 billion in the fiscal year ended January 31, 2011. Best Buy. TRANSCONTINENTAL INC. $16 (www.transcontinental.com) will become the exclusive Canadian seller of advertising on About.com and its related web sites, Netplaces.com (general information) and CalorieCount.com (dieting information). These web sites receive 5.8 million unique Canadian visitors a month, so this new deal should help Transcontinental profit as advertisers spend more on Internet advertising. Buy. PRECISION DRILLING CORP. $14 (www.precisiondrilling.com) plans to build 28 new drilling rigs in 2011, including 16 of its Super Series models, which use horizontal drilling techniques to extract oil from hard-to-reach deposits. The company already has longterm contracts for 17 of these rigs, and expects to sign contracts for the remaining 11 in the next few weeks. Buy.
CGI GROUP INC., $22.99, Toronto symbol GIB.A, has gained 27.1% since we named it our “#1 Stock of the Year” for 2011. CGI is Canada’s largest provider of computer-outsourcing services. The company’s services can automate certain routine functions, such as accounting and buying supplies. That makes its clients more efficient, and lets them focus on their main businesses. The company’s strong reputation continues to help it win new contracts. As well, CGI is benefiting as governments and businesses look for ways to cut their computing costs....
PLEASE NOTE: Our next Hotline will go out on Friday, July 8, 2011. SNC-LAVALIN GROUP INC., $58.88, Toronto symbol SNC, rose 9% this week in response to its purchase of certain assets of Atomic Energy of Canada Ltd. from the federal government. The purchase mainly consists of Atomic Energy’s Candu nuclear-reactor division. All of Canada’s reactors use the Candu design and technology. The division has also sold reactors to Argentina, Romania, India, South Korea and China....
PLEASE NOTE: Our next Hotline will go out on Thursday, June 30, 2011. ROYAL BANK OF CANADA, $53.92, Toronto symbol RY, is selling its struggling U.S. retail-banking operations, which consist of 424 branches in six southeast states. The buyer, PNC Financial Services Group Inc. (New York symbol PNC), is also purchasing Royal’s U.S. credit-card operations. Royal will hang onto its U.S. wealth-management and brokerage businesses. PNC is paying $3.6 billion U.S. for these assets, with an option to pay up to $1 billion U.S. of the purchase price in PNC shares. That would give Royal a 3% stake in PNC....
RESEARCH IN MOTION LTD., $27.24, Toronto symbol RIM, reported better-than-expected quarterly earnings this week. However, the company cut its full-year earnings forecast because of delays in launching its new smartphones. That caused the stock to drop 21% on Friday. In its 2012 first quarter, which ended May 28, 2011, RIM’s earnings fell 9.6%, to $695 million from $769 million a year earlier (all amounts except share price in U.S. dollars). Earnings per share fell 3.6%, to $1.33 from $1.38, on fewer shares outstanding. Even so, the latest earnings beat the consensus estimate of $1.32. Revenue rose 15.9%, to $4.9 billion from $4.3 billion a year. That fell short of the consensus revenue estimate of $5.1 billion....
TRANSCONTINENTAL INC., $14.65, Toronto symbol TCL.A, is the largest commercial printer in Canada and Mexico, and the fourth-largest in North America. It also publishes newspapers and magazines, and has over 300 web sites. The stock rose 3% after the company reported better-than-expected earnings this week. Transcontinental also raised its dividend for the second time in the past six months. In its 2011 second quarter, which ended April 30, 2011, Transcontinental’s revenue rose 0.9%, to $514.7 million from $510.0 a year earlier. Excluding unusual items, earnings rose 17.6%, to $40.1 million from $34.1 million a year earlier. Earnings per share rose 16.7%, to $0.49 from $0.42, on more shares outstanding. That beat the consensus estimate of $0.44 a share....
Beer demand has slowed in Canada and other developed countries, due to high unemployment and the weak economic recovery. However, sales are growing strongly in emerging markets, where rising prosperity is making beer more affordable. Molson Coors is well-positioned to profit from this trend. The company owns some of the world’s top beer brands, particularly Coors Light. As well, it is forming partnerships with local brewers. Teaming up with well-established producers helps cut the risk of expanding in unfamiliar markets. Moreover, the company’s recent mergers continue to save it money. It is using these savings to expand and raise its dividend....