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
GENNUM CORP. $7.00 (Toronto symbol GND; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 35.4 million; Market cap: $247.8 million; Price-to-sales ratio: 2.0; Dividend yield: 2.0%; TSINetwork Rating: Average; www.gennum.com) makes equipment that stores, manipulates and transfers video signals. It also makes chips that improve the flow of data inside computer networks. In its third quarter, which ended August 31, 2010, Gennum earned $5.3 million, or $0.15 a share (all amounts except share price and market cap in U.S. dollars). That’s a big improvement over the $4.3 million, or $0.12 a share, it lost a year earlier. However, the year-earlier results included a $5.5- million restructuring charge related to a 10% cut that Gennum made to its workforce. Sales rose 60.8%, to $34.4 million from $21.4 million. Gennum mainly sells its products to broadcasters, and the improving economy is giving them more money to spend on new equipment....
The recession forced airlines to cut spending on new planes, flight simulators and pilot training. However, airlines will have to start replacing their aging fleets in the next few years. That should spur a surge in orders for Bombardier and CAE. BOMBARDIER INC. (Toronto symbols BBD.A $4.97 and BBD.B $4.98; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 1.7 billion; Market cap: $8.5 billion; Price-to-sales ratio: 0.5; Dividend yield: 2.0%; TSINetwork Rating: Average; www.bombardier.com) is the world’s third-largest commercial-aircraft maker, behind Boeing and Airbus. Its aerospace division supplies roughly half of its revenue. The other half comes from its transportation division, which is the world’s largest maker of passenger railcars. In its 2011 second quarter, which ended July 31, 2010, the company earned $0.08 a share (all amounts except share prices and market cap in U.S. dollars). That’s down 27.2% from $0.11 a share, a year earlier. Revenue fell 17.5%, to $4.1 billion from $4.9 billion. The uncertain economy continues to hurt demand for Bombardier’s jets. It delivered 46 aircraft in the latest quarter. That’s down from 80 a year earlier....
MOLSON COORS CANADA INC. (Toronto symbols TPX.A $50 and TPX.B $49; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 186.1 million; Market cap: $9.3 billion; Price-to-sales ratio: 2.6; Dividend yield: 2.3%; TSINetwork Rating: Average; www.molsoncoors.com) continues to enjoy the benefits of its February 2005 merger with U.S. brewer Coors, and its 2008 combination of its U.S. operations with those of SABMiller to form a new joint venture called MillerCoors. The savings from these two deals are helping it compete with larger, multinational brewers. In the three months ended September 25, 2010, the company’s beer volumes fell 4.0%. However, earnings before merger costs and other unusual items rose 12.3%, to $239.1 million, or $1.28 a share (all amounts except share prices and market cap in U.S. dollars). A year earlier, Molson Coors earned $212.9 million, or $1.14 a share. Savings from the MillerCoors merger and other costs cuts totalled $58.9 million in the latest quarter. Molson Coors is a buy. The more liquid “B” shares are the better choice.
BANK OF NOVA SCOTIA $54 (Toronto symbol BNS; Conservative Growth Portfolio, Finance sector; Shares outstanding: 1.0 billion; Market cap: $54.0 billion; Price-to-sales ratio: 2.4; Dividend yield: 3.6%; TSINetwork Rating: Above Average; www.scotiabank.com) will get $47 million in earnings from its Mexican subsidiary in its current quarter. To put this in context, Bank of Nova Scotia earned $1.1 billion, or $0.98 a share, in the three months ended July 31, 2010. The Mexican operation’s latest earnings are down 10.2% from a year earlier, largely because it wrote down the value of certain securities it holds. Without these writedowns, its earnings would have risen 11%. Bank of Nova Scotia is a buy....
DUNDEE CORP. $17 (Toronto symbol DC.A; Aggressive Growth Portfolio, Finance sector; Shares outstanding: 73.8 million; Market cap: $1.2 billion; Price-to-sales ratio: 1.0; No dividends paid; TSINetwork Rating: Average; www.dundeecorp.com) is a holding company with subsidiaries in three main areas: wealth management, real estate and resources. The company’s main asset is its 49% stake (61% voting interest) in DundeeWealth Inc. (Toronto symbol DW), which provides investment-management, securities-brokerage, financial-planning and investment-advisory services. DundeeWealth also owns the Dynamic family of mutual funds. In the three months ended September 30, 2010, Dundee- Wealth’s earnings jumped 104.7% from a year earlier. That’s mainly because rising stock markets have increased the value of its assets under management by 26.8%; DundeeWealth’s fee income varies with the value of these assets. Rising mutual-fund sales are also fuelling this subsidiary’s earnings. Dundee Corp. is a buy.
TRANSCONTINENTAL INC. $16 (Toronto symbol TCL.A; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 80.8 million; Market cap: $1.3 billion; Price-to-sales ratio: 0.6; Dividend yield: 2.3%; TSINetwork Rating: Average; www.transcontinental.com) is the largest commercial printer in Canada and Mexico, and the fourth-largest in North America. This business provides 65% of its revenue and earnings. The company also publishes newspapers and magazines (30% of revenue and earnings). The remaining 5% comes from its marketing-communications division, which designs advertising campaigns, including direct mail, and analyzes customer-purchasing data.
...
Less cyclical than it appears
The printing industry is highly cyclical. However, Transcontinental gets over half of its printing revenue through long-term contracts of up to 18 years. The company cuts the cyclical risk of its publishing business by focusing on smaller cities with fewer competing newspapers. About half of the media division’s revenue now comes from local businesses....
BCE INC. $33 (www.bce.ca) earned $621 million before unusual items in the three months ended September 30, 2010, down 4.3% from $649 million a year earlier. Because of fewer shares outstanding, earnings per share fell 2.4%, to $0.82 from $0.84. The company had a lower tax bill in the year-earlier period. This was the main reason behind the lower earnings. Best Buy. ROYAL BANK OF CANADA $54 (www.rbc.com) continues to expand in Asia. It recently paid an undisclosed sum for the Hong Kong-based wealth management business of Belgium bank BNP Paribus Fortis. This purchase will help Royal profit from China’s growing middle class, who are preparing for retirement. Buy. PENGROWTH ENERGY TRUST $12 (www.pengrowth.com) saw its cash flow per share fall 14.3% in the latest quarter, to $0.54 from $0.63 a year earlier. That’s because unusually wet weather cut its combined oil and natural-gas production by 3.7%. Buy.
POTASH CORP. OF SASKATCHEWAN, $141.32, Toronto symbol POT, fell 4% this week after Ottawa said it would block the hostile takeover offer by BHP Billiton Ltd. (New York symbol BHP). However, under the Investment Canada Act, which governs foreign takeovers of Canadian companies, BHP now has 30 days to modify its bid so that the takeover is a “net benefit” for Canada. The stock is now trading at 8.7% above the $130.00 U.S.-a-share that BHP is offering. That indicates that investors expect a higher offer from either BHP or another bidder. BHP still has room to raise its bid. That’s because BHP’s shares also trade on the London Stock Exchange, and British law would require BHP to hold a special shareholders’ vote if the value of a takeover offer is more than 25% of BHP’s market cap. At the time of the original announcement on August 17, 2010, the bid represented 21% of BHP’s market cap. Right now, the offer is equal to 15% of BHP’s market cap....
SNC-LAVALIN GROUP INC., $52.10, Toronto symbol SNC, has cancelled its plan to increase its stake in Highway 407, a 108-kilometre toll highway north of Toronto. The company owns 16.77% of the 407. Earlier this month, the Canadian Pension Plan Investment Board (CPPIB) agreed to buy 10% of Highway 407 from the highway’s main shareholder, Ferrovial S.A. of Spain. Ferrovial currently owns 53% of the 407. However, SNC said it would exercise its right of first refusal and buy the shares from Ferrovial. That would have increased SNC’s stake in the 407 to 26.77%....
ENCANA CORP., $28.26, Toronto symbol ECA, fell 7% this week after the company reported lower-than-expected earnings. In the three months ended September 30, 2010, Encana earned $98 million, or $0.13 a share (all amounts except share price in U.S. dollars). These figures exclude a $331-million gain on hedging contracts that the company uses to lock in selling prices for its natural gas, and a $140-million foreign-exchange gain. On this basis, the latest earnings fell well short of the consensus estimate of $0.19 a share. They were also down 74.1% from the company’s year-earlier earnings of $378 million, or $0.50 a share. Cash flow per share fell 9.4%, to $1.54 from $1.70. (Note: The year-earlier figures assume that the breakup of the old EnCana Corp. into the new Encana and Cenovus Energy Inc. took place at the start of 2009 instead of December 1, 2009.)...