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
MAPLE LEAF FOODS INC. $9.80, Toronto symbol MFI, fell 10% this week after it temporarily closed a plant in Toronto due to possible contamination of packaged meat products with listeria bacteria. The closure of the plant should give Maple Leaf time to identify the source of the problem and fix it. The company is also recalling all products produced at the plant since June 2, 2008. Maple Leaf’s swift and comprehensive action should limit any permanent harm to its reputation. However, the company will probably face the customary class-action lawsuit. Maple Leaf Foods is still a buy for long-term gains....
CAE INC. $11.05, Toronto symbol CAE, has won new contracts potentially worth $106 million to supply flight simulators and support services to Canada’s Department of National Defence, the U.S. Navy and military contractors. The company’s military-related operations provide around 40% of its total revenue. That helps offset its exposure to the cyclical air travel industry. Meanwhile, CAE earned $0.18 a share in its first fiscal quarter ended June 30, 2008, up 20% from $0.15 a year earlier. Revenue grew 9.4%, to $392.1 million from $358.3 million. CAE is a buy....
CANADIAN TIRE CORP. $50.10, Toronto symbol CTC.A, fell 7% this week after it reported second-quarter earnings that fell short of earlier forecasts. In the three months ended June 28, 2008, earnings before inventory writedowns and other one-time items fell 13.9%, to $94.7 million or $1.16 a share from $109.8 million or $1.35 a share a year earlier. Overall revenue grew 6.5%, to $2.45 billion from $2.3 billion, mainly due to strong gains at its finance and gas station operations. Same-store sales at its main retail stores fell 0.5%, as cooler-than-normal spring weather hurt sales of patio furniture and other seasonal merchandise. The company expects earnings to improve in the second half of 2008, partly due to the installation of new credit card scanners that let customers make small purchases without a signature. Speeding up checkout lines should improve customer traffic, and encourage repeat visits. Canadian Tire is a buy....
LINAMAR CORP. $13 (Toronto symbol LNR) has paid an undisclosed sum for a plant in Swansea, Wales. This is Linamar’s fifth plant in Europe, and 38th over all. The facility makes automotive engines. However, Linamar plans to install new equipment that will let the plant produce a wider variety of automotive parts. Expanding in Europe also helps cut the company’s exposure to the slowing North American auto industry. Best Buy. SAPUTO INC. $27 (Toronto symbol SAP) will have to change the way it makes some of its cheeses, due to new federal standards that require it to use more full-fat milk and less milk solids. That could increase its operating costs. Saputo will probably try to offset these higher input costs with productivity gains instead of raising selling prices, which could hurt its sales growth. Best Buy. CGI GROUP INC. $10 (Toronto symbol GIB.A) continues to renew existing contracts. It has just signed an $80 million U.S., seven-year contract renewal with Australia and New Zealand Banking Group Ltd. and Bank of Montreal. The deal lets these two banks extend their use of CGI’s Proponix global trade platform, which helps them automate overseas transactions made by their clients. Though the deal is small in relation to CGI’s annual revenues of $3.7 billion, it expands its market share and enhances its reputation. Buy.
TORONTO-DOMINION BANK $61 (Toronto symbol TD; Conservative Growth Portfolio, Finance sector; Shares outstanding: 802.9 million; Market cap: $49.0 billion; SI Rating: Above average) will take a $96 million pre-tax charge in its third fiscal quarter ending July 31, 2008, due to a pricing error on certain financial Instruments at its UK trading operations. The charge is equal to 10% of TD’s second-quarter earnings of $973 million or $1.32 a share. This seems to be a one-time incident, and TD plans to tighten control over its traders. TD’s focus on its retail banking operations in Canada and the United States has helped it avoid the big writedowns of subprime mortgages and illiquid securities that have hurt profits at other big banks. The retail operations accounted by 90% of TD’s earnings in the most recent quarter. TD Bank is a buy.
SHAWCOR LTD. $34 (Toronto symbol SCL.A; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 70.9 million; Market cap: $2.4 billion; SI Rating: Average) makes sealants and coatings that protect onshore and offshore oil and natural gas pipelines from corrosion. The company also inspects and repairs pipelines. These operations account for about 85% of ShawCor’s total revenue. The remaining 15% comes from making industrial equipment such as electrical wire and protective sheaths. The Shaw family controls 89.4% of the company’s class ‘B’ multiple voting shares.
Energy boom spurs ShawCor’s stock
ShawCor’s stock has more than doubled for us in the past five years, largely due to rising energy prices. That in turn has led to a big jump in new pipeline construction. Consequently, ShawCor’s revenue rose from $699.3 million in 2003 to $1.06 billion in 2006. However, customers outside of Canada account for about 75% of ShawCor’s sales. The high Canadian dollar cut its revenue to $1.05 billion in 2007....
INDIGO BOOKS & MUSIC INC. $15 (Toronto symbol IDG; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 24.8 million; Market cap: $372.0 million; SI Rating: Extra risk), plans to test a new retail concept called “Pistachio.” Instead of books, these stores will feature environmentally-friendly household products like writing pads, gift wrap and tabletop covers. The new stores will also sell organic makeup, lotions and other beauty items. Indigo will open two test stores in Toronto this year, and up to six more next year. If successful, Indigo may open Pistachio stores in the United States. The company already sells gift products in its stores, so it has experience in this area. Specialty products like these also diversify Indigo’s operations, and they can generate higher profit margins than book sales. Indigo is a buy for aggressive investors who are also interested in green stocks....
We continue to like the prospects for oil and gas stocks — and the recent pullback in share prices makes them attractive right now. It’s uncertain if oil and gas prices will drop further in the short term, or move back up. Either way, prices will likely remain way above long-term averages. We think the best way to cut risk in today’s volatile oil and gas markets is to look for companies with rising production – but also trading at reasonable multiples to cash flow per share. Here are four with great long-term prospects. They come with the added bonus of operating mainly in geographic areas with low political risk....
ANDREW PELLER LTD. $9.75 (Toronto symbol ADW.A; Income Portfolio, Consumer sector; Shares outstanding: 14.9 million; Market cap: $145.3 million; SI Rating: Above average) has acquired World Vintners Inc., which makes and sells home wine-making kits. World Vintners sells its products through 75 franchised stores under the ‘Wine Kitz’ banner. Peller currently sells wine kits through its Vinceco and Winexpert divisions. The $9 million purchase price is equal to 79% of the $11.4 million or $0.78 a share that Peller earned in the fiscal year ended March 31, 2008. World Vintners’ annual revenue of $12 million will increase Peller’s revenue by 5%. The purchase strengthens Peller’s position as Canada’s leading supplier of home winemaking kits, and integrating these new operations will let it cut costs. Its shares yield 3.4%....
THOMSON REUTERS CORP. $31 (Toronto symbol TRI; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 816.6 million;Market cap: $25.3 billion; SI Rating: Above average) provides information products to over 30 million professionals in five areas: Legal (45% of 2007 revenues), Financial (30%), Tax & Accounting (9%), Scientific (9%) and Healthcare (6%). The company took its present form on April 17, 2008. That’s when The Thomson Corp. (old symbol TOC) merged with UK-based information provider Reuters Group plc. Thomson shareholders received one share of Thomson Reuters for each Thomson Corp. share they held....