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
HARTCO INCOME FUND $3.96 (Toronto symbol HCI.UN) is a thinly traded investment in the highly cyclical computer equipment industry. We feel it could have trouble maintaining distributions. Sell. BOMBARDIER INC. $6.50 (Toronto symbol BBD.A) continues to win new orders for new aircraft, including a $334 million U.S. order for 10 new jets from U.S.-based Mesa Air Group Inc. That’s just a fraction of Bombardier’s annual revenue of $15 billion U.S., but deals like this enhance its standing with regional airlines. Bombardier’s new alliance with a Chinese aircraft company should also cut its development costs. Buy. LEGACY HOTELS REAL ESTATE INVESTMENT TRUST $12 (Toronto symbol LGY.UN) reached $15 in June as speculation grew regarding its “strategic review”, including a possible sale. However, Legacy moved down after it received several non-binding takeover offers worth about $12.60 a unit. Even if Legacy decides against a takeover, the review has helped draw attention to its high-quality hotels. Hold....
SAPUTO INC. $49 (Toronto symbol SAP; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 103.7 million; Market cap: $4.6 billion; SI Rating: Average) is Canada’s largest producer of dairy products such as milk, cheese and butter. The dairy division, including operations in the United States, Argentina and Europe, supplies 95% of Saputo’s total revenue. The remaining 5% comes from its bakery operation, which makes snack-cakes, tarts and cereal bars. Saputo’s revenues rose from $3.4 billion in 2003 (fiscal years end March 31) to $4.02 billion in 2006, but slipped to $4.0 billion in 2007. Earnings rose from $1.66 a share (total $173.7 million) in 2003 to $2.20 a share ($232.1 million) in 2005. In 2006, a writedown cut profit to $1.82 a share ($192.1 million). Earnings improved to $2.28 a share ($238.5 million) in 2007.
Saputo looks overseas for growth
Much of Saputo’s recent growth comes from an aggressive acquisition plan, particularly outside Canada. While this increases its risk, Saputo has a long history of success in integrating acquisitions....
RIOCAN REAL ESTATE INVESTMENT TRUST $25 (Toronto symbol REI.UN; Aggressive Growth Portfolio, Manufacturing & Industry sector; Units outstanding: 208.0 million; Market cap: $5.2 billion; SI Rating: Average) will record a $150 million pre-tax charge to its earnings in the second quarter of 2007. This is a non-cash charge, so it has no effect on RioCan’s cash flows, nor on its ability to maintain its $1.32 distribution rate, which yields 5.3%. Ottawa’s new rules for income trusts come into effect in 2011, and RioCan will probably have to restructure its operations to qualify as a tax-exempt REIT. Meanwhile, however, its growth is likely to continue....
AGRIUM INC. $46 (Toronto symbol AGU; Aggressive Growth Portfolio, Resources sector; Shares outstanding: 134.0 million; Market cap: $6.2 billion; SI Rating: Average) owns half of a nitrogen facility in Argentina that has had to suspend operations lately due to natural gas shortages. This plant accounts for less than 10% of Agrium’s revenue, so the shutdown’s effect will be small. But costlier natural gas could hurt its profit this year. Agrium is a hold. TRANSCONTINENTAL INC. $21 (Toronto symbol TCL.A; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 85.4 million; Market cap: $1.8 billion; SI Rating: Average) has paid an undisclosed sum for The Oxbow Herald, a weekly newspaper in southeast Saskatchewan. It now publishes nine newspapers in Saskatchewan, reaching 65,000 households in 140 communities....
IGM FINANCIAL INC. $54 (Toronto symbol IGM; Conservative Growth Portfolio, Finance sector; Shares outstanding: 264.9 million; Market cap: $14.3 billion; SI Rating: Above average) sold $294.2 million worth of new mutual funds, net of redemptions, in June 2007. That’s a big improvement over net sales of just $8.3 million in June 2006. Most of the improvement came from the Mackenzie division, particularly for anything other than money-market funds. That’s good news for IGM, since these funds have lower redemption rates and earn higher fees than its money-market funds. IGM had assets under management of $125.9 billion at the end of June, down 0.5% from May 2007, due to stock market losses at some of its funds. But that’s still up 21.4% from a year earlier....
MDS INC. $22 (Toronto symbol MDS; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 122.5 million; Market cap: $2.7 billion; SI Rating: Average) operates in three medical -related fields: contract drug research, analytical devices and medical isotopes. The company now spends about 2% of its revenue on research, down from 3% a few years ago. That’s because it sold the research-intensive parts of its business in the past few years, such as protein analysis, to focus on its less risky operations. As part of this plan, it recently paid $624 million for California-based Molecular Devices Corp. (all amounts except share price and market cap in U.S. dollars). This business makes devices and software that speed up drug research. It nicely complements MDS’s other analytical products....
DUNDEE CORP. $25 (Toronto symbol DC.A; Aggressive Growth Portfolio, Finance sector; Shares outstanding: 75.3 million; Market cap: $1.9 billion; SI Rating; Average) provides a variety of financial services, including banking, wealth management and mutual funds through 56%-owned DundeeWealth Inc. (formerly Dundee Wealth Management Inc.). This business supplies roughly three-quarters of its total revenue. Through 78%-owned Dundee Realty Corp. and 16%-owned Dundee Real Estate Investment Trust, the company owns and manages residential and commercial real estate projects. Dundee REIT recently agreed to sell its properties in Central and Eastern Canada so it can focus on its more promising holdings in Western Canada. As part of the transaction, Dundee Realty will manage these properties for the new owners. The new arrangement should improve the long-term prospects of both investments....
TRANSALTA CORP. $29 (Toronto symbol TA; Conservative Growth Portfolio, Utilities sector; Shares outstanding: 202.6 million; Market cap: $6.1 billion; SI Rating: Average) has gained 15% since late June due to growing speculation that the company may follow BCE and Alcan as a takeover target. Luminus Management, a New York-based private equity firm, now owns 6.7% of TransAlta. TransAlta has done a good job of cleaning up its balance sheet in the past few years. It cut long-term debt from 1.8 times equity in 2001 to a more manageable 1.1 times at the end of 2006. A strong balance sheet makes it easier for a private equity buyer to finance a takeover with new debt. TransAlta’s strong cash flow would also make it easier for new owners to pay down the extra debt. While a sale is far from certain, it helps draw attention to TransAlta’s improving outlook. Meanwhile, the $1.00 dividend yields 3.4%....
ALCAN INC. $103 (Toronto symbol AL; Conservative Growth Portfolio, Resources sector; Shares outstanding: 360.0 million; Market cap: $32.8 billion; SI Rating: Average) has accepted a $101 U.S.-a-share ($106.40 Canadian) all-cash takeover offer from Anglo-Australian mining company Rio Tinto Ltd. The new offer is roughly 33% higher than U.S.-based Alcoa Inc.'s hostile cashand- stock bid, which is currently worth $80 (Canadian). Alcoa is a leading producer of bulk aluminum and specialized products, so it would face more scrutiny from competition regulators than Rio Tinto. But it could undoubtedly satisfy the regulators by selling some assets. The potential savings from an Alcan takeover could spur Alcoa to raise its offer, which now expires on August 10, 2007. However, Alcan has agreed to pay Rio Tinto a $1.05 billion U.S. (roughly $3 U.S. a share) break-up fee if does not go through with the merger. That may scare off Alcoa and other potential bidders....
FORDING CANADIAN COAL TRUST $37 (Toronto symbol FDG.UN; Aggressive Growth Portfolio, Resources sector; Units outstanding: 147.0 million; Market cap: $5.4 billion; SI Rating: Average) owns 60% of B.C.'s Elk Valley coal mine, which is the world’s second-largest supplier of metallurgical coal to steelmakers. TECK COMINCO LTD. $48 (Toronto symbol TCK.B; Conservative Growth Portfolio; Resources sector; Shares outstanding: 428.1 million; Market cap: $21.0 billion; SI Rating: Average) owns the remaining 40% of Elk Valley, as well as 8.47% of Fording. Teck recently agreed to acquire copper producer Aur Resources Inc., and still has plenty of cash for more acquisitions. That has led to speculation that Fording could be Teck’s next target....