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
CANADIAN PACIFIC RAILWAY LTD. $64 (Toronto symbol CP) expects earnings in 2007 will rise 10% to $4.40 a share. Improving efficiencies should offset slowing coal volumes. Growing demand for other resources like potash should increase 2007 revenue by 5%. Best Buy. ALCAN INC. $57 (Toronto symbol AL) plans to build a new aluminum smelter in South Africa, and has arranged a 25-year electricity supply deal. The energy deal should make it easier for Alcan to bring in partners and offset the $2.7 billion cost (all amounts except share price in U.S. dollars); Alcan earned $461 million or $1.22 a share before special items in the third quarter of 2006. Best Buy. TRANSCANADA CORP. $40 (Toronto symbol TRP) has won a contract to build a new gas-fired power plant west of Toronto. Growing demand for power in this region should help TransCanada quickly recover the $670 million cost of the new plant; it earned $243 million or $0.50 a share before one-time items in its most recent quarter. Best Buy....
TIM HORTONS INC. $35 (Toronto symbol THI; Aggressive Growth Portfolio, Consumer sector; SI Rating: Extra risk) operates 2,600 stores in Canada that sell coffee, donuts and other foods. The company also has roughly 300 outlets in the United States. Franchisees operate 96.5% of its stores. The company was a wholly owned subsidiary of Wendy’s International Inc. until March 2006. That’s when it completed an initial public offering of common shares at $27.00 each. In September 2006, Wendy’s handed out its remaining 82.75% stake in Tim Hortons to its own shareholders as a taxdeferred special dividend. Tim Hortons’ revenue grew from $926.1 million in 2001 to $1.5 billion in 2005, or 12.8% compounded annually. Profits grew from $0.83 a share (total $132.2 million) in 2001 to $1.28 a share ($205.1 million) in 2004. A $53.1 million pre-tax writedown of goodwill cut profit in 2005 to $1.19 a share ($191.1 million)....
CANADIAN UTILITIES LTD. $46 (Toronto symbol CU; Income Portfolio, Utilities sector; SI Rating: Above average) has abandoned its plan to convert its unregulated gas processing and storage businesses into income trusts after Ottawa changed the taxation rules of trusts. The company will probably hang on to these assets instead of selling them. Now that the trust plan is dead, Canadian Utilities will probably use its growing cash balances ($5.85 a share) for acquisitions. Thanks to the new tax rules, which have hurt the prices of many oil and gas trusts in Alberta, the company could pick up some bargains. It could also raise its $1.16 dividend, which yields 2.5%. Canadian Utilities is a buy....
CANADIAN NATIONAL RAILWAY CO. $54 (Toronto symbol CNR; Conservative Growth Portfolio, Manufacturing & Industry sector; SI Rating: Average) plans to increase capital spending in 2007 by 4% over 2006. About half will go to basic items like replacing tracks and repairing bridges. It will also buy new locomotive and other railcars that will cut its fuel costs and improve safety. CN Rail is a buy. GREAT-WEST LIFECO INC. $34 (Toronto symbol GWO; Conservative Growth Portfolio, Finance sector; SI Rating: Above average) continues to expand its retirement savings and healthcare insurance operations in the United States....
SAPUTO INC. $38 (Toronto symbol SAP; Aggressive Growth Portfolio; Consumer sector; SI Rating: Average) will likely earn an extra $0.06 a share a year thanks to a ruling by agricultural regulators in the United States that will cut the cost of bulk milk for cheese makers like Saputo. However, the cut is only half of what cheese makers were asking for. Due to shrinking profit margins, the decision could prompt smaller companies to put themselves up for sale. Saputo has a strong history of consolidating acquisitions and cutting costs, and would be a likely buyer. It would probably focus on specialty cheese companies, which are less sensitive to milk prices than regular cheeses....
ANDREW PELLER LTD. $12 (Toronto symbol ADW.A; Income Portfolio, Consumer sector; SI Rating: Above average) is the new name for Andres Wines Ltd. The company is Canada’s second-largest producer of wines (after Vincor International Inc.), with about 12% of the market. It sells its products through provincial liquor agencies, as well as roughly 100 retail stores in Ontario. Revenues grew at a compounded annual rate of 11.1%, from $139.0 million in 2002 (fiscal years end March 31) to $211.8 million in 2005. Part of the company’s growth comes from acquisitions, particularly small wineries that specialize in high-quality wines. That has paid off, since premium wines generate higher profits for Peller than regular wines. That trend will likely continue. Recent medical studies that link moderate wine consumption with certain health benefits have also spurred sales....
BOMBARDIER INC. (Toronto symbols BBD.A $3.91 and BBD.B $3.90; Aggressive Growth Portfolio, Manufacturing & Industry sector; SI Rating: Extra risk) is the world’s third-largest maker of commercial passenger aircraft behind Boeing and Airbus. The aerospace unit supplies roughly 55% of Bombardier’s revenue, and 60% of its profit. The remaining revenue and earnings come from Bombardier’s transportation division, which is the world’s largest maker of passenger railway cars. Overseas customers account for 95% of Bombardier’s total revenue. In its third fiscal quarter ended October 31, 2006, Bombardier earned $0.03 a share (total $53 million) from continuing operations (all amounts except share price in U.S. dollars). It lost nil per share ($1 million) in the year-earlier quarter, which included a $25 million pre-tax restructuring charge. Revenue rose 3.0%, to $3.4 billion from $3.3 billion....
FORTIS INC. $28 (Toronto symbol FTS; Conservative Growth Portfolio, Utilities sector; SI Rating: Above average) has raised its stake in Caribbean Utilities Company, Ltd., from 37.4% to 54%. This business is the sole provider of electrical power on Grand Cayman Island. This investment cost Fortis $48.9 million U.S., or about half of the $113.3 million (Canadian) or $1.05 a share that it earned in the first nine months of 2006. But controlling this business will make it easier for Fortis to improve efficiency. It also cuts Fortis’s exposure to Atlantic Canada. A hurricane damaged much of Caribbean Utilities’ operations two years ago. Insurance and higher power rates helped it recover most of the costs. Thanks to Fortis’s expertise, generating capacity is almost back to pre-hurricane levels....
TECK COMINCO LTD. $90 (Toronto symbol TCK.B; Conservative Growth Portfolio; Resources sector; SI Rating: Average) has agreed to acquire a 16% interest in Tahera Diamond Corp., which operates a diamond mine in Nunavut. Teck also received warrants, which, if exercised, would increase its stake to 24.9%. Teck paid $30 million for this investment, which is just 6% of the $504 million or $2.32 a share it earned in the three months ended September 30, 2006. Diamond mining is much riskier than Teck’s core zinc and copper businesses, but its mining expertise should help Tahera expand production and cut costs....
Last year’s big run up in oil prices increased the operating costs of most industrial companies. But those that supply equipment and services to exploration firms have been among the biggest gainers in the past few months. Here are three industrial stocks that should continue to profit from high oil prices. However, only two are buys right now. SHAWCOR LTD. $25 (Toronto symbol SCL.A; Aggressive Growth Portfolio, Manufacturing & Industry sector; SI Rating: Average) makes sealants that protect oil and natural gas pipelines from rust and other forms of corrosion. The company also inspects and repairs pipelines, and makes specialty cables and wires....