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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Rising interest rates increase the appeal of bonds, which is generally bad news for utilities which must compete with bonds for the attention of income-seeking investors. At the same time, higher interest rates increase borrowing costs for utilities. That further erodes investors’ interest.
However, these three utilities get most of their revenue from rate-regulated operations....
PEMBINA PIPELINE, $41.10, is a buy. The company (Toronto symbol PPL; Shares outstanding: 550.3 million; Market cap: $22.9 billion; TSINetwork Rating: Average; Dividend yield: 6.4%; www.pembina.com) last increased its dividend by 3.6% with the October 2022 payment....
LOBLAW COMPANIES, $118.69, is a buy. The retailer (Toronto symbol L; Shares outstanding: 321.0 million; Market cap: $38.4 billion; TSINetwork Rating: Above Average; Dividend yield: 1.5%; www.loblaw.ca), operates 1,099 supermarkets under several banners, including Loblaws, Zehrs, Provigo, Real Canadian Superstore and No Frills....
With their clean, renewable power, these two companies have strong conceptual appeal for investors. But just as important is their diverse mix of hydroelectric, wind and solar power. That diversity, along with their long-term contracts, provide stable cash flows....
TELUS, $25.72, is a buy. The stock (Toronto symbol T; Shares outstanding: 1.4 billion; Market cap: $37.7 billion; TSINetwork Rating: Above Average; Dividend yield: 5.7%; www.telus.com) is Canada’s second-largest wireless carrier (after BCE) with 12.16 million subscribers....
While rising interest rates have increased the appeal of bonds and hurt REITs in the past year, Choice Properties and H&R remain excellent ways for investors to earn income. We see both as buys.
CHOICE PROPERTIES REIT, $13.56, is a buy. Canada’s biggest REIT (Toronto symbol CHP.UN; Units o/s: 327.9 million; Market cap: $9.9 billion; TSINetwork Rating: Average; Yield: 5.5%; www.choicereit.ca) owns 703 retail, industrial, office space and residential properties with 64.2 million square feet of gross leasable area....
3M COMPANY $97 (www.3m.com) remains a buy for long-term gains. The company makes over 60,000 items, including air purifiers, adhesives, bandages and components for medical devices....