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Here are key updates on 3 dividend payers

NEWELL BRANDS INC. $7.32 remains a hold. The company (Nasdaq symbol NWL; Conservative Growth Payer Portfolio, Consumer sector; Shares outstanding: 416.0 million; Market cap: $3.0 billion; Dividend yield: 3.8%; Dividend Sustainability Rating: Average; www.newellbrands.com) makes a wide range of consumer and household products such as PaperMate pens, Elmer’s glue, Rubbermaid food containers, and Graco baby strollers.

With the June 2023 payment, Newell cut its quarterly dividend by 69.6%, to $0.07 a share from $0.23....

2 min read

Pat McKeough

Dividend Stocks

Stantec acquisitions to spur dividend

STANTEC INC. $114 is a buy. This engineering firm (Toronto symbol STN; Cyclical-Growth Payer Portfolio, Manufacturing sector; Shares outstanding: 114.1 million; Market cap: $13.0 billion; Dividend yield: 0.7%; Dividend Sustainability Rating: Above Average; www.stantec.com) is a leading seller of consulting, project-delivery, design and technology services.

With the April 2024 payment, Stantec raised your quarterly dividend by 7.7%....

1 min read

Pat McKeough

Dividend Stocks

These small-caps offer solid yields

While large-cap stocks tend to account for the bulk of most investors’ portfolios, we also recommend adding smaller firms such as Calian and Extendicare. Both are leaders in their respective industries and have long histories of regular dividend payments.

CALIAN GROUP LTD....

2 min read

Pat McKeough

Dividend Stocks

New businesses will spur their dividends

Enbridge and AltaGas continue to expand their asset bases with new high-quality, rate-regulated projects. The extra cash flow puts them in a strong position to keep rewarding investors with higher dividends.

ENBRIDGE INC. $57 is a buy. The company (Toronto symbol ENB; Income-Growth Payer Portfolio, Utilities sector; Shares o/s: 2.2 billion; Market cap: $125.4 billion; Dividend yield: 6.4%; Dividend Sustainability Rating: Highest; www.enbridge.com) operates pipelines that pump oil and natural gas from Western Canada eastward as well as to the U.S....

3 min read

Pat McKeough

Dividend Stocks

PepsiCo cuts its sales forecast

PEPSICO INC. $173 is a hold. The company (Nasdaq symbol PEP; Conservative-Growth Dividend Payer Portfolio, Consumer sector; Shares outstanding: 1.4 billion; Market cap: $242.2 billion; Dividend yield: 3.1%; Dividend Sustainability Rating: Above Average; www.pepsico.com) is the world’s second-largest soft-drink maker after Coca-Cola....

1 min read

Pat McKeough

Dividend Stocks

Fast-food giants ready for China rebound

China recently announced several new measures to stimulate its economy. That’s good news for McDonald’s and Starbucks, which continue to expand their presence in that country. Investors will also benefit from their long-term commitment to lifting their dividends.

MCDONALD’S CORP....

2 min read

Pat McKeough

Dividend Stocks

Strong renewals boost cash flow

RIOCAN REAL ESTATE INVESTMENT TRUST $20 is a buy. The REIT (Toronto symbol REI.UN; Cyclical-Growth Dividend Payer Portfolio, Manufacturing sector; Units outstanding: 300.5 million; Market cap: $6.0 billion; Distribution yield: 5.6%; Dividend Sustainability Rating: Above Average; www.riocan.com) owns all or part of 187 shopping centres and other properties across Canada, including eight under development....

1 min read

Pat McKeough

Dividend Stocks

Their lower payouts are more sustainable

These two green energy producers recently cut their dividends. We feel that was the right move, as it frees up cash for investments in new projects.

ALGONQUIN POWER & UTILITIES CORP. $6.96 is a buy for long-term gains. The company (Toronto symbol AQN; High-Growth Dividend Payer Portfolio, Utilities sector; Shares o/s: 767.0 million; Market cap: $5.3 billion; Dividend yield: 5.2%; Dividend Sustainability Rating: Average; www.algonquinpower.com) has agreed to sell most of its non-regulated renewable power assets to LS Power.

When it completes the transaction in late 2024 or early 2025, Algonquin will receive $2.28 billion (all amounts except share price and market cap in U.S....

2 min read

Pat McKeough

Dividend Stocks

A Yield to Caution

ISHARES CORE MSCI CANADIAN QUALITY DIVIDEND INDEX ETF $30.08 (Toronto symbol XDIV; Units o/s: 57.8 million; Market cap: $1.7 billion; Dividend yield: 4.5%; www.blackrock.com/ca) aims to invest in Canadian stocks with above-average dividend yields and steady or increasing dividends....

1 min read

Pat McKeough

Dividend Stocks

Intact: 19 years of rising dividends

Shares of property insurer Intact have more than doubled in the past five years and recently hit a new all-time high. That’s mainly due to savvy acquisitions that expanded Intact’s geographic reach.

The company now expects to pay out higher claims in 2024 as a result of severe weather events in Canada....

2 min read

Pat McKeough

Testimonials

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Chuck Chakrapani, PhD
Investors Association of Canada
The older I get the better dividends look. For retirees and would-be retirees who want to sleep at night, I can’t think of a better source of information on reliable growing dividend income than Pat McKeough’s newsletter, Dividend Advisor.

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Financial Post Columnist
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Subscriber since 1996. Inner Circle Member Since 2006
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Cannabis

Spinoffs

One of the ways a company can try to unlock its own hidden value is by creating a separate company out of a corporate subsidiary. The parent company can either sell stock in the new company to the public, or spin it off—hand the stock out to its own investors.

Dividend Stocks

Dividend stocks make cash payouts that serve as a way for companies to share the wealth they’ve accumulated. These payouts are drawn from earnings and cash flow and paid to the shareholders of the company. Typically, these dividends are paid quarterly, although they may be paid annually or even monthly as well.

ETFs

What are ETFs?

ETF is an acronym for exchange traded fund. These exchange traded funds are used to track indexes as closely as possible, since investors cannot actually buy an index outright.

Value Stocks

What are value stocks?

One of the sweetest and most profitable pleasures of successful investing is to buy high-quality “value stocks” (or stocks that are reasonably priced, if not cheap, in relation to its sales, earnings or assets), then hold on to them as mainstream investors recognize the value and push up the share price.

Blue Chip Stocks

Blue chip stocks are big, well-established, dividend-paying corporations with strong business prospects. These are companies that also have sound management that should be able to make the right moves to keep competing successfully in a changing marketplace.

Penny Stocks

A penny stock in general trades for under five dollars a share, and as the name implies, sometimes for pennies. Most of the time they’re young companies, or start-ups in speculative markets like mining or technology.

Growth Stocks

Growth stocks are companies that are likely to have sales and earnings growth well above market average. Frequently they pay few, if any, dividends. Instead they typically reinvest any extra cash flow to promote further growth. Chosen wisely—according to Pat McKeough’s advice—high-quality growth-oriented stocks can be worthwhile additions to most well-diversified portfolios.

Wealth Management

Wealth management is the practice of putting your savings to work so that it continues to grow over your lifetime and will also benefit your heirs. Wealth management encompasses many different areas of investing like long term investment planning and retirement planning.

Mining Stocks

Mining stocks are investments in companies that produce or explore for minerals. Some of these minerals include uranium, coal, molybdenum (which is used in steelmaking), copper, silver and gold. They are affected by fluctuating commodity prices in addition to their own business and operating risks.

How To Invest

Pat McKeough has been making investing for beginners simple—and profitable—by helping investors make big gains for more than 25 years. His advice to beginning investors is the same as it is for all investors: buy high-quality, mostly dividend paying stocks (or ETFs that hold these stocks) and evenly spread your investments over the five main economic sectors (Resources, Manufacturing, Finance, Utilities and Consumer). Pat also believes investors should avoid stocks in the broker/media limelight and focus on those with hidden or little-noticed assets.

Energy Stocks

What are energy stocks?

Businesses that work in the extraction, refining and delivery of energy sources such as natural gas, oil, uranium and coal, are considered energy stocks.