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.
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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Increased government spending on public infrastructure projects should spur demand for construction equipment and related services from these two dealers. That should also let them keep raising their dividends.
FINNING INTERNATIONAL INC. $42 is a buy. The company (Toronto symbol FTT; Cyclical-Growth Payer Portfolio, Manufacturing & Industry sector;… Read More
TC ENERGY CORP. $65 is a buy. The company (Toronto symbol TRP; Income-Growth Payer Portfolio, Utilities sector; Shares outstanding: 1.0 billion; Market cap: $65.0 billion; Dividend yield: 5.9%; Dividend Sustainability Rating: Highest; www.tcenergy.com) will complete the spinoff of its oil pipeline business as separate company South Bow Corp. on… Read More
THOMSON REUTERS CORP. $233 is a buy. The company (Toronto symbol TRI; Conservative-Growth Dividend Payer Portfolio, Manufacturing Sector; Shares outstanding: 449.7 million; Market cap: $104.8 billion; Dividend yield: 1.2%; Dividend Sustainability Rating: Highest; www.thomsonreuters.com) sells specialized information and software to the legal, tax and accounting fields. It also owns… Read More
These two leading packaged foodmakers continue to sell parts of their product portfolios in response to changing consumer tastes. These moves should spur their long-term growth and dividends. Note—we prefer Kraft Heinz for your new buying.
GENERAL MILLS INC. $74 is a hold. The company (New York symbol… Read More
These two insurers have a bright future, particularly as population growth will drive demand for new policies and retirement planning services. For now, we prefer Sun Life as Great-West’s recent acquisitions add to its risk.
GREAT-WEST LIFECO INC. $46 is a hold. The company (Toronto symbol GWO; Conservative… Read More
The Bank of Canada has cut its benchmark interest rate three times since June, from 5.00% to 4.25%. Lower rates are good news for these two REITs, as they make it easier to attract new tenants and service their debt.
ALLIED PROPERTIES REAL ESTATE INVESTMENT TRUST… Read More
CHOICE PROPERTIES REIT $15 is a top pick for 2024. Canada’s biggest REIT (Toronto symbol CHP.UN; Cyclical-Growth Payer Portfolio; Manufacturing & Industry sector; Units outstanding: 723.6 million; Market cap: $10.9 billion; Distribution yield: 5.1%; Dividend Sustainability Rating: Above Average; www.choicereit.ca) owns 702 properties, with 65.9 million square feet of… Read More
We see IBM as a great way for investors to successfully tap the fast-growing artificial intelligence (AI) field. This legacy tech firm was in fact an early pioneer in AI. In 2011, and representing an AI milestone, IBM’s Watson supercomputer beat human contestants on the… Read More
CANOE EIT INCOME FUND $14.42 (Toronto symbol EIT.UN; Units o/s: 178.8 million; Market cap: $2.6 billion; Divd. yield: 8.3%; www.canoefinancial.com) is a closed-end fund that invests in a portfolio of dividend paying stocks. U.S. stocks account for 49.2% of its holdings, followed by Canadian at 47.5%.
Canoe pays… Read More
Investors crave cash dividends. At the same time, even some successful investors dismiss the value of stock buybacks. Still, in many ways, buybacks (or share repurchases) are almost as good as dividends.
Stock buybacks have three major advantages: First, stock buybacks raise earnings per share. To… Read More
AT&T INC. $22 is a buy. The company (New York symbol T; Income Portfolio, Utilities sector; Shares outstanding: 7.1 billion; Market cap: $156.2 billion; Price-to-sales ratio: 1.3; Dividend yield: 5.0%; TSINetwork Rating: Average; www.att.com) is the largest wireless (cellphone) carrier in the U.S., with 115.4 million subscribers (excluding… Read More
You should remain wary of stocks that attract broker/media attention because of high-profile products or services, and their business models. Here’s a closer look at one stock with risks that prospective investors should take into consideration:
AUTOMOTIVE PROPERTIES REIT, $11.99, (Toronto symbol APR.UT; TSINetwork Rating: Extra Risk) (automotivepropertiesreit.ca;… Read More
Extendicare sold off its retirement living operations in 2022, and its current focus on long-term care homes and home health care has paid off. The stock has now regained all the ground it lost after the onset of the pandemic—we think it can go higher… Read More
Enbridge is now in the process of buying three U.S. natural gas utilities. While big purchases like these add risk, rate-regulated businesses generate predictable cash flows, which the company can then use to pay down the loans it took out to fund the deals. Moreover,… Read More
Our favourite telecom stocks—BCE and Telus—have rebounded from their recent lows. That’s mainly because the Bank of Canada has cut its benchmark interest rate three times since June, from 5.00% to 4.25%.
Lower interest rates help boost the appeal of high dividend-paying stocks compared to bonds… Read More
Bank of Nova Scotia and insurer Great-West are leading competitors in their respective markets; look for that to cut your ongoing risk. Still, for now, we see Great-West as a hold, while Bank of Nova Scotia remains a buy.
BANK OF NOVA SCOTIA, $68.69, is a.. Read More
TELUS, $22.46, is a buy. The company (Toronto symbol T; Shares outstanding: 1.5 billion; Market cap: $33.5 billion; TSINetwork Rating: Above Average; Dividend yield: 6.7%; www.telus.com) increased your quarterly dividend by 3.5% with the July 2024 payment. The shares now yield 6.7%. Moreover, the company plans to raise the… Read More
TC ENERGY INC., $62.90, is a buy. The company (Toronto symbol TRP; Shares outstanding: 1.0 billion; Market cap: $65.3 billion; TSINetwork Rating: Above Average; Dividend yield: 6.1%; tcenergy.com) generates steady cash flow for investors mainly through a 93,600-kilometre pipeline network. Its other operations include 4,900 kilometres of crude… Read More
The last couple of years, higher interest rates have increased the appeal of bonds and hurt REITs. Still, Choice Properties and RioCan remain excellent ways for investors to earn income, especially with rates now falling. We see both as buys.
CHOICE PROPERTIES REIT, $14.92, is a buy. Canada’s… Read More
TD BANK, $79.94, is a #1 Buy for 2024. The lender (Toronto symbol TD; Shares o/s: 1.7 billion; Market cap: $139.7 billion; TSINetwork Rating: Above Average; Dividend yield: 5.1%; www.td.com) set aside $3.57 billion (or $2.6 billion U.S.) in the quarter ended July 31, 2024, for fines it expects… Read More
