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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ENBRIDGE INC. $49 is a buy. The company (Toronto symbol ENB; Conservative Growth and Income Portfolios, Utilities sector; Shares outstanding: 2.0 billion; Market cap: $98.0 billion; Price-to-sales ratio: 2.4; Dividend yield: 7.5%; TSINetwork Rating: Above Average; www.enbridge.com) operates pipelines that pump oil and natural gas from Western Canada… Read More
GREAT-WEST LIFECO, $39.95 (Toronto symbol GWO; shares outstanding: 932.4 million; Market cap: $37.3 billion; TSINetwork Rating: Above Average; Dividend yield: 5.6%; www.greatwestlifeco.com) is Canada’s second-largest life insurer, after Manulife Financial. It also offers pension and wealth management services. Power Corp. (Toronto symbol POW) owns 68.2% of the… Read More
ENBRIDGE, $48.83, is a buy. The firm (Toronto symbol ENB; Shares o/s: 2.1 billion; Market cap: $103.8 billion; TSINetwork Rating: Above Average; Dividend yield: 7.5%; www.enbridge.com) operates pipelines that pump oil and natural gas from Western Canada to eastern Canada and the U.S. It also distributes gas to… Read More
With their clean, renewable power, these two companies have strong conceptual appeal for investors. But just as important is their mix of hydroelectric, wind and solar power. That diversity, along with their long-term contracts, provides stable cash flows. It also lets these utility firms continue… Read More
BCE INC., $42.83, is a buy. The company (Toronto symbol BCE; Shares o/s: 912.3 million; Market cap: $39.1 billion; TSINetwork Rating: Above Average; Dividend yield: 9.3%) currently owns The Source retail chain, which sells consumer electronics through 272 retail stores.
Under a new partnership with electronics retailer Best Buy,… Read More
PRIMARIS REIT, $13.34, is a buy. The trust (Toronto symbol PMZ.UN; Units outstanding: 96.3 million; Market cap: $1.3 billion; TSINetwork Rating: Average; Yield: 6.3%; www.primarisreit.com) owns 39 enclosed and open air shopping malls in Canada totalling 12.5 million square feet. The occupancy rate is 92.4%.
Primaris’s properties include its… Read More
These two REITs own some of the best properties in Canada’s biggest cities. Despite the disruptions caused by the work from home and online shopping trends, those high-quality holdings should continue to attract tenants.
ALLIED PROPERTIES REAL ESTATE INVESTMENT TRUST, $15.66, is a buy. The REIT (Toronto symbol… Read More
ROYAL BANK OF CANADA $145 is a buy. The bank (Toronto symbol RY; Income-Growth Payer Portfolios, Finance sector; Shares outstanding: 1.4 billion; Market cap: $203.0 billion; Dividend yield: 3.9%; Dividend Sustainability Rating: Highest; www.rbc.com) is Canada’s largest chartered bank by market cap. It’s also one of the world’s top… Read More
Partly due to pressure from an activist investor, Suncor recently shifted its focus to its main oil sands properties in Alberta. The company is also cutting its costs, which will free up more cash to reward investors with higher dividends and share buybacks.
SUNCOR ENERGY INC… Read More
ALTAGAS LTD. $30 is a buy. The company (Toronto symbol ALA; High-Growth Dividend Payer Portfolio; Utilities sector; Shares outstanding: 295.3 million; Market cap: $8.9 billion; Dividend yield: 4.0%; Dividend Sustainability Rating: Above Average; www.altagas.ca) last raised your quarterly dividend by 6.3%, with the March 2024 payment to $0.2975 a.. Read More
PEMBINA PIPELINE CORP. $50 is a buy. The company (Toronto symbol PPL; High-Growth Dividend Payer Portfolio; Utilities sector; Shares outstanding: 579.5 million; Market cap: $29.0 billion; Dividend yield: 5.5%; Dividend Sustainability Rating: Above Average; www.pembina.com) operates pipelines that carry half of Alberta’s conventional oil and almost all of B.C.’s… Read More
INTACT FINANCIAL CORP. $227 is a buy. The company (Toronto symbol IFC; High-Growth Dividend Payer Portfolio, Finance sector; Shares outstanding: 178.4 million; Market cap: $40.5 billion; Dividend yield: 1.9%; Dividend Sustainability Rating: Above Average; www.intactfc.com) is Canada’s largest property and casualty insurance provider.
With the March 2024 payment, the company… Read More
These two beverage makers continue to raise their dividends. However, their shares will likely remain in a narrow range as they cope with changing consumer tastes and increasingly strong competition.
MOLSON COORS CANADA INC. is a hold. The brewer (Toronto symbols TPX.A $69 and TPX.B $69; Conservative Growth… Read More
These two subsidiaries of Power Corp. are re-focusing on their main businesses. That should appeal to investors, who tend to prefer pure-play companies. Even so, we feel IGM is the better buy right now.
GREAT-WEST LIFECO INC. $39 is a hold. The company (Toronto symbol GWO; Conservative Growth… Read More
KRAFT HEINZ CO. $32 is a buy. The company (Nasdaq symbol KHC, Conservative-Growth Dividend Payer Portfolio; Consumer sector; Shares o/s: 1.2 billion; Market cap: $38.4 billion; Dividend yield: 5.0%; Dividend Sustainability Rating: Average; www.kraftheinzcompany.com) is a leading producer of processed foods. Top brands include Velveeta and Philadelphia cheese products,… Read More
High interest rates and inflation are prompting more drivers to hang on their current cars instead of buying new ones. That’s good new for these two firms, which cater to the car repair market. However, we still prefer Genuine Parts, as higher interest rates increase… Read More
DREAM OFFICE REAL ESTATE INVESTMENT TRUST $18 is a buy. The REIT (Toronto symbol D.UN; Cyclical-Growth Dividend Payer Portfolio; Manufacturing sector; Units outstanding: 19.4 million; Market cap: $349.2 million; Dividend yield: 5.6%; Dividend Sustainability Rating: Average; www.dream.ca) owns 28 office properties, including two under development. The downtown Toronto market… Read More
Despite Innergex’s recent dividend cut, the move gives the company more room to invest in new projects that should lead to higher dividends in the next few years. Brookfield’s new deal with Microsoft will also let it keep raising its distributions.
INNERGEX RENEWABLE ENERGY INC. $10… Read More
REALTYMOGUL APARTMENT GROWTH REIT is a private REIT (more on those below) with around $263 million in assets. The company pays quarterly distributions that yield a high 4.5%. The REIT has a 1.25% management fee.
RealtyMogul invests in apartment buildings; it currently owns nine properties in seven… Read More
We often remind investors that a high yield may be a warning sign that all is not well with the company and its future dividend payments are at risk.
After Enbridge’s recent dividend increase, the stock now yields a high 7.6%. Even so, that yield looks… Read More
