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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Long-time readers know that we aim to keep you informed of important news about the stocks we cover. That means highlighting developments and plans that promise to bolster investor gains. Here are two buys that stand out this month:
ALTAGAS LTD., $30.45, is a buy. The utility (Toronto… Read More
Many traditional bricks-and-mortar retailers continue to struggle against the pandemic-spurred onslaught of online shopping and the impact of inflation on consumer spending. Still, we believe the unique markets of both TJX and North West offer you the possibility of strong gains ahead.
THE TJX COMPANIES, $110.26, (New… Read More
GREAT-WEST LIFECO INC. $40 (www.greatwestlifeco.com) is a hold. The insurer earned $1.09 a share (or a total of $1.01 billion) in the first quarter of 2024, up 22.5% from $0.89 a share (or $826 million) a year earlier. That’s largely due to its $575 million purchase of wealth… Read More
TC ENERGY CORP. $54 is a buy. The company (Toronto symbol TRP; Conservative Growth and Income Portfolios, Utilities sector; Shares outstanding: 1.03 billion; Market cap: $55.6 billion; Price-to-sales ratio: 3.4; Dividend yield: 7.1%; TSINetwork Rating: Above Average; www.tcenergy.com) has seen its shares rise 18% since it indicated in… Read More
High-yielding power utility stocks like Emera have struggled in the past few years, as rising interest rates increased the costs of new projects and raised their interest payments.
However, Emera stands to gain now that the Bank of Canada has begun cutting its benchmark interest rate… Read More
TC ENERGY INC., $54.50, is a buy. The company (Toronto symbol TRP; Shares o/s: 1.0 billion; Market cap: $56.5 billion; TSINetwork Rating: Above Average; Dividend yield: 7.1%; www.tcenergy.com) has set the terms for the upcoming spinoff of its oil pipeline business (called South Bow Corp.): investors will receive… Read More
ENBRIDGE, $49.68, is a buy. The firm (Toronto symbol ENB; Shares outstanding: 2.1 billion; Market cap: $105.6 billion; TSINetwork Rating: Above Average; Dividend yeld: 7.4%; www.enbridge.com) is moving ahead with its plan to upgrade and encase the part of its Line 5 pipeline that crosses the Straits of… Read More
PEMBINA PIPELINE, $50.21, is a buy. The company (Toronto symbol PPL; Shares o/s: 579.5 million; Market cap: $29.1 billion; TSINetwork Rating: Average; Dividend yield: 5.5%; www.pembina.com) has entered into an agreement with ARC Resources (see page 44) for that producer to deliver about 200 million cubic feet per day of natural… Read More
BROOKFIELD RENEWABLE PARTNERS L.P., $38.25, is a buy. The partnership (Toronto symbol BEP.UN; Units outstanding: 646.0 million; Market cap: $25.5 billion; TSINetwork Rating: Extra Risk; Dividend yield: 4.8%; www.bep.brookfield.com) has now agreed to provide Microsoft Corp. with more than 10.5 gigawatts of new renewable energy capacity in the U.S…. Read More
While higher interest rates have increased the appeal of bonds and hurt REITs in the past year, Choice Properties and RioCan remain excellent ways for investors to earn income. We see both as buys.
CHOICE PROPERTIES REIT, $12.95, is a buy. Canada’s biggest REIT (Toronto symbol CHP.UN; Units o/s:… Read More
AT&T INC. $17 (www.att.com) is a buy. In the quarter ended March 31, 2024, the telecom giant added 389,000 new cellphone subscribers under long-term contracts (net of cancellations). However, lower sales of new equipment cut revenue in the quarter by 0.4%, to $30.03 billion from $30.14 billion a.. Read More
These two utilities stocks are down this past year, as high interest rates hurt investors’ demand for high-yielding dividend stocks. While both stand to gain as it looks like rates will come down later this year, we feel Alliant is the better choice for your… Read More
STANTEC INC. $108 is a buy. This engineering firm (Toronto symbol STN; Cyclical-Growth Payer Portfolio, Manufacturing sector; Shares outstanding: 114.1 million; Market cap: $12.3 billion; Dividend yield: 0.8%; 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,… Read More
Finning mainly serves businesses in the cyclical mining and construction industries, so its earnings tend to move up and down with the overall economy. Even so, the company’s strong focus on productivity has let it increase your dividend each year for the past 23 years.
FINNING… Read More
ARCHER DANIELS MIDLAND CO. $60 is a hold. The company (New York symbol ADM; High-Growth Payer Portfolio, Manufacturing sector; Shares outstanding: 494.4 million; Market cap: $29.7 billion; Dividend yield: 3.3%; Dividend Sustainability Rating: Above Average; www.adm.com) processes corn, wheat, soybeans, flax seed and other crops into a variety of… Read More
FORTIS INC. $53 is a buy. The company (Toronto symbol FTS; Income-Growth Portfolio, Utilities sector; Shares outstanding: 493.0 million; Market cap: $26.1 billion; Dividend yield: 4.5%; Dividend Sustainability Rating: Highest; www.fortisinc.com) is the main supplier of electrical power in Newfoundland and PEI. It also owns electrical and gas utilities… Read More
RTX CORP. $105 is still a buy. The company (New York symbol RTX; Conservative-Growth Payer Portfolio; Manufacturing sector; Shares outstanding: 1.5 billion; Market cap: $157.5 billion; Dividend yield: 2.4%; Dividend Sustainability Rating: Above Average; www.rtx.com) is a leading maker of commercial aircraft equipment, electronic systems for military aircraft, and guided… Read More
These two tech giants are hitting new highs thanks to investor enthusiasm for artificial intelligence and other emerging technologies. That should spur their earnings, and your dividends.
MICROSOFT CORP. $429 is a buy. The software giant (Nasdaq symbol MSFT; High-Growth Dividend Payer Portfolio; Manufacturing sector; Shares outstanding: 7.4… Read More
These two foodmakers recently acquired smaller firms with premium brands. While expanding by acquisition adds risk, the new operations should support their current dividend payouts.
CAMPBELL SOUP CO. $43 is a buy. The company (New York symbol CPB; Conservative-Growth Payer Portfolio, Consumer sector; Shares outstanding: 298.1 million; Market… Read More
SUN LIFE FINANCIAL INC. $67 is a buy. The insurer (Toronto symbol SLF; Conservative-Growth Dividend Payer Portfolio, Finance sector; Shares outstanding: 583.0 million; Market cap: $39.1 billion; Dividend yield: 4.8%; Dividend Sustainability Rating: Above Average; www.sunlife.ca) will raise your quarterly dividend with the June 2024 payment by 3.8%, to… Read More
