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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Dividend investors tend to avoid small cap stocks over concerns that they are riskier than bigger firms. However, you can cut than risk with high-quality firms such as Leon’s and Russel. Both are leaders in their markets.
LEON’S FURNITURE LTD. $22 is a buy. The retailer (Toronto symbol… Read More
ALGONQUIN POWER & UTILITIES CORP. $8.57 is a buy for long-term gains. The company (Toronto symbol AQN; High-Growth Dividend Payer Portfolio, Utilities sector; Shares o/s: 689.6 million; Market cap: $5.4 billion; Dividend yield: 6.9%; Dividend Sustainability Rating: Average; www.algonquinpower.com) cut your quarterly dividend by 40.0% with the April 2023… Read More
The work continues for these two REITs as they unload their less-promising properties to focus on their main assets. That sets them up for future gains and lets them maintain their current payouts.
ALLIED PROPERTIES REAL ESTATE INVESTMENT TRUST $17 is a buy. The REIT (Toronto symbol AP.UN;… Read More
BROMPTON LIFECO SPLIT CORP. $6.76 (Toronto symbol LCS; Shares outstanding: 6.1 million; Market cap: $41.2 million; Dividend yield: 12.9%; www.bromptongroup.com) holds shares of Canada’s four largest publicly listed life insurance companies.
These are Sun Life Financial, Manulife Financial, Great-West Lifeco and iA Financial. The company holds the four… Read More
Canadian Tire’s class A shares are down about 6% since the start of 2024. That’s mainly due to concerns still-elevated interest rates and higher prices force consumers to spend less on discretionary items.
However, the retailer is doing a good job managing its inventories. That cuts… Read More
BANK OF MONTREAL $128 (www.bmo.com) is a buy. The bank raised your quarterly dividend with the January 2024 payment by 2.7%, to $1.51 a share from $1.47. The new annual rate of $6.04 yields a high 4.7%. Bank of Montreal aims to pay out between 40% and 50%… Read More
Demand for electrical power in Canada continues to rise due to several factors. Those include an expanding population and the shift to electric-powered cars. Moreover, the construction of new datacentres to handle power-intense artificial intelligence will also spur electricity demand.
A good way for investors to… Read More
ALLIED PROPERTIES REAL ESTATE INVESTMENT TRUST, $16.91, is a buy. The REIT (Toronto symbol AP.UN; Units outstanding: 128.0 million; Market cap: $2.4 billion; TSINetwork Rating: Average; Dividend yield: 10.6%; www.alliedreit.com) owns 201 office buildings and nine properties under development, mainly in major Canadian cities. Its occupancy rate is… Read More
POWER CORP., $36.86, is a buy. The conglomerate (Toronto symbol POW; Shares o/s: 600.8 million; Market cap: $24.3 billion; Rating: Above Average; Yield: 6.1%) has several primary investments, including controlling stakes in Canadian financial services firms Great-West Lifeco (insurance) and IGM Financial (mutual funds). It also owns 15.5% of… Read More
TC ENERGY INC., $49.15, is a buy. The company (Toronto symbol TRP; Shares o/s: 1.0 billion; Market cap: $49.2 billion; TSINetwork Rating: Above Average; Dividend yield: 7.8%; www.tcenergy.com) has agreed to sell its stake in Prince Rupert Gas Transmission Holdings Ltd., which is planning to build a 900-kilometre… Read More
ENBRIDGE, $48.99, is a buy. The firm (Toronto symbol ENB; Shares o/s: 2.1 billion; Market cap: $104.1 billion; TSINetwork Rating: Above Average; Yield: 7.5%; www.enbridge.com) continues to expand its renewable power operations as it aims to cut its greenhouse gas emissions to “net zero” by 2050. Green energy… Read More
BANK OF NOVA SCOTIA, $63.68, is a buy. The lender (Toronto symbol BNS; Shares outstanding: 1.2 billion; Market cap: $77.8 billion; TSINetwork Rating: Above Average; Divd. yield: 6.7%; www.scotiabank.com) recently announced that it was shifting its business away from under-performing Latin American markets (Mexico, Peru, Colombia… Read More
CISCO SYSTEMS INC. $48 is a buy. The company (Nasdaq symbol CSCO; High-Growth Dividend Payer Portfolio, Manufacturing sector; Shares outstanding: 4.1 billion; Market cap: $196.8 billion; Dividend yield: 3.3%; Dividend Sustainability Rating: Above Average; www.cisco.com) makes hardware and software to link and manage computer networks.
With the April 2024 payment,… Read More
High-yielding utility stocks like Telus have suffered in the past few months as investors shift to bonds. High interest rates are also adding to their debt servicing costs. However, rates will probably come down in the next few months. As well, Telus’s improving cash flow… Read More
TRAVEL + LEISURE CO. $46 is a buy. The company (New York symbol TNL; Cyclical-Growth Payer Portfolio, Consumer sector; Shares outstanding: 71.0 million; Market cap: $3.3 billion; Dividend yield: 4.3%; Dividend Sustainability Rating: Average; www.travelandleisureco.com) is now the world’s largest vacation-ownership and exchange company with more than 245 timeshare… Read More
T. ROWE PRICE GROUP INC. $111 is a buy. The asset manager (Nasdaq symbol TROW; High-Growth Dividend Payer Portfolio, Finance sector; Shares outstanding: 223.7 million; Market cap: $24.8 billion; Dividend yield: 4.5%; Dividend Sustainability Rating: Above Average; www.troweprice.com) provides financial advice and products to individuals and institutions worldwide.
T. Rowe… Read More
CANADIAN NATIONAL RAILWAY CO. $168 is a buy. Canada’s largest railway (Toronto symbol CNR; Conservative-Growth Payer Portfolio, Manufacturing & Industry sector; Shares outstanding: 637.6 million; Market cap: $107.1 billion; Dividend yield: 2.0%; Dividend Sustainability Rating: Highest; www.cn.ca) raised your quarterly dividend by 7.0% with the March 2024 payment. The… Read More
Dividend-seeking investors tend to shy away from small-cap stocks as they feel their payments are less secure than large cap firms. However, these two small caps dominate their niche markets, which offsets your risk.
CALIAN GROUP LTD. $55 is a buy. The company (Toronto symbol CGY; High-Growth Dividend… Read More
PROCTER & GAMBLE CO. $163 is a buy. The stock (New York symbol PG; Income-Growth Portfolio, Consumer sector; Shares outstanding: 2.4 billion; Market cap: $391.2 billion; Dividend yield: 2.5%; Dividend Sustainability Rating: Highest; www.pg.com) is one of the world’s largest makers of household and personal-care goods.
With the May 2024… Read More
These two U.S. beverage-related stocks are taking steps to improve their long-term sales. We still like the outlook for both, as these actions should let them keep raising your dividends. However, we feel Starbucks, with its strong customer loyalty and international growth plans, is less… Read More
