My main focus was on U.S. stocks, which is generally good because the American capitalism works fine but outside the US are also good stocks with a predictable business and stable growing dividends.
This week, I look at companies in Canada that have had a history of growing dividends, but more important have the capacity to continue to grow these dividends in the future.
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A key measure of this sustainability can be observed through the payout ratio, which is the ratio of dividends paid to either cash flows or earnings.
A company paying out too high of a percentage in dividends is likely unable to continue to do so in the future. Attached are 11 of my top picks from the results.
I hope you can find there some new ideas. Please share your thoughts about the results. Thank you.
Here are some of my results...
Suncor Energy -- Yield: 3.02%
Suncor Energy (TSE:SU) employs 13,980 people, generates revenue of $40,490.00 million and has a net income of $2,699.00 million. The current market capitalization stands at $53.63 billion.Suncor Energy’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $13,054.00 million. The EBITDA margin is 32.24% (the operating margin is 11.34% and the net profit margin 6.67%).
Financials: The total debt represents 16.73% of Suncor Energy assets and the total debt in relation to the equity amounts to 32.04%. Due to the financial situation, a return on equity of 6.52% was realized by Suncor Energy.
Twelve trailing months earnings per share reached a value of $1.83. Last fiscal year, Suncor Energy paid $1.02 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 20.31, the P/S ratio is 1.32 and the P/B ratio is finally 1.29. The dividend yield amounts to 3.02%.
Stock Charts:
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| Long-Term Stock Price Chart of Suncor Energy (SU) |
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| Long-Term Dividend Payment History of Suncor Energy (SU) |
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| Long-Term Dividend Yield History of Suncor Energy (SU) |
Agrium -- Yield: 2.79%
Agrium (TSE:AGU) employs 15,800 people, generates revenue of $20,026.83 million and has a net income of $996.22 million. The current market capitalization stands at $19.96 billion.Agrium’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $2,106.05 million. The EBITDA margin is 10.52% (the operating margin is 7.23% and the net profit margin 4.97%).
Financials: The total debt represents 29.79% of Agrium assets and the total debt in relation to the equity amounts to 76.30%. Due to the financial situation, a return on equity of 11.76% was realized by Agrium.
Twelve trailing months earnings per share reached a value of $6.83. Last fiscal year, Agrium paid $3.75 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 20.44, the P/S ratio is 1.00 and the P/B ratio is finally 2.41. The dividend yield amounts to 2.79%.
Stock Charts:
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| Long-Term Stock Price Chart of Agrium (AGU) |
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| Long-Term Dividend Payment History of Agrium (AGU) |
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| Long-Term Dividend Yield History of Agrium (AGU) |
Canadian Natural Resources -- Yield: 2.38%
Canadian Natural Resources (TSE:CNQ) employs 6,621 people, generates revenue of $16,145.00 million and has a net income of $2,270.00 million. The current market capitalization stands at $42.20 billion.Canadian Natural Resources’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $8,084.00 million. The EBITDA margin is 50.07% (the operating margin is 18.80% and the net profit margin 14.06%).
Financials: The total debt represents 18.67% of Canadian Natural Resources assets and the total debt in relation to the equity amounts to 37.49%. Due to the financial situation, a return on equity of 9.07% was realized by Canadian Natural Resources.
Twelve trailing months earnings per share reached a value of $2.86. Last fiscal year, Canadian Natural Resources paid $0.58 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 13.51, the P/S ratio is 2.61 and the P/B ratio is finally 1.63. The dividend yield amounts to 2.38%.
Stock Charts:
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| Long-Term Stock Price Chart of Canadian Natural Resources (CNQ) |
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| Long-Term Dividend Payment History of Canadian Natural Resources (CNQ) |
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| Long-Term Dividend Yield History of Canadian Natural Resources (CNQ) |
Home Capital Group -- Yield: 2.04%
Home Capital Group (TSE:HCG) employs 783 people, generates revenue of $909.63 million and has a net income of $313.17 million. The current market capitalization stands at $3.02 billion.Home Capital Group’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $566.49 million. The EBITDA margin is 95.55% (the operating margin is 70.42% and the net profit margin 52.82%).
Financials: The total debt represents 22.19% of Home Capital Group assets and the total debt in relation to the equity amounts to 307.57%. Due to the financial situation, a return on equity of 23.85% was realized by Home Capital Group.
Twelve trailing months earnings per share reached a value of $4.45. Last fiscal year, Home Capital Group paid $0.70 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 9.69, the P/S ratio is 5.09 and the P/B ratio is finally 2.08. The dividend yield amounts to 2.04%.
Stock Charts:
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| Long-Term Stock Price Chart of Home Capital Group (HCG) |
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| Long-Term Dividend Payment History of Home Capital Group (HCG) |
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| Long-Term Dividend Yield History of Home Capital Group (HCG) |
Cogeco Cable -- Yield: 1.93%
Cogeco Cable (TSE:CCA) employs 2,672 people, generates revenue of $1,947.59 million and has a net income of $209.44 million. The current market capitalization stands at $2.43 billion.Cogeco Cable’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $893.36 million. The EBITDA margin is 45.87% (the operating margin is 20.17% and the net profit margin 10.75%).
Financials: The total debt represents 52.54% of Cogeco Cable assets and the total debt in relation to the equity amounts to 180.24%. Due to the financial situation, a return on equity of 14.69% was realized by Cogeco Cable.
Twelve trailing months earnings per share reached a value of $4.40. Last fiscal year, Cogeco Cable paid $1.16 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 16.48, the P/S ratio is 1.25 and the P/B ratio is finally 2.36. The dividend yield amounts to 1.93%.
Stock Charts:
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| Long-Term Stock Price Chart of Cogeco Cable (CCA) |
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| Long-Term Dividend Payment History of Cogeco Cable (CCA) |
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| Long-Term Dividend Yield History of Cogeco Cable (CCA) |
CAE -- Yield: 1.90%
CAE (TSE:CAE) employs 7,000 people, generates revenue of $2,114.90 million and has a net income of $191.10 million. The current market capitalization stands at $3.89 billion.CAE’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $417.20 million. The EBITDA margin is 19.73% (the operating margin is 13.80% and the net profit margin 9.04%).
Financials: The total debt represents 27.58% of CAE assets and the total debt in relation to the equity amounts to 81.06%. Due to the financial situation, a return on equity of 14.87% was realized by CAE.
Twelve trailing months earnings per share reached a value of $0.75. Last fiscal year, CAE paid $0.22 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 19.75, the P/S ratio is 1.84 and the P/B ratio is finally 2.70. The dividend yield amounts to 1.90%.
Stock Charts:
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| Long-Term Stock Price Chart of CAE (CAE) |
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| Long-Term Dividend Payment History of CAE (CAE) |
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| Long-Term Dividend Yield History of CAE (CAE) |
ShawCor -- Yield: 1.68%
ShawCor (TSE:SCL) employs 5,846 people, generates revenue of $1,847.55 million and has a net income of $222.59 million. The current market capitalization stands at $2.31 billion.ShawCor’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $390.16 million. The EBITDA margin is 21.12% (the operating margin is 17.31% and the net profit margin 12.05%).
Financials: The total debt represents 23.86% of ShawCor assets and the total debt in relation to the equity amounts to 60.06%. Due to the financial situation, a return on equity of 26.73% was realized by ShawCor.
Twelve trailing months earnings per share reached a value of $2.27. Last fiscal year, ShawCor paid $0.10 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 15.80, the P/S ratio is 1.25 and the P/B ratio is finally 3.27. The dividend yield amounts to 1.68%.
Stock Charts:
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| Long-Term Stock Price Chart of ShawCor (SCL) |
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| Long-Term Dividend Payment History of ShawCor (SCL) |
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| Long-Term Dividend Yield History of ShawCor (SCL) |
Canadian National Railway -- Yield: 1.45%
Canadian National Railway (TSE:CNR) employs 25,530 people, generates revenue of $12,134.00 million and has a net income of $3,167.00 million. The current market capitalization stands at $69.73 billion.Canadian National Railway’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $5,674.00 million. The EBITDA margin is 46.76% (the operating margin is 38.11% and the net profit margin 26.10%).
Financials: The total debt represents 26.45% of Canadian National Railway assets and the total debt in relation to the equity amounts to 62.43%. Due to the financial situation, a return on equity of 23.97% was realized by Canadian National Railway.
Twelve trailing months earnings per share reached a value of $3.85. Last fiscal year, Canadian National Railway paid $1.00 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 22.45, the P/S ratio is 5.75 and the P/B ratio is finally 5.19. The dividend yield amounts to 1.45%.
Stock Charts:
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| Long-Term Stock Price Chart of Canadian National Railway (CNR) |
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| Long-Term Dividend Payment History of Canadian National Railway (CNR) |
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| Long-Term Dividend Yield History of Canadian National Railway (CNR) |
Metro -- Yield: 1.34%
Metro (TSE:MRU) employs 65,000 people, generates revenue of $11,590.40 million and has a net income of $456.20 million. The current market capitalization stands at $8.80 billion.Metro’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $795.40 million. The EBITDA margin is 6.86% (the operating margin is 5.23% and the net profit margin 3.94%).
Financials: The total debt represents 20.05% of Metro assets and the total debt in relation to the equity amounts to 39.67%. Due to the financial situation, a return on equity of 16.36% was realized by Metro.
Twelve trailing months earnings per share reached a value of $1.77. Last fiscal year, Metro paid $1.00 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 19.72, the P/S ratio is 0.76 and the P/B ratio is finally 3.32. The dividend yield amounts to 1.34%.
Stock Charts:
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| Long-Term Stock Price Chart of Metro (MRU) |
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| Long-Term Dividend Payment History of Metro (MRU) |
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| Long-Term Dividend Yield History of Metro (MRU) |
Stella-Jones -- Yield: 0.74%
Stella-Jones (TSE:SJ) employs 1,525 people, generates revenue of $970.15 million and has a net income of $92.54 million. The current market capitalization stands at $2.59 billion.Stella-Jones’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $156.49 million. The EBITDA margin is 16.13% (the operating margin is 14.30% and the net profit margin 9.54%).
Financials: The total debt represents 34.79% of Stella-Jones assets and the total debt in relation to the equity amounts to 65.17%. Due to the financial situation, a return on equity of 17.78% was realized by Stella-Jones.
Twelve trailing months earnings per share reached a value of $1.46. Last fiscal year, Stella-Jones paid $0.19 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 25.85, the P/S ratio is 2.67 and the P/B ratio is finally 4.52. The dividend yield amounts to 0.74%.
Stock Charts:
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| Long-Term Stock Price Chart of Stella-Jones (SJ) |
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| Long-Term Dividend Payment History of Stella-Jones (SJ) |
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| Long-Term Dividend Yield History of Stella-Jones (SJ) |
Linamar -- Yield: 0.54%
Linamar (TSE:LNR) employs 19,000 people, generates revenue of $3,595.49 million and has a net income of $229.79 million. The current market capitalization stands at $4.84 billion.Linamar’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $540.31 million. The EBITDA margin is 15.03% (the operating margin is 8.90% and the net profit margin 6.39%).
Financials: The total debt represents 20.68% of Linamar assets and the total debt in relation to the equity amounts to 40.20%. Due to the financial situation, a return on equity of 19.13% was realized by Linamar.
Twelve trailing months earnings per share reached a value of $4.86. Last fiscal year, Linamar paid $0.32 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 15.28, the P/S ratio is 1.35 and the P/B ratio is finally 3.56. The dividend yield amounts to 0.54%.
Stock Charts:
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| Long-Term Stock Price Chart of Linamar (LNR) |
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| Long-Term Dividend Payment History of Linamar (LNR) |
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| Long-Term Dividend Yield History of Linamar (LNR) |
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