“You have a pair of pants. In the left pocket, you have $100. You take $1 out of the left pocket and put in the right pocket. You now have $101. There is no diminution of dollars in your left pocket. That is one magic pair of pants.”

Month: March 2022

MP Market Review – March 25, 2022

Last updated by BM on March 28, 2022

“Risk comes from not knowing what you are doing.” – Warren Buffett

You could almost quote Warren Buffett every week. Buffett has been the source of so many valuable insights into investing during his lifetime that you can never go wrong reading anything he writes. It seems there is always some tidbit of wisdom no matter what the market is doing.

While others may see the current market as ‘risky’, we do not. We embrace these types of markets because it gives us more opportunities to execute our process. Our DGI strategy has built-in risk-reduction. Risk for us is more about what is in our portfolio and what we paid for it. Both of which we do well.

Dividend growth investing, although not without short-term price volatility, is inherently one of the best risk mitigation strategies you will find.

Performance of ‘The List’

‘The List’ metrics were the same as last week with a 2.0% YTD price return (capital) and dividend growth stabilizing at an average increase of 9.1% in income so far in fiscal 2022.

The best performers last week on ‘The List’ were TC Energy (TRP-T) up 5.2%; Canadian National Railway (CNR-T) up 3.2%; and Enbridge (ENB-T) up 2.4%.

CCL Industries (CCL-B-T) was the worst performer lasts week, down -4.7%.

There were no companies on ‘The List’ that announced an earnings release.

Recent News

The biggest news in Canada last week was the power-sharing deal announced between the Liberals and NDP. A political deal that will see the New Democratic Party prop up the minority Liberals until the next election.

In it, the Liberals appear more committed than ever to begin impacting the profits and earnings of some of Canada’s largest industries (Banks, REITs and Pharmacies to begin). The Banks will more than likely receive a surtax on profits over a certain amount and REITs, although details are not out yet, may not receive as favorable tax treatment as they do now. The national Pharmacare initiative, trumpeted by the NDP, could see pharmacies lose some of their earnings to the new program.

Last August, the Canadian Bankers Association criticized the Liberal plan for singling out financial services.

“The proposed tax increase would reduce income that would otherwise benefit the majority of Canadians who are bank shareholders, either directly through share ownership or indirectly through pension and mutual funds, including the Canada Pension Plan,” the group said in a statement at the time, adding that pension funds and RRSPs are some of the main beneficiaries of the billions of dollars that the banks pay in dividends each year.

Canadians own shares and receive dividends in pharmacies and REITs as well. We are never shocked when we hear about politicians screaming ‘tax the rich’ to get reelected or stay in power. It is a narrative we hear often today with very little substance to prove it even works in practice. Nonetheless, it is a short-term narrative that we will monitor closely for any opportunities within our portfolios.

One company on ‘The List’ is due to report earnings this week:

Dollarama Inc. (DOL-T) is scheduled to report earnings for Q4 and Fiscal Year 2022 before the market opens Wednesday, Mar. 30.

Dividend Increases

There were no dividend increases from companies on ‘The List’ this past week.

Earnings Releases

There were no earnings releases to report on this past week.

Below is a snapshot of ‘The List’ from last Friday’s close. For a sortable version of ‘The List’ please click on The List menu item.

‘The List’ is not meant to be a template for investors to copy exactly. Rather, its purpose is to provide investment ideas and a real-time illustration of dividend growth investing in action. It is not a ‘Buy List’ nor does it reflect the composition or returns of our Magic Pants Wealth-Builder CDN Portfolio. It is only a starting point for our analysis and discussion.

The List (2022)
Last updated by BM on March 25, 2022

*Note: The following graph is wide, you can scroll to the right on your device to see more of the data.

SYMBOL COMPANY YLD PRICE YTD % DIV YTD % STREAK
AQN-N Algonquin Power & Utilities 4.4% $15.45 7.7% $0.68 2.3% 11
ATD-T Alimentation Couche-Tard Inc. 0.8% $54.30 4.2% $0.44 18.1% 12
BCE-T Bell Canada 5.4% $67.92 3.0% $3.68 5.1% 13
BIP-N Brookfield Infrastructure Partners 3.4% $64.06 4.9% $2.16 5.9% 14
CCL-B-T CCL Industries 1.7% $56.08 -17.3% $0.96 14.3% 20
CNR-T Canadian National Railway 1.7% $169.73 9.6% $2.93 19.1% 26
CTC-A-T Canadian Tire 2.8% $186.41 1.8% $5.20 10.6% 11
CU-T Canadian Utilities Limited 4.7% $37.42 2.2% $1.78 1.0% 50
DOL-T Dollarama Inc. 0.3% $67.53 6.5% $0.20 1.7% 11
EMA-T Emera 4.4% $60.51 -3.3% $2.65 2.9% 15
ENB-T Enbridge Inc. 6.0% $57.79 16.7% $3.44 3.0% 26
ENGH-T Enghouse Systems Limited 1.8% $39.71 -13.4% $0.72 16.3% 15
FNV-N Franco Nevada 0.8% $158.09 16.2% $1.28 10.3% 14
FTS-T Fortis 3.5% $60.33 -0.2% $2.14 4.4% 48
IFC-T Intact Financial 2.2% $184.94 13.0% $4.00 17.6% 17
L-T Loblaws 1.3% $109.47 6.6% $1.46 6.6% 10
MGA-N Magna 2.8% $63.56 -22.1% $1.80 4.7% 12
MRU-T Metro 1.6% $70.32 4.9% $1.10 10.0% 27
RY-T Royal Bank of Canada 3.4% $141.28 3.2% $4.80 11.1% 11
SJ-T Stella-Jones Inc. 2.1% $37.95 -6.7% $0.80 11.1% 17
STN-T Stantec Inc. 1.1% $63.00 -10.2% $0.71 6.8% 10
TD-T TD Bank 3.5% $101.81 2.5% $3.56 12.7% 11
TFII-T TFI International 1.0% $131.43 -6.2% $1.36 17.4% 11
TIH-T Toromont Industries 1.3% $114.58 0.8% $1.52 15.2% 32
TRP-T TC Energy Corp. 4.9% $72.37 21.2% $3.57 4.4% 21
T-T Telus 4.1% $32.12 7.9% $1.31 4.4% 18
WCN-N Waste Connections 0.7% $134.88 0.6% $0.92 8.9% 12
Averages 2.7% 2.0% 9.1% 18

‘The List’ – Portfolio Review (March 2022)

Posted by BM on March 23, 2022 

Each month we walk through our valuation process using a stock on ‘The List’ that meets our minimum screen of 6.5% EPS Yield. With many of our good dividend growers still not in our ‘sensible price’ range, we sometimes go looking outside of ‘The List’ for candidates. The company we will review today is Manulife Financial (MFC-T).

Valuation is the second step in our three-step process. Buying when our quality stocks are sensibly priced will help ensure our future investment returns meet our expectations. We rely heavily on the fundamental analyzer software tool (FASTgraphs) to help us understand the fundamentals of the stocks we invest in and then read the company’s website for investor presentations and recent earnings reports to learn more.

MFC-T has a dividend streak of eight years. We have added MFC-T to our screen to demonstrate where it sits from a valuation perspective. As you can see, it would be at the top of our list if it was on the 2022 List.

MFC-T Portfolio Review

Intro:

Manulife was founded in 1887 in Toronto, Canada (“The Manufacturers Life Insurance Company” by Act of Parliament on 23 June 1887). Manulife provides life insurance and wealth management products and services to individuals and group customers in Canada, the United States, and Asia. Manulife is one of Canada’s Big Three Life Insurance companies (the other two are Sun Life and Great-West Life).

It’s the third-largest insurance company in Canada and the seventh-largest publicly-traded insurance company on earth. But it’s also highly diversified globally.

  • Asia 48% of operating income
  • US 21%
  • Canada 20%
  • Other 11%

Historical Graph:

MFC Fundamentals
Source: FASTgraphs

Comments:

Manulife Financial has a narrow valuation corridor. As you can see from the Blue Line on the graph (Normal P/E) and the Black Line (Price), there seems to be a correlation between Price and P/E. You would be wise to invest in MFC-T when it is below its average P/E of 10.99.

The fundamentals show a company whose earnings have grown steadily over the last ten years at an annualized rate of ~11.70%. This is rare for a company to have double digit earnings growth and such a high starting yield (5.1%).

Performance Graph:

MFC Performance Chart
Source: FASTgraphs

Comments:

Manulife Financial has an annualized dividend growth rate of 7.97% over the last ten years. The company also has an annualized Total Return of 11.94% over that period. MFC-T recently announced a dividend increase of ~18.0% for 2022 which is more than double their ten-year growth rate. Manulife has been a terrific investment over the last decade, especially as an income holding, with investors in 2012 now generating a 10.32% return on their initial investment from dividends alone.

Estimated Earnings:

MFC Forecasting Calculators
Source: FASTgraphs

Comments:

Using the “Normal Multiple’ estimating tool from FASTgraphs, we see a blended P/E average over the last five years of 9.09. Based on Analysts’ forecasts two years out, you can expect an annualized return based on today’s price of 23.08% should MFC-T trade at its five-year average blended P/E.

Blended P/E is based upon a weighted average of the most recent actual value and the closest forecast value.

Of importance is that Analysts have been revising their estimates upwards recently. Both the six and three months ago projections for 2022 and 2023 have been increasing. It means that Analysts are more bullish on Manulife Financial in the short term.

Analyst Scorecard:

Source: FASTgraphs

Comments:

Analyst estimates over the years are slightly above average on one and two-year earnings projections. Analysts’ projections have hit or beat ~62% of the time on one-year estimates and ~69% on two-year estimates.

Recent Earnings Report-Q4 2021:

“Our ability to adapt and serve clients across the globe who are navigating a very uncertain environment continues to drive our operating results with record net income of $7.1 billion and core earnings of $6.5 billion in 2021 driven by our insurance businesses delivering double-digit growth in APE sales and NBV and Global WAM delivering strong net inflows of $27.9 billion,” said Manulife President & Chief Executive Officer Roy Gori.

Highlights:

  • Net income attributed to shareholders of $7.1 billion in 2021, up $1.2 billion from 2020, and $2.1 billion in 4Q21, up $304 million from the fourth quarter of 2020 (“4Q20”)
  • Core earnings of $6.5 billion in 2021, up 26% on a constant exchange rate basis from 2020, and $1.7 billion in 4Q21, up 20% on a constant exchange rate basis from 4Q202
  • Strong LICAT ratio of 142%
  • Core ROE of 13.0% in 2021 and 12.7% in 4Q21, and ROE of 14.2% in 2021 and 15.6% in 4Q21
  • NBV of $2.2 billion in 2021, up 31% from 2020, and $555 million in 4Q21, up 17% from 4Q20
  • APE sales of $6.1 billion in 2021, up 13% from 2020, and $1.4 billion in 4Q21, up 5% from 4Q20
  • Global Wealth and Asset Management (“Global WAM”) net inflows of $27.9 billion in 2021 compared with net inflows of $8.9 billion in 2020 and net inflows of $8.1 billion in 4Q21 compared with net inflows of $2.8 billion in 4Q20. A record year for our retail wealth business with net inflows of $29.2 billion
  • Global WAM average AUMA increased by 20% in 2021
  • Remittances were $4.4 billion in 2021 compared with $1.6 billion in 2020, an increase of $2.8 billion
  • Quarterly common share dividend increased by 18% in 4Q21
  • Launched a Normal Course Issuer Bid (“NCIB”) that permits repurchase of up to 5% of outstanding common

Summary:

When I first started dividend growth investing, my mentor Tom Connolly made a point of staying away from life insurance companies due to their sub-par dividend growth. I agreed and have not looked at life insurance companies until now. Manulife Financials’ (MFC-T) balance sheet and risk-management look nothing like the company that had to cut its dividend twice during the Great Recession.

MFC-T’s fundamentals look good, and it has been growing earnings since 2016. Throw in a recent 18% dividend increase, an S&P Quality Financial ‘A’ rating, and we like what we see from this up and coming dividend grower. On the macro side, high inflation tends to cause rising interest rates and that’s a boon to financial blue chips like Manulife Financial.

Based on the fundamentals alone, the company seems ‘sensibly priced’ today.

MP Market Review – March 18, 2022

Last updated by BM on March 21, 2022

“The goal in any sport is to finish with the best score, but it would be ridiculous to spend the whole game staring at the scoreboard. The only way to actually win is to get better each day. In the words of three-time Super Bowl winner Bill Walsh, “The score takes care of itself.” The same is true for other areas of life. If you want better results, then forget about setting goals. Focus on your system instead.” James Clear, Atomic Habits

Each week we report on the components of our system (quality, valuation, dividend growth) and are less concerned about the score (capital growth). We know that our quality dividend growers purchased at a sensible price will eventually produce market-beating returns.

With full 2021 and Q4 earnings now behind us, we will wait for the market to give us opportunities. Our recent purchases (FNV, MG) in the Magic Pants Wealth-Builder (CDN) Portfolio, show us that patience, even in volatile markets can pay off when you focus on your system.

Performance of ‘The List’

‘The List’ was up slightly this week with a 2.0% YTD price return (capital) with dividend growth stabilizing. An average increase of 9.1% in dividends (income) so far in fiscal 2022.

The best performers last week on ‘The List’ were TFI International (TFII-T) up 14.2%; Alimentation Couche-Tard Inc. (ATD-T) up 8.7%; and Magna International (MGA-N) up 8.2%.

Bell Canada (BCE-T) was the worst performer this week, down -3.4%.

One company on ‘The List’ announced an earnings report for their Q3 2022 earnings season.

Recent News

We had some big news from Loblaws (L-T) this week.

Loblaws (L-T)

“Lifemark is the largest single provider of physiotherapy and rehabilitation services in Canada and also provides an array of other healthcare services including massage therapy, occupational therapy, chiropractic and mental health services, seeing over 3M patients annually,” Analyst Patricia Baker said in a note to clients.

“The acquisition of Lifemark extends Loblaw’s push in healthcare services which has seen the company take a stake in telemedicine firm Maple in 2020 and acquire QHR, an electronic medical records company in 2016,” the analyst said.

With this acquisition, you are continuing to see the evolution of Loblaws away from just being a grocer and real estate company. Health and wellness have much more growth potential than exists in selling groceries, according to an article in the Globe & Mail this week detailing Loblaws’ transition over the past few years.

“It’s no longer the great grandfather’s baking company, but investors have been well-rewarded by his heir’s strategy.” Globe & Mail, March 14, 2022

One of the reasons we added Loblaws (L-T) to ‘The List’ this year was because we saw dividend growth accelerating, which is a requirement for lower yielding portfolio candidates. With Loblaws transformation ongoing, we will be interested to see if the recent rate of increases continues.

Dividend Increases

There were no dividend increases from companies on ‘The List’ this past week.

For those of you who still don’t believe quality dividend growers increase their dividends, like clockwork every year, here is a summary of nineteen dividend increases (70% of ‘The List’) announced in the first quarter of 2022:

ATD-T from .088 to .11 up 25.7%
RY-T from 1.08 to 1.20 up 11.1%
TD-T from .79 to .89 up 12.7%
ENGH-T from .16 to .185 up 15.6%
CNR-T from .615 to .733 up 19.1%
MRU-T from .25 to .275 up 10.0%
BIP-N from .51 to .54 up 5.9%
BCE-T from .875 to .92 up 5.1%
IFC-T from .91 to 1.0 up 9.9%
TIH-T from .35 to .39 up 11.4%
T-T from .316 to .327 up 3.5%
ENB-T from .835 to .86 up 3.0%
MGA-N from .43 to .45 up 4.7%
TRP-T from .87 to .90 up 3.5%
CU-T from .44 to .444 up 1.0%
STN-T from .165 to .18 up 9.1%
CCL-B-T from .21 to .24 up 14.3%
FNV-N from .30 to .32 up 6.7%
SJ-T from .18 to .20 up 11.1%

Earnings Releases

We had one earnings report from companies on ‘The List’ this past week. Alimentation Couche-Tard Inc. (ATD-T) reported impressive earnings.

Alimentation Couche-Tard Inc. (ATD-T)

“Two years after the start of the pandemic and during a quarter where the Omicron variant surged across our network, I am proud to announce that we had good results during the third quarter in both convenience and fuel. Same store merchandise sales were particularly strong in Europe as well as in the U.S. with our freshly prepared food programs and packaged beverages among the main drivers of growth,” chief executive Brian Hannasch said in a release.

Highlights

  • Net earnings were $746.4 million, or $0.70 per diluted share for the third quarter of fiscal 2022 compared with $607.5 million, or $0.55 per diluted share for the third quarter of fiscal 2021. Adjusted net earnings were approximately $746.0 million compared with $622.0 million for the third quarter of fiscal 2021. Adjusted diluted net earnings per share were $0.70, representing an increase of 25.0% from $0.56 for the corresponding quarter of last year.
  • Total merchandise and service revenues of $4.8 billion, an increase of 5.8%. Same-store merchandise revenues increased 3.7% in the United States, 7.2% in Europe and other regions, and decreased 0.8% in Canada. On a 2-year basis, same-store merchandise revenues increased at a compound annual growth rate of 3.4% in the United States, 5.0% in Europe, and 2.1% in Canada.
  • Merchandise and service gross margin increased 1.0% in the United States to 33.6%, 0.2% in Canada to 31.6%, and decreased 0.7% in Europe and other regions to 37.8%, which was impacted by the integration of Circle K Hong Kong.
  • Same-store road transportation fuel volume increased 3.2% in the United States, 3.2% in Europe and other regions, and 7.2% in Canada. On a 2-year basis, same-store road transportation fuel volume decreased at a compound annual rate of 6.8% in the United States, 3.4% in Europe, and 7.4% in Canada, still impacted by work from home trends and resurgence of COVID-19 cases toward the end of the quarter.
  • Road transportation fuel gross margin of 39.63¢ per gallon in the United States, an increase of 8.87¢ per gallon, and CA 11.78¢ per liter in Canada, an increase of CA 1.45¢ per liter. In Europe and other regions, it decreased by US 0.53¢ per liter to US 10.83¢ per liter. Fuel margins remained healthy throughout our network, due to favorable market conditions and the continued work on the optimization of our supply chain.
  • On a 2-year basis, excluding the costs of employee retention measures implemented, which totaled approximately $28.0 million, normalized expenses increased at a compound annual growth rate of 3.7%, slightly below inflation level.
  • Under its share repurchase program, the Corporation repurchased shares for an amount of $509.7 million during the quarter, and an amount of $230.7 million subsequent to the end of the quarter, reaching a total of $1.3 billion under the current program. Subsequent to the end of the quarter, the Toronto Stock Exchange approved the amendment of our current share repurchase program to increase the maximum number of shares that may be repurchased.
  • Subsequent to the end of the quarter, and following the escalation of the conflict in Ukraine, the Corporation announced that it is suspending the operations of its 38 company-operated stores in Russia and is implementing plans to take care of its employees in a responsible and safe manner.

See full Q3 2022 Earnings Release here

ATD-T was one of the companies that was adversely impacted by the pandemic. Fuel sales are now on the increase which should help margins and earnings when people start to travel more and return to the office. ATD-T depends on the morning commute as customers stop for gas and visit their stores. Management is one of the best we have seen for acquiring assets and integrating them efficiently. This company came close to our sensible price range of 6.5% EPS yield in February and early March, so we are monitoring closely.

It seems that management agreed that shares were in a ‘sensible price’ range, buying back over 500 million dollars’ worth of shares during the last quarter.

Below is a snapshot of ‘The List’ from last Friday’s close. For a sortable version of ‘The List’ please click on The List menu item.

‘The List’ is not meant to be a template for investors to copy exactly. Rather, its purpose is to provide investment ideas and a real-time illustration of dividend growth investing in action. It is not a ‘Buy List’ nor does it reflect the composition or returns of our Magic Pants Wealth-Builder CDN Portfolio. It is only a starting point for our analysis and discussion.

The List (2022)
Last updated by BM on March 18, 2022

*Note: The following graph is wide, you can scroll to the right on your device to see more of the data.

SYMBOL COMPANY YLD PRICE YTD % DIV YTD % STREAK
AQN-N Algonquin Power & Utilities 4.5% $15.27 6.4% $0.68 2.3% 11
ATD-T Alimentation Couche-Tard Inc. 0.8% $53.09 1.9% $0.44 18.1% 12
BCE-T Bell Canada 5.4% $67.94 3.1% $3.68 5.1% 13
BIP-N Brookfield Infrastructure Partners 3.4% $62.72 2.7% $2.16 5.9% 14
CCL-B-T CCL Industries 1.6% $58.82 -13.2% $0.96 14.3% 20
CNR-T Canadian National Railway 1.8% $164.52 6.2% $2.93 19.1% 26
CTC-A-T Canadian Tire 2.7% $189.44 3.4% $5.20 10.6% 11
CU-T Canadian Utilities Limited 4.8% $37.11 1.4% $1.78 1.0% 50
DOL-T Dollarama Inc. 0.3% $69.02 8.8% $0.20 1.7% 11
EMA-T Emera 4.4% $59.88 -4.3% $2.65 2.9% 15
ENB-T Enbridge Inc. 6.1% $56.46 14.0% $3.44 3.0% 26
ENGH-T Enghouse Systems Limited 1.8% $40.02 -12.7% $0.72 16.3% 15
FNV-N Franco Nevada 0.8% $154.60 13.6% $1.28 10.3% 14
FTS-T Fortis 3.6% $60.07 -0.7% $2.14 4.4% 48
IFC-T Intact Financial 2.1% $186.49 13.9% $4.00 17.6% 17
L-T Loblaws 1.3% $111.16 8.2% $1.46 6.6% 10
MGA-N Magna 2.9% $62.89 -22.9% $1.80 4.7% 12
MRU-T Metro 1.6% $69.42 3.6% $1.10 10.0% 27
RY-T Royal Bank of Canada 3.4% $142.13 3.9% $4.80 11.1% 11
SJ-T Stella-Jones Inc. 2.0% $39.30 -3.4% $0.80 11.1% 17
STN-T Stantec Inc. 1.1% $64.17 -8.6% $0.71 6.8% 10
TD-T TD Bank 3.5% $101.79 2.5% $3.56 12.7% 11
TFII-T TFI International 1.0% $135.15 -3.6% $1.36 17.4% 11
TIH-T Toromont Industries 1.3% $118.44 4.2% $1.52 15.2% 32
TRP-T TC Energy Corp. 5.2% $68.81 15.2% $3.57 4.4% 21
T-T Telus 4.1% $32.29 8.5% $1.31 4.4% 18
WCN-N Waste Connections 0.7% $138.10 3.0% $0.92 8.9% 12
Averages 2.7% 2.0% 9.1% 18

MP Market Review – March 11, 2022

Last updated by BM on March 14, 2022

“If I can buy streams of cash flows at lower prices, I am happy.” Buttonwood, March 20, 2020

Dividend growth for the companies on ‘The List’ stands at 9.1% so far in 2022. Imagine getting a salary raise every year of over nine percent!

If you are new to dividend growth investing this is perhaps the most ‘magical’ concept. We still have the same number of shares in our accounts even after the dividends are paid. We are fine waiting on our existing shares to appreciate and excited about adding more at lower prices.

For the most part, the narratives in the news continue to be about the Russia-Ukraine war and the sanctions being imposed. More companies came out this week and severed ties or have temporarily shut down their Russian operations. As we mentioned last week, this was more of a buying opportunity for some of these companies than a significant adjustment to their future earnings as the companies on our list had such a small portion of their revenue’s dependent on Russian operations. We still believe there is more downside than upside in the market but will enter incrementally into individual positions when they reach our valuation corridor.

Performance of ‘The List’

‘The List’ was up slightly this week with a 0.6% YTD price return (capital) with an uptick in dividend growth for an average increase of 9.1% in dividends (income) so far in fiscal 2022.

The best performers last week on ‘The List’ were Enghouse Systems Limited (ENGH-T) up 12.4%; Loblaws (L-T) up 8.2%; and Toromont Industries (TIH-T) up 4.9%.

TFI International (TFII-T) was the worst performer this week, down -9.9%.

Two companies on ‘The List’ announced a dividend increase coupled with an earnings report for Q4 and Full Year 2021.

Recent News

Along with the last of our two dividend growers reporting 2021 earnings (SJ-T, FNV-N) we had some news from Canadian Tire and Stantec.

Canadian Tire (CTC-A-T) announced plans to invest more than $3.4 billion over the next four years on its online presence. If you recall from their Q4 2021 earnings release, their eCommerce sales were the biggest growth area for the business, and they are looking to build on those gains.

“We have clearly laid out our strategic growth plan, and we firmly believe that investments targeting organic growth in the right places represent the best use of capital,” said Gregory Craig, Executive Vice President & Chief Financial Officer. “Our focus on investing in the business will be coupled with our balanced approach to dividends and share buybacks which positions us to continue to generate attractive returns to shareholders over the longer-term.”

Stantec (ST-T) announces its intention to acquire Barton Willmore, the leading UK-based planning and design consulting firm. This announcement is the most recent in a series of acquisitions by Stantec in the UK market and enhancing their global presence. Companies that seek out and integrate acquisitions quickly and efficiently go on to reach new earnings records.

“Stantec’s cultural values also mirror our own, and through comprehensive inter-disciplinary working, we are looking forward to delivering a unique, integrated, and highly attractive workplace for planners and designers, alongside their broad existing teams,” said Mark Sitch, fellow Senior Partner at Barton Willmore. “We look forward to seeing how these integrated teams can transform project solutions for our clients across the UK and beyond.” 

There is one company on ‘The List’ due to report earnings this week:

Alimentation Couche-Tard Inc. (ATD-T) is scheduled to report earnings for their Q3 2022 period before the market opens Wednesday, Mar. 16.

Dividend Increases

There were two companies on ‘The List’ that announced a dividend increase this week. This completes our Q4 2021 earnings season. We will publish a summary of Q4 earnings next week.

Stella Jones (SJ-T) on Thursday increased its 2022 quarterly dividend from $0.18 to $.20 per share, payable April 22, 2022, to shareholders of record on April 4, 2022.

This represents a dividend increase of 11.11% and the 18th consecutive year in which the company has increased its dividend.

Franco Nevada (FNV-N) on Thursday increased its 2022 quarterly dividend from $0.30 to $.32 per share, payable March 31, 2022, to shareholders of record on March 16, 2022.

This represents a dividend increase of 6.67% and the 15th consecutive year in which the company has increased its dividend.

Earnings Releases

We had two earnings reports from companies on ‘The List’ this past week. Let’s start with Stella Jones.

Stella Jones (SJ-T)

“Stella-Jones delivered a record performance on many fronts in 2021, resulting in increased sales, strong EPS growth and solid cashflows. We utilized our collective expertise and longstanding industry relationships to successfully navigate through complex procurement challenges and volatile lumber markets to produce yet another successful year,” said Éric Vachon, President and CEO of Stella-Jones.

2021 Highlights

  • Sales of $2,750 million, up 8%
  • Record high EBITDA of $400 million, or a margin of 14.5%
  • Net income reached $227 million, or $3.49 per share
  • Acquired wood treating facilities in Alabama
  • Quarterly cash dividend increased 11% to $0.20 per share
  • Amends Normal Course Issuer Bid to increase maximum shares to be repurchased
  • Company details its three-year financial outlook

Outlook

To better reflect its business dynamics, the Company is shifting its financial guidance to a three-year outlook. Over the next 3 years, Stella-Jones anticipates continued sales and EBITDA growth. It expects to generate an annual sales growth rate in the mid-single digit range from the 2019 pre-pandemic levels and continues to target EBITDA margin of approximately 15% for the 2022-2024 period.

By core product categories for 2022-2024:

  • The Company will expand its capital expenditure program and invest an additional $90 to $100 million to support the anticipated high single-digit organic growth in the utility poles category.
  • The Company continues to project growth in the railway ties category in the low single-digits; and
  • For residential lumber, the Company anticipates stable long-term demand but believes the market price of lumber will normalize. As a result, the Company expects its residential lumber sales to decrease compared to 2021 and assumes sales in the 2022-2024 period will be approximately 35% above the 2019 pre-pandemic levels.

Based on its current business model, the Company projects returning to shareholders approximately $500 to $600 million in the 2022-2024 period.

The Company plans to pursue acquisitions that further support growth in its infrastructure-related products categories. It also plans to evaluate growth opportunities in adjacent businesses where it can leverage its core knowledge and key attributes to generate continued strong cash flow. For strategic acquisitions, the Company anticipates increasing its leverage to finance such opportunities. As per its capital allocation strategy, the Company targets a leverage ratio of 2.0x-2.5x and may temporarily deviate and exceed its target to pursue acquisitions.

See full Q4 2021 Earnings Release here

We like the fact that Stella Jones is a shareholder-friendly company. Through dividend growth and share buy-backs, they send the message that the shareholder comes first. By switching to a three-year outlook they also seem to be implying that in the near term they are not expecting earnings growth to be significant.

Franco Nevada (FNV-N)

“Franco-Nevada is reporting its best results ever,” stated Paul Brink, CEO. “We achieved record annual top-line and bottom line results. GEO sales growth was driven by an increased contribution from Cobre Panama, outperformance by Antamina, and contributions from new acquisitions. The advantage of our diverse portfolio was again demonstrated in 2021. High iron ore prices during the year boosted revenues from our iron ore holdings and rising energy prices resulted in our energy revenues more than doubling. Following 2021’s rapid GEO growth, we expect slightly lower GEOs in 2022 and then to continue our growth through 2026. With limited exposure to inflation, our top-line growth translated directly into expanded margins and record earnings. Franco-Nevada is debt-free, is growing its cash balances, and has a strong pipeline of growth opportunities.”

Highlights

Strong Financial Position

  • No debt and $1.6 billion in available capital as at December 31, 2021
  • Generated $279.0 million in operating cash flow for the quarter
  • Quarterly dividend increased 6.7% to $0.32/share, effective Q1 2022

Sector-Leading ESG

  • Ranked #1 gold company by Sustainalytics, AA by MSCI, and Prime by ISS ESG
  • Committed to the World Gold Council’s “Responsible Gold Mining Principles”
  • Partnering with our operators on community and ESG initiatives
  • Goal of 40% diverse representation at the Board and top leadership levels as a group by 2025

Diverse, Long-Life Portfolio

  • Most diverse royalty and streaming portfolio by asset, operator, and country
  • Core assets outperforming since time of acquisition
  • Long-life reserves and resources

Growth and Optionality

  • Acquisitions, mine expansions, and new mines driving long-term growth
  • Long-term optionality in gold, copper, and nickel

Guidance

2021 was a year of significant growth for Franco-Nevada, with record revenue and a 27.0% year-over-year increase in total GEOs. In 2022, we anticipate a slightly lower production profile in comparison to 2021, with our attributable GEOs expected to range between 680,000 and 740,000 GEOs. Of this, our Precious Metal assets are expected to contribute between 510,000 and 550,000 GEOs. The outlook reflects an expected lower contribution from our Guadalupe-Palmarejo stream and expected lower grades at Antamina and Antapaccay in 2022. We estimate depletion expense to be between $270 and $300 million. Our remaining capital commitment to the Royalty Acquisition Venture with Continental is $91.6 million. Please see our MD&A for the year ended December 31, 2021, for more details on our guidance and see “Forward-Looking Statements” below.

5-Year Outlook

We expect our portfolio to produce between 765,000 and 825,000 GEOs by 2026, of which 570,000 to 610,000 GEOs are expected to be generated from Precious Metal assets. This outlook assumes that Cobre Panama will have expanded its mill throughput capacity to 100 million tonnes per year during 2023. It also assumes the commencement of production at Salares Norte, Greenstone (Hardrock), Rosemont, Valentine Lake, and Eskay Creek, continued deliveries from Sudbury through 2026, and that the stream at MWS will have reached its cap in 2024.

For both our 2022 guidance and 5-year outlook, when reflecting revenue earned from gold, silver, platinum, palladium, iron ore, oil, and gas commodities to GEOs, we assumed the following prices: $1,800/oz Au, $23.00/oz Ag, $1,000/oz Pt, $2,100/oz Pd, $125/tonne Fe 62% CFR China, $85/bbl WTI oil and $3.75/mcf Henry Hub natural gas. Our 2022 guidance, as set out above, and our 5-year outlook does not assume any other acquisitions and does not reflect any incremental revenue from additional contributions we may make to the Royalty Acquisition Venture with Continental as part of our remaining commitment of $91.6 million. The 2022 guidance and 5-year outlook are based on public forecasts and other disclosure by the third-party owners and operators of our assets and our assessment thereof.

See full Q4 2021 Earnings Release here

In January of this year, we did a portfolio review on the fundamentals of Franco-Nevada (FNV-N). We saw the stock as in a ‘sensible price’ range based on its historical numbers. In addition, we knew that gold and precious metals typically do better in periods were both the rate of change in GDP and inflation are slowing. To date, our thesis is playing out with FNV-N up over 20%.

In the most recent earnings report we note that production has levelled off (GEO) in the short term and the catalyst for further growth will come from an increase in the price of the commodities Franco Nevada holds streams and royalties on. Any significant uptick in the prices of gold, silver, iron, palladium, platinum, natural gas or oil will reflect favorably on FNV’s bottom line.

Below is a snapshot of ‘The List’ from last Friday’s close. For a sortable version of ‘The List’ please click on The List menu item.

‘The List’ is not meant to be a template for investors to copy exactly. Rather, its purpose is to provide investment ideas and a real-time illustration of dividend growth investing in action. It is not a ‘Buy List’ nor does it reflect the composition or returns of our Magic Pants Wealth-Builder CDN Portfolio. It is only a starting point for our analysis and discussion.

The List (2022)
Last updated by BM on March 11, 2022

*Note: The following graph is wide, you can scroll to the right on your device to see more of the data.

SYMBOL COMPANY YLD PRICE YTD % DIV YTD % STREAK
AQN-N Algonquin Power & Utilities 4.5% $15.08 5.1% $0.68 2.3% 11
ATD-T Alimentation Couche-Tard Inc. 0.9% $48.84 -6.3% $0.44 18.1% 12
BCE-T Bell Canada 5.2% $70.35 6.7% $3.68 5.1% 13
BIP-N Brookfield Infrastructure Partners 3.6% $60.74 -0.6% $2.16 5.9% 14
CCL-B-T CCL Industries 1.7% $57.78 -14.8% $0.96 14.3% 20
CNR-T Canadian National Railway 1.8% $160.98 3.9% $2.93 19.1% 26
CTC-A-T Canadian Tire 2.9% $177.73 -3.0% $5.20 10.6% 11
CU-T Canadian Utilities Limited 4.8% $36.70 0.2% $1.78 1.0% 50
DOL-T Dollarama Inc. 0.3% $69.31 9.3% $0.20 1.7% 11
EMA-T Emera 4.3% $61.07 -2.4% $2.65 2.9% 15
ENB-T Enbridge Inc. 6.1% $56.66 14.4% $3.44 3.0% 26
ENGH-T Enghouse Systems Limited 1.8% $39.00 -15.0% $0.72 16.3% 15
FNV-N Franco Nevada 0.8% $158.05 16.1% $1.28 10.3% 14
FTS-T Fortis 3.5% $60.30 -0.3% $2.14 4.4% 48
IFC-T Intact Financial 2.2% $185.72 13.4% $4.00 17.6% 17
L-T Loblaws 1.3% $114.75 11.7% $1.46 6.6% 10
MGA-N Magna 3.1% $58.10 -28.8% $1.80 4.7% 12
MRU-T Metro 1.5% $71.74 7.0% $1.10 10.0% 27
RY-T Royal Bank of Canada 3.5% $138.15 1.0% $4.80 11.1% 11
SJ-T Stella-Jones Inc. 2.1% $38.78 -4.7% $0.80 11.1% 17
STN-T Stantec Inc. 1.1% $63.25 -9.9% $0.71 6.8% 10
TD-T TD Bank 3.6% $98.06 -1.3% $3.56 12.7% 11
TFII-T TFI International 1.2% $118.33 -15.6% $1.36 17.4% 11
TIH-T Toromont Industries 1.3% $115.78 1.8% $1.52 15.2% 32
TRP-T TC Energy Corp. 5.1% $69.66 16.6% $3.57 4.4% 21
T-T Telus 3.9% $33.33 12.0% $1.31 4.4% 18
WCN-N Waste Connections 0.7% $134.22 0.1% $0.92 8.9% 12
Averages 2.7% 0.6% 9.1% 18

Magic Pants Process – DGI Real-Time Alerts

Last updated by BM on March 9, 2022

“The best way to measure your investing success is not by whether you’re beating the market but by whether you’ve put in place a financial plan and a behavioral discipline that are likely to get you where you want to go.”

– Ben Graham, The Intelligent Investor

In our initial article on the Magic Pants Dividend Growth Investing process, we spoke about not getting fixated on the ‘outcomes’ from your investing activities and pay more attention to the process. Although the process in aggregate has worked well for us over the years it wasn’t without a few revisions along the way.

The natural thing to do would be to not dig into our process when we experienced a bad outcome and only show the good ones. The right approach however is to review all outcomes good or bad when they fall outside a ‘band’ of what we view as acceptable. Acceptable to us is an investment that grows its dividend over time and aligns well with an increase in the price of the company’s stock. We would like to achieve a Total Return CAGR (dividends included) in the 10-12% range over a decade.

As part of our ‘soon to be announced’ subscription service, we document all our outcomes (good and bad) to measure our success but also to refine our process and increase the probability we will be right in the future. To better understand our process in action we share our new time-stamped ‘Magic Pants DGI Real-Time Alerts’.  The alerts are emailed when we make a trade and can be used as a signaling tool for our subscribers. Once received, subscribers can decide based on their own objectives (income vs capital gain or both) if they want to participate alongside our process. We do the work; you stay in control!

Here is an example of a recent DGI alert email sent out in January this year (Subscribers only).

Buy Signal Franco Nevada

The alert is sent out based on our own research and is representative of how we build our portfolios over time. Although we follow the position sizing outlined in our blog, understanding your own unique position sizing is also key to building a successful dividend growth machine.

Although not all our alerts turn out to be as successful in the short term, as Franco Nevada did early in 2022, we do have an impressive historical record of purchasing our good dividend growers (at sensible prices) over time.

In the past five years, we are proud to say that out of sixty-two trades in our Wealth-Builder (CDN) Portfolio, only six trades are below their initial purchase price at the time of this article. Of the six currently trading below their purchase price, we have owned five of them for less than a year. In defense of not having a perfect record, our trades typically need time to turn positive and then climb upwards (within 6-18 months). 

Going forward we will publish all our trades with subscribers and the reasons we entered positions when we did. We will also review our trades that did not meet our expectations. Full transparency with time-stamped alerts, regardless of the outcome, will help build trust with our subscribers and those looking to get started with dividend growth investing. Stay tuned for a launch date for the subscription service. In the interim, sign up as a reader of the blog and you will still receive our DGI alerts.

MP Market Review – March 4, 2022

Last updated by BM on March 7, 2022

“The big money is not in the buying or selling but in the waiting.” – Charlie Munger

We woke up this morning with oil prices at $125/barrel! The prior high was $135 in 1980. There is a direct correlation between rising oil prices and recessions according to Josh Steiner. “Since 1946 there have been twelve recessions, eight have followed major oil price shocks, while a further three have occurred immediately following more modest, but still notable, oil price run-ups… That leaves just one out of twelve recessions that didn’t have any oil fingerprints left at the crime scene (Recession Recipe, Josh Steiner). “

Coincidence or not, the run up in oil prices is not good for the stock markets. Couple that with rising interest rates (Bank of Canada just announced one last week) and an overvalued market coming into 2022 and I think you know where we are headed. Our existing dividend growers were bought with a ‘margin of safety’ well before the run up in oil prices so we will sit tight and enjoy the rising income growth for now. Forego the temptation to chase prices into a volatile market and be more like Charlie. ‘Sensible prices’ are just around the corner. 

Performance of ‘The List’

‘The List’ was up slightly this week with a neutral 0.0% YTD price return (capital) but an uptick in dividend growth with another big dividend announcement, for an average increase of 8.7% in income so far in fiscal 2022.

The best performers last week on ‘The List’ were Waste Connections (WCN-N) up 8.7%; Franco Nevada (FNV-N) up 7.6%; and TC Energy (TRP-T) up 7.6%.

Magna International (MGA-N) was the worst performer this week, down -18.0%.

One company on ‘The List’ announced a dividend increase and one company an earnings report for Q4 and Full Year 2021. In addition, TD Bank and Enghouse Systems reported on their Q1 2022 earnings.

Recent News

There was an article in the Globe & Mail this week about Magna (MGA-N), CCL Industries (CCL-B-T), and Alimentation Couch-Tard (ATD-T) having to shut down their Russia operations due to sanctions imposed from the war in Ukraine. All of their stock prices suffered when the news came out. If you look closer however you discover that the Russian operations account for a very small percentage of each company’s revenues. Sometimes the narratives in the media create opportunities for investors who focus more on fundamentals.

With the acquisition of First Horizon, TD Bank vaults itself from #10 to #6 in the United States. As the second largest bank in Canada and now the sixth largest in the United States, TD Bank solidifies itself as not only a quality Canadian dividend grower but a North American one. Although TD may face both regulatory and integration challenges with this acquisition, there is a lot to like about the acquisition. TD Bank management is expecting significant cost synergies from the deal, as well as revenue synergy opportunities from fixed income trading and mortgage warehouse lending. Glad to see TD Bank putting some of their cash (they did not pay in dividends last year) to good use.

Here are a couple of the companies on ‘The List’ due to report earnings this week:

Stella Jones (SJ-T) is scheduled to report earnings before the market opens Wednesday, Mar. 09

Franco Nevada (FNV-N) is scheduled to report earnings after hours Wednesday, Mar. 09

Dividend Increases

There was one company on ‘The List’ that announced a dividend increase this week as we wind down our Q4 2021 earnings calendar and begin to report on 2022.

Enghouse Systems (ENG-T) on Thursday said it increased its 2022 quarterly dividend from $0.16 to $.185 per share, payable May 31, 2022, to shareholders of record on May 17, 2022.

This represents a dividend increase of 15.6% and the 14th consecutive year in which the company increased its dividend by over 10%.

Earnings Releases

We had three earnings reports from companies on ‘The List’ this past week. Let’s start with TD Bank.

TD Bank (TD-T)

“TD started the year strong, delivering revenue growth across all our business segments as customer activity gained additional momentum,” said Bharat Masrani, Group President and CEO, TD Bank Group. With a focus on growth, we continue to make investments in technology and new capabilities, positioning us well to meet our customers’ and clients’ evolving needs.” “I am also pleased to have announced our deal with First Horizon earlier this week. A bold acceleration of our U.S. strategy to acquire a premier regional bank, with a strong presence in highly attractive markets across the U.S. Southeast – a terrific strategic fit for TD,” added Masrani.

FIRST QUARTER FINANCIAL HIGHLIGHTS, compared with the first quarter last year:

  • Reported diluted earnings per share were $2.02, compared with $1.77.
  • Adjusted diluted earnings per share were $2.08, compared with $1.83.
  • Reported net income was $3,733 million, compared with $3,277 million.
  • Adjusted net income was $3,833 million, compared with $3,380 million.

See full Q1 2022 Earnings Release here

TD Bank continues to exceed earnings expectations and grow their business with acquisitions. With a 30% increase in price over the last year, the recent pullback is self-explanatory. We will continue to add to our position at a sensible price as they don’t get much better than TD Bank for a core position in any dividend growth portfolio.

Enghouse Systems (ENGH-T)

“Fiscal 2021 was another year of positive income and operating cash flows, improved Adjusted EBITDA margins and record distributions to shareholders. Although record revenue was not achieved this year, we again demonstrated the benefit of maintaining our financial discipline during times of significant market fluctuations. In doing so, we achieved Adjusted EBITDA margins of 36.1% and cash flows from operations, excluding changes in working capital, of $167.8 million. We closed the year with $198.8 million in cash, cash equivalents and short-term investments while completing several acquisitions and returning dividends to our shareholders of $115.7 million.” Stephen J. Sadler Chairman of the Board and Chief Executive Officer

Financial and operational highlights for the three months ended January 31, 2022 compared to the three months ended January 31, 2021 are as follows:

  • Revenue achieved was $111.1 million compared to revenue of $119.1 million;
  • Results from operating activities was $35.7 million compared to $40.7 million;
  • Net income increased to $21.6 million compared to $20.6 million;
  • Adjusted EBITDA was $38.6 million compared to $44.5 million;
  • Cash flows from operating activities excluding changes in working capital was $38.7 million compared to $41.7 million.

“During the year, we focused on scaling costs to revenues, improving our gross profit margins and decreasing overheads by reducing facilities, travel and headcount costs. This, combined with higher margins associated with reduced acquisition integration requirements during the fiscal year, increased our Adjusted EBITDA margins for the year to 36.1% from 35.1% in the prior year. We completed three acquisitions during the year, broadening our product portfolio, geographic reach and hosted solutions portfolio, deploying $35.5 million for the acquisitions of Altitude, Nebu and Momindum. We continue to actively pursue acquisition opportunities and expand our acquisition pipeline. However, valuations for technology acquisitions remain high and many opportunities did not meet our acquisition, financial and operating criteria during the year. We also returned record dividends to shareholders during the year, including a special dividend of $83.2 million or $1.50 per common share.” Stephen J. Sadler Chairman of the Board and Chief Executive Officer

See full Q1 2022 Earnings Release here

Enghouse Systems has struggled to reach the revenue and profitability numbers it achieved during the COVID era. The market does not like companies who do not continue to grow year over year. Perhaps a lesson here for dividend growth investors looking to start a portfolio…the fundamentals for ENGH-T are above average when it comes to their decade long track record, but it seems every little bit of bad news hits their stock price hard. We have seen this before with the market punishing smaller capitalized companies like ENGH-T more severely on any type of negative news. Be careful with how many small cap (non-core) dividend growers you have in your portfolio, if you want to minimize volatility.

Algonquin Power and Utilities Corp. (AQN-N)

“We are pleased that the Company has successfully delivered on many of its strategic priorities in 2021, including the continued execution of several exciting new renewable projects and a further advancement of sustainability initiatives. Despite weaker weather conditions, we are pleased to report solid fourth quarter operating results from the Company’s diversified and resilient business model,” said Arun Banskota, President and Chief Executive Officer of AQN. “Looking forward, we remain confident that the Company’s $12.4 billion capital expenditure plan from 2022 through 2026 will continue to drive long term shareholder value.”

Fourth Quarter and Full Year Financial Highlights

  • Annual revenue of $2,285.5 million, an increase of 36%;
  • Annual Adjusted EBITDA of $1,076.9 million, an increase of 24%;
  • Annual Adjusted Net Earnings of $449.6 million, an increase of 23%;
  • Annual Adjusted Net Earnings per share of $0.71, an increase of 11%;
  • Fourth quarter revenue of $594.8 million, an increase of 21%;
  • Fourth quarter Adjusted EBITDA of $297.6 million, an increase of 18%;
  • Fourth quarter Adjusted Net Earnings of $136.3 million, an increase of 7%; and
  • Fourth quarter Adjusted Net Earnings per share of $0.21, representing no change, in each case on a year-over-year basis.

See full Q4 2021 Earnings Release here

A revenue increase of 36% is impressive but at what expense. Shareholder dilution is worrisome as are stretched credit metrics. Over the last ten years, AQN-N has gone from 119 million shares outstanding to over 619 million today. Shares have been diluted by more than five times. Luckily, EDITDA and FFO numbers have kept pace. An investment in AQN-N means you believe the growth will continue.

If you are looking for a defensive investment in a regulated utility, there may be better options with less risk than Algonquin Power & Utilities right now.

 

Below is a snapshot of ‘The List’ from last Friday’s close. For a sortable version of ‘The List’ please click on The List menu item.

‘The List’ is not meant to be a template for investors to copy exactly. Rather, its purpose is to provide investment ideas and a real-time illustration of dividend growth investing in action. It is not a ‘Buy List’ nor does it reflect the composition or returns of our Magic Pants Wealth-Builder CDN Portfolio. It is only a starting point for our analysis and discussion.

The List (2022)
Last updated by BM on March 4, 2022

*Note: The following graph is wide, you can scroll to the right on your device to see more of the data.

SYMBOL COMPANY YLD PRICE YTD % DIV YTD % STREAK
AQN-N Algonquin Power & Utilities 4.6% $14.70 2.4% $0.68 2.3% 11
ATD-T Alimentation Couche-Tard Inc. 0.9% $48.52 -6.9% $0.44 18.1% 12
BCE-T Bell Canada 5.2% $71.15 8.0% $3.68 5.1% 13
BIP-N Brookfield Infrastructure Partners 3.6% $59.68 -2.3% $2.16 5.9% 14
CCL-B-T CCL Industries 1.7% $57.23 -15.6% $0.96 14.3% 20
CNR-T Canadian National Railway 1.8% $161.48 4.3% $2.93 19.1% 26
CTC-A-T Canadian Tire 2.9% $179.59 -2.0% $5.20 10.6% 11
CU-T Canadian Utilities Limited 4.9% $36.32 -0.8% $1.78 1.0% 50
DOL-T Dollarama Inc. 0.3% $66.66 5.1% $0.20 1.7% 11
EMA-T Emera 4.3% $61.56 -1.6% $2.65 2.9% 15
ENB-T Enbridge Inc. 6.0% $56.90 14.9% $3.44 3.0% 26
ENGH-T Enghouse Systems Limited 2.1% $34.71 -24.3% $0.72 16.3% 15
FNV-N Franco Nevada 0.8% $158.24 16.3% $1.28 10.3% 14
FTS-T Fortis 3.5% $60.29 -0.3% $2.14 4.4% 48
IFC-T Intact Financial 2.2% $184.04 12.4% $4.00 17.6% 17
L-T Loblaws 1.4% $106.02 3.2% $1.46 6.6% 10
MGA-N Magna 2.9% $62.45 -23.5% $1.80 4.7% 12
MRU-T Metro 1.6% $69.65 3.9% $1.10 10.0% 27
RY-T Royal Bank of Canada 3.5% $138.25 1.0% $4.80 11.1% 11
SJ-T Stella-Jones Inc. 1.9% $38.71 -4.8% $0.72 0.0% 17
STN-T Stantec Inc. 1.1% $61.98 -11.7% $0.71 6.8% 10
TD-T TD Bank 3.6% $98.54 -0.8% $3.56 12.7% 11
TFII-T TFI International 1.0% $131.29 -6.3% $1.36 17.4% 11
TIH-T Toromont Industries 1.4% $110.36 -2.9% $1.52 15.2% 32
TRP-T TC Energy Corp. 5.0% $71.73 20.1% $3.57 4.4% 21
T-T Telus 3.9% $33.50 12.6% $1.31 4.4% 18
WCN-N Waste Connections 0.7% $134.83 0.6% $0.92 8.9% 12
Averages 2.7% 0.0% 8.7% 18

We buy quality individual dividend growth stocks when they are sensibly priced and hold for the growing income.

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This material is provided for informational purposes only, as of the date hereof, and is subject to change without notice.
This material may not be suitable for all investors and is not intended to be an offer, or the solicitation of any offer, to buy or sell any securities.

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