Posted by BM on December 13, 2021
Each week we will comment on some of the significant events from the past week for companies on ‘The List’ and update the numbers.
Dividend Increases
Enbridge Inc. (ENB.TO) on Tuesday said it increased its 2022 quarterly dividend from $0.835 to $0.86 per share, payable March 1, 2022, to shareholders of record on Feb. 15, 2022.
This represents a dividend increase of 3%, marking the 26th straight year of dividend growth.
Earnings Releases
Dollarama Inc. (DOL.TO) on Wednesday reported sales for Q3 2022 increased by 5.5% to $1.12 billion, compared with $1.06 billion last year, and beating a Capital IQ average forecast of $1.11 billion. The increase is due to the growth in the number of stores over the past 12 months, from 1,333 to 1,397 stores on Oct 31, 2021, and to an increase in comparable store sales driven by strong Halloween sales.
Net earnings were $183.4 million, or $0.61 per diluted share, beating a forecast of $0.57. Dollarama had reported net earnings of $161.9 million, or $0.52 per diluted share, for the prior year period.
FY 2022 Guidance:
Dollarama also said that due to the ongoing uncertainty related to COVID-19, guidance for Fiscal 2022 remains limited to the following key metrics:
Net new store openings: 60 to 70
Capital expenditures: $160 million to $170 million.
Performance of ‘The List’
The best performers this week on ‘The List’ were Alimentation Couche-Tard (ATD-T) up 5.2%, Dollarama (DOL-T) up 4.3% and TFI International (TFII-T) up 3.9%.
Enghouse Systems Limited (ENGH-T) was the worst performer, down -4.5%.
‘The List’ was up 1% this past week with a 16.6% YTD price return.
Recent news from companies on ‘The List’
Alimentation Couche-Tard’s (ATD-T) Outstanding Shares to be of a Single Class.
“The sun will set this week on the special voting rights held by the four founders of Alimentation Couche-Tard Inc. ATD-B-T leaving the Canadian convenience store giant more exposed to investor pressure than ever before. Its fate will be closely watched by both critics and defenders of dual class share structures.
Laval, Que.-based Couche-Tard is one of Canada’s biggest companies, with a current market capitalization of $50.6 billion. It’s controlled by executive chairman Alain Bouchard and three other founders through a special class of stock that gives them 10 votes for every share they own. A so-called sunset clause – put in place in 1995 when the founders were in their 30s and 40s – says those super-voting rights will end when the youngest of them turns 65 or dies.”
After their special rights expire, that stake, in combination with the support of friendly shareholders such as the Caisse de dépôt et placement du Québec, will still give them “almost a blockage type of group if there’s something we don’t like,” Mr. Bouchard has said.”
Source: The Globe and Mail
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’, only a starting point for our analysis and discussion.
The List (2021)
Last updated by BM on December 10, 2021
*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 | 4.8% | $13.88 | -14.6% | $0.67 | 10.2% | 10 |
| ATD-T | Alimentation Couche-Tard Inc. | 0.7% | $50.00 | 14.6% | $0.37 | 25.2% | 11 |
| BCE-T | Bell Canada | 5.3% | $65.77 | 19.6% | $3.46 | 5.1% | 12 |
| BIP-N | Brookfield Infrastructure Partners | 3.6% | $57.44 | 16.1% | $2.04 | 2.5% | 13 |
| BNS-T | Bank of Nova Scotia | 4.2% | $86.12 | 27.2% | $3.60 | 0.0% | 10 |
| CCL-B-T | CCL Industries | 1.3% | $63.98 | 10.4% | $0.84 | 16.7% | 19 |
| CNR-T | Canadian National Railway | 1.5% | $164.71 | 17.6% | $2.46 | 7.0% | 25 |
| CTC-A-T | Canadian Tire | 2.6% | $178.70 | 7.4% | $4.70 | 3.3% | 10 |
| CU-T | Canadian Utilities Limited | 5.0% | $34.88 | 12.7% | $1.76 | 1.1% | 49 |
| DOL-T | Dollarama Inc. | 0.3% | $58.44 | 11.9% | $0.20 | 12.4% | 10 |
| EMA-T | Emera | 4.3% | $59.45 | 10.8% | $2.58 | 3.8% | 14 |
| ENB-T | Enbridge Inc. | 6.9% | $48.08 | 17.7% | $3.34 | 3.1% | 25 |
| ENGH-T | Enghouse Systems Limited | 1.3% | $50.80 | -18.2% | $0.64 | 24.3% | 14 |
| EQB-T | Equitable Group Inc | 1.0% | $72.00 | 37.1% | $0.74 | 0.0% | 10 |
| FNV-N | Franco Nevada | 0.9% | $130.73 | -0.8% | $1.16 | 12.6% | 13 |
| FTS-T | Fortis | 3.5% | $57.98 | 11.1% | $2.05 | 4.1% | 47 |
| IFC-T | Intact Financial | 2.1% | $161.36 | 7.8% | $3.40 | 2.4% | 16 |
| MGA-N | Magna | 2.2% | $79.84 | 14.5% | $1.72 | 7.5% | 11 |
| MRU-T | Metro | 1.6% | $63.03 | 9.4% | $1.00 | 13.6% | 26 |
| RY-T | Royal Bank of Canada | 3.3% | $130.18 | 24.4% | $4.32 | 0.7% | 10 |
| SJ-T | Stella-Jones Inc. | 1.8% | $41.05 | -11.7% | $0.72 | 20.0% | 16 |
| TD-T | TD Bank | 3.3% | $95.33 | 32.5% | $3.16 | 1.6% | 10 |
| TFII-T | TFI International | 0.8% | $137.76 | 110.8% | $1.16 | 8.4% | 10 |
| TIH-T | Toromont Industries | 1.2% | $108.81 | 22.9% | $1.36 | 9.7% | 31 |
| TRP-T | Trans Canada | 6.0% | $58.09 | 11.3% | $3.48 | 7.4% | 20 |
| T-T | Telus | 4.3% | $29.40 | 15.6% | $1.25 | 8.2% | 17 |
| WCN-N | Waste Connections | 0.6% | $132.68 | 31.1% | $0.85 | 11.2% | 11 |
| Averages | 2.8% | 16.6% | 8.2% | 17 |
