Last updated by BM on August 22, 2022
Summary
- This article is part of our weekly series (MP Market Review) highlighting the performance and activity from the previous week related to the financial markets and Canadian dividend growth companies we follow on ‘The List’.
- Last week, ‘The List’ was up again with a +1.2% YTD price return (capital). Dividend growth of ‘The List’ remains at +10.2% YTD, demonstrating the rise in income over the last year.
- Last week, there were no dividend increases from companies on ‘The List’.
- Last week, there were no earnings reports from companies on ‘The List’.
- Two companies on ‘The List’ are due to report Q3 earnings this week.
- Are you looking for a portfolio of ideas like these? Magic Pants DGI Premium Membership Subscribers get exclusive access to the MP Wealth-Builder Model Portfolio (CDN). Learn More
“Investing shouldn’t feel like going into a casino as a customer. It should feel like owning the casino.”
-Rida Morwa, Seeking Alpha Contributor
Second quarter 2022 earnings are now posted. You can see the Analyst estimates and actual results in a table at the bottom of ‘The List’ menu item. During earnings season, we update all twenty-seven companies on ‘The List’. We also include the earnings highlights and updated guidance in our Weekly Reviews during the earnings reporting season to help readers get to know the companies they invest in a little bit better.
This recent earnings season coincided with an upbeat stock market here in Canada. For the most part, earnings were pretty good, especially when compared to estimates. Twenty of the twenty-seven companies we follow beat estimates (74%). There were a few cautionary warnings in some of the reports, so we are not yet in the camp that thinks the bull market is back.
Benjamin Graham once remarked that earnings are the principal factor driving stock prices. We also like to see a favourable earnings report before investing in a company.
Reviewing quarterly earnings reports is part of our due diligence process. Much like the casino, which does its due diligence on every game it offers, we, too, are taking a calculated risk that over time the odds will be substantially in our favour if we stick to our process and do our research properly.
An investment strategy that is time-tested, focused on income, and predictable over the long term allows everyday investors to take control of their future and enjoy building real wealth without the stress of constant trading and unpredictable price fluctuations.
If this strategy interests you, please subscribe to our Magic Pants DGI Premium Membership, and you can build a dividend growth portfolio alongside ours.
Performance of ‘The List’
Last week, ‘The List’ was up with a +1.2% YTD price return (capital). Dividend growth of ‘The List’ remains at +10.2% YTD, demonstrating the rise in income over the last year.
The best performers last week on ‘The List’ were Loblaws (L-T), up +4.75%; Canadian Tire (CTC-A-T), up +3.78%; and Metro (MRU-T), up +2.45%.
TFI International (TFII-N) was the worst performer last week, down -5.14%.
Recent News
Tuesday’s TSX breakouts: This company has raised its dividend for 18 consecutive years (Globe & Mail)
This is a good article on one of the stocks in ‘The List’, (SJ-T). Lots of analysis and price targets from various analysts.
Stella-Jones (SJ-T) has rebounded nicely from its 2022 lows. We will let you decide after reading the article if you think there is more upside in the short run from today’s price.
P.S. Our consecutive dividend growth streak only shows 17 consecutive years as we only update ‘The List’ once at the end of each fiscal year.
The case for Canada: A BlackRock senior strategist on energy, banks, bonds and why our market rules in 2022 (Globe & Mail)
“The overarching theme is that the period of steady growth, declining inflation and lengthening business cycles is over. We’re bracing for volatility. We think that central banks are going to have to veer between focusing on the politics of inflation and focusing on the economic consequences of controlling inflation. And that means the bull market in stocks and bonds that prevailed for most of the past four decades is unlikely to repeat itself.”
The author likes Canada because it has a lot of commodities and energy names. We like this quote from the article.
“Within stocks, the focus is on earnings quality and resilience.”
Two companies on ‘The List’ are due to report Q3 earnings this week.
Both Royal Bank (RY-T) and TD Bank (TD-T) follow an off-cycle reporting schedule. Their fiscal year ends on October 31 each year. This means that their fiscal Q3 earnings are the first of ‘The List’ to report each quarter.
Royal Bank (RY-T) will release its third-quarter 2022 results on Wednesday, August 24, 2022, before markets open.
TD Bank TD-T) will release its third-quarter 2022 results on Thursday, August 25, 2022, before markets open.
Dividend Increases
Last week, there were no dividend increases from companies on ‘The List’.
Earnings Releases
Last week, there were no earnings reports from companies on ‘The List’.
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. Instead, 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 August 19, 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 | 4.9% | $14.27 | -0.6% | $0.70 | 5.4% | 11 |
| ATD-T | Alimentation Couche-Tard Inc. | 0.7% | $59.06 | 13.4% | $0.44 | 18.1% | 12 |
| BCE-T | Bell Canada | 5.5% | $66.04 | 0.2% | $3.64 | 4.0% | 13 |
| BIP-N | Brookfield Infrastructure Partners | 3.4% | $42.45 | 4.2% | $1.44 | 5.9% | 14 |
| CCL-B-T | CCL Industries | 1.5% | $65.06 | -4.0% | $0.96 | 14.3% | 20 |
| CNR-T | Canadian National Railway | 1.8% | $164.73 | 6.4% | $2.93 | 19.1% | 26 |
| CTC-A-T | Canadian Tire | 3.5% | $168.94 | -7.8% | $5.85 | 24.5% | 11 |
| CU-T | Canadian Utilities Limited | 4.3% | $41.18 | 12.5% | $1.78 | 1.0% | 50 |
| DOL-T | Dollarama Inc. | 0.3% | $80.35 | 26.7% | $0.22 | 9.2% | 11 |
| EMA-T | Emera | 4.2% | $62.83 | 0.4% | $2.65 | 2.9% | 15 |
| ENB-T | Enbridge Inc. | 6.1% | $56.25 | 13.5% | $3.44 | 3.0% | 26 |
| ENGH-T | Enghouse Systems Limited | 2.2% | $32.81 | -28.5% | $0.72 | 16.3% | 15 |
| FNV-N | Franco Nevada | 1.0% | $128.52 | -5.6% | $1.28 | 10.3% | 14 |
| FTS-T | Fortis | 3.5% | $60.32 | -0.3% | $2.14 | 2.9% | 48 |
| IFC-T | Intact Financial | 2.0% | $195.54 | 19.4% | $4.00 | 17.6% | 17 |
| L-T | Loblaws | 1.2% | $123.59 | 20.3% | $1.54 | 12.4% | 10 |
| MGA-N | Magna | 2.9% | $62.16 | -23.8% | $1.80 | 4.7% | 12 |
| MRU-T | Metro | 1.5% | $72.37 | 8.0% | $1.10 | 12.2% | 27 |
| RY-T | Royal Bank of Canada | 3.8% | $129.05 | -5.7% | $4.96 | 14.8% | 11 |
| SJ-T | Stella-Jones Inc. | 2.0% | $41.00 | 0.8% | $0.80 | 11.1% | 17 |
| STN-T | Stantec Inc. | 1.1% | $65.77 | -6.3% | $0.71 | 6.8% | 10 |
| TD-T | TD Bank | 4.1% | $87.45 | -12.0% | $3.56 | 12.7% | 11 |
| TFII-N | TFI International | 1.1% | $102.03 | -7.9% | $1.08 | 12.5% | 11 |
| TIH-T | Toromont Industries | 1.4% | $106.43 | -6.4% | $1.52 | 15.2% | 32 |
| TRP-T | TC Energy Corp. | 5.6% | $64.25 | 7.6% | $3.57 | 4.4% | 21 |
| T-T | Telus | 4.3% | $30.74 | 3.3% | $1.33 | 6.2% | 18 |
| WCN-N | Waste Connections | 0.6% | $141.87 | 5.8% | $0.92 | 8.9% | 12 |
| Averages | 2.8% | 1.2% | 10.2% | 18 |
