Posted by BM on December 20, 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.
All the major North American indexes including the TSX were down this week but ‘The List’ managed to hold its ground and tick a little bit higher. The good part about dividend growth investing is that down markets allow us to purchase more income from our quality companies at better prices. Having ‘The List’ as a starting point in our process makes our portfolio building effort that much easier.
Performance of ‘The List’
‘The List’ was up slightly this past week with a 17.0% YTD price return gain (capital) and an average of 8.2% dividend increase (income) in 2021.
The best performers this week on ‘The List’ were Metro (MRU-T) up 7.3%, Dollarama (DOL-T) which maintains its position in the top three weekly performers, up another 6.2% and Emera (EMA-T) up 5.7%.
Enghouse Systems Limited (ENGH-T) was the worst performer again this week, down -11.4% after Q4 earnings were released.
Dividend Increases
There were no dividend increases from companies on ‘The List’ this past week.
Earnings Releases
Enghouse Systems’ Fiscal Q4 EPS Beats Forecasts Despite Unexpected YoY Drop in Revenue
Enghouse Systems (ENGH-T) overnight Thursday reported a net income of $30.2 million or $0.54 per share in its fiscal fourth quarter ended Oct. 31, rising from $29.4 million or $0.52 per share in the same period a year ago.
The fiscal fourth-quarter bottom line per share exceeded market consensus expectations of $0.46 per share, but revenue unexpectedly dropped year over year to $113.1 million from $120.9 million. Expectations for the top line were $123.6 million.
Enghouse, which provides enterprise software solutions, attributed the revenue decrease to exceptional results last year as a result of COVID-19-related demand, as well as an unfavorable forex rate. The company reported adjusted EBITDA of $42.1 million or $0.75 per share, down on a yearly basis from $46.6 million or $0.84 per share.
Enghouse closed the year with $198.8 million in cash and equivalents, compared with $251.8 million a year ago.
Source: MT Newswires
Recent News
Couche-Tard Buying 17 Sites and 23 Wholesale Fuels Accounts From Slidell Oil Co of Louisiana
Alimentation Couche-Tard (ATD-T), a global player in convenience and fuel retail, overnight Thursday announced an agreement with Slidell Oil Company, acquiring 17 convenience stores operating primarily under the Purple Cow banner and 23 wholesale fuels accounts across three southeastern states. The assets and accounts are owned and operated by Slidell Oil Company of Slidell, Louisiana. The acquisition closed on December 16.. Financial terms were not disclosed.
Slidell Oil’s principal owners are brothers Keith and Brian Baker, third-generation owners who have managed the company since the early 2000’s. Slidell Oil traces its roots back to the 1940’s and has a history in both the convenience retail and wholesale fuels business, primarily in Louisiana and Alabama.
The Slidell Oil assets are large, modern, high-volume facilities that will complement the existing Circle K portfolio in the region, Couche-Tard said. On the fuel side, the wholesale accounts will further complement Circle K’s wholesale fuels business.
Source: MT Newswires
CCL Industries Closing of D&F Acquisition
CCL Industries Inc. (CCL-B-T), a world leader in specialty label, security and packaging solutions for global corporations, government institutions, small businesses and consumers, announced today the closing of the acquisitions of Desarrollo e Investigación S.A. de C.V. and Fuzetouch PTE LTD (Singapore) (collectively “D&F”), headquartered in San Luis Potosi, Mexico. D&F will form an integral part of CCL Design in Mexico.
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 17, 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% | $13.92 | -14.3% | $0.67 | 10.2% | 10 |
| ATD-T | Alimentation Couche-Tard Inc. | 0.8% | $47.85 | 9.7% | $0.37 | 25.2% | 11 |
| BCE-T | Bell Canada | 5.3% | $65.69 | 19.5% | $3.46 | 5.1% | 12 |
| BIP-N | Brookfield Infrastructure Partners | 3.5% | $57.51 | 16.2% | $2.04 | 2.5% | 13 |
| BNS-T | Bank of Nova Scotia | 4.1% | $87.29 | 28.9% | $3.60 | 0.0% | 10 |
| CCL-B-T | CCL Industries | 1.2% | $67.42 | 16.3% | $0.84 | 16.7% | 19 |
| CNR-T | Canadian National Railway | 1.5% | $164.12 | 17.2% | $2.46 | 7.0% | 25 |
| CTC-A-T | Canadian Tire | 2.6% | $178.30 | 7.2% | $4.70 | 3.3% | 10 |
| CU-T | Canadian Utilities Limited | 4.8% | $36.51 | 18.0% | $1.76 | 1.1% | 49 |
| DOL-T | Dollarama Inc. | 0.3% | $62.07 | 18.9% | $0.20 | 12.4% | 10 |
| EMA-T | Emera | 4.1% | $62.81 | 17.0% | $2.58 | 3.8% | 14 |
| ENB-T | Enbridge Inc. | 7.0% | $47.65 | 16.6% | $3.34 | 3.1% | 25 |
| ENGH-T | Enghouse Systems Limited | 1.4% | $45.00 | -27.5% | $0.64 | 24.3% | 14 |
| EQB-T | Equitable Group Inc | 1.1% | $67.69 | 28.9% | $0.74 | 0.0% | 10 |
| FNV-N | Franco Nevada | 0.9% | $133.58 | 1.4% | $1.16 | 12.6% | 13 |
| FTS-T | Fortis | 3.4% | $60.51 | 16.0% | $2.05 | 4.1% | 47 |
| IFC-T | Intact Financial | 2.1% | $162.88 | 8.8% | $3.40 | 2.4% | 16 |
| MGA-N | Magna | 2.2% | $77.29 | 10.9% | $1.72 | 7.5% | 11 |
| MRU-T | Metro | 1.5% | $67.64 | 17.4% | $1.00 | 13.6% | 26 |
| RY-T | Royal Bank of Canada | 3.3% | $130.98 | 25.1% | $4.32 | 0.7% | 10 |
| SJ-T | Stella-Jones Inc. | 1.8% | $39.00 | -16.1% | $0.72 | 20.0% | 16 |
| TD-T | TD Bank | 3.4% | $94.12 | 30.8% | $3.16 | 1.6% | 10 |
| TFII-T | TFI International | 0.8% | $136.48 | 108.9% | $1.16 | 8.4% | 10 |
| TIH-T | Toromont Industries | 1.2% | $111.07 | 25.5% | $1.36 | 9.7% | 31 |
| TRP-T | Trans Canada | 5.9% | $58.71 | 12.5% | $3.48 | 7.4% | 20 |
| T-T | Telus | 4.2% | $29.55 | 16.2% | $1.25 | 8.2% | 17 |
| WCN-N | Waste Connections | 0.6% | $130.25 | 28.7% | $0.85 | 11.2% | 11 |
| Averages | 2.7% | 17.0% | 8.2% | 17 |
