Posted by JM on January 21, 2021
Benjamin Graham once remarked that earnings are the principal factor driving stock prices.
Each quarter we will provide readers with weekly earnings updates of stocks on ‘The List’ during the calendar earnings season. Q4 2021 has now ended, and companies are now beginning to report.
Earnings growth and dividend growth tend to go hand in hand so this information can tell us a lot about future dividend growth of our quality companies. Monitoring our dividend growers periodically is part of the process and reading the quarterly earnings releases is a good place to start.
Some of our dividend growers from ‘The List’ have reported quarterly earnings already, based on their fiscal year, with the majority of Q4 2021 earnings scheduled to report in February 2022.
The complete chart can be found below the updated List by selecting ‘The List’ menu item at the top of the site home page.
Q4 Estimates and Results:
| SYMBOL | COMPANY | DATE | ESTIMATE | RESULT | |
|---|---|---|---|---|---|
| ATD-B-T | Alimentation Couche-Tard Inc. | 23-Nov | $0.65 | $0.65 | 0.0% |
| RY-T | Royal Bank of Canada | 1-Dec | $2.81 | $2.71 | -3.6% |
| TD-T | TD Bank | 2-Dec | $1.96 | $2.09 | 6.6% |
| DOL-T | Dollarama Inc. | 8-Dec | $0.57 | $0.61 | 7.0% |
| ENGH-T | Enghouse Systems Limited | 15-Dec | $0.44 | $0.54 | 22.7% |
Although most companies on ‘The List’ will probably exceed earnings expectations once again in Q4, macro investors are predicting a slow down in the rate of change of earnings growth in 2022. This will impact valuations and put downward pressure on prices. With very few of our quality dividend growers currently in their ‘sensible’ price range, we are waiting patiently for an opportunity soon to add to our positions.
