Investors Should Demand More Dividends From These 5 Stocks

A company that is growing its earnings substantially but not increasing its dividends could be a red flag for investors

SmallCapPower | May 2, 2016: Although dividend payouts are completely at management’s discretion, a company that keeps retaining more earnings (and sometimes even lowering its dividends) when its earnings rise, is an investment that should be reconsidered. This could include the stocks on our list today. Unless the company is looking to use the funds for acquisitions or debt repayment, the residual earnings should rightfully flow back to investors.

Transcontinental Inc. (TSE:TCL.A) – $19.72
Commercial Printing Services

Transcontinental Inc. (TC Transcontinental) is a Canada-based company with operations in print and digital media, publishing and flexible packaging. The Company’s operating segments include the Printing and Packaging Sector, the Media Sector, and Head office and inter-segment eliminations. TC Transcontinental has approximately 24 printing plants and two flexible packaging plants.

• Market Cap: $1,790,728,391
• Dividend Yield (LTM): 3.5%
• Income Growth (1 year): 82%
• Dividend Growth (1 year): -4%

Extendicare Inc. (TSE:EXE) – $9.25
Healthcare Facilities & Services

Extendicare Inc. is a Canada-based company, which owns and operates long-term care centers, and provides publicly-funded home healthcare services. The Company operates approximately 120 senior care and living centers across over four provinces in Canada. Its segments include Long-term Care; Retirement Living; Home Health Care; Other Canadian Operations, and Corporate Canada.

• Market Cap: $826,311,083
• Dividend Yield (LTM): 5.1%
• Income Growth (1 year): 109%
• Dividend Growth (1 year): 0%

Student Transportation Inc. (TSE:STB) – $6.22
Passenger Transportation, Ground & Sea

Student Transportation Inc. (STI) is North America’s provider of student transportation solutions, operating nearly 13,000 vehicles. STI’s family of local companies delivers transportation, management, logistics and technology solutions to a range of customers throughout the United States and Canada.

• Market Cap: $605,915,971
• Dividend Yield (LTM): 5.3%
• Income Growth (1 year): 133%
• Dividend Growth (1 year): -60%

Lassonde Industries Inc. (TSE:LAS.A) – $174.99
Food Processing

Lassonde Industries Inc. develops, manufactures and markets a range of ready-to-drink fruit and vegetable juices and drinks. The Company develops, manufactures and markets specialty food products, such as fondue broths and sauces, packaged corn-on-the-cob and pasta sauces. It also imports selected wines from several countries of origin for packaging and marketing purposes.

• Market Cap: $564,559,850
• Dividend Yield (LTM): 2.0%
• Income Growth (1 year): 27%
• Dividend Growth (1 year): 0%

Absolute Software Corp. (TSE:ABT) – $6.78
IT Services & Consulting

Absolute Software Corporation is a Canada-based enterprise software-as-a-service (SaaS) provider of endpoint security and data risk management solutions to commercial, education and government customers. The Company operates through Data and Device Security (DDS) segment. The Company’s principal business activities are the development, marketing, and support of endpoint security and data risk management solutions for computing devices, such as desktops, laptops, tablets and smartphones.

• Market Cap: $264,916,810
• Dividend Yield (LTM): 3.7%
• Income Growth (1 year): 148%
• Dividend Growth (1 year): -2%

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