Sustainable growth is often a good indicator for dividend increases
SmallCapPower | October 26, 2016: If earnings per share increase over a number of years it can lead to a company either instituting a dividend if it has no current foreseeable growth opportunities or, if the company already pays one, increasing it. The four financial stocks on our list today all saw increases to their earnings last fiscal ending 2015, and with this year being slightly stronger than 2014, you can expect to see that earnings growth continue, or at least sustained. This may lead the company to increase its dividend which, if it does, will not only increase the payment you receive on a periodic basis, but should also lead to a jump in its share price.
DREAM Unlimited Corp. (TSE:DRM) – $7.28
Real Estate Rental, Development & Operations
Dream Unlimited Corp. is a holding company and a real estate company engaged in various businesses, including residential land development, housing and condominium development, retail development, asset management and management services, renewable energy infrastructure and commercial property ownership. Its segments include Land Development; Housing Development; Condominium and Mixed-Use Development; Retail Development; Asset Management, Management Services and Equity Interests in Related Parties; Investment and Recreational properties, and Renewable Power.
- Market Cap: $566.41(mm)
- Total Revenue (FY0, CAD, Millions): $333.37
- YoY % Chg in Earnings Per Share (FY0, CAD): 111.59%
- Dividend per Share – Actual (FY0, CAD): $0.13
Chesswood Group Ltd. (TSE:CHW) – $11.89
Corporate Financial Services
Chesswood Group Limited is engaged in financial services businesses. The Company operates through two segments: Equipment Financing-U.S. and Equipment Financing-Canada. The Equipment Financing-U.S. segment is involved in small-ticket equipment leasing and lending to small businesses. The Equipment Financing-Canada segment provides commercial equipment financing to small businesses in Canada. Through its interests in subsidiaries, the Company is engaged in providing micro and small-ticket equipment financing to small businesses; providing working capital loans to small businesses in over 30 states of the United States; and providing commercial equipment financing to small and medium businesses in Canada.
- Market Cap: $194.72(mm)
- Total Revenue (FY0, CAD, Millions): $76.58
- YoY % Chg in Earnings Per Share (FY0, CAD): 24.73%
- Dividend per Share – Actual (FY0, CAD): $0.78
MCAN Mortgage Corp. (TSE:MKP) – $13.87
MCAN Mortgage Corporation (MCAN) is a Canada-based loan company and mortgage investment corporation. The Company’s primary objective is to generate income by investing its corporate funds in a portfolio of mortgages (including single family residential, residential construction, non-residential construction and commercial loans), as well as other types of financial investments, loans and real estate investments. The Company’s primary subsidiary, Xceed Mortgage Corporation (Xceed), focuses on the origination and sale to MCAN and third party mortgage aggregators of residential first-charge mortgage products across Canada.
- Market Cap: $320.05(mm)
- Total Revenue (FY0, CAD, Millions): $96.40
- YoY % Chg in Earnings Per Share – (FY0, CAD): 22.76%
- Dividend per Share – Actual (FY0, CAD): $1.13
Callidus Capital Corp. (TSE:CBL) – $17.05
Corporate Financial Services
Callidus Capital Corporation (Callidus) is a Canada-based company, which is engaged in providing financing solutions for companies that are unable to obtain financing from lending institutions. The Company operates a finance business that provides senior secured asset-based loans and lending services to mid-market companies operating in Canada and the United States. The Company offers loans ranging in size from $5 million to $100 million. The Company also offers a range of facilities, including revolving lines of credit; term loans, including standalone term loans; distressed lending, including debtor in possession (DIP) loans, acquisition funding out of bankruptcy and stalking horse bid funding, and growth oriented financing in support of acquisitions, management buyouts (MBO’s), inventory builds, seasonal facilities and purchase order financing.
- Market Cap: $849.00(mm)
- Total Revenue (FY0, CAD, Millions): $171.31
- YoY % Chg in Earnings Per Share – (FY0, CAD): 18.79%
- Dividend per Share – Actual (FY0, CAD): $0.08