A shrinking dividend payout is often a sign of deteriorating financials, which could apply to the Canadian small caps on our list
SmallCapPower | July 4, 2017: Today we have identified four Canadian small caps that have decreased their dividends significantly over the past five years. Declining dividends are a sign of deteriorating financial health, as companies can no longer afford to pay investors substantial dividend payments.
Atlantic Power Corp. (TSX: ATP) – $3.10
Electric Utilities
Atlantic Power Corporation (Atlantic Power) owns and operates a fleet of power generation assets in the United States and Canada. The Company’s power generation projects sell electricity to utilities and other commercial customers. Atlantic Power’s segments include East U.S., West U.S. and Canada. The Company’s portfolio consisted of interests in 19 operational power generation projects across nine states in the United States and two provinces in Canada, as of December 31, 2016.
- Market Cap: $357,211,440
- YTD Price Change: -8.3%
- 5 Year Change in Dividend Yield: -100%
HNZ Group Inc. (TSX: HNZ) – $13.99
Airlines
HNZ Group Inc. is an international provider of helicopter transportation and related support services with operations in Canada, Australia, New Zealand, Antarctica and Southeast Asia. The Company operates through four segments: offshore helicopter transportation services, onshore helicopter transportation services, helicopter repair and maintenance, and other services. Its other services segment offers flight training, aircraft leasing and other. It operates through approximately 115 helicopters to support offshore and onshore charter activities. It caters to a range of multinational companies and government agencies, including onshore and offshore oil and gas, mineral exploration, military support, hydro and utilities, forest management, construction, air ambulance and search and rescue.
- Market Cap: $181,439,531
- YTD Price Change: 4.3%
- 5 Year Change in Dividend Yield: -100%
Temple Hotels Inc. (TSX: TPH) – $4.25
Specialized REITs
Temple Hotels Inc. is a Canada-based company engaged in owning and operating hotel property investments in Canada. The Company’s segments include Fort McMurray, Other Alberta and Other Canada. The Company invests, directly and indirectly, in hotel properties and assets. The primary business activity of the Company is the acquisition and development of hotel properties and the management of the acquired/developed properties. The hotel portfolio of the Company consists of over 30 hotel and investment properties, which are owned by the Company, comprising approximately 3,880 rooms. The hotel portfolio includes two extended-stay properties (Stanton Suites Hotel, Yellowknife and Clearwater Timberlea) and one investment property (Cortona Residence).
- Market Cap: $107,397,274
- YTD Price Change: 1.2%
- 5 Year Change in Dividend Yield: -81%
Torstar Corp. (TSX: TS.B) – $1.50
Consumer Publishing
Torstar Corporation is a Canada-based media company that operates through three segments: Metroland Media Group (MMG), Star Media Group (SMG) and Digital Ventures. MMG publishes The Hamilton Spectator and the Waterloo Region Record daily newspapers and over 100 weekly community newspapers and has a number of specialty publications, directories, consumer shows, distribution operations and digital properties (including homefinder.ca, save.ca, travelalerts.ca, wagjag.com (WagJag) and the regional online sites, such as durhamregion.ca). SMG includes the daily Toronto Star newspaper, Toronto Star Touch and thestar.com. Star Media Group also includes Free Daily News Group Inc. (Metro), which publishes the English-language Metro free daily newspapers in various Canada’s largest cities. Digital Ventures includes eyeReturn Marketing Inc. (eyeReturn) and its joint venture interest in Workopolis, as well as it has interest in VerticalScope Holdings Inc.
- Market Cap: $106,440,300
- YTD Price Change: -21.5%
- 5 Year Change in Dividend Yield: -74.3%
Disclosure: Neither the author nor any of the principals at Small Cap Power, or their family members, own shares in any of the companies mentioned above.
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