4 Canadian Dividend Stocks at Risk of a Distribution Cut

The Canadian dividends stocks on our list are paying out excess earnings at a rate that seems unsustainable

SmallCapPower | September 21, 2017: Today we have identified four Canadian dividend stocks at risk of reducing its dividend payout. A dividend is usually paid by companies when they have excess earnings to reward shareholders. Consistent payment of dividends indicates healthy operational and financial performance of a company. Many passive investors consider regular dividends as one of the key metrics for investment and a reduction in the same could indicate a signal to sell.

Lucara Diamond Corporation (TSX: LUC)

Lucara Diamond Corporation is a diamond mining company. The Company owns interests in diamond projects in Botswana and Lesotho, Africa.

  • Market cap: $925.9 million
  • Current Dividend Yield: 4.2%
  • TTM DPS (Dividends Per Share): $0.41
  • NTM DPS: $0.08
  • Decline in DPS (NTM): 80.5%

Cona Resources Ltd. (TSX: CONA)

Cona Resources Ltd. operates as an oil and gas company. The Company produces and develops crude oil deposits. Cona Resources focuses on oil recovery from its cash flow oil resource base. Cona Resources serves customers in Canada.

  • Market cap: $205.0 million
  • Current Dividend Yield: 11.6%
  • TTM DPS: $0.34
  • NTM DPS: $0.14
  • Decline in DPS (NTM): 60.1%

ZCL Composites Inc. (TSX: ZCL)

ZCL Composites Inc. manufactures fiberglass underground storage tanks and distributes petroleum handling equipment. The Company’s products are marketed under the Prezerver name as complete fuel storage systems which carry a warranty against pollution. ZCL also manufactures E-Z Deck, a composite decking product that serves as a maintenance-free alternative to wood.

  • Market cap: $405.2 million
  • Current Dividend Yield: 3.7%
  • TTM DPS: $1.05
  • NTM DPS: $0.48
  • Decline in DPS (NTM): 54.3%

Canaccord Genuity Group Inc. (TSX: CF)

Canaccord Genuity Group Inc. is an independent full service financial services firm. The Company provides investment products, brokerage services, and investment banking services to retail, institutional, and corporate clients. Canaccord operates around the world including offices in Canada, Australia, the United Kingdom, France, Germany, Ireland, Hong Kong and China.

  • Market cap: $499.5 million
  • Current Dividend Yield: 2.5%
  • TTM DPS: $0.11
  • NTM DPS: $0.04
  • Decline in DPS (NTM): 63.6%

Disclosure: Neither the author nor any of the principals at SmallCapPower, or their family members, own shares in any of the companies mentioned above.

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