The Canadian small caps we have identified have increased their dividend payout by more than 20% over the past five years
SmallCapPower | July 10, 2018: An investor looking for long-term assets for their portfolio might typically examine stocks with strong dividend yields and growth. Today we have uncovered four Canadian small caps with an average 5-year dividend growth of 32% and an average dividend yield of 4.3%. These stocks could act as a hedge against continued market instability.
Intertape Polymer Group Inc. (TSX:ITP) – $17.04
Non-Paper Containers & Packaging
Intertape Polymer Group is a specialty packaging company, serving its customers specialty tapes, packaging films, and bulk containers. The Company employs 2,600 employees over 19 locations in the US, Canada, Germany, Portugal, and India. On June 15, the Company announced the acquisition of 55% of Capstone Polyweave Private Limited, an Indian packaging company, for US$13M.
- Market Cap: $1,002.2M
- Dividend Growth Hist 5 YR: 47.6%
- Dividend Payout Ratio: 3.7%
- Dividend Yield: 4.3%
- Dividend Yield 5 YR Avg: 3.2%
- YTD Total Return: -19.2%
Holloway Lodging Corp. (TSX:HLC) – $6.09
Hotels, Motels & Cruise Lines
Holloway Lodging operates 33 hotels with 3,764 rooms across Canada. The Company operates hotels under larger brands, including Holiday Inn (LSE:IHG), Super 8, and Travelodge (NYSE:WYND). Holloway aims to manage hotels for maximum profit and acquire additional properties.
- Market Cap: $111.3M
- Dividend Growth Hist 5 YR: 32.0%
- Dividend Payout Ratio: 2.5%
- Dividend Yield: 2.3%
- Dividend Yield 5 YR Avg: 2.8%
- YTD Total Return: 8.1%
High Liner Foods Inc. (TSX:HLF) – $10.48
Food Processing
High Liner Foods is a Canada-based company focused on the processing and marketing of frozen seafood products. The Company sells its products to North American retailers, distributors, and restaurants under seven brands including the High Liner brand. High Liner currently holds a total production capacity of ~219M lbs.
- Market Cap: $349.9M
- Dividend Growth Hist 5 YR: 23.6%
- Dividend Payout Ratio: 1.4%
- Dividend Yield: 5.5%
- Dividend Yield 5 YR Avg: 2.8%
- YTD Total Return: -27.4%
High Arctic Energy Services Inc. (TSX:HWO) – $3.90
Oil Related Services and Equipment
High Arctic Energy Services is a Canada-based company, which focuses on providing contract drilling, completion services, equipment rental and other oilfield services to the oil and gas industry. In Canada, its main business lines are in snubbing services, the supply of Cryogenic Liquid Nitrogen Pumping Services and equipment rentals. The Company holds distribution rights for the rental of Dura-Base mats within Papua New Guinea, where it also provides drilling support services.
- Market Cap: $204.4M
- Dividend Growth Hist 5 YR: 23.1%
- Dividend Payout Ratio: 5.0%
- Dividend Yield: 5.1%
- Dividend Yield 5 YR Avg: 4.8%
- YTD Total Return: 2.3%
Disclosure: Neither the author nor his family own shares in any of the companies mentioned above.
To read our full disclosure, please click on the button below:
