The Canadian stocks we’ve identified have increased their dividends on average by 154.5% over the past 12 months
SmallCapPower | October 18, 2019: Dividend-paying stocks can generate income for investors without having to sell shares. Additionally, dividend increases are generally a good indicator that companies are growing their free cash flow and are more likely to have better returns than their peers with stagnant dividend payouts. Dividend increases are typically a positive sign because it implies that a company’s profits have increased, thus more funds can be allocated to dividend payouts. Today we have discovered four Canadian stocks trading on the TSX that have had significant dividend increases over the past 12 months.
*Share prices as at October 16, 2019, data obtained from S&P Capital IQ
Canaccord Genuity Group Inc. (TSX:CF) – $5.63
Capital Markets
Canaccord is an independent, full-service financial services firm, with operations in two principal segments of the securities industry: wealth management and capital markets. Canaccord has wealth management offices located in Canada, Australia, the UK, Guernsey, Jersey, and the Isle of Man. Canaccord Genuity Capital Markets, the international capital markets division, operates in North America, UK & Europe, Asia, Australia and the Middle East. On June 6, 2019 Canaccord Genuity announced a dividend increase, which shows strength of its improving business mix.
- Market Cap: $558.9M
- 30-Day Return: +3.9%
- YTD-Return: -3.6%
- 30-Day Average Trading Volume: 158,310
- Q1/20 Dividend: $0.05
- Q4/19 Dividend: $0.01
- Dividend Growth: +400%
Quebecor Inc. (TSX:QBR.B) – $30.81
Media
Quebecor is a major cable and wireless operator in the province of Quebec. Quebecor operates in the following business segments: Telecommunications, Media, and Sports and Entertainment. Quebecor’s corporate strategy is to capture synergies among its segments and leverage the value of content for the benefit of multiple distribution platforms. The Company also owns select media assets, including a 68.4% equity interest in television broadcaster TVA Group. On August 8, 2019, Quebecor reported Q2/19 results, highlighted by revenue of $1.06B, a 1.2% increase YoY, adj. EBITDA of $455.0M, up 6.8% YoY, and EPS of $0.55 (was 0.18 in Q2/18).
- Market Cap: $7,894.1M
- 30-Day Return: +0.7%
- YTD-Return: +7.5%
- 30-Day Average Trading Volume: 430,620
- Q2/19 Dividend: $0.11
- Q1/19 Dividend: $0.06
- Dividend Growth: +83.3%
ECN Capital Corp. (TSX:ECN) – $4.34
Diversified Financial Services
ECN Capital is a Canada-based finance company with a focus on providing asset solutions for the financial services industry. The Company originates, services, structures and manages financial products and provides advisory services for financial institutions. ECN operates through three business segments: Service Finance, Triad Financial Services, and The Kessler Group. Service Finance provides home improvement loans. Triad Financial Services provides manufactured home loans. The Kessler Group offers unsecured and secured consumer loan and credit card portfolios. On August 7, 2019, ECN announced Q2/19 financial results; EPS was $0.09 on revenue of $82.6M, which beat consensus estimates of $0.08 and $78.8M.
- Market Cap: $1,043.2M
- 30-Day Return: -7.5%
- YTD-Return: +25.8%
- 30-Day Average Trading Volume: 402,160
- Q2/19 Dividend: $0.02
- Q1/19 Dividend: $0.01
- Dividend Growth: +100%
goeasy Ltd. (TSX:GSY) – $57.73
Consumer Finance
goeasy is a Canada-based, full-service provider of alternative financial services and has two main business segments: easyfinancial and easyhome. The easyhome segment provides consumer loans for furniture, electronics, computers and appliances, which are offered under weekly or monthly leasing agreements. Easyfinancial has ~$879.0M in consumer loans receivable and a 47% revenue CAGR over past seven years. The easyfinancial segment is its financial services arm, operating in the non-prime consumer lending marketplace. easyfinancial is focused on providing consumer installment loans with $49M in lease assets. The Company operates approximately 200 easyfinancial locations and over 180 easyhome stores across Canada. On September 4, 2019, goeasy entered into a strategic partnership and purchased a minority equity interest in PayBright for $34.3M.
- Market Cap: $832.0M
- 30-Day Return: +2.6%
- YTD-Return: +61.9%
- 30-Day Average Trading Volume: 37,910
- Q1/19 Dividend: $0.31
- Q4/18 Dividend: $0.23
- Dividend Growth: +34.7%
Disclosure: Neither the author nor his family own shares in any of the companies mentioned above.
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