Companies often pay a dividend if it sees no current opportunity for reinvesting its earnings. As well, dividend-paying stocks are attractive for investors who want to see a return even in a down market. Businesses that distribute a dividend and have growing cash flows are likely considered ‘cash cows’, which hopefully applies to the stocks on our list today.
DirectCash Payments Inc. (TSX: DCI) – $13.15
Business Support Services
DirectCash Payments Inc. (DC Payments) is a full-service provider of payment processing and automated banking machines (ATM) managed solutions. The Company provides ATM, point of sale (POS), and transaction processing services to financial institutions, corporations and Government, and retailers across Canada. It provides switch and transaction processing services on ATMs and for debit and credit cards and related services. DirectCash’s operations are segmented into the Americas (Canada and Mexico), Australasia (Australia and New Zealand) and Europe.
- Market Cap: $229,680,448
- Dividend per Share: $1.41
- Dividend Yield (2014): 10.7%
- Free Cash Flow CAGR (2 years): +32.0%
Corus Entertainment Inc. (TSX: CJR.B) – $13.32
Broadcasting
Corus Entertainment Inc. is a communications and entertainment company that operates through two operating segments: Television and Radio. The Television segment is comprised of specialty television networks, pay television services, three conventional television stations and the Corus content business, which consists of the production and distribution of films and television programs, merchandise licensing, publishing and animation software. The Company’s multimedia entertainment brands include YTV; Treehouse; Nickelodeon (Canada); W Network; OWN: Oprah Winfrey Network (Canada); and W Movies, to name but a few. The Radio segment comprises 37 radio stations, situated primarily in high-growth urban centres in English Canada, with a concentration in the densely populated area of southern Ontario.
- Market Cap: $1,114,143,594
- Dividend per Share: $1.06
- Dividend Yield (2014): 8.0%
- Free Cash Flow CAGR (2 years): 9.9%
Labrador Iron Ore Royalty Corp. (TSX: LIF) – $13.18
Iron & Steel
Labrador Iron Ore Royalty Corporation (LIORC) is a Canada-based mining company that owns interests in the Iron Ore Company of Canada (IOC), which operates an iron mine near Labrador City, Newfoundland and Labrador on lands leased from LIORC. The Company through its wholly-owned subsidiary, Hollinger-Hanna Limited, owns a 15.10% equity interest in IOC and receives a 7% gross overriding royalty on all iron ore products produced from the leased lands, sold and shipped by IOC and commissions on sales of iron ore by IOC. IOC is a Canada-based iron ore producer, operating a mine, concentrator and pellet plant at Labrador City, Newfoundland.
- Market Cap: $843,520,000
- Dividend per Share: $1.00
- Dividend Yield (2014): 7.6%
- Free Cash Flow CAGR (2 years): 48.5%
Automodular Corp. (TSXV: AM.H) – $2.50
Auto, Truck & Motorcycle Parts
Automodular Corporation is a Canada-based sequencer and sub-assembler of components and modules that are installed in cars and trucks made by North American Original Equipment Manufacturers (OEMs). The Company’s products include instrument panel, rear suspension, front corner, front center suspension, front strut and bolster. Automodular Corporation also manufactures complex sub-assemblies such as cockpits, suspension units and powerpacks.
- Market Cap: $47,833,673
- Dividend per Share: $0.18
- Dividend Yield (2014): 7.2%
- Free Cash Flow CAGR (2 years): 5.1%
Medical Facilities Corp. (TSX: DR) – $15.96
Healthcare Facilities & Services
Medical Facilities Corporation is a Canada-based specialty surgical hospital. Through its subsidiaries, Medical Facilities America, Inc. and Medical Facilities (USA) Holdings, Inc., it owns controlling interests in six limited liability entities (the Centers), each of which owns a specialty surgical hospital (SSH) or an ambulatory surgery center (ASC) located in the United States. ASCs are specialized surgical centers that provide outpatient procedures, whereas SSHs are licensed for inpatient and outpatient surgeries.
- Market Cap: $499,827,268
- Dividend per Share: $1.13
- Dividend Yield (2014): 7.0%
- Free Cash Flow CAGR (2 years): 18.5%
