5 Small Cap Dividend Stocks with Sustainable Payouts

We expect the Canadian small cap dividend stocks on our list to maintain a healthy yield

SmallCapPower | June 21, 2017: When looking for small cap dividend stocks it is important to find companies that expect to increase or sustain their current payouts. To find such companies we looked for those businesses that have increased cash flow per share in each of the past five years, have a yield of over 3%, have enough cash flow to cover their dividend at least 1.4x over, and have a net debt to total capital ratio of no more than 0.7x.

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Aecon Group Inc. (TSX: ARE) – $15.64
Construction & Engineering

Aecon Group Inc is a Canada-based construction and infrastructure development company. It operates through four segments: Infrastructure, Energy, Mining and Concessions. The Infrastructure segment includes all aspects of the construction of both public and private infrastructure in Canada, and on a selected basis, internationally. The Energy segment encompasses a suite of service offerings to the energy sector, including industrial, construction and manufacturing activities, such as in-plant construction, site construction and module assembly. The Mining segment offers services consolidating its mining capabilities and services across Canada, including both mine site installations and contract mining. This segment focuses on delivering construction services.

  • Market Cap: $915,328,184
  • Total Revenue (LTM): $3,213,133,000
  • Debt to Equity: 41.2%
  • Dividend Yield: 3.1%

Ag Growth International Inc. (TSX: AFN) – $58.76
Heavy Machinery & Vehicles

Ag Growth International Inc. is a Canada-based manufacturer of agricultural equipment. The Company focuses on grain handling, storage and conditioning products. The Company’s products service both Farm and Commercial markets, and sells to farmers, contractors and corporate entities. The Company’s Farm business consists of portable grain handling equipment, including grain augers, belt conveyors and grain vacuums. The Company’s Commercial business consists of high capacity grain handling and conditioning equipment including enclosed belt conveyors, chain conveyors and bucket elevators.

  • Market Cap: $944,503,891
  • Total Revenue (LTM): $531,616,000
  • Debt to Equity: 167.6%
  • Dividend Yield: 4.1%

Granite Oil Corp. (TSX: GXO) – $4.51
Oil & Gas Exploration and Production

Granite Oil Corp., formerly DeeThree Exploration Ltd., is a Canada-based oil producer based in Calgary, Alberta with lands and operations located in southern Alberta. The Company is engaged in the exploration for and exploitation, development and production of oil and natural gas. Its Alberta Bakken Properties are located in southern Alberta, approximately 70 kilometers south of Lethbridge. This property consists of an average working interest of approximately 100% in over 393,453 gross (391,633 net) undeveloped acres and approximately 54,434 gross (52,140) net developed acres. The Alberta Bakken Properties include approximately 60 gross (61.4 net) oil wells and over 140 gross (138.16 net) gas wells.

  • Market Cap: $152,112,352
  • Total Revenue (LTM): $33,636,000
  • Debt to Equity: 13.0%
  • Dividend Yield: 9.3%

Polaris Infrastructure Inc. (TSX: PIF) – $16.81
Independent Power Producers

Polaris Infrastructure Inc. (Polaris Infrastructure), formerly Ram Power, Corp., is a renewable energy company focused on the development, production and sale of electricity from geothermal energy. It is engaged in the operation, acquisition and development of renewable energy projects in Latin America. The Company is operating an approximately 70-megawatt capacity (net) geothermal electrical energy production facility located in northwest Nicaragua (the San Jacinto project). It is also involved with the exploration and development of a second production facility in the Department of Chinandega in Nicaragua (the Casita Project).

  • Market Cap: $263,587,470
  • Total Revenue (LTM): $73,407,238
  • Debt to Equity: 90.8%
  • Dividend Yield: 4.2%

Transcontinental Inc. (TSX: TCL.A) – $25.49
Commercial Printing Services

Transcontinental Inc. is a printing company with operations in print, flexible packaging, publishing and digital media, both in Canada and the United States. The Company’s segments include the Printing and Packaging Sector, and the Media Sector. The Printing and Packaging Sector includes the manufacturing activities of the Company, and generates revenues from various activities, such as the printing of retail flyers, magazines, newspapers, color books, personalized and mass marketing products, and the production of flexible packaging solutions in Canada and the United States. The Media Sector generates revenues through print and digital publishing products, in French and English, of various types, such as newspapers, educational books, specialized publications for professionals, retail promotional content, mass and personalized marketing, mobile and interactive applications, and geotargeted door-to-door and digital distribution services.

  • Market Cap: $1,972,774,552
  • Total Revenue (LTM): $2,019,500,000
  • Debt to Equity: 32.6%
  • Dividend Yield: 3.1%

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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