4 TSX Dividend Stocks That Could Be Forced to Cut Their Payout

The TSX dividend stocks on our list are expected to have drastic reductions in their revenues in the upcoming quarter

SmallCapPower | March 2, 2018: Today we’ve identified four TSX dividend stocks that could cut their shareholder payouts in the upcoming quarter. These companies all had lower-than-expected previous earnings, but on average have experienced no significant stock-price declines.

Innergex Renewable Energy Inc. (TSX:INE) – $13.38
Electric Utilities

Innergex is a Canada-based utilities company. The Company operates eight projects in renewable energy fields, including solar, hydro, geothermal, and wind. These projects total ~1600 MW, and the Company plans to expand its capacity to reach 200 MW by 2020. Innergex recently acquired 100% of the outstanding shares of Alterra Power (TSX:AXY), which adds an additional ~400 MW of capacity and many additional projects in the development pipeline. The Company experienced significantly below-average production in 2017.

  • Market Cap: $1,775.4 Million
  • Last Earnings Surprise %: -32.4%
  • Earnings Per Share Growth – Forward Quarter/Year-ago Quarter: -765.8%
  • 3 Month Total Return: -5.9%

Tahoe Resources Inc. (TSX:THO) – $6.28
Non-Gold Precious Metals & Minerals

Tahoe Resources is a Canada-based gold and silver producer with operations in Guatemala, Peru and Canada. The Company’s assets include the Escobal Silver Mine in Guatemala, the La Arena and Shahuindo Mines in Peru and the Timmins West and Bell Creek Mines in Canada. Tahoe shut down one of its operating silver mines in mid-2017.

  • Market Cap: $1,964.2 Million
  • Last Earnings Surprise %: -19.6%
  • Earnings Per Share Growth – Forward Quarter/Year-ago Quarter: -105.4%
  • 3 Month Total Return: 11.7%

TransAlta Corp. (TSX:TA) – $7.16
Electric Utilities

TransAlta Corporation operates over 65 hydro, wind, gas, coal and solar power generation facilities across three countries with an operating capacity of 8,700 megawatts. The Company is Canada’s largest generator of wind power.

  • Market Cap: $2,061.4 Million
  • Last Earnings Surprise %: -103.5%
  • Earnings Per Share Growth – Forward Quarter/Year-ago Quarter: -103.2%
  • 3 Month Total Return: -6.5%

AGT Food and Ingredients Inc. (TSX:AGT) – $19.36
Food Processing

AGT Food and Ingredients is a Canada-based food processing company. The Company processes pulse and grain, distributes food products, and packages human and animal food. AGT operates grain elevators and railways in Saskatchewan to assist in transportation.

  • Market Cap: $469.2 Million
  • Last Earnings Surprise %: -125.9%
  • Earnings Per Share Growth – Forward Quarter/Year-ago Quarter: -87.2%
  • 3 Month Total Return: -0.1%

Disclosure: Neither the author nor his family own shares in any of the companies mentioned above.

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