Canadian Dividend All-Stars Expected To Announce Dividend Increases - Week Of July 23

Jul. 21, 2018 4:06 PM ETAEGXF, LTKBF6 Likes
Mat Litalien profile picture
Mat Litalien
2.68K Followers

Summary

  • 14 Canadian Dividend-All Stars are scheduled to report earnings this week.
  • Logistec Corp. has kept dividends steady for four straight quarters and is due for a raise.
  • With a failed takeover attempt in the rear-view mirror, Aecon Group has limited time in which to raise dividends.

This coming week, there are 14 Canadian Dividend All-Stars scheduled to report earnings. Of those there are two potential candidates for a dividend raise. There were no surprises last week, so we can jump right into what to expect from this coming week.

WILL THEY OR WON’T THEY

Logistec Corp. (OTC:LTKBF)[TSE: LGT.A] – Current Streak – 8 YRS, Current Yield – 0.58%

Earnings Release Date: Friday, July 27

What can investors expect: Logistec provides cargo handling and other services to a range of marine, industrial and municipal customers. The Company operates through two segments: marine services and environmental services.

Logistiec has no discernable dividend raise pattern. It raised dividends in July of last year and has kept its dividend steady for the past four quarters. Although it is due for a raise, investors should be prepared for a non-event. Prior to its raise in 2017, the company had kept its dividend steady for eight straight quarters.

The company has a history of double-digit dividend growth rates. Its last raise was 10%. However, because Logistec kept its dividend steady for so long, its 1YR growth rate is only 2.5%. It has a low 22.6% payout ratio, so it has ample room to grow its dividend.

As such, a raise close to 10% is not out of the realm of possibility.

EST DGR

EST INCR

EST NEW DIV

9.09%

C$0.0075

C$0.09

Aecon Group Inc. (OTCPK:AEGXF)[TSE: ARE] – Current Streak – 6 YRS, Current Yield – 3.25%

Earnings Release Date: Friday, July 27

What can investors expect: Aecon Group is a construction and infrastructure development company. It operates through four segments: Infrastructure, Energy, Mining and Concessions.

Like clockwork, the company had raised dividends along with first quarter results in March. However, Aecon’s reliable dividend growth pattern was interrupted by a takeover attempt by China Communications Construction Co. Ltd. The Feds have since stepped and blocked the transaction.

The question now becomes, when will Aecon return to dividend growth? Aecon only has two more dividend announcements in which to raise dividends before losing its status as an All-Star.

Aecon last raised dividends by C$0.01 per share. Given the uncertainty surrounding the company following the failed takeover attempt, I don’t expect anything more than that this time around. If anything, it could announce a raise below expectations.

EST DGR

EST INCR

EST NEW DIV

8.00%

C$0.01

C$0.135

Editor's Note: This article discusses one or more securities that do not trade on a major U.S. exchange. Please be aware of the risks associated with these stocks.

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This article was written by

Mat Litalien profile picture
2.68K Followers
Two of his favourite stocks, goeasy and Well Health Technologies were up 39% and 341% in 2020. Mat is primarily interested in fundamental analysis, is focused on the long term and his portfolio is composed dividend paying equities and growth stocks. Mat has his MBA and is a founding partner of one of the fastest growing investment services in Canada (StockTrades Premium).
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Disclosure: I am/we are long AEGXF. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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