Canadian Dividend All-Stars Expected To Announce Dividend Increases - Week Of Aug 8

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Includes: CIFAF, HDIUF, KEYUF, RBA, SAPIF, TRI
by: Mat Litalien

Summary

Only 1 All-Star raised dividends in July.

Investors can expect at minimum a couple of dividend raises this coming week.

4 All-Stars who are due to report are overdue for a dividend raise announcement.

The month of July only saw one Canadian Dividend All-Star, Alimentation Couche-Tard, announce a dividend increase. Fret not, the summer lull is about to come to an end. It all begins this week where two All-Stars are expected to raised dividends. There are several others overdue for a raise who are also scheduled to report earnings.

EXPECTED RAISES

Saputo Inc. (OTCPK:SAPIF)[TSE: SAP] – Current Streak – 18 YRS, Current Yield – 1.49%

Earnings Release Date: Tuesday, August 7

What can investors expect: Saputo produces, markets and distributes dairy products which include cheese, fluid milk, extended shelf-life milk and cream products, cultured products and dairy ingredients.

Saputo is as reliable as it gets. The company has consistently raised dividends along with first quarter earnings in early August. Saputo’s dividend growth rate has been slowing. Its five-year average is approximately 14%, while its three-year average dips to 8%. Last year, the company announced a C$0.01 raise for a 6.67% bump.

In 2017, the company’s adjusted earnings per share decreased year over year, while operational cash flow dropped almost 25%. As a result, I expect a raise similar to that of last year.

EST DGR

EST INCR

EST NEW DIV

6.25%

C$0.01

C$0.17

EXPECTED RAISES

Fiera Capital Corp (FRRFP)[TSE: FSZ] – Current Streak – 5 YRS, Current Yield – 6.34%

Earnings Release Date: Friday, August 10

What can investors expect: Fiera Capital is a full-service, multi-product investment company. It provides investment advisory and related services to institutional investors, private wealth clients and retail investors.

Fiera Capital is one of the newer Canadian Dividend All-Stars and it has been raising dividends at an impressive pace. Since its five-year streak began, the company has consistently raised every second quarter.

Fiera has also been incredible predictable with the amount of its raises. Every second quarter, the company has raised dividends by exactly C$0.01 per share. With a 6.34% yield, there is no reason to expect any different this week.

EST DGR

EST INCR

EST NEW DIV

5.56%

C$0.01

C$0.20

WILL THEY OR WON’T THEY

Hardwoods Distribution Inc. (OTC:HDIUF)[TSX: HDI] – Current Streak – 7 YRS, Current Yield – 1.78%

Earnings Release Date: Wednesday, August 8

What can investors expect: Hardwoods Distribution is engaged in the wholesale distribution of hardwood lumber and related sheet good and specialty products.

Hardwoods has no clear discernable dividend raise pattern. The company's last raise came in August of 2017 but it has a history of leaving the dividend steady for more than four quarters.

Over the company’s seven-year streak, it has a consistent dividend growth rate around 15%. Given Hardwoods Distribution’s payout ratio is in the low 20s, there is no reason to believe it cannot raise by double-digits again.

EST DGR

EST INCR

EST NEW DIV

13.79%

C$0.01

C$0.0825

OVERDUE FOR A RAISE

The following companies have kept their dividend steady for longer than a year. Two, Ritchie Bros. Auctioneers (RBA)[TSX:RBA] and Thomson Reuters Corp (TRI)[TSX:TRI], are at risk of losing their All-Star status. If they don’t raise by the end of 2018, they will have effectively paid out the same dividends in 2018 as in 2017, thus ending their streaks. Of note, both companies pay out their dividends in US funds.

The other two, CI Financial Corp (OTCPK:CIFAF)[TSX:CIX] and Keyera Corp (OTC:KEYUF)[TSX:KEY], are overdue based on a calendar year. Both pay their dividends monthly, and have kept dividends steady for 14 straight months. If no raise is announced by end of year, they will still have paid out more dividends year over year.

Company

Earnings Date

EST DGR

EST INCR

EST NEW DIV

Thomson Reuters

Wed., Aug 8

1.45%

$0.005

$0.45

Richie Bros.

Wed., Aug 8

5.88%

$0.01

$0.18

Keyera

Wed., Aug 8

7.14%

C$0.01

C$0.14

CI Financial

Thur., Aug 9

2.13%

C$0.0025

C$0.12

Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

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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