Category Archives: Watchlist

5 US Stocks for High Dividend Growth

Summary

  • Some investors maybe worried about interest rate hikes.
  • Lower-yielding companies with estimated high earnings growth will likely be less affected by interest rate hikes compared to high-yielders.
  • These 5 companies could help complement the blue chip dividend payers in a dividend growth portfolio.

With the interest rate hike matter looming, investors might opt to look for investments which pay a lower yield, but have higher expected earnings growth rates.

If you’re looking for total return in investments and are not concerned about the immediate dividend income, here are 5 businesses for consideration. They are all expected to grow earnings at a rate of 10% or higher per year in the near future.

I placed them from lowest expected earnings growth to highest, assuming it’s easier to achieve lower growth than higher. So the companies appearing first are more likely to achieve their expected earnings growth. Additionally, they’re all expected to grow dividends at least 10% per year in the foreseeable future.

  1. Enbridge Inc (TSX:ENB)(NYSE:ENB) with 3% yield and 10-12% expected earnings growth.
  2. Gilead Sciences, Inc. (NASDAQ:GILD) with 1.5% yield and 11% estimated earnings growth.
  3. Union Pacific Corporation (NYSE:UNP) with 2.1% yield and 11% estimated earnings growth.
  4. Johnson Controls Inc (NYSE:JCI) with 2% yield and 12% expected earnings growth.
  5. Cummins Inc. (NYSE:CMI) with 2.2% yield and 15% estimated earnings growth.

To learn more about each of these companies, check out the Seeking Alpha article at 5 Dividend Companies With 10-15% Growth.

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Canadian Monthly Dividend Stocks for April 2015

Dividend stocks are attractive because they pay an income no matter what the market is doing. It’s true that some dividend stocks cut their dividends in harsh times. So, having a diversified portfolio of high quality dividend stocks will mitigate the risk of dividend cuts, and dividends received from the portfolio as a whole could even increase every year.

The index fund, iShares S&P/TSX 60 Index Fund (TSE:XIU) pays out a yield of 2.6%. Here are some monthly dividend stocks that you can consider. They pay 73% to 150% more than the index fund, respectively.

Vermilion Energy is the Best Amongst its Peers

Vermilion-Energy-logo

When thinking of Energy companies, companies like Suncor Energy, Enbridge, TransCanada, and Canadian Natural Resources come to mind. However, smaller mid cap companies can provide higher growth potential than large cap companies, and at the same time, are more established and stable than small cap companies.

Vermilion Energy Inc. (TSX:VET)(NYSE:VET) is a mid core energy company that is the best of its kind. Essentially, it is a blended play of value and growth. Vermilion Energy is diversified globally with leading positions in high netback businesses in North America, Europe, and Australia.

Vermilion Energy started investing in the Corrib natural gas project in Ireland since 2009. Finally, the capital expenditure spent will start paying off, as the project comes online in mid 2015. It will add to the company’s overall production growth as well as its cash flow.

Since 2003, Vermilion Energy has paid a reliable dividend, not having to cut it once. It yields 4.5%, and pays out a monthly dividend of $0.215 per share.

Further, Vermilion Energy has a record of creating shareholder value.

Value creation record of Vermilion Energy

Source: Vermilion Energy Investor Presentation – April 2015

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Canadian Dividend Stocks to Buy Now: March 2015

Dividend stocks are attractive because they pay an income whether the market is going up, sideways, or even going down. Here are some dividend stocks which you can consider. The stocks I’m about to mention pays 115% to 165% more income than the index iShares S&P/TSX 60 Index Fund (TSE:XIU), which pays out a yield of 2.6%.

High Dividend Canadian Companies

This list shows the current yields, and I believe are good starting yields to start buying into these companies if they are a fit for your portfolio.

Buy Northern Property REIT for Income and Capital Gains

Northern Property REIT logo

Northern Property REIT (TSX:NPR.UN) is a real estate investment trust which owns housing properties, such as rental apartments and town homes. It collects rent from a diversified portfolio of properties located across seven provinces in Canada.

Northern Property REIT has paid a monthly distribution for 12 years and have never reduced it. So income investors can have a peace of mind owning it for current income. Right now, it pays a monthly distribution of $0.1358 per unit with a yield of 6.9%.

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