Similar to many people, the writer reads a number of on line publications in the morning and then sometimes there are links to others. One link was to the Globe and Mail in Toronto, Canada. Ian McGugan at imcgugan@globeandmail.com worked with Craig McGee of Morningstar to find US and Canadian stocks that pay dividends and are relatively inexpensive given their growth and dividend rates.
To make the list the stock had to have the following criteria: a market cap greater than $ 1 billion, a PEGY Ratio (the price of expected earning ratio divided by the sum of its growth rate plus the dividend yield) the ratio is less than 3; an expected dividend yield greater than 3%; a positive 60 day estimate revision; a positive 5 year earnings growth rate; earning variability in the top 75% of the database. No more than 4 stocks from one sector were chosen.
What you can see is a great amount of potential with limited risk. When you look through the below names, hopefully some you are aware of, so not, but start with the ones you know and to see if that is a good place for you. Hopefully you can see dividend companies offer plenty of choice with lower risk.
Dividend stocks that have shown profit growth
| N.Y. Community Bancorp | NYB-N | 5,757 | 1.1 | 7.60% | 7.20% | A- | |
| 2 | PDL BioPharma | PDLI-Q | 1,025 | 0.2 | 8.20% | 2.20% | C- |
| 3 | First Capital Realty | FCR-T | 3,527 | 0.1 | 4.40% | 41.90% | D+ |
| 4 | RioCan REIT | REI.UN-T | 8,144 | 0.4 | 4.90% | 29.30% | C- |
| 5 | Canada Bread Co. | CBY-T | 1,116 | 1.5 | 4.60% | 29.80% | B+ |
| 6 | Brookfield Office Prop. | BPO-T | 8,608 | 0.4 | 3.30% | 30.10% | C+ |
| 7 | Reynolds American Inc. | RAI-N | 25,468 | 1.4 | 5.20% | 0.30% | A+ |
| 8 | Lockheed Martin Corp. | LMT-N | 29,911 | 1.5 | 4.30% | 2.00% | A+ |
| 9 | Scana Corp. | SCG-N | 6,249 | 1.9 | 4.20% | 1.90% | A+ |
| 10 | Leggett & Platt Inc. | LEG-N | 3,312 | 1.3 | 4.90% | 8.10% | C+ |
| 11 | Xcel Energy Inc. | XEL-N | 13,481 | 1.8 | 3.90% | 0.30% | A+ |
| 12 | NextEra Energy Inc. | NEE-N | 28,498 | 1.6 | 3.60% | 0.70% | A+ |
| 13 | Cablevision Systems | CVC-N | 4,009 | 0.4 | 4.00% | 9.20% | D+ |
| 14 | Merck & Co. Inc. | MRK-N | 130,353 | 1.8 | 3.90% | 0.30% | A+ |
| 15 | Telus Corp. | T-T | 20,845 | 1.7 | 3.80% | 1.80% | A+ |
| 16 | MGE Energy Inc. | MGEE-Q | 1,161 | 2.3 | 3.20% | 6.20% | A- |
| 17 | Kimberly-Clark Corp. | KMB-N | 32,942 | 1.7 | 3.60% | 0.90% | A+ |
| 18 | Aimia Inc. | AIM-T | 2,438 | 0.4 | 4.50% | 2.90% | C+ |
| 19 | Campbell Soup Co. | CPB-N | 10,965 | 1.5 | 3.30% | 1.20% | A+ |
| 20 | Block H&R Inc. | HRB-N | 4,492 | 0.6 | 4.90% | 2.60% | B+ |
| 21 | Northrop Grumman | NOC-N | 16,543 | 0.9 | 3.30% | 4.40% | A+ |
| 22 | Magellan Midstream | MMP-N | 9,270 | 1.7 | 4.60% | 4.20% | B+ |
| 23 | Rogers Comm. | RCI.B-T | 20,653 | 0.8 | 3.90% | 1.00% | A- |
| 24 | Geo Group Inc. | GEO-N | 1,575 | 1.7 | 3.10% | 1.30% | A+ |
| 25 | Iron Mountain Inc. | IRM-N | 5,582 | 1.6 | 3.30% | 1.50% | A- |
Source: Morningstar Canada
There are more questions than answers, till the next time – to raising questions
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