Dividend News for the Week Ending July 27, 2018

There were some interesting dividend announcments this week.  No increases, but on a year over year basis two companies are projected to exceed their 2017 dividends.

Loblaw Companies Limited

Ticker L.TO
Amount $0.30
Projected Annual Dividend for 2018 $1.16
Record Date September 15, 2018
Payment Date October 1, 2018
Market price as of July 26, 2018 $69.63
Forward Yield 1.66%
Rating AB5
CAGR (since 2011) 4.65%
CAGR (since 1986) 9.68%

Loblaw Companies Ltd is a retailer of food products that also provides drugstore, general merchandise and financial products and services. The company operates corporate-owned stores as well as franchised stores. (Source: TSX)

Loblaw has been paying a dividend for over 30 years (our history only goes back to 1986), and has an impressive 9.68% CAGR since we began recording. The dividend has only been increasing in earnest the past 5 years. However, even over that period the CAGR is a healthy 4.65%.

Waste Connections (Canada) Inc.

Ticker WCN.TO
Amount $0.14
Projected Annual Dividend for 2018 $0.56
Record Date August 7, 2018
Payment Date August 21, 2018
Market price as of July 26, 2018 $101.32
Forward Yield 0.55%
Rating A1+
CAGR (since 2010) 35.25%

Waste Connections Inc is a solid waste services company in North America. The company provides waste collection, transfer, disposal and recycling services in mostly exclusive and secondary markets in the United States, and Canada. Source: TSX.

Waste Connections is an interesting company to look at. For one, its dividend is paid in US dollars, so unless you are keeping your holdings in a US account, you will be susceptible to USDCAD currency exchange rate fluctuations. More interesting however, is that this company—in its Canadian form—has only existed since 2016. The dividend history, which stretches to 2010, is based off of the US parent company. The Waste Connections listed on the TSX is the child of acquisitions. That said, the growth is impressive (exceeding 35%), and if you are willing to deal with the low yield, this may be a worthwhile addition to your portfolio.

AECON

Ticker ARE.TO
Amount $0.13
Projected Annual Dividend for 2018 $0.50
Record Date September 21, 2018
Payment Date October 1, 2018
Market price as of July 26, 2018 $15.30
Forward Yield 3.27%
Rating AB2
CAGR (since 2007) 19.57%

Aecon Group Inc and its subsidiaries provide construction and infrastructure development services to private and public sector customers throughout Canada. It also provides services to the energy sector as well as to mining sector. Source: Company Website

I’m not quite what sure to do with Aecon. I own it, and it has been a bit of a roller coaster this year. It was to be acquired which shot the stock up, but then the Canadian government cancelled the buy-out, and the stock fell back to earth. That said, CAGR is almost at 20%, and the yield is decent. However, there has not been a dividend increase since 2017 Q1. Unless Aecon increases their Q4 dividend this year, they will end up going three years of no dividend growth.



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