Dividend opportunities in Canada part 1

Although I love investing US stock market, there are also wide range of dividend stock options in rest of the world. This article presents some options I found with short research.


alta-300x130 Dividend opportunities in Canada part 1

AltaGas Ltd. (AltaGas), a Canadian corporation, is a North American diversified energy infrastructure business with a focus on owning and operating assets to provide clean and affordable energy to its customers. The business strategy is underpinned by strong growth in natural gas supply and the growing demand for clean energy. More than 1,700 employees across North America are focused on executing AltaGas’ strategy through three business segments:

  • Gas, which transacts more than 2 Bcf/d of natural gas and includes natural gas gathering and processing, natural gas liquids extraction and separation, transmission, storage, and natural gas marketing, as well as AltaGas’ indirectly held one-third interest in Petrogas Energy Corp. (Petrogas). The Gas segment has significant prospects for growth in British Columbia and Alberta;
  • Power, which includes generation assets located across North America with more than 1,600 MW of capacity from four fuel types, with significant opportunities to expand in California and across the United States, as well as the potential opportunity to develop new gas-fired and renewable generation in Alberta to replace coal;
  • Utilities, serving over 560,000 customers through ownership of regulated natural gas distribution utilities across North America and a regulated natural gas storage utility in the United States, delivering clean and affordable natural gas to homes and businesses.

Link to latest investor presentation


Stock and investment case

Stock price at time of writing is 33.55 CAD. Company pays monthly dividend of 0.1750. This gives a yield of 6.2%.

Canada has declared to get rid of coal power by 2030. Gas and renewables are key components in future energy system and Altgas can deliver both. Growing dividend is also a signal of good long term strategy.


Bank of Montreal (BMO)


Bank of Montreal is fourth largest bank in Canada.

From IR page:

  • Clear opportunities for growth across a diversified North American footprint:
    • Large North American commercial banking business with advantaged market share
    • Well-established, highly profitable core banking business in Canada
    • Fast-growing, award-winning wealth franchise
    • Leading Canadian and growing mid-cap focused U.S. capital markets business
    • U.S. operations well-positioned to capture benefit of improving economic conditions
  • Strong capital position and an attractive dividend yield
  • Focus on efficiency through technology innovation, simplifying and automating processes and extending the digital experience across our channels
  • Customer-centric operating model guided by disciplined loyalty measurement program
  • Adherence to the highest standards of business ethics and corporate governance

Link to latest investor presentation


Stock and investment case

BMO’s policy is to pay out 40% to 50% of its earnings in dividends to shareholders over time.

Stock price at time of writing is 88.80 CAD. Company pays quarterly dividend of 0.86. This gives yield of 3.87%

BMO is dividend growth stock. Performance tells the story in next figure.

BMO_chart-300x212 Dividend opportunities in Canada part 1


Bank of Nova Scotia(BNS)

Bank of Nova Scotia is second largest bank in Canada. The bank operates under name of “Scotiabank”.

Scotiabank is Canada’s international bank and a leading financial services provider in North America, Latin America, the Caribbean and Central America, and parts of Asia. We are dedicated to helping our 23 million customers become better off through a broad range of advice, products and services, including personal and commercial banking, wealth management and private banking, corporate and investment
banking, and capital markets. With a team of more than 88,000 employees and assets of $907 billion (as at July 31, 2016) and trading on the Toronto (TSX: BNS)and New York Exchanges (NYSE:BNS).

Latest presentation by company


Stock and investment case

Current share price is 72.90 CAD. The Company pays dividend of 0.74 last quarter. This gives a yield of 4%.

Here is how dividend has been growing over the last years.

BMO_dividends-300x159 Dividend opportunities in Canada part 1


In part 2 I will find some higher yield options and also some small cap stocks.

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