The Globe and Mail reports in its Wednesday edition that dividends are the Swiss trains
of investing, they always arrive
on schedule, regardless of what
sort of turmoil the market is
experiencing.
The Globe's John Heinzl writes in the Yield Hog column that some firms are so predictable,
in fact, that investors can anticipate
not only when they will receive
a dividend, but when the company
will raise it.
Mr. Heinzl profiled electric and gas
utility operator Fortis ($34.85) on Oct. 8. The shares were then worth $35.03. Its stock has been
rebounding after years in the
doghouse. Buoyed by a pair of
United States acquisitions and investments
in its Canadian operations, the
company is poised to deliver solid growth in earnings per share
and dividends over the next several
years, analysts say. Increases
are typically announced in
December or January, and the
fact that more than 90 per cent of
Fortis's earnings are regulated
makes it a conservative pick, says Mr. Heinzl.
The Globe's Craig McGee said buy Fortis in the Number Cruncher column on July 17. The shares could then be had for $32.94. CIBC analyst Paul Lechem said buy Fortis in The Globe on Aug. 6. The shares were then worth $33.61.
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