The Globe and Mail attempts to identify high, sustainable and growing
dividends among Canadian companies in its Tuesday, Aug. 29, edition. The Globe's guest columnist Jean-Didier LaPointe writes in the Number Cruncher column that he screened for companies with a minimum market capitalization of $500-million. Mr. LaPointe looked for an economic performance index,
or EPI (return on capital
divided by cost of capital) greater
than 1. An EPI ratio of 1 or
more indicates a company's capacity
to create wealth for its
shareholders (a higher EPI displays
a greater rate of wealth creation). His picks had to have a return on capital of 10 per
cent or higher. His picks also needed to have a dividend payout of 100 per
cent or lower and a dividend yield of 2 per cent or
higher. As well, he looked for increasing earnings per share
over 12 months. Mr. LaPointe's Canadian companies with growing dividends are Magna International, Power Financial, Intact Financial, Power Corp. of Canada, Industrial Alliance Insurance and Financial Services, Transcontinental and First National Financial.
© 2024 Canjex Publishing Ltd. All rights reserved.