Six TSX-listed dividend stocks with hefty share buybacks

Canadian companies rewarding investors with sustainable dividends – but also share buybacks.comes on top of its recent 25.9-per-cent dividend hike.

Following a buyback of common shares, and their cancellation, fewer shares are left outstanding. That translates into higher per-share earnings, which usually lifts investor interest and, ultimately, the share price. Better still, any resulting capital gain tax for shareholders is put off until they sell. That’s distinctly different from dividend income – taxed the same year it is received.

Our search started with a list of Canadian corporations that are now rewarding shareholders with hefty buybacks. That’s in addition to offering strong – and in some cases, rising – dividends. We then applied our TSI Dividend Sustainability Rating System. It awards points to a stock based on key factors:Two points if it has raised the payment in the past five years;One point for operating in noncyclical industries;Two points for a strong balance sheet, including manageable debt and adequate cash;One point if the company’s an industry leader.

Companies with 10 to 12 points have the most secure dividends, or the highest sustainability. Those with seven to nine points have above average sustainability; average sustainability, four to six points; and below average sustainability, one to three points.

Россия Последние новости, Россия Последние новости

Similar News:Вы также можете прочитать подобные новости, которые мы собрали из других источников новостей

These 15 beaten-down TSX stocks show profitability, positive analyst sentimentWe are looking for beaten-down stocks showing signs of longer-term profitability
Источник: globeandmail - 🏆 5. / 92 Прочитайте больше »

National Bank predicts drop in housing prices but there’s a silver lining for equity investors. Plus, Rosenberg on when to buy stocks and analysts slash TSX targetsA roundup of investment ideas for active investors Housing should be as a home, not for speculation by wealth parasites.
Источник: globeandmail - 🏆 5. / 92 Прочитайте больше »