Canadian Dividend Watch List: January 15, 2013

This is a list of Canadian dividend stocks that currently, or in the past, had a history of consecutive dividend increases. For those wishing to find the most complete fundamental information on these companies, we recommend visiting one of Canada’s leading financial websites, the Financial Post (found here). However, Yahoo!Finance probably has the better long-term charts and historical dividend data.

Name Price P/E EPS Yield P/B % from yr low
CUF-UN.TO Cominar REIT 22.34 8.94 2.11 4.34% 1.11 4.34%
CPG.TO Crescent Point Energy Corp. 38.58 67.68 0.63 7.20% 1.68 7.62%
FFH.TO Fairfax Financial Holdings 363.8 - - 2.70% - 8.60%
IMO.TO Imperial Oil Ltd. 43.93 10.08 4.34 1.10% 2.37 10.46%
AX-UN.TO Artis REIT 15.5 4.98 2.8 7.00% 0.97 11.67%
CCA.TO Cogeco Cable Inc. 38.9 8.42 4.59 2.70% 1.59 12.92%
IGM.TO IG Mackenzie Income 41.86 13.55 3.08 5.10% 2.45 13.72%
CNQ.TO Canadian Natural Resources 29.09 13.47 2.16 1.40% 1.33 13.72%
TA.TO TransAlta Corp. 15.92 - -2.76 7.30% 1.8 14.04%
RBA.TO Ritchie Bros. Auctioneers 20.82 26.02 0.79 2.40% 3.42 16.70%
TIH.TO Toromont Industries Ltd. 21.8 15.24 1.42 2.20% 3.76 17.14%
AGF-B.TO AGF Management Limited 9.85 15.39 0.73 11.10% 0.81 18.96%

Watch List Summary

The first company on the list is Cominar REIT (CUF-UN.TO).  According to Yahoo!Finance, “Cominar Real Estate Investment Trust engages in the ownership and management of commercial real estate properties in the province of Quebec. As of May 18, 2006, its portfolio comprised 129 properties in the Greater Montreal and Quebec City areas, consisting of 14 office, 28 retail, and 87 industrial and mixed-use buildings representing approximately 9.7 million square feet of leasable area in the Montreal and Quebec City regions. The company was founded in 1997 and is headquartered in Quebec City, Canada.”

The company pays a monthly dividend that has consisted of $0.12 per share since 2009.  Prior to 2009, Cominar had increased the dividend every year for 11 years in a row (found here).  We’re not put off by the fact that Cominar hasn’t increased the dividend since 2009, as the financial crisis with its roots in real estate, has put pressure on many companies in the real estate industry.


The stock chart above reveals a lot about Cominar and some serious hurdles that need to be overcome before it can be bought.  First, the CAN$26 range has been met by significant resistance to new investors in the last 5 years.  Additionally, the fact that the most recent peak, in July 2012, could not exceed the March 2007 top suggests that the price may retest the $18.03 level.  According to Dow Theory, the $18.03 level is the average price paid by long-term investors, as opposed to short-term speculators.  A decline below $18.03 would mean the price is going to $14.31.

Bottom Line: The consistency of the Cominar’s dividend history, given the economic environment, is a reflection of a responsible management team at the helm.  Cominar should be considered at or below $18.25.  Acceptance of downside risk to the $10.59 price should be built in for long-term investors.

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