Canadian Dividend All-Stars For The Week Of Nov. 30

In total, Alimentation Couche-Tard grew the dividend by 40% in 2020. Given the pandemic has significantly impacted M&A activity, it appears the company chose to put some of that $6 billion in cash to work through dividends.

Upcoming dividend raises, cuts or suspensions

Tecsys (TSE:TCS)  

  • Current Streak: 12 years
  • Current Yield: 0.66%
  • Earnings: Wednesday, December 2

What can investors expect:

Tecsys Inc is one of the few tech stocks that have a reliable dividend growth streak.

Over the past couple of years, this supply chain solution company announced its annual raise along with second quarter results.   Estimating the growth rate is a much more challenging task. The company’s dividend growth rate has been all over the map.

Last year, the company raised dividends by 10%, which was well below historical averages.

This year, I am estimating a raise of at least $0.005-$0.01 per share.

Tecsys has seen an increase in demand for its products and has experienced strong revenue and adjusted EBITDA growth over the past couple of quarters.

EST DGR

EST Increase

 Est New Div

8.33%-16.67

$0.005-$0.01

$0.065-$0.07

Canada's Banks

At this time of the year, dividend growth investors would expect the Bank of Montreal (TSX:BMO) and National Bank (TSX:NA) to announce their bi-annual dividend raise.

Unfortunately, the Office of the Superintendent of Financial Institutions (OFSI) is in no hurry to give banks the green light.

In a speech to the bankers earlier this week, OSFI superintendent Jeremy Rudin had this to say: “There is no set date nor specific economic indicator that will trigger our decision.” – in relation to relaxing restrictions on dividend raises.

He further stated, “it is my job to remind you that it (pandemic/economic outlook) could get worse before it gets better. In severe but still plausible scenarios, it could get much worse.”

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Disclaimer: The writer of this article may have positions in the securities mentioned in this article. The fact they hold positions in securities has had no impact on the production of this ...

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