Three Canadian Spin-offs to Monitor

Three Canadian Spin-offs to Monitor

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Brookfield Asset Management Reinsurance Partners Ltd

Symbol: BAMR

Company Profile:

Brookfield Asset Management Reinsurance Partners Ltd. owns and operates a reinsurance business focused on providing capital-based solutions to insurance companies and their stakeholders. Through its operating subsidiaries, the Company provides annuity-based reinsurance products to insurance and reinsurance companies and also act as a direct issuer of pension risk transfer products for pension plan sponsors. The Company has a single operating segment related to its pension risk transfer business.

Spun out of Brookield Asset Management

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Telus International Canada Inc.

Symbol: TIXT

Company Profile:

TELUS International (Canada) Inc. is a digital customer experience (CX) innovator that designs, builds and delivers solutions. The Company operates through its subsidiary TELUS Corporation, communications and information technology company. The Company offers solutions, such as Digital Experience, Customer Experience, IT Lifecycle, Advisory Services, Trust, Safety and Security, and Back office and automation. The Company serves technology, communication and media, fintech and financial services, travel and hospitality, games, e-commerce, and healthcare sectors. The Company also provides scalable data annotation services for text, images, videos and audio. The Company sources multilingual training data in approximately 300 languages.

Spun out of Telus Corp.

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Topicus.com Inc

Symbol: TOI

Company Profile:

Topicus.com Inc is a Canada-based company, which provides vertical market software and vertical market platforms to clients in a select group of public and private sector markets. The Company builds, acquires and manages industry specific software businesses which provide specialized software solutions that address the needs of its customers.

Spun out of Constellation Software Inc

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Yes, some dividend growth stocks can be still be bought at reasonable prices

Yes, some dividend growth stocks can be still be bought at reasonable prices

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Interested in some reasonably priced inflation protection for your portfolio?

Dividend growth stocks are worth a look. Despite huge gains for stocks in the past 12 months, there are some blue-chip dividend payers trading in mid-July at levels that suggest they’re fairly priced or better on a historical basis.

The inflation rate in Canada most recently hit 3.6 per cent, compared with a 10-year average of just 1.6 per cent. On a list of 23 dividend growth stocks recently supplied by Tom Connolly of DividendGrowth.ca, each produced an average annual dividend growth rate close to or more than 3.6 per cent. The average annual dividend growth rate for the group was 7.8 per cent.

Mr. Connolly has been one of this country’s top experts on dividend stocks for decades – he reached his 40th anniversary writing about them in June. Every so often, he sends me some data with an interesting story to tell. The latest example is a list of 23 dividend growth stocks, shown with their current yield and their average yield from 2011 through 2020.

Several stocks have yields today that are above their longer-term average, which suggests they are reasonably priced. Remember, yield and share prices move in opposite directions. If the yield is higher than usual, it suggests price growth has lagged.

Here are examples of dividend growth stocks representing a variety of sectors that appear to be reasonably priced by the yield measure:

BCE Inc. (BCE-T): Globeinvestor.com shows the current yield at 5.7 per cent, while Mr. Connolly’s data peg the average yield from 2011 through 2020 at 4.7 per cent; BCE’s annualized dividend growth rate during that period was 5.3 per cent, while the price increased by 4.6 per cent on an average annual basis.

TC Energy Corp. (TRP-T): A current yield of 5.8 per cent and a long-term average yield of 4.2 per cent; the long-term average dividend growth rate was 6.9 per cent, while the shares averaged gains of 4.3 per cent.

Bank of Nova Scotia (BNS-T): A current yield of 4.7 per cent and a long-term average yield of 3.9 per cent; the long-term average dividend growth rate was 5.8 per cent, while the shares averaged gains of 4.2 per cent.

Enbridge Inc. (ENB-T): Current yield 6.9 per cent, long-term average yield 3.9 per cent; the dividend has grown by a long-term average 12.7 per cent, while the shares have gained an average 4.1 per cent.

Canadian Utilities Ltd. (CU-T): Current yield 5 per cent, long-term yield 3.5 per cent; The dividend has risen by an average 8 per cent, compared with 2.4 per cent for the shares.

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Rob Carrick, July 22, 2021

The Globe and Mail