The market has been flat in the last week but is up 13% over the past year, with earnings forecast to grow by 15% annually. In this environment, selecting dividend stocks with strong yields and stable performance can be a wise strategy for investors seeking consistent returns.
Overview: Alaris Equity Partners Income Trust is a private equity firm focusing on management buyouts, growth capital, and mature investments in the lower and middle market with a market cap of CA$756.63 million.
Operations: Alaris Equity Partners Income Trust generates revenue primarily from unclassified services, amounting to CA$215.71 million.
Dividend Yield: 8.2%
Alaris Equity Partners Income Trust offers a high dividend yield, currently in the top 25% of Canadian dividend payers. Despite the attractive yield, its dividend payments have been unstable over the past decade. Recent earnings show mixed results with Q2 revenue down to C$28.5 million from C$46.84 million year-over-year, but net income increased to C$31.68 million from C$28.39 million. Dividends are well-covered by earnings and cash flows despite historical volatility in payments.
Overview: The Toronto-Dominion Bank, along with its subsidiaries, offers a range of financial products and services in Canada, the United States, and internationally, with a market cap of CA$146.44 billion.
Operations: The Toronto-Dominion Bank's revenue segments include CA$17.77 billion from Canadian Personal and Commercial Banking, CA$12.75 billion from U.S. Retail, CA$12.20 billion from Wealth Management and Insurance, CA$6.76 billion from Wholesale Banking, and CA$1.19 billion from Corporate operations.
Dividend Yield: 4.9%
Toronto-Dominion Bank's dividend payments have been stable and reliable over the past decade, with recent increases. However, its current payout ratio of 92.7% suggests dividends are not well covered by earnings. Despite a forecasted improvement in coverage to 51% in three years, the current yield of 4.87% is below top-tier Canadian payers. Recent fixed-income offerings totaling billions indicate ongoing capital management efforts amidst lower profit margins and a net loss in Q3 2024.
Overview: Total Energy Services Inc. is an energy services company operating in Canada, the United States, and Australia with a market cap of CA$349.65 million.
Operations: Total Energy Services Inc. generates revenue from four primary segments: Well Servicing (CA$89.94 million), Contract Drilling Services (CA$299.62 million), Compression and Process Services (CA$393.38 million), and Rentals and Transportation Services (CA$80.86 million).
Dividend Yield: 4%
Total Energy Services declared a quarterly dividend of C$0.09 per share, payable on October 15, 2024. Despite a history of volatile and unstable dividends, the company’s current payout ratio of 32% and cash payout ratio of 25% indicate well-covered payments by earnings and cash flows. Recent Q2 earnings showed significant growth in net income to C$15.47 million from C$6.2 million last year, suggesting improved financial stability for dividend sustainability.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include TSX:AD.UN TSX:TD and TSX:TOT.
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