Wednesday, January 29, 2014

Dividends & Income - Canadian Telecom SJR

Telecom as a sector is down over six percent over the last three months and that is where I am looking for opportunities.  Yet, I do not want to own AT&T (T).   

Where, then should we look?

The only non U.S. stocks I have profiled are telecoms.   Telus (TU) and BCE (BCE) are both Canadian telecoms that have passed the Dividend Machine criteria hurdle in the past.   See Posts:  &

BCE was profiled early in this blog when my criteria were based on the most recent quarterly results.   In 2014 my criteria are more strict and I want not only a minimal dividend yield of 3.5% which BCE pays (5.33%) but I also want a history of a four percent dividend increase average over the past five years and BCE is a little bit spotty in that area.

Telus, also profiled early in this blog also has a funky dividend history but the board of directors has announced that dividend increases will be twice a year until 2016 with the increases to average 10% per year.   Should this come true, TU just may be a Dividend Machine again.


The problem with foreign stocks, even when they are ADR’s or ADS’s, is the usually conduct business in their own currency and the exchange rate between their currency and our dollar will affect your income.

With that in mind I am going to name Shaw Communications, symbol SJR, as the next Canadian Telecom company to be a Dividend Machine.


SJR pays a monthly dividend.  This is good for people who need more predictable cash flow.  To evaluate the dividend history, I used full year dividend payouts from five years ago and most recently to determine that the dividend has increased about 4.6% per year.  Current yield is about 4.3%.  Earnings clearly exceed dividends and the D/E ratio is 1.040 well within industry standards.   For comparison purposes, AT&T makes less than it pays out in dividends and Verizon has a ton of debt.


The Table below presents SJR’s Dividend Fundamentals.

Consider Shaw Communications (SJR) for the income producing portion of your portfolio.

The Money Madam