Current Yields of Top Canadian Dividend Stocks

Last August I wrote an article about the Top Canadian Dividend stocks trading in the US markets.These stocks are part of the S&P TSX Canadian Dividend Aristocrats Index.

Since dividends account for 1/3rd of the total returns of the TSX Composite Index, it pays to keep an eye on the current yields.This is especially in times like this where many companies are suspending or reducing dividend payments. Fortunately not many Canadian companies have slashed dividends.

The following is the list of the 11 Canadian dividend stocks with the current yields:

1. Bank of Montreal – BMO
Dividend Yield – 10.80%

2. Bank of Nova Scotia Halifax – BNS
Dividend Yield -7.69%

3. Brookfield Properties Corp – BPO
Dividend Yield – 10.16%

4. Canadian National Railways – CNI
Dividend Yield – 2.41%

5.Canadian Natural Resources Limited – CNQ
Dividend Yield – 0.99%

6.Enbrdige Inc – ENB
Dividend Yield – 3.88%

7.Imperial Oil Ltd – IMO
Dividend Yield – 1.04%

8.Manulife Financial Corp – MFC
Dividend Yield – 7.66%

9.Royal Bank of Canada – RY
Dividend Yield – 7.01%

10.Sun Life Financial Serv Canada – SLF
Dividend Yield – 7.29%

11.Toronto-Dominion Bank – TD
Dividend Yield – 7.12%

Note: The above yield info. is as of Feb 25, 2009.

Disclosure: Long all four banks listed above and CNI.

The Ten Most Profitable Companies in Asia

Asia has two of the most populous countries of the world – China and India. They are also among the largest emerging markets in the so-called BRIC countries. Some of the countries in Asia are showing signs of recovery. For example, the Shanghai Composite Index has grown by 27% year-to-date until last Friday due to the Chinese government’s efforts to stimulate the economy. A Marketwatch news report on Feb 13 said “Loans extended by banks rose to a record 1.62 trillion yuan ($237 billion) in January, accelerating from 771.8 billion yuan issued in December, according to data released Thursday by the People’s Bank of China.”

In addition to China and India, the former “Asian Tigers” of Singapore, Taiwan, Hong Kong and South Korea are also in Asia. Singapore has become the new “Switzerland of Asia” due to its favorable status as a off-shore banking haven. Besides these countries, Japan – one of the top economies in the world, is also in Asia. The oil-rich Middle East countries hold some of the largest sovereign wealth funds in the world. On the political front, China is a community country but follows a unique type of economic system called “Market Socialism”(capitalist market with communist political system). India is the largest democratic country in the world. Except Israel, most of the Middle Eastern countries are monarchies. So overall Asia is an interesting continent to monitor with its different types of economies and political systems. From an investment perspective, my research to identify the top 10 companies led to the site which publishes the top 100 companies in Asia.

The following is a brief overview of the Ten Most Profitable Companies in Asia:

1. PetroChina Co. Ltd. (PTR) is an integrated oil and natural gas company in China. All of of its production-related assets located in China. PetroChina had a total revenue of $159B last year. The P/E is 7.15 and the dividend yield is 4.65%. Annual EPS in the past 5 years increased by 23%. Currently S&P has a “Five-Star” rating on PetroChina.

2. HSBC Holdings PLC (HBC), one of the largest banks in the world, pays a dividend of 10.23%. HSBC is incorporated in the UK but FinanceAsia lists it in the top Asian companies since HSBC has huge operations in Hong Kong. HBC is currently not an investor’s favorite since its a bank stock.

3. Samsung Corp(OTC: SSDIF) is a top digital equipment and home appliance maker from South Korea. In the US, the stock is thinly traded on the OTC market. Samsung does not pay a regular dividend.

4. A provider of mobile telecom services in mainland China and Hong Kong, China Mobile Limited (CHL) has a subscriber base of 399.5 as of August, 2008. CHL has a profit margin of about 27% and the annual earnings growth is 17%. The market cap. is $178.9 B and the yield is 3.84%.

5. China Construction Bank Corp. trades on the OTC market with ticker CICHY.

6. Sinopec Shanghai Petrochemical Co Ltd (SHI) is another petrochemical company in China. The current yield is 5.39%.

7. Industrial and Commercial Bank of China is not listed in the US markets.

8. Bank of China ( trades in the Hong Kong Stock Exchange.

9. One of the world’s largest integrated steel producer is POSCO (PKX) of South Korea.Due to the collapse in steel prices PKX has fallen 59% in in the past 52 weeks. PKX does not pay regular dividends.

10.India-based Oil & Natural Gas Corporation(ONGC.NS) trades on the New Delhi Stock Exchange.

Top Ten Global Personal Care Products Makers

Personal Care Products include items that we use on a daily basis. Some of the items in this group are hair care products, deodorants, detergents, toothpaste, skin care products, band-aids, baby diapers, tissue, etc. Some of these products are necessities and consumers buy them even when the economy is down. This is one reason why stocks in this sector are good picks to ride out a recession.

In order to identify the Top 10 Companies in the Personal Care Products business I used Computerwire’s DataMonitor list. The following top ranking companies were selected based on their 2007 personal care product revenues:

Rank Company Ticker Country Yield
1 The Procter & Gamble Company PG USA 2.60%
2 LOreal S.A. N/A France N/A
3 Unilever PLC UL UK 3.01%
4 Johnson & Johnson JNJ USA 3.24%
5 Kimberly-Clark Corporation KMB USA 4.06%
6 Colgate-Palmolive Company CL USA 2.55%
7 Svenska Cellulosa Aktiebolaget N/A Sweden N/A
8 Kao Corporation N/A Japan N/A
9 Estee Lauder Companies Inc EL USA 2.03%
10 GlaxoSmithKline Plc GSK UK 5.65%

Note: Companies whose stocks are not traded in the USA are marked with N/A.

Brief Overview:

1. The Procter & Gamble Company (PG) is a Cincinnati,Ohio USA based Fortune 500 company that manufactures a wide range of consumer products and markets them in over 180 countries. P&G owns many of the world-class brands like Gillette, Olay, Pampers, Bounty, Duracell, Vicks, Folgers Coffee, Crest etc. PG has an yield of 2.6% and a P/E of 16.4. Total Revenue in 2007 was $85.0B. In the last 5 year, annual EPS growth was 14.5%.

2.Unilever PLC (UL) is one of the parent companies of the Unilever Group. Another company is Unilever N.V. (UN) based in Holland. Some of Unilever’s brands include Brooke Bond Tea, Ponds, Ben & Jerry’s, Slim Fast, Bertolli, Ragu, Lipton,Close-up, Dove, Thermasilk, etc. UL pays a dividend of 3.01% and the P/E is 10.98%.

3. Johnson & Johnson (JNJ) is a great American company with a wide range of products in its portfolio. JNJ is also a Dow Jones Industrial Average component. Some of JNJ’s brands are Acuvue, Band-Aid, Nicorette, Tylenol, Neutrogena, Shower to Shower, etc. S&P has a 5-star rating on JNJ. In the past 52 weeks JNJ is down just 16%. Annual dividend growth rate is 15%. In 2007, total revenues were $64.5 B.

4. Another global health and hygiene products maker is Irving, Texas-based Kimberly Clark Corp (KMB). The company makes many paper-based products including Kleenex, Cottenelle, Huggies, etc.

Total Revenues in 2007 was $19.6B. The P/E is 13.89 and the yield is 4.06%.

5. Colgate-Palmolive Company (CL) is a USA-based multi-national company that is famous for the Colgate tooth paste brand worldwide. Colgate owns brands like Ajax, Colgate toothpaste, Fresh Start, Palmolive soap, etc. Similar to JNJ, CL is also a 5-star rated stock by S&P. The current yield is 2.55% and the P/E is 17.93. Annual EPS growth rate in the past 5 years is 8%.

6.New York City, USA-based Estee Lauder (EL) is a manufacturer and marketer of skin care, fragrance and hair care products. Owned brands include Estee Lauder, Aramis, Clinique, American Beauty, Donna Karan,etc. EL has a dividend yield of 2.03%.

7. Incorporated in United Kingdom, GlaxoSmithKline Plc (GSK) is the world’s second largest drug company but also manufactures oral hygienic products, nutritional drinks, etc.GSK is a multi-national corporation with its products being sold in over 140 countries. GSK is a component of the FTSE 100 Index. Some GSK’s brands are Tagamet, Flonase, Aquafresh, etc.

The other companies in the above list Svenska Cellulosa Aktiebolaget, Kao Corporation and L’Oreal S.A. do not trade in the organized exchanges in the USA.

The Largest German Companies

The Brandenburg GateThe German economy is the largest in Europe and the third largest in the world. The country attracted EUR 439 B Foreign Direct Investment (FDI) in 2006. With a high productivity rate and a world-class education system Germany ensures that its citizens high standards of living. Germany is also the number one for research and is Europe’s largest logistics market. Decreasing labor costs and corporate tax levels have created an investor-friendly economy.

Photo: The Brandenburg Gate,Berlin

Some of the world’s leading companies are based in Germany. To identify the largest companies in Germany I used the main stock market index in Germany- the DAX.The DAX contains the 30 largest and most liquid stocks traded in the Frankfurt Stock Exchange. The DAX is a performance-based index. All dividends,stock splits and other events on the index components are rolled into the index. The 30 stocks represented in the index are the blue chips of Germany.

DAX Index Components (stocks trading in the US have tickers noted)

Company Ticker Sector
Adidas AG ADDDY Sports Apparel Maker
Allianz AZ Insurance
BASF BASFY Chemicals
Bayer AG BAYRY Chemicals
BMW N/A Automative
CommerzBank CRZBY Banking
Continental AG CTTAY Auotmobile Parts
Daimler AG DAI Automative
Deutsche Bank DB Banking
Deutsche Borse N/A Stock Exchange
Deutsche Lufthansa N/A Airlines
Deutsche Post N/A Logistics
Deutsche Postbank N/A Banking
Deutsche Telekom DT Telecom
E.ON EONGY Utility
Fresenius Medical Care N/A Healthcare
Henkel HENKY Household Products
Hypo Real Estate N/A Commercial Real Estate
Infineon Technologies IFX Semiconductor
K+S N/A Chemicals
Linde AG N/A Chemicals
MAN AG N/A Enginnering Equipment maker
Merck AG N/A Pharmaceuticals
Metro AG N/A Retail stores
Munich Re N/A Reinsurance
SAP AG SAP Software
Siemens AG SI Engineering
ThyssenKrupp N/A Industrial Conglomerate
Volkswagen AG N/A Automative

Overview of German stocks listed above:

1. Adidas trades on the OTC market(Pink Sheets) with ticker ADDDY. It develops and markets a wide range of sports products.Adidas owns the Reebok brand famous for footwear. ADDDY is thinly traded and is down about 53% year-to-date.

2.Allianz (AZ) is a financial services provider with main focus on the property and casualty insurance business with more than 60 million customers in 7 countries. The current yield is 11.40% and the P/E is 5.17. Over the past 5 years, the dividend growth rate has been about 30% annually.

3.The world’s largest chemical giant BASF AG (BASFY) operates under more than 300 subsidiaries and affiliates. BASFY trades on the OTC market. The current yield is 9.11% and the stock is down about 50% in the last 52 weeks. The annual revenue growth in the last 5 years is 15.78%.

4.Bayer AG (BAYRY) is listed in the OTC market. Bayer operates in three divisions: HealthCare, CropScience and MaterialScience. BAYRY has a dividend yield of 3.80% and the earnings growth has been negative in recent years due to many issues in its drug business.On Oct 28th the FDA sent warning letter to Bayer for illegally marketing aspirin drugs.

5. Frankfurt-based CommerzBank (CRZBY) is a regional bank and trades on the OTC.Due to severe losses from exposure to sub-prime crisis in the US, the stock is down 73% in the last 52 weeks.In September, Commerzbank announced that it plans to acquire Dresdner Bank for $14.4 B to compete Deutsche Bank, Germany’s largest bank. The current yield is 14.48%.

6. Continental AG (CTTAY) is an auto parts supplier and is listed in the OTC market. It operates in six divisions: Chassis & Safety, Powertrain, Interior, Passenger and Light Truck Tires, Commercial Vehicle Tires, and ContiTech.Annual EPS has increased at 32% in recent years and the yield is 7.43%.

7.Daimler AG (DAI), formerly DaimlerChrysler AG operates in four divisions: Mercedes-Benz Cars, Daimler Trucks, Daimler Financial Services and Vans, Buses.DAI pays a dividend of 7.35%. Earnings growth has been flat in the past few years and is likely to get worse due to the recession.

8. The global German Bank, Deutsche Bank(DB) reported billions in write-downs due to bad loans and investments in mortgage-backed securities. DB has lost 70% of its value in the last 52 weeks. The current yield is 11.85%. On October 31, DB reported that profits fell 73% in the 3d quarter and signalled that the dividend for 2008 will be lower than the dividend paid in 2007.

9. Deutsche Telekom(DT) is an integrated telecom provider. DT owns the T-Mobile cellphone network in the USA. DT pays a dividend of 8.14%.

10.The multi-utility E.ON(EONGY) trades in the Pink Sheet market.E.ON provides natural gas and electricity to customers in Germany,Netherlands, Hungary, Slovakia, the Czech Republic and Switzerland. EON has a yield of 5.53% and the total revenue increased in 5 years.

11.Henkel(OTC: HENKY) makes household products like detergents, fabric softeners, laundry conditioning products, dishwashing products and all-purpose cleaners, hair shampoos and conditioners, bath products, deodorants,etc. Henkel pays a dividend of 3.28%. Some of its brands include Dial soap,Purex detegent,Duck Tape,etc.

12. Siemens spun-off its semiconductor chip business to form Infineon Technologies AG(IFX) a few years ago. The beta for IFX is 2.3 and its does not pay a dividend.

13.RWE AG(OTC: RWEOY) is a multi-utility competing against E.ON. The current yield is 6.05% and the annual earnings and dividend growth rate is 23%.

14.One of Europe’s largest software companies is Germany-based SAP AG(SAP). The annual growth rate is 32% .SAP is one of the few IT companies to pay a dividend. Dividend yield is 2.18%.

15.The world-renowned company Siemens AG(SI) is engaged in electrical and electronics engineering with operations in over 120 countries. SI pays a dividend of 3.90%. From a 52-week high of $160 the stock has fallen to $44 last month and recovered to close at $60.15 yesterday Oct 31st.

More German stocks listed in the US can be found here.