Businesses and individuals in Canada rely every day on oil and gas, insurance, and banking in the course of regular activities. Transportation fuel, asset protection, and financial services are what the following companies provide, along with regular dividends to investors.
1. Independent oil and gas
ARC Resources (TSX: ARX) has a current dividend yield of 3.9% and a dividend rate of $1.20. The company pays its dividends monthly to shareholders.
ARC has operations across western Canada. For Q1 2014, it attained record production of 105,699 barrels of oil equivalent per day. This is 11% higher than its production in Q1 2013 and 5% higher than that in Q4 2013. This increase was mainly due to production from new wells at Parkland/Tower in northeast British Columbia and Ante Creek in northern Alberta. In addition, ARC has its new Parkland/Tower gas processing and liquids handling facility.
For 2014, the company has a $915 million capital program. Its growth assets comprise world-class resource play properties. These are primarily clustered in the Montney geological formation in northeast British Columbia and northern Alberta and the Cardium formation in the Pembina area of Alberta.
2. Property and casualty insurance
Power Corporation of Canada (TSX: POW) has a current dividend yield of 3.8% and a dividend rate of $1.16.
In essence, it is a diversified global management and holding company. It has interests in companies in financial services, communications, and other business sectors. It consists mainly of Power Financial Corporation, with a 65.8% interest in the company. Other companies in the group include Great-West Lifeco, IGM Financial, and Pargesa Holding.
Its Great-West Lifeco has operations via The Great-West Life Assurance Company, London Life Insurance Company, The Canada Life Assurance Company, Great-West Life & Annuity Insurance Company, and Putnam Investments.
Gurufocus.com noted that, “If the company can maintain its free cash flow as it has for the past 10 years, the stock is grossly undervalued.”
Bank of Montreal is the second-largest Canadian bank by retail branches in Canada and the United States, with 1,559 branches. It offers retail banking, wealth management, and investment banking products and services. For Q2 2014, the bank had net income of $1.08 billion. This represents an increase of 12% versus Q2 2013. Its wealth management division’s adjusted net income was up 36% in Q2 2014. Moreover, its Canadian personal and commercial banking division has more than 7 million customers and its U.S. personal and commercial banking division has more than 2 million customers.
On April 30, 2014, Bank of Montreal had $582 billion in total assets and $394 billion in deposits. The bank also has 4,275 automated banking machines.
The above three companies operate in three vital industries. Each can add diversification and consistent returns to income investors’ portfolios.