The personal insolvency practice MNP recently released disturbing numbers that shed light on individual Canadian debt. Since June 2017, Canadians have seen take-home income after debt and obligations decline by 29%. Two rate hikes in July and September have reportedly had a significant impact on the financial well-being of individual Canadians.
Canadian economic growth is expected to drop below 2% by 2019, mirroring the anemic growth projected for other advanced economies. With some worrying signs on the horizon, investors should stash dividend-yielding stocks in their portfolios to prepare for a potential downturn.
Thomson Reuters Corp. (TSX:TRI)(NYSE:TRI)
Thomson Reuters is a Toronto-based global information services company. Thomson Reuters stock has dropped 1.1% in 2018 as of close on January 15. The company is expected to release its fourth-quarter and full 2017 results on February 8.
In the third quarter, the company posted revenues of $2.79 billion — up 2% year over year. Operating profit jumped 21% to $467 million compared to $385 million in the prior year. The company also announced a quarterly dividend of $0.44 per share, representing a 3.2% dividend yield. Thomson Reuters has delivered 24 consecutive years of dividend growth.
Enbridge Inc. (TSX:ENB)(NYSE:ENB)
Enbridge stock has increased 1.1% in 2018 thus far. Oil prices reached above the $64 mark for the first time since June 2015 on the back of an OPEC production cut that was agreed to in late 2017.
Enbridge is geared up for what should be an interesting 2018. The company will see a resolution to its Line 3 Pipeline issues in Minnesota, which are expected to be settled in the first half of 2018. Enbridge has committed to selling off $3 billion in assets this year, which boosted the stock price when it was announced in late 2017. In its most recent third-quarter results, Enbridge posted net earnings of $765 million compared to a net loss of over $100 million in the prior year.
Enbridge stock offers a quarterly dividend of $0.67 per share, representing a 5.4% dividend yield. The company has delivered 22 consecutive years of dividend growth and projects to hike its dividend by at least 10% annually to 2020.
Telus Corporation (TSX:T)(NYSE:TU)
Telus stock has fallen 1% in 2018. Telus posted a very strong third quarter in November 2017. Consolidated revenue and EBITDA grew at 4% and 4.4%, respectively. Like other Canadian telecommunications companies, Telus was driven by strong wireless growth and reported 124,000 total net additions in the third quarter — up 32% from Q3 2016.
The company announced a quarterly dividend of $0.50 per share with a 4.3% dividend yield. Telus has delivered 14 consecutive years of dividend growth.
CAE Inc. (TSX:CAE)(NYSE:CAE)
CAE stock has been mostly flat to start 2018. CAE receives over 36% of its revenues from the United States and could be a big beneficiary from U.S. tax reform and a high Canadian dollar. In the fiscal 2018 second quarter, net income climbed to $65.2 million from $55.5 million in the prior year. Operating profit also increased to $109.3 million from $76.2 million in Q2 fiscal 2017.
The stock offers a quarterly dividend of $0.09 per share, representing a 1.5% dividend yield. CAE has delivered dividend growth for 10 consecutive years.
