In the first six months of last year, 13 companies came public via IPO in Canada, generating $1.4 billion. The companies hailed from a range of industries, including Hydro One Ltd. (TSX:H), one of the largest IPOs in Canada in 15 years, and Dundee Acquisition Ltd. (TSX:DAQ.A), one of the “special purpose acquisition companies” debuts of the year. Thus far in 2016, however, for the first half of 2016, there were only two new issues raising a little over $1 million, according to a PwC Canada IPO Survey.

What’s more, the two paltry IPOs of 2016 took place on the Canadian Securities Exchange (CSE), one of the smallest stock exchanges in the country—no companies on the TSX or Venture have IPO’d yet this year.

Some reasons why

It has been a challenging first half of the year for the global market. The economic slowdown caused by China continued, and more recently, the Brexit added fuel to the fire.

The Canadian equity market was on a “solid upward swing” before Brexit, but it has been affected by the vote, especially with its potential disruption in the ratification of Canada-EU Comprehensive Economic and Trade Agreement (CETA).

According to the PwC Canada report, every country around the world is clearly cautious about its economic outlook now, and it is the same for Canada. This is one of the reasons behind the lack of activity in the Canadian IPO market.

Additionally, the IPO Survey report states that the main drivers among Canada’s past IPOs—the mining sector, income trusts, and acquisition companies—are no longer driving a growth in listings, and no new sub-industry has emerged to fill the void.

When I spoke with Dean Braunsteiner, leader of PwC IPO Services Group in Canada, he told me that the two IPOs—both insignificant in terms of proceeds raised—may not be indicative of the next driver. But even though the technology industry has decided to remain private for now, it may change over the next couple of years.

At first glance, the lack of IPOs may look ominous for the Canadian economy, but Braunsteiner clarifies that the situation is not as bad as it may seem. “This is not a Canadian-specific issue. [The lack of IPOs] is felt across the globe due to the lower activity in the market compared to the previous years.” This at least shows that Canada is not under the threat of losing out to other markets.

This too shall pass

Braunsteiner adds that the economic implications are minimal right now. As long as companies with proven track records and solid operating histories tap the market to raise capital for expansions, acquisitions, and the like in the future, there should be no adverse impact in the economy.

Overall, the Canadian IPO market is sleepy. But this is not the worst news of the year as it does not indicate any threat in the long term. The market may not be optimistic for the short term, but this too, shall pass—perhaps with the help of the technology industry.

The post The Canadian IPO Market Looks Dire in the 1st Half of 2016, but… appeared first on The Motley Fool Canada.

More reading

• The Safer Dividend Stocks I’d Consider If I Had $20,000 to Put to Work
• 3 Stocks That Canadian Investors Can Feel Good About Buying in Any Market
• Fortis vs. the Rest: How Does It Compare to Other Canadian Utility Stocks?
• 3 Dividend Stocks That Could Help You Sleep Better in 2026
• 1 Safe Quarterly Dividend Stock to Hold Through Every Market

You know what’s incredible?

• Canada Post may be using drones for mail delivery soon; and
• five stocks have been paying uninterrupted dividends for more than 140 years.

Who are the fantastic five?

To home in on the more incredible of the two factoids, five Canadian stocks began to pay dividends before the National Hockey League was formed (and, in some cases, before the Toronto Stock Exchange existed!). And since then, they’ve never missed a single payment.

In fact, one of them is the oldest dividend-paying company in Canada, paying its shareholders for not 25, 50, or even 100 years, but 187 years—all the way back to 1829 in one case. Yes, even throughout World War I or II or The Great Depression. (It may not be as cool as mail delivery via drones, but it’s more impressive, right?)

I’ll quit testing your patience and reveal the five loyal stocks (all of which are banks, by the way):

Source: Data provided by S&P Global Market Intelligence

It is mind-blowing that the banks have sustained their consistent dividend payments even during the hardest economic times. But aside from being impressed, investors should take a closer look at that incredible consistency, particularly in low-interest rate environments.

After all, investing is a method of making your money make money, and dividends are a reliable way of doing exactly that. According to a recent research conducted by Invesco, dividends add up over the years, and it is possible to get the investment back without waiting for the stock price to go higher.

In fact, the research shows that dividend-paying stocks have outperformed non-dividend-paying stocks for the five-year period following every recession since 1972. Simply put, dividend payments are consistent realized income for shareholders through thick and thin.

If the cash in your pocket is exactly what you needed, perfect. If not, no worries; you can always reinvest dividends to accumulate more shares and grow your portfolio (through DRIPs, for instance). All of the five banks mentioned offer DRIPs, which give shareholders the option of reinvesting all or part of their dividends—without paying brokerage or service fees.

Last but not least, the fact that the banks have been paying uninterrupted dividends for more than 140 years demonstrates that they are committed to their shareholders.

In the table above, you can also see that they’ve been steadily growing their dividend payments over the past 10 years. And given that longstanding track record, I believe it’d take something extraordinary for them to miss a payment.

Foolish conclusion

A portfolio full of safe dividend-paying stocks may not be the sexiest one out there. But if you are risk-averse and get scared rather than excited by the volatility of hidden gems, or if you are simply looking for income, these banks might be your best friends.

The post 5 Companies That Have Been Rewarding Shareholders for (at Least) 140 Years appeared first on The Motley Fool Canada.

More reading

• The Canadian Stocks I’d Consider Most If I Had $10,000 to Invest in 2026
• How to Grow Your 2026 TFSA Contribution Into $70,000 or More
• How Canadians Should Be Using Their TFSA Contribution Limit in 2026
• 2 Canadian Dividend Stocks Worth Snapping Up on Any Dip
• 3 Stocks Worth Buying Today and Holding in Your Portfolio for the Very Long Term