Goldcorp Inc. (TSX: G)(NYSE: GG) is advancing growth by way of acquisition, divesting, exploration, and reinvestment into its asset portfolio. Its current sources of operating cash flows are mainly from selling gold, silver, copper, lead, and zinc.

Here are five reasons investors should consider Goldcorp as a solid dividend-paying gold play for their portfolios.

1. Recent revenue growth and lower costs

For Q2 2014, Goldcorp’s revenue grew 6% ($48 million). This revenue increase was mainly because of higher volumes for gold, silver, and zinc. It was also due to a higher realized price for zinc. Furthermore, Goldcorp’s production costs fell by 3% ($18 million) in Q2.

For Q2, the company’s all-in sustaining costs were $852 per gold ounce. This is in comparison to $1,227 in 2013. Its all-in costs were $1,486 per gold ounce, versus $1,768 the year prior. Moreover, its total cash costs were $470 per gold ounce (net of byproduct silver, copper, lead and zinc credits) versus $646 last year.

2. Cerro Negro

Cerro Negro is an example of Goldcorp’s focus on new high-quality, low-cost mines. Goldcorp has reconfirmed 2014 gold production guidance at Cerro Negro of between 130,000 and 180,000 ounces. The company achieved first gold at this project this year on July 25, 2014. Goldcorp commenced construction at Cerro Negro more than three years ago and is now finally reaping the benefits of its capital outlays.

3. Peñasquito

Peñasquito is Goldcorp’s newest cornerstone mine in Mexico. This mine attained commercial production in 2010. Containing gold, silver, lead, and zinc, Peñasquito will be Mexico’s largest open pit mine. This mine has a processing capacity of 130,000 tpd.

For Q2 2014, Peñasquito had increased throughput, increased grades and recoveries. This facilitated robust production at record low all-in sustaining costs. Record gold production at Peñasquito in Q2 was because of higher mill throughput and higher ore grades. Gold production in the quarter was 29% higher than Q1 2014.

4. Divestitures

Goldcorp is not afraid to divest to gain cash and focus on its more profitable operations. In Q2 2014, the company and its JV partner, Barrick Gold Corporation, completed the sale of each company’s respective interests in the Marigold mine to Silver Standard Resources Inc. Total received was $267 million in cash, after closing adjustments, and Goldcorp’s share of this was $184 million.

This past March, Goldcorp completed the sale of 31,151,200 common shares of Primero Mining Corp. for $224 million. It recognized a gain of $18 million, net of selling costs of $8 million and no longer owns any Primero shares.

5. Dividends

Since 2003,Goldcorp has paid a monthly dividend to shareholders. The company recently declared its ninth monthly dividend payment of 2014 of $0.05 per share. Goldcorp’s annual payout is $0.60. Its current dividend yield is a healthy 2.49%, which is pretty good for the highly volatile gold sector. Its five-year average dividend growth rate is 32.32%. For Q2 2014, Goldcorp paid $122 million in dividends to its shareholders.

Consider Goldcorp as a precious metals addition to your dividend stock portfolio. With a focus on lower cost new mines, Goldcorp offers greater income earning potential for dividend investors interested in the gold sector.

The post 5 Reasons Goldcorp Inc. Is a Solid Dividend-Paying Gold Play appeared first on The Motley Fool Canada.

More reading

• Here’s Exactly How I’d Put $20,000 of TFSA Money to Work in 2026
• 3 Canadian Stocks That Look Built for Uncertain Times
• Thinking of Adding U.S. Stocks? Here’s 1 Canadians Should Avoid and 1 Worth Buying
• TSX Today: What to Watch for in Stocks on Friday, May 1
• All It Takes is $3,000 in Telus to Generate Hundreds in Passive Income

Consider the following three dividend-paying companies that have strategic plans in place to foster company and shareholder returns:

1. Canadian Imperial Bank of Commerce

With a current dividend yield of 3.80%, Canadian Imperial Bank of Commerce (TSX: CM)(NYSE: CM) is taking a measured approach to growth under its new chief executive officer, Victor Dodig. Last week, he said, “Our shareholders should be prepared for a very common sensical, prudent approach to investing.” He indicated that the bank’s growth will mainly come from taking bank assets already owned and increasing profits their profits.

Canadian Imperial Bank of Commerce had a solid performance from its wealth management segment in Q3 2014, when that segment reported net income of $121 million. This represents an increase of $19 million, or 19%, from Q3 2013. The bank intends to build this segment in the United States. In 2013, the bank acquired American Century Investments and Atlantic Trust. In Q3 2014, wealth management revenue sat at $568 million, an increase of $110 million, or 24%, versus Q3 2013.

2. Canadian Pacific Railway Limited

With a current dividend yield of 0.63%, Canadian Pacific Railway Limited (TSX: CP)(NYSE: CP) is taking steps, legal ones, to protect its operations and sustain growth. This involves the issue of interswitching. With interswitching, customers (shippers) can claim a switch to a competing railway (if it is within 160 kilometres; previously the distance was 30 kilometres.) Shippers can do this under the new Fair Rail for Grain Farmers Act to get product moving that may be languishing on bottlenecked railway lines.

Railways believe this will hinder goods flow and cost Canadian jobs. As The Globe and Mail reported recently, “In court filings, CP said its cost to switch a car to a rival line is $825.00, but it can charge only the regulated rate of $461.”

This legal action by Canadian Pacific against the Canadian federal government seeks to protect its operations and continue to foster growth. For Q2 2014, the company had total revenues of $1.681 billion, an increase of 12%. It had a 48% year-over-year improvement in earnings per share in Q2.

3. SNC-Lavalin Group

With a current dividend yield of 1.85%, SNC-Lavalin Group Inc. (TSX: SNC) has taken, in the words of Desjardins Securities analyst Benoit Poirier, “its first step toward becoming a top-tier player in the global resources sector.” The reason he said this was SNC-Lavalin’s acquisition of Kentz Corporation Limited in August. Kentz had a prospects pipeline of US$16.3 billion in April 2014, representing an increase of 19% versus April 2013.

A global engineering specialist solutions provider, Kentz operates in 36 countries. Its three segments are construction services, technical support services, and engineering and projects. This Kentz acquisition transforms SNC-Lavalin’s oil and gas capabilities, and increases its expertise for large and complex projects in the upstream, liquefied natural gas, shale gas and oil sands, pipelines, offshore jackets, and steam-assisted gravity drainage sectors. This acquisition creates a group with annual revenues of approximately C$10 billion.

These three companies are fostering growth and protecting assets in different ways. Each represents a quality opportunity to diversify and earn income as you build your portfolio.

The post Which Canadian Companies Are Protecting Their Dividend Yields? appeared first on The Motley Fool Canada.

More reading

• 3 TSX Stocks Built for Higher-for-Longer Interest Rates
• 3 Canadian Blue-Chip Stocks I’d Buy in Any Market
• 2 Canadian Stocks Worth Buying Today and Holding for 5 Years
• 2 High-Quality Canadian Stocks I’d Buy in This Uncertain Market
• The April Market Twist Every Canadian Investor Should Be Watching

Enbridge Inc. (TSX: ENB)(NYSE: ENB) operates the globe’s longest crude oil and liquids transportation system, in Canada and the United States. Here are seven compelling reasons why Enbridge is a solid choice for your dividend portfolio:

1. Its scope of operations

As a distributor, Enbridge owns and operates Canada’s largest natural gas distribution company (Enbridge Gas Distribution). It provides distribution services in Ontario, Quebec, New Brunswick, and New York state. As a generator, it has interests in over 1,800 megawatts of renewable and alternative energy generating capacity.

2. Its gas distribution franchise

Enbridge Gas Distribution is Canada’s largest gas distribution franchise. This business has more than 2 million customers, and operates over 35,000 kilometers of gas distribution pipelines throughout Ontario. The key here is that this is a low-risk, stable business providing an essential product and service to businesses and consumers daily.

3. Its total assets

Enbridge has total assets of $63 billion. Regarding liquids pipelines, it holds a 50% interest in the Seaway Crude Pipeline System. This includes an 805-kilometre, 30-inch diameter long-haul system between Cushing, Oklahoma, and Freeport, Texas. Enbridge has leading regional infrastructure in the Alberta oil sands and the Bakken area and a leading crude oil pipeline from the Canadian oil sands to the U.S. Midwest.

As for its Canadian midstream operations, Enbridge has 71% ownership of the Cabin gas-treating plant, as well as ownership of gas-gathering and compression facilities in the Peace River Arch region in northwestern Alberta. Its Enbridge Energy Partners has one of the largest gathering and processing networks in Texas.

4. Its expanding interests

Enbridge is engaging moreso in wind, solar energy, and geothermal. Today, it announced that it entered into an agreement to purchase additional ownership stakes in two Quebec wind projects. With this agreement, Enbridge will invest roughly $225 million to acquire an additional 17.5% share in the 300 megawatt Lac Alfred Wind Project and an additional 30% share in the 150-megawatt Massif du Sud Wind Project.

5. Its offshore operations

As far as gas pipelines and processing are concerned, Enbridge is the largest gas gatherer and transporter in deepwater Gulf of Mexico. This involves 40% of total offshore gas production and 50% of ultra-deep gas production. Oil is the company’s principal target in this region.

6. Its new projects portfolio and new growth platforms

For this year, Enbridge has $ 8 billion in new projects. Its new projects in progress total $28 billion. For near-term growth, the company is focusing on power generation, power transmission, and energy services. For diversification and long-term growth potential, Enbridge is focusing on these three as well, with the addition of its international projects. Internationally, its principal focus is greenfield development. It is developing projects in Colombia, Peru, and Australia.

7. Its dividends

Enbridge pays dividends quarterly and has a current dividend yield of 2.52%. Its dividend rate is $1.40. The company’s five-year average dividend growth rate is 13.66%. Enbridge has a dividend payout policy of 60%-70% of earnings.

Enbridge is in an essential industry, possesses an impressive transport network, and will provide sustained returns. You may want to perform due diligence on this blue-chip stock that has had 19 consecutive years of dividend increases.

The post 7 Reasons to Invest in Dividend-Paying Enbridge Inc. appeared first on The Motley Fool Canada.

More reading

• 3 TSX Stocks That Could Outperform the Broader Market in 2026
• Here’s Where Enbridge Stock Could Be Headed in the Next 3 Years
• A TSX Dividend Stock Yielding 5% That I Plan to Hold for Decades
• 3 High-Yield Dividend Stocks You Could Hold in 2026 Without Losing Sleep
• The 5 Dividend Stocks I’d Be Most Excited to Own at This Moment 

Gold is considered a refuge during times of political uncertainty, especially if you can earn regular dividends during all the turmoil. Here are two dividend-paying gold companies that deserve some due diligence to see if they’re right for your portfolio:

1. Goldcorp Inc.

Goldcorp Inc. (TSX: G)(NYSE: GG) pays a monthly dividend, which currently yields 2.47%. Goldcorp’s dividend rate is $0.60. The company has paid a monthly dividend to shareholders since 2003. This month, Goldcorp declared its ninth monthly dividend payment of the year of $0.05 per share. It has a reputation for increasing its dividend consistently when gold prices increase. It doesn’t do this with abandon, though. It has a disciplined approach to dividends. Consequently, when gold prices dropped, it didn’t cut its dividend.

Goldcorp’s foundational Canadian asset is its Red Lake project in Red Lake, Ontario. This mine is the company’s leading producer, with an output of 493,000 ounces last year. The production estimate for this year is 440,000-480,000 ounces. The estimated mine life of Red Lake is 12 years. The High Grade Zone is the pillar of the Red Lake operation. This zone has an average grade of over two ounces of gold per tonne.

Speaking at the 2014 Denver Gold Forum Conference, Goldcorp President and CEO Chuck Jeannes indicated that the company is looking for a strong finish to 2014 at Red Lake. For Q2 2014, Red Lake gold production was 89,500 ounces and the average realized gold price per ounce from Red Lake was $1,300.00.

2. Yamana Gold Inc.

Yamana Gold Inc. (TSX: YRI)(NYSE: AUY) pays a quarterly dividends, which currently yields 2.13%. Yamana Gold’s dividend rate is $0.15. In July, the company declared its Q3 2014 dividend of $0.0375 per share.

Last year, Yamana Gold achieved production of 1.2 million gold equivalent ounces. For this year, it expects production of more than 1.42 million gold equivalent ounces. Yamana is a cash flow generator and in Q2 2014 had adjusted operating cash flows of $177.2 million. Yamana has gold production, gold development-stage properties, exploration properties, and land positions in Brazil, Argentina, Chile, and Mexico.

The company is advancing its Cerro Moro and Suyai projects in Argentina. Cerro Moro potentially could start up in 2016. It has a maiden probable mineral reserve of 1.5 million gold equivalent ounces at 24.34 g/t. As for Suyai, Yamana is focusing on submitting permit applications this year. There, the proposed underground operation will produce a precious metals concentrate.

Furthermore, Yamana is part of the Canadian Malartic Partnership with Agnico Eagle Mines Ltd. The Canadian Malartic Mine is the largest gold mine in Canada. It’s anticipated that it will produce between 510,000-530,000 ounces in 2014. This joint operation provides Yamana Gold a low-risk entry into Quebec and Ontario.

Gold is a funny business, with demand for the precious metal down 26% in the first half of this year. Add to that price volatility and you have a sector that glitters with promises of returns that don’t quite come to fruition. However, Goldcorp and Yamana Gold do offer income as you ride out the continued uncertainty in the market.

The post Goldcorp Inc. and Yamana Gold Inc.: Dividend-Yielding Gold Stocks for Uncertain Times appeared first on The Motley Fool Canada.

More reading

• Here’s Exactly How I’d Put $20,000 of TFSA Money to Work in 2026
• 3 Canadian Stocks That Look Built for Uncertain Times
• Thinking of Adding U.S. Stocks? Here’s 1 Canadians Should Avoid and 1 Worth Buying
• TSX Today: What to Watch for in Stocks on Friday, May 1
• All It Takes is $3,000 in Telus to Generate Hundreds in Passive Income

Cameco Corporation (TSX: CCO) NYSE: CCJ) and Pembina Pipeline Corp. (TSX: PPL)(NYSE: PBA) represent a way to add diverse industries to your portfolio while reaping returns for shareholders. The following are three reasons to consider for investing in these two companies:

1. Scope of operations

Cameco provides approximately 15% of the globe’s uranium production. The company is among the world’s largest uranium producers and has roughly 4.9 million acres of uranium exploration properties. Its operations and investments cover the nuclear fuel cycle (exploration to fuel manufacturing).

Cameco expects a net increase of 91 new reactors over the next decade, as well as sustained growth in the decades to come. As an example, Japan’s new regulator has taken delivery of restart applications from nine utilities for 19 reactors. Furthermore, the company is a foremost supplier of uranium refining, conversion, and fuel manufacturing services.

Pembina Pipeline owns and operates 8,200 km of pipelines. These transport around 50% of Alberta’s conventional crude oil production and around 30% of the natural gas liquids produced in western Canada. Moreover, these pipelines transport almost all of the conventional oil and condensate produced in British Columbia.

Pembina Pipeline also has roughly 1,650 km of oil sands pipelines. The company additionally has its midstream business (crude oil and natural gas liquids) and gas services operations. Its gas services provides gas gathering, compression, and shallow and deep cut processing services.

2. Production and growth plans

Cameco recently received approval from the Canadian Nuclear Safety Commission for the environmental assessment for the Key Lake extension project.  Consequently, this sets the stage for Key Lake to increase tailings capacity. In addition, the company notes that this is the initial step toward increasing production at Key Lake to 25 million pounds annually.

Cameco sees the potential in Key Lake as a regional milling operation. The Key Lake mill revitalization plan includes upgrading circuits with new technology. This is to streamline operations and improve environmental performance.

This past spring, Pembina Pipeline secured an additional $460 million in new capital projects. This includes RFS III, which is the company’s new 55,000 barrels per day propane plus fractionator at its Redwater fractionation and storage complex. Pembina anticipates that RFS III will be in service in Q3 2017. RFS III is supported by long-term take-or-pay contracts with multiple producers.

Stuart Taylor, Pembina Pipeline’s senior VP, NGL and Natural Gas Facilities, said in May, “Projects like these support our continued focus on expanding our fee-for-service business and integrated service offering, which in turn help drive sustainable dividend growth – and ultimately value for our shareholders – for many years to come.”

3. Dividends

Cameco has a current dividend yield of 1.85%. The company pays dividends quarterly and its dividend rate is $0.40. Its three-year average dividend growth rate is 5.88%.

Pembina Pipeline has a current dividend yield of 3.23%. It pays dividends monthly and its dividend rate is $1.74. Pembina Pipeline’s three-year average dividend growth rate is 5.99%. The company increased its dividend by 3.6% in Q2 2014.

Industrial metals and minerals and oil and gas pipelines via Cameco and Pembina Pipeline, respectively, offer dividends and potential growth through diverse operations. Perform your due diligence on these two S&P/TSX 60 best dividend-yielding stocks to build your stable of income-producing stocks.

The post Build Your Dividend Portfolio With Cameco Corporation & Pembina Pipeline Corp. appeared first on The Motley Fool Canada.

More reading

• Oil Above $110 and Rates on Hold: 3 Canadian Energy Stocks Built for Both
• 2 Dividend Stocks I’d Be Comfortable Holding for the Next 5 Years
• 3 Stocks for Canada’s Infrastructure Spending Boom
• 1 Canadian Company Set to Make a Fortune from the $650 Billion Data Centre Buildout
• 2 Canadian Stocks to Buy When Everyone’s Nervous

Gold is often considered a safe haven for investors when things get too turbulent on the geopolitical and economic fronts. However, gold investing comes with its own set of idiosyncrasies that investors need to consider. Here are three of them and how they affect gold companies on the TSX:

1. Approval delays can hinder project plans significantly

Eldorado Gold Corp. (TSX: ELD)(NYSE: EGO) knows this full well as this situation currently applies to its Perama Hill project in Greece. The company does not have a set time frame for the Environmental Impact Assessment (EIA) approval required for this particular project.

Eldorado Gold’s operations remained delayed due to its outstanding EIA approval for Perama Hill. Following the municipal and European elections, the company has engaged the government at the ministerial level regarding this matter.

The Perama Hill project — which it acquired project in 2008 through the acquisition of Frontier Pacific — is in Eastern Thrace, Northern Greece, and Eldorado Gold owns this project 100%. The deposit is an epithermal gold-silver vein deposit and the expected mine life of Perama Hill is eight years. This project did receive its Preliminary Environmental Impact Assessment approval in February of 2012.

The estimated annual gold production for Perama Hill is 104,000 ounces. Eldorado Gold’s forecast production date for this project is 2016.

2. Significant capital expenditures

Mining is a capital-intensive business and this reality often causes strategy shifts for gold miners. IAMGOLD Corp. (TSX: IMG)(NYSE: IAG) is looking to sell its Niobec mine in Quebec within the next six months to a year for approximately $500 million (after taxes).

The reason Niobec is going up for sale? It will cost IAMGOLD approximately $750 million to extend its mine life beyond its current eight years. Therefore, the company sees greater value in reaping the benefits of a sale than spending significant funds on the mine.

This is a true example of a critical-eye cost-benefit analysis by an experienced mining company. Canadian Mining Journal reported that IAMGOLD President/CEO Steve Letwin “…conceded that Niobec is IAMGOLD’s “best-performing mine” and a “great asset” that throws off about $100 million to $110 million in EBITDA a year yet has modest sustaining capital costs of between US$25 and US$30 million a year.”

3. Political uncertainty can weigh on projects

Kinross Gold Corporation (TSX: K)(NYSE: KGC) has its combined Kupol and Dvoinoye operation in Russia and saw nice results there in Q2 2014. TheKupol and Dvoinoye operation had increased production versus Q1 2014 as well as year over year. Gold grades at the combined operation grew by 23% versus Q2 2013. Moreover, roughly 83,000 Au eq. oz. were produced from processing Dvoinoye ore in the expanded Kupol mill during Q2 2014.

However, Kinross is carefully watching the political situation in Russia, the Ukraine, and the rest of Europe. Its operations in Russia have so far been unaltered by economic sanctions. The company is taking action to alleviate or lessen potential future effects on its Russia operations. To that end, Kinross has accelerated its shipping procedure and the company now has all of its vital supplies in Russia for 2015 and into early 2016. Kinross is being proactive in this regard as it does not know what future sanctions may be and what effect they may have on its operations.

You don’t have to be afraid to invest in gold companies. You just have to understand the vagaries of the environment in which they operate and then make informed investing decisions accordingly.

The post 3 Things to Consider Before Investing in Eldorado Gold Corp., IAMGOLD Corp., and Kinross Gold Corporation appeared first on The Motley Fool Canada.

More reading

• 2 TSX Stocks I’d Buy Aggressively the Next Time Markets Pull Back
• Here’s the Average Canadian TFSA and RRSP Balances at Age 45
• 3 Stocks That Could Turn a $100,000 Portfolio Into $1 Million Sooner Than You Might Think
• Missed the RRSP Deadline? Here’s 1 Move to Make Now
• Should TFSA Investors Buy Gold on a Dip?

Canada’s largest bank as measured by assets and market capitalization, Royal Bank of Canada (TSX: RY)(NYSE: RY), is a solid investment option for dividend investors. Here are 10 reasons to own Royal Bank of Canada shares as part of your diversified portfolio:

1. Its diversified financial services

Royal Bank of Canada offers a breadth of products and services to its 15+ million personal, business, public sector, and institutional clients. Royal Bank is among the world’s largest banks and provides personal and commercial banking, wealth management services, insurance, investor services, and capital markets products and services.

2. Its personal and commercial banking segment

This segment accounted for 56% of Royal Bank’s 2013 earnings. For Q3 2014, Canadian banking net income was a record $1.185 billion. This represents an increase of $34 million, or 3%. The driver here was volume growth and robust growth in fee-based revenue, chiefly from mutual fund sales.

3. Its wealth management segment

For Q3 2014, Royal Bank had record earnings from wealth management, with earnings up more than 20% from the year prior.This was due to higher average fee-based client assets across all businesses.

4. Its continued investments in growth areas

Royal Bank is experiencing growth in a number of its wealth management businesses, including global asset management. The bank is continuing to invest in its global asset management business to propel long-term growth. RBC global asset management is one of the fastest-growing asset management businesses globally.

5. Its Insurance business

Royal Bank of Canada had a record Q3 2014 in this segment. This was due to favorable actuarial reserve adjustments and improved claims experience. Insurance complements Royal Bank’s overall product offering. Insurance net income was a record $214 million in Q3. This represents an increase of $54 million, or 34%, from Q3 2013.

6. Its capital markets business

For Q3 2014, Royal Bank of Canada had record earnings of $641 million from capital markets. This represents an increase of $225 million, or 66%, over Q3 2013. Trading and origination activities improved for Royal Bank. The driver here was strong equity and debt markets and greater activities from the bank’s client-focused strategy.

7. Its Canadian residential mortgage portfolio

Royal Bank’s Canadian residential mortgage portfolio comprises 64% of the bank’s retail portfolio. The bank has excellent diversification across Canada regarding this mortgage portfolio and this part of its business continues to perform solidly for Royal Bank.

8. Its leading market positions in Canada

Concerning its Canadian operations, Royal Bank of Canada has the No.1 or No.2 market share in all product categories. Royal Bank is the largest Canadian mutual fund provider and among the largest bank-owned insurance companies in Canada.

9. Its recent awards

Royal was awarded Global Retail Bank of the Year recently by Retail Banker International. In 2013, the bank received recognition as one of the most valuable brands in Canada. It ranked in the top 25 among global banking brands.

10. Dividends

Royal Bank of Canada pays dividends quarterly and its current dividend yield is 3.65%. Its dividend rate is $3.00. The bank’s five-year average dividend growth rate is 6.77%. Royal recently announced an increase to its quarterly dividend of $0.04, or 6%, to $0.75 per share.

Consider this premier Canadian bank as a financial sector component for your income portfolio. Royal Bank of Canada has a rich history of rewarding shareholders with increasing returns.

The post 10 Reasons to Own Royal Bank of Canada Shares appeared first on The Motley Fool Canada.

More reading

• 2 Canadian Stocks Worth Buying Today and Holding for 5 Years
• 3 TSX Stocks to Buy for a Set-It-and-Forget-It TFSA
• The 3 Dividend Stocks I’d Recommend to Almost Any Canadian Investor
• The Canadian Stocks I’d Be Most Comfortable Buying and Holding in a TFSA Forever
• 3 Stocks Worth a Serious Look for Long-Term Canadian Investors

The railroad industry offers a way to build your stock portfolio with solid companies that have a history of rewarding shareholders. Here are three companies that provide steady returns for investors via their essential services:

1. Canadian National Railway Company

Canadian National Railway Company (TSX: CNR)(NYSE: CNI) operates the largest rail network in Canada as well as the only transcontinental network in North America. Canadian National has roughly 20,600 route miles of track in North America, and serves almost 75% of the U.S. population as well as all major Canadian markets.

The company is experiencing growth in international intermodal, agriculture, and merchandise. It has 23 intermodal terminals and the intermodal shipping option means the company’s customers can utilize rail, trucks, and vessels to reach their customers. Its Great Lakes Fleet has 20 million tons of annual carrying capacity. It has vessels that can deliver 15,000 to 75,000 tons in all seasons.

Bank of Montreal analyst Fadi Chamoun has raised his price target for Canadian National from $76.00 to $82.00 based on Q3 revenue growth. Canadian Its current dividend yield is 1.24% and its dividend rate is $1.00.

2. Canadian Pacific Railway Limited

Canadian Pacific Railway Limited (TSX: CP)(NYSE: CP) had record revenues of $6.1 billion in 2013. In Q2 2014, the company reported more record financial results, with total revenues of $1.681 billion, a 12% increase. For Q2, Canadian Pacific had a 48% year-over-year improvement in earnings per share.

The company is experiencing growth in its domestic intermodal and energy segments. Regarding its domestic intermodal, it is an important focus for Canadian Pacific. The company has improved its transit time between Toronto and Calgary and between Calgary and Vancouver as it focuses on speed and consistency of service for its customers. Estimated capital investments for this year for Canadian Pacific include $200-$275 million for network capacity and productivity.

Canadian Pacific is emphasizing a pared-down fleet, infrastructure, and workforce to control operating costs. In 2013, it operated with significantly fewer locomotives and greater than 10,000 fewer railcars than the prior two years.

The company’s current dividend yield is 0.62% and its dividend rate sits at $1.40.

3. CSX Corporation

CSX Corporation (NYSE: CSX) provides rail-based transportation services including traditional rail service and the transport of intermodal containers and trailers. Its network covers approximately 21,000 route miles of track in 23 states, the District of Columbia, and Ontario and Quebec.

For Q2 2014, CSX’s revenue increased 7% to an all-time record $3.2 billion. The driver was volume growth of 8%. In the last 10 years, CSX has increased operating income almost 600% and EPS from continuing operations by about 2,000%.

Intermodal is also one of CSX’s main growth platforms. This year, it is expanding the recently built terminal in northwest Ohio to serve growing regional demand. For Q2 2014, intermodal domestic volume growth was driven by ongoing success with highway-to-rail conversions and robust demand. The company’s international volume increased because of growth with customers in global container shipments moving to inland destinations.

With dividend growth the last four years, CSX’s current dividend yield is 1.99% and its dividend rate is $0.64.

Consider the railroad industry for your portfolio. It’s a way to diversify and capitalize on the need for efficient transportation that keeps the North American economy moving.

The post Canadian National Railway Company, Canadian Pacific Railway Limited, and CSX Corporation: 3 Dividend-Paying Railroad Stocks for Income Growth appeared first on The Motley Fool Canada.

More reading

• 3 TSX Stocks That Could Outperform the Broader Market in 2026
• 3 Canadian Blue-Chip Stocks I’d Buy in Any Market
• Stop Chasing Yield in Your TFSA — Here’s What to Do Instead
• 2 Standout Canadian Stocks That Could Take Off in 2026
• 4 Canadian Stocks Worth Holding When Market Anxiety Starts to Rise

Boring is good when it comes to investing in essential products and services that consumers and businesses need every day. The following three companies don’t get much hype in the news like “flavour of the month” stocks. Nevertheless, each will drive income for your portfolio.

1. Agrium Inc.

Agrium Inc.‘s (TSX: AGU) (NYSE: AGU) business may not seem exciting, but it is essential to global food production. The company produces and markets three main groups of crop nutrients: nitrogen, phosphate, and potash. It also produces and markets controlled-release fertilizers and micronutrients.

Agrium’s wholesale segment produces, markets, and distributes nitrogen, phosphate, and potash for agricultural and industrial customers worldwide. Its retail strategic segment is the largest direct-to-grower distributor of seed, agricultural crop protection products, and crop nutrients.

For Q2 2014, Agrium had record results for retail with its EBITDA up 28% year over year. The company’s North American retail division has more than 1,100 retail locations. In October 2013, Agrium completed the acquisition of Viterra Inc.’s Canadian retail assets. It acquired approximately 210 retail stores across Western Canada, plus 13 Viterra retail locations in Australia.

Agrium’s current dividend yield is 3.22% and the company’s dividend rate is $3.00.

2. Fortis Inc.

What could be more boring than an electricity and natural gas distribution utility in the utilities sector? Then again, what could be more needed by industry and consumers? Fortis Inc. (TSX: FTS) is the largest investor-owned electric and gas distribution utility in Canada. Its regulated utilities account for approximately 93% of total assets, which hit close to $25 billion.

Recently, Fortis completed the transaction to acquire all of the outstanding shares of UNS Energy Corporation. UNS Energy is a vertically integrated utility services holding company.  UNS engages, via three subsidiaries, in the regulated electric generation and energy delivery business, mainly in Arizona. UNS Energy’s fiscal 2013 operating revenues were roughly US$1.5 billion. As of June 30, 2014, UNS Energy had total assets of around US$4.5 billion so this is a nice acquisition for Fortis and its investors.

Fortis’ current dividend yield is 3.73% and the company’s dividend rate is $1.28.

3. Teck Resources Ltd.

Teck Resources Ltd. (TSX: TCK-B)(NYSE: TCK) produces the essential materials of copper, steelmaking coal, zinc, as well as energy. Not exactly garnering the excitement of something like Apple’s new iPhone, but totally vital to the everyday activities businesses and consumers engage in. Teck also produces molybdenum and specialty metals.

The company is the second-largest seaborne exporter of steelmaking coal and a top 10 copper producer in the Americas. It has six coal operations in British Columbia and Alberta and roughly 36 years of reserves. Moreover, Teck is the third-largest producer of zinc concentrate. It is also working to develop its extensive oil sands resource base into multigeneration oil production.

Fort Hills — the company’s first oil sands project — has considerable initial production of 36,000 bpd and Teck is working with Suncor on this project. Teck indicates that Fort Hills has cash flow potential of approximately $2 billion-$3 billion annually. Teck’s share of production could eventually be 200,000-250,000 bpd.

Teck Resources has a current dividend yield of 3.90% and the company’s dividend rate is $0.90.

Consider these boring but steady and reliable blue-chip performers that will generate cash for your portfolio for years to come.

The post Be Bored All the Way to the Bank With These 3 Dividend Stocks appeared first on The Motley Fool Canada.

More reading

• Here’s Exactly How I’d Put $20,000 of TFSA Money to Work in 2026
• Create Your Own Portfolio Dividend Yield With These 3 Incredible TSX Stocks
• 3 Dividend Stocks That Belong in Almost Every Investor’s Portfolio
• The Canadian Dividend Stock I’d Turn to First When Markets Start Getting Difficult
• 3 Strong Canadian Stocks That Raised Their Dividends — Again

Are you looking for high dividend yields from solid Canadian companies on the market? Consider these quality oil and gas and wireless communications stocks for your income portfolio.

1. Canadian Oil Sands Ltd.

Canadian Oil Sands Ltd. (TSX: COS)has an excellent current dividend yield of 6.43% and the company pays its dividends quarterly. At the end of July, Canadian Oil Sands declared a quarterly dividend of $0.35 per share. Its dividend rate is $1.40 and its 3-year average dividend growth rate is 23.40%. For the six months ended June 30, 2014, Canadian Oil Sands has paid dividends to shareholders amounting to $339 million ($0.70 per share). The company’s dividends are representative of its free cash flow (cash flow from operations less capital expenditures) over time.

Canadian Oil Sands indirectly owns a 36.74% working interest in the Syncrude Joint Venture. Syncrude engages in the mining and upgrading of bitumen from oil sands near Fort McMurray in northern Alberta. The Syncrude Project processes bitumen into synthetic crude oil.  Regarding exercising proper capital expenditure discipline, Canadian Oil Sands invests in Syncrude to provide long-life, high-netback production. The Syncrude Project provides the company long-term pure oil exposure with no crude oil price hedging.

2. Enerplus Corp.

Enerplus Corp. (TSX: ERF)(NYSE: ERF)has a healthy current dividend yield of 5.00% and the company pays its dividends monthly. Recently, Enerplus announced that a cash dividend of C$0.09 per share will be payable on Sept. 19, 2014. Its dividend rate is $1.08. The company pays dividends from the cash flow generated from the sale of its oil and natural gas production.

Over the past three years, higher production volumes and oil weighting has helped propel funds flow growth for Enerplus. For Q2 2014, Enerplus attained record production of 104,000 BOE per day. This is the highest level in the company’s 28 year history. Its North Dakota production increased by 14% from Q1 2014. Its U.S. crude oil properties are in the Fort Berthold region of North Dakota and in the Elm Coulee field in Richland County, Montana. Enerplus holds an average 90% working interest in these properties. Enerplus’ main focus area is within the Deep Basin region of Alberta. There, it holds more than 160,000 net acres of high working interest lands.

3. Rogers Communications Inc.

Rogers Communications Inc. (TSX: RCI-B)(NYSE: RCI)has a current dividend yield of 4.10% and it also pays its dividends quarterly. In mid-August, the company announced a quarterly dividend totaling 45.75 cents per share. This dividend is the third quarterly dividend to reflect the increased $1.83 per share annualized dividend level. Rogers’ three-year average dividend growth rate is 9.30%.

Rogers Communications is Canada’s largest wireless carrier (9.4 million subscribers) and a foremost cable television provider. The company has leading wireless and broadband network platforms. Its Rogers Wireless segment has a 34% national market share. The company has 76% smartphone penetration and data is 51% of network revenues. Concerning the Rogers Cable segment, it has 4 million households distributed across approximately 30% of Canada.

Moreover, its Rogers Media segment reaches 95% of the Canadian population by way of television stations City and OMNI, radio and magazines, and digital. Rogers is enhancing its leading networks. In Q2, it announced $450 million of planned investments over the next three years. This is to further expand its wireless network in over 70 communities throughout British Columbia.

Consider consistent dividends with nice yields from these leading Canadian companies. These three stocks are a sound way to build a quality income portfolio.

The post 3 High-Yield Dividend Stocks to Consider appeared first on The Motley Fool Canada.

More reading

• 3 Resilient Canadian Stocks to Own in a Headline-Driven Market
• TSX Today: What to Watch for in Stocks on Thursday, April 23
• 1 Magnificent TSX Dividend Stock Down 12% to Buy and Hold for Decades
• Telus vs. Rogers: 1 Canadian Telecom Stock I’d Buy Today
• 3 TSX Dividend Stocks With Payout Ratios That Actually Hold Up to Scrutiny