Dividends provide safety and security since shareholders get paid even if the stock price underperforms. Most companies issuing dividends are at a comfortable stage in their business cycle, which is often followed up by an increase in dividends per share and, today, we have identified 5 TSX small cap stocks that have increased their dividend payout by over 25% this past year.
The comments above and below are excerpts from an article by SmallCapPower.com which has been edited ([ ]) and abridged (…) to provide a fast & easy read.
1. Intertape Polymer Group Inc. (TSX: ITP) – $23.94 Canadian
Non-Paper Containers & Packaging
Intertape Polymer Group Inc. is a Canada-based company that operates in the specialty packaging industry in North America.
It develops, manufactures and sells a range of paper and film-based pressure sensitive and water activated tapes, polyethylene and specialized polyolefin packaging films, woven coated fabrics and complementary packaging systems for industrial and retail use. Its products consist of carton sealing tapes, including pressure sensitive and water-activated tapes; industrial and performance specialty tapes, including masking, duct, electrical and reinforced filament tapes; shrink film; stretch wrap; lumberwrap, structure fabrics and geomembrane fabrics, and non-manufactured flexible intermediate bulk containers.
- Market Cap: $1,414 million CAD
- Total Revenue (LTM):1,051.0 million CAD
- Dividend per Share (DPS) (FY0): $0.67 CAD
- Y/Y DPS Growth: 31%
2. Home Capital Group Inc. (TSX: HCG) – $29.27 Canadian
Home Capital Group Inc. is a Canada-based holding company, which operates primarily through its subsidiary, Home Trust Company (Home Trust). The Company, through its subsidiary, offers residential and non-residential mortgage lending, securitization of insured residential first mortgage products, consumer lending and credit card products.
Home Trust also offers deposits through brokers and financial planners, and through its direct to consumer deposit brand, Oaken Financial. The Company’s subsidiary, Payment Services Interactive Gateway Inc. (PSiGate), provides payment card services.
- Market Cap: $1,885 million CAD
- Total Revenue (LTM): $0
- DPS (FY0): $0.90 CAD
- Y/Y DPS Growth: 29%
3. Aecon Group Inc. (TSX: ARE) – $16.49 Canadian
Construction & Engineering
Aecon Group Inc. is a Canada-based construction and infrastructure development company. It operates through four segments: Infrastructure, Energy, Mining and Concessions.
The Infrastructure segment includes all aspects of the construction of both public and private infrastructure in Canada, and on a selected basis, internationally.
The Energy segment encompasses a suite of service offerings to the energy sector, including industrial, construction and manufacturing activities, such as in-plant construction, site construction and module assembly.
The Mining segment offers services consolidating its mining capabilities and services across Canada, including both mine site installations and contract mining. This segment focuses on delivering construction services.
The Concessions segment includes development, financing, construction and operation of infrastructure projects by way of build-operate-transfer, build-own-operate-transfer and other public-private partnership contract structures.
- Market Cap: $954 million CAD
- Total Revenue (LTM): $3,242 CAD
- DPS (FY0): $0.46 CAD
- Y/Y DPS Growth: 28%
4. AirBoss of America Corp. (TSX: BOS) – $13.25 Canadian
Tires & Rubber Products
AirBoss of America Corp. is engaged in the manufacture of rubber-based products for resource, military, automotive and industrial markets. It operates in three segments: Rubber Compounding, Engineered Products and Automotive.
The Company, through its AirBoss Rubber Compounding division, is engaged in custom rubber compounding, supplying mixed rubber for use in mining, transportation, industrial rubber products, military, automotive, conveyor belting, and other products, mainly in North America.
- Market Cap: $306 million CAD
- Total Revenue (LTM): $368 million CAD
- DPS (FY0): $0.32 CAD
- Y/Y DPS Growth: 28%
5. Magellan Aerospace Corp. (TSX: MAL) – $17.66 Canadian
Aerospace & Defense
Magellan Aerospace Corporation is a Canada-based supplier of components to the aerospace industry and in certain applications for power generation projects.
The Company engineers and manufactures aero-engine and aero-structure components for aerospace markets, including products for defense and space markets, and complementary specialty products. Its segments include Aerospace and Power Generation Project.
The Aerospace segment includes the design, development, manufacture, repair and overhaul, and sale of systems and components for defense and commercial aviation.
The Power Generation Project segment includes the supply of gas turbine power generation units.
- Market Cap: $1,028 million CAD
- Total Revenue (LTM): $1,009 million CAD
- DPS (FY0): $0.22 CAD
- Y/Y DPS Growth: 27%