It’s never good to hold a stock that cut or suspend their dividends and especially so when you rely on the income. Unfortunately, it happens and as an investor you need to know when it happens to take action but also to avoid the situation in the future.
Dividend cuts can happen in good times as well as in bad times. However, as it happens, bad times tend to really put a stress on some industries such as the oil price war on the energy sector or COVID-19 on the travel, restaurant and many other industries.
Jump ahead to the Canadian dividend stocks that cut their dividends:
Every stock needs to be looked at differently but when there is a cut, I plan to sell the stock unless convinced otherwise. It’s important you pay attention to earnings as if you are quick enough, you may salvage a dire situation. There are circumstances where you may decide to continue holding the stock after a careful review. However, you should be prepared for the situation if you do a stress-test of your holdings regularly. One such example where I hold is with Disney, not only is Disney adding a streaming segment that should prove to be profitable, once travel and social distancing is better, Disney’s theme park business should also recover.
Dividend Cut – Canadian Stock List
The list is comprehensive for larger cap stocks as I do not tend to follow many companies valued under $1B. Understandably, with the COVID-19 price fluctuation, some $1B company are now worth a lot less. While COVID-19 has put a stress on many dividend paying companies, dividend adjustments happen regularly, the list below will cover the dividend drops over the past 12 months.
As a learning, there aren’t many large cap stocks in the list and even Canadian Dividend Aristocrats end up cutting their dividends and only 1 Canadian Dividend Achiever drop its dividend payout. Another point to consider is that many monthly dividend stocks were hurt. There are many to start with and the ratio of them was higher. It’s much easier for a company to manage quarterly payments than monthly. There is a reason why many moved from income trusts to corporations and then switched their dividends to quarterly frequency.
|Ticker||Company||Sector||Days Since Last Change||Last Dividend Change Date||New Dividend||Currency Annual Dividend||Last Dividend||Payments Per Year|
|LB||Laurentian Bank||Financial Services||78||29/05/2020||0.40||$1.60||0.67||4|
|CMG||Computer Modelling Group Ltd||Technology||80||27/05/2020||0.05||$0.20||0.10||4|
|LNF||Leon's Furniture Ltd.||Consumer Cyclical||93||14/05/2020||0.12||$0.48||0.16||4|
|CSW.A||Corby Spirit and Wine Ltd||Consumer Defensive||94||13/05/2020||0.20||$0.80||0.22||4|
|ESI||Ensign Energy Services||Energy||96||11/05/2020||0.00||$0.00||0.06||4|
|CPG||Crescent Point Energy||Energy||101||06/05/2020||0.00||$0.01||0.01||4|
|MX||Methanex Corp||Basic Materials||102||05/05/2020||0.04||$0.15||0.36||4|
|AD||Alaris Royalty Corp||Industrials||102||05/05/2020||0.29||$1.16||0.41||4|
|UFS||Domtar Corp||Basic Materials||102||05/05/2020||0.00||$0.00||0.46||4|
|GIL||Gildan Activewear Inc.||Consumer Cyclical||108||29/04/2020||0.00||$0.00||0.15||4|
|UNS||Uni-Select Inc||Consumer Cyclical||117||20/04/2020||0.00||$0.00||0.09||4|
|ACQ||AutoCanada Inc.||Consumer Cyclical||117||20/04/2020||0.00||$0.00||0.10||4|
|SES||Secure Energy Services Inc.||Energy||121||16/04/2020||0.00||$0.03||0.02||12|
|CEU||CES Energy Solutions||Energy||121||16/04/2020||0.00||$0.01||0.00||12|
|AFN||Ag Growth International||Industrials||123||14/04/2020||0.15||$0.60||0.20||4|
|FRU||Freehold Royalties Ltd||Energy||128||09/04/2020||0.02||$0.18||0.05||12|
|CHR||Chorus Aviation Inc.||Industrials||131||06/04/2020||0.00||$0.00||0.04||12|
|IPL||Inter Pipeline Ltd||Energy||138||30/03/2020||0.04||$0.48||0.14||12|
|NFI||NFI Group Inc||Consumer Cyclical||145||23/03/2020||0.21||$0.85||0.43||4|
|CHE.UN||Chemtrade Logistics||Basic Materials||157||11/03/2020||0.05||$0.60||0.10||12|
|BNE||Bonterra Energy Corp.||Energy||158||10/03/2020||0.00||$0.00||0.10||12|
|CGX||Cineplex Galaxy Fund||Consumer Cyclical||185||12/02/2020||0.00||$0.00||0.15||12|
|ESI||Ensign Energy Services||Energy||277||12/11/2019||0.06||$0.24||0.12||4|
|ITP||Intertape Polymer Group Inc.||Consumer Cyclical||374||07/08/2019||0.15||$0.59||0.14||4|
|SNC||SNC - LAVALIN GROUP INC.||Industrials||380||01/08/2019||0.02||$0.08||0.10||4|
The easiest way to stay on top of dividend cuts is to leverage a live data service for your portfolio and screeners that can report on current dividend per share, next payout date and so on. Stock Rover is one such tool that can help you keep an edge on your investments.
Dividend Cut – Canadian REIT List
One thing you need to know, the ratio of REITs that cut their distribution is far greater than stock ratio. Since REITs generally have vey little movement in their distribution, I don’t track the date of changes.
|Ticker||Company||Sub-Industry||Days Since Cut||Last Dividend Change Date||New Distribution||Currency Annual Dist||Last Distribution||Payments Per Year|
|MRT.UN||Morguard REIT||REIT - Diversified||22||15/05/2020||0.04||$0.48||0.08||12|
|HR.UN||H&R REIT||REIT - Diversified||23||14/05/2020||0.06||$0.70||0.12||12|
|BTB.UN||BTB REIT||REIT - Diversified||23||14/05/2020||0.03||$0.30||0.04||12|
|PRV.UN||PRO REIT||REIT - Diversified||45||22/04/2020||0.04||$0.45||0.05||12|
|HOT.UN||American Hotel Income Properties REIT||REIT - Hotel & Motel||78||20/03/2020||0.00||$0.00||0.05||12|