So, the valuations of technology companies have spooked the markets again. Twitter’s share price fell further and internet stock investors are experiencing the digital “shakes.” It’s probably time to look to more traditional sectors for sustained returns. Here are five companies to consider.
1. Arc Resources
Arc Resources (TSX: ARX) is a Canadian oil and gas producer. Its portfolio consists of resource-rich properties that provide near and long-term growth opportunities. Recently, Arc reported that Q1 production averaged a record 105,699 boe (barrel of oil equivalent) per day. Its funds from operations were a record $292.3 million ($0.93 per share). To prepare for 2014 production increases, the company had a 2013 capital program of $860 million.
In April, Arc Resources confirmed a dividend of $0.10 per share.
2. Cameco
Cameco (TSX: CCO)(NYSE: CCJ) produces and sells uranium. It is one of the world’s largest uranium producers. For the first quarter of 2014, it commenced production at its Cigar Lake mine in Saskatchewan (on March 13, 2014). Cigar Lake is the world’s second largest high-grade uranium deposit. Cameco is the operator of the mine and 50% owner.
For this year, Cameco expects 5-10% growth for sales revenue in its uranium segment. This is because of the effect of the strengthening U.S. dollar. The company expects consolidated revenue to grow by 5-10% due to because of the influence of the uranium revenue increase.
In April, Cameco’s Board approved a quarterly dividend of $0.10 per share.
3. Husky Energy
Husky Energy (TSX: HSE) is one of the largest integrated energy companies in Canada.
Recently, Husky Energy and CNOOC Limited began first production at the Liwan Gas Project in the South China Sea. Husky has a 49% interest in the Production Sharing Contract (PSC) for the Liwan Gas Project. It operates the deep-water infrastructure. Partner CNOOC has a 51% interest in the PSC. CNOOC operates the shallow water facilities and onshore gas terminal.
Husky Chief Executive Officer, Asim Ghosh, said, “Liwan is Husky’s largest project to date and places us inside the door of one of the fastest growing energy markets in the world.”
This week, Husky Energy declared a quarterly dividend of $0.30 (Canadian) per share on its common shares.
4. Magna International
Magna International (TSX: MG) is a foremost automotive supplier around the world. The company just announced that since 2003, its Magna Steyr operating division has produced one million vehicles for the BMW Group from its assembly line in Graz, Austria. The Magna Steyr subsidiary is the globe’s leading, brand-independent engineering and manufacturing partner for automobile manufacturers.
For the year ended December 31, 2013, Magna had sales of $34.84 billion. This represents an increase of 13% over the prior year. In early March, Magna’s board declared a quarterly dividend of $0.38 per share. Mr. Vince Galifi, Magna CFO, stated: “Our quarterly dividend per share of $0.38, an increase of 19%, is a new record for us.”
5. Saputo
Saputo (TSX: SAP), one of the largest milk processors in the world, is looking for more acquisitions worldwide. Recently, it acquired the fluid milk operations of Scotsburn Co-Operative Services in Atlantic Canada. The Scotsburn Fluid Milk Business produces yearly sales of approximately $160 million and approximately $8 million of EBITDA (earnings before interest, taxes, depreciation, and amortization).
Earlier this year, CEO Lino Saputo said, “Our balance sheet remains strong and we have the necessary resources to integrate multiple acquisitions at the same time. We will continue to look for growth opportunities.”
In February, Saputo’s board of directors declared a dividend of $0.23 per share.
Solid companies going about business in traditional sectors offer steady returns for investors. Financial pages and trend analysts may not always center on these companies. However, if you desire steady income without the massive highs and lows of tech stocks, give these consideration.
