Do your due diligence and consider earning dividends from oil and gas services, cash and derivative markets, and transportation and logistics services.
1. Keyera
Keyera Corp. (TSX: KEY) is one of Canada’s largest independent midstream operators. The company provides essential products and services to western Canadian oil and gas producers.
Its net earnings were $55.2 million Q1 2014. This represents a $31.8 million increase over the $23.4 million of Q1 2013.
For Q1 2014, the company’s NGL infrastructure and gathering and processing businesses had record operating margins. Additionally, Keyera’s marketing business had an operating margin of $36.9 million in Q1 2014 versus $23.9 million in Q1 2013.
In May, Keyera announced the boosting of its dividend by 7.5%, from $0.20 per share per month to $0.215 per share per month, or $2.58 annually, starting with its dividend payable on June 16, 2014. The company’s dividend yield is 3.30% and its dividend rate is $2.58.
2. TMX Group
TMX Group (TSX: X) runs cash and derivative markets for numerous asset classes. These include equities, energy, and fixed income. TMX Group’s companies provide listing and trading markets, clearing facilities, depository services, data products, and other services to the financial community worldwide.
TMX Group launched its new high-performance trading engine, TMX Quantum XA, on TMX Select in Q3 2013. TMX Quantum XA provides significantly improved speed, reduced latency variability, and increased capacity. TMX’s Q1 2014 revenue was up 1%. This was mainly because of higher revenue from cash, Canadian derivatives, and energy markets trading and clearing.
TMX Group’s dividend yield is 2.70% and its five-year average dividend yield is 4.20%. Recently, the company announced a quarterly dividend of $0.40 per share, or $1.60 annualized.
3. TransForce
In Canada, TransForce (TSX: TFI) has three courier brands: Canpar, Loomis, and ICS. The company operates logistics, package delivery, trucking, and waste management services. TransForce services the package and courier, less-than-truckload, truckload, and specialized services (waste management, logistics services, and services to the energy sector) segments.
This month, TransForce announced that its wholly owned subsidiary Matrec acquired the majority of the assets of Veolia E.S. Matieres Residuelles, Inc. Veolia operates under the name Veolia Solid Waste Canada. Veolia Solid Waste Canada generated annual revenue of over $30 million in the past 12 months.
In Q1 2014, TransForce’s total revenue increased to $770.5 million, an increase of 2.8%, and produced free cash flow of $35.1 million.
TransForce’s current quarterly dividend is $0.145 per share, or $0.58 annualized. Its dividend yield is 2.40% and its five-year average dividend yield is 2.90%.
The above three companies provide essential services to three distinct sectors. Together, they offer diversification and dividends to your portfolio.
