The morning routine can be a surprising source of profit. Companies that make simple everyday products, and their accompanying dividends, are an uncomplicated investment path. Consider these five companies for portfolio growth and diversification.
1. BCE
BCE (TSX: BCE)(NYSE: BCE) makes it possible for many Canadians to access the morning news quickly via its Bell TV services.
For Q1 2014, BCE’s total number of TV subscribers increased 8.1% to 2,529,471. This includes 723,891 IPTV customers. In May, BCE declared a quarterly dividend of $0.6175 per common share. BCE has a healthy dividend yield of 5% and a five-year average dividend yield of 5.10%. Its annualized dividend is $2.47.
2. Tim Hortons
Tim Hortons (TSX: THI)(NYSE: THI) provides basic morning coffee for Canadians, whether in-store or through products that consumers can brew at home. In 2013, Tim Hortons completed more than 300 restaurant renovations and over 1,400 drive-thru improvements.
In 2013, Tim Hortons increased earnings per share by 8.9% to $2.82. For Q1 2014, the company’s total revenue increased 4.8% to $766.4 million versus $731.5 million in 2013.
Recently, Tim Hortons declared a quarterly dividend of $0.32 per common share, or $1.28 annualized. Its dividend yield is 2.1% and its five-year average dividend yield is 1.5%.
3. Maple Leaf Foods
Part of Maple Leaf Foods’ (TSX: MFI) product offerings include its Maple Leaf and Schneiders meat products — a staple of many Canadian breakfasts. For Q1 2014, Maple Leaf’s meat products group’s sales increased 4% to $705.4 million.
Last month, Maple Leaf Foods announced that Grupo Bimbo completed its acquisition of Canada Bread from Maple Leaf. Maple Leaf will receive gross proceeds of approximately $1.66 billion. Michael H. McCain, President and CEO, said, “With the sale of Canada Bread, our focus is dedicated to broadening our leadership in the consumer packaged meats market.”
In April, Maple Leaf declared a dividend of $0.04 per share, or $0.16 annualized. Its dividend yield is 0.8% and its five-year average dividend yield is 1.3%.
4. Colgate-Palmolive
Colgate-Palmolive (NYSE: CL) offers such morning routine products as toothpaste and other oral care products, as well as personal care products like body washes, hand soaps, and deodorants. In 2013, its worldwide net sales grew 2% to an all-time high of $17.4 billion.
Colgate-Palmolive’s current quarterly dividend is $0.36. Its current dividend yield is 2.1% and its annualized dividend is $1.44. The company has paid uninterrupted common stock dividends since 1895. It has increased payments to common shareholders each year for 51 years. Its quarterly dividend increased 10% in 2013 following a 7% increase in 2012.
5. McDonald’s
Then there are the mornings of sleeping in and having no time for typical routines. That’s when McDonald’s (NYSE: MCD) enters the picture. An Egg McMuffin, coffee, and a hash brown are a simple remedy for some extra time in bed.
McDonald’s dividend yield is 3.2%. The company has had 37 years of dividend growth. In May, McDonald’s declared a quarterly dividend of 0.81 per share, or $3.24 annualized.
Consider people’s morning routines and the products they use every day. Invest in the companies who make these products and reap the dividend benefits they provide.
