#9 - Shaw Communications (TSE:SJR)
Shaw Communications (TSE: SJR) - Current dividend yield: 4.36% - Shaw Communications is Canada’s fourth largest provider of wireless services, which is impressive when you consider that they only entered the sector in 2016. The business model for SJR includes low-cost data packages, an upgraded network and heavy retail distribution which has seen their subscriber base climb to over seven million in 2018. In 2018, the company began marketing its products at over 100 Loblaws grocery stores. By early 2019, the company expects to be available in over 600 retail locations including 140 Wal-Mart stores. Shaw has posted an average dividend growth of 5% over the five years ending in 2017 and currently has a dividend payout of around 8 cents per share. In February, Shaw received a consensus Buy rating from analysts with a price target of $30.65. That would be an increase of over 11.5% from its current level of $27.12. The company’s stock is up just over 8.5% YTD.
About Shaw Communications
Shaw Communications Inc operates as a connectivity company in North America. The company operates through Wireline and Wireless segments. The company's Wireline segment provides cable telecommunications services, including video, Internet, WiFi, phone, satellite video, and data networking through a national fibre-optic backbone network to Canadian consumers, North American businesses, and public-sector entities.
Read More - Current Price
- C$0.00
- Consensus Rating
- N/A
- Ratings Breakdown
- 0 Buy Ratings, 0 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- N/A
There are a number of benefits to monthly dividend-paying stocks. One of the most attractive for investors is the ability to compound their income more rapidly than what they can do, even from stocks that pay quarterly dividends. But like any dividend stock, investors need to be careful not to focus only on high yield. Attractive yields are frequently unsustainable. Better metrics to look for are a proven history of not only maintaining but increasing their dividend as well as a realistic valuation.
The number of companies that pay monthly dividends is in the hundreds. However, investors looking for stocks that pay monthly dividends will find the majority to be part of a real estate investment trust (REIT) or a closed-end fund. Investors will also find some attractive companies in the utilities sector. All of these sectors come with some risk. For example, REITs frequently have exposure to volatile sectors like retail stores. Closed-end funds pose risks due to the use of financial leverage in building their portfolio.
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