Mid May 2025 and the Canadian Big Bank Earnings

 

The TSX index is doing surprisingly well while there are no trade talks with the US at this time. Showing consecutive gains since the 6th of May. Cooling trade relations with the US and China is a plus for now.

Meanwhile, I like seeing "Beats Estimates" and "Increases Dividends" in reviews of quarterly reports recently while scanning over numbers and distributable cash flow with more reports to come from the stocks I own.

The Big Banks of Canada start reporting with TD Bank leading off the earnings reports on May 22nd, 2025.

                           

After the spin off from TC Energy, TRP ... South Bow, SOBO recently reported earnings for the 1st quarter in 2025 and where their Keystone pipeline runs through the US, there's the unpredictable Mr. Trump's tariff tantrums that could flare up which is mentioned in it's forward guidance. 

The company had a pipeline break in the US and that has been repaired while the remaining cleanup is nearing an end. Where the pressure in the line determines oil flow, The pipeline pressure has been ordered to be reduced so slower flow while the company completes it's order contracts. 

SOBO has an ex-dividend date in June 2025 on June 30th with payment on July 15th. The 0.50 per share is in USD so I get a bump in the USD to CAD conversion in my account.   

Another company which pays it's dividends in USD is Brookfield Infrastructure Partners L.P., BIP.UN with an ex-dividend date of May 30, 2025, so I'll gain about 30+% with the USD conversion of the distribution to CAD. BIP.UN has a current yield of 5.25%.

Brookfield Infrastructure is currently buying the US company, Colonial Enterprises for 9 billion, which has the longest established pipeline in the US.

Pipelines and Banks are some of my long term interests here in Canada where there's more interest in shipping natural gas and oil to Asia and Europe than there is to the USA these days. Investor interests vary where many like the Tech sector, specially those companies in the US like Microsoft, Apple and chip makers. 

Banks and mortgage renewals has been on the news lately. For example, those renewing after 5 years. Covid, house prices went ballistic with some bids exceeding the asking sell price and interest rates shot up with the high inflation during the last 5 years. That in turn drove up payments for many not on fixed terms, although interest rates have come down since the highs. Defaults are expected but the Banks have funds set aside for that,

With the insurance sector, Great-West Life, GWO.TO is on my radar to further fund for the 2nd of June ex-dividend date which kicks off a busy month for my stocks in a variety of sectors on my dividend calendar for June

Great-West Life has a yield of 4.75% and a recent dividend increase of 9.91% for 2025.

I look forward to dividend increases and perhaps even The Bank of Nova Scotia, BNS.TO will come across with one this year with no increases since mid 2023. 

  

From Alberta to the White House in May of 2025

 

In Canada, newly elected Prime Minister, Mark Carney wants to make the country into a world powerhouse when it comes to energy and resources. I would certainly like to see that but as always, there's a lot of issues to sort out at home and internationally starting his term.

Alberta is the home to several of the oil, natural gas and pipeline stocks I own. Premier Smith is making noise since the election that she wants demands discussed and agreed upon or hinting at separating from Canada with a referendum and slowly getting people riled up about that. Certainly goes against a united Canada pushing back on the US tariff war however initial talks between Alberta and Carney seem to be off to a decent start.

Then there's meets with President Trump this month over tariffs which PM Carney says will take time, which was the main issue heading into the recent Canada Federal election.

Meanwhile, It's May and I have stocks I want to further buy marked in my ex-dividend calendar. 

No hesitation here in buying more Enbridge, ENB.TO stock with it's current yield of near 6%, with a 3.01% dividend increase which kicked in on March's payout to stock holders.

Enbridge  has a gain of 29.90% over the last year. I'm more into long term results on the stock charts than current.

Fortis, FTS.TO is highlighted in a Globe and Mail subscribed article dated April 24th about Canadian stocks with sustainable dividends that are near record highs. 

FTS scores a 10 along with Metro, MRU.TO and Loblaw, L.TO which are Grocers and Pharmas I don't own at this time.

The scoring agenda is by TSI Network

• one point for five years of continuous dividend payments – two points for more than five;
• two points if it has raised the payment in the past five years;
• one point for management’s commitment to dividends;
• one point for operating in non-cyclical industries;
• one point for limited exposure to foreign currency rates and freedom from political interference;
• two points for a strong balance sheet, including manageable debt and adequate cash
• two points for a long-term record of positive earnings and cash flow sufficient to cover; dividend payments;
• one point for an industry leader

Fortis has an ex-dividend date of May 16th with a yield of 3.67% at this time with a 23% gain over the last year.

On that list AltaGas, ALA.TO scored an 8 and I'm seeing a lot of that company in news articles lately. Also hooking up with Keyera, KEY.TO (pipeline) I own to work together on infrastructure projects.

AltaGas gets 50% of its earnings from it's US business with a 3% yield. I added that stock to my Watchlist and decide on buying in June. The 5% dividend increases the past few years, got me interested as I look into the company further.

Near all time highs? Isn't that the worst time to buy? Where I buy monthly, I use dollar cost averaging so over time the highs and lows of stock buys tend to average out in he short term but ideally an investor wants to see a steady climb in price on the charts over the years.

The only other stock I follow and own is Algoma Central Corporation, ALC.TO that I plan to further buy in the first half of May. Algoma's stock yield is 5.2% with a yearly gain of 5.21% and recently increased their dividend by 5% on January 17th, 2025

Algoma is a 125 year old Great Lakes shipping company with a growing fleet of ships delivering a variety of products from oil, steel, cement and grain to name a few. Salt during seasonal times. International and domestic shipping.

With the US tariffs weighing on the company, the first quarter results were impacted according to their report but the company has been through political and economic issues many a time in the past and hopefully decent trade deals will be ironed out in the future.

Saint John, NB, April 28, 2025 – Irving Oil and Algoma Central Corporation (“Algoma”) (TSX: ALC) welcomed the first of two new product tankers into Saint John Harbour today. The vessels will service Canada’s largest refinery with deliveries to ports in Atlantic Canada and the U.S. East Coast. The vessels represent a total investment of $127 million by Algoma in partnership with Irving Oil.

In the second half of May, the financial/insurance companies I hold and highlighted as popular among investors in recent investor articles, have ex-dividend dates such as Manulife Financial, MFC.TO and Great-West Lifco, GWO.TO. 

On the US side of my portfolio, JP Morgan Canada's JEPI.TO and JEPQ.TO price dipped with their varying monthly distributions from mid to the high 20's to the low 20's with the impact of President Trump's shake, rattle and roll moves while Tech investors confidence went sideways with tariff and related news but regained with Google and Microsoft reporting good numbers recently to start off US tech earnings for this year. Both ETFs gained in turn but I'm sure there's more turbulent times to come in the US.