A Pair of Canadian Communication Dividends
Investors wanting to diversify their dividend options may want to look towards our neighbors to the north in Canada. The Canadian economy’s GDP grew at a 6.1 percent annual rate in the first quarter after increasing at a rate of 4.9 percent in the fourth quarter of 2009. Growth in the economy was spurred on by strong consumer spending and strong investment in new construction within the housing market.
Canada’s continued economic growth makes it an ideal place for investors wanting exposure to consumer spending plays. Two of its largest communications utilities offer strong expanding dividends and ways to play the growth in HD TV, increased wireless spending and high speed internet.
Yielding 3.5 percent and growing its dividend nearly 102 percent over the last 5 years, Rogers Communications (NYSE: RCI) is quickly becoming a dividend achiever. The company operates cable TV, wireless phone and internet services. In addition, Rogers owns operated 54 radio stations and publishes around 70 magazines.
Smaller player, Shaw Communications (NYSE: SJR) offers a bigger yield, currently 4.4 percent as well as a monthly dividend payment.
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