According to the screen, Canada’s top yielding companies are Data Group Income Fund (TSX:DGI), Poseidon Concepts Corp. (TSX:PSN), Matrix Asset Management (TSX:MTA), Caldwell Partners International (TSX:CWL) and IBI Group Inc. (TSX:IBG).
Data Group Income Fund (TSX:DGI)
Data is a communications company that improves companies’ document processes and manages marketing campaigns, with 5,400 customers.
Data has a $50 million market cap and 30.3% dividend yield. It has paid a $0.163 dividend for the last three quarters, which cost $3.8 million in the third quarter.
TSX:DGI data by GuruFocus.com
The company has decided, however, to reduce its dividend from $0.6504 annually to $0.30 per share, effective Jan. 1, 2013.
“DATA Group believes the reduction in dividends is prudent to support the company’s strategic plan, to reduce debt to achieve a healthier and more sustainable balance sheet, to be positioned to make strategic acquisitions, and to maintain a dividend payout to DATA Group’s shareholders over the longer term,” the company said in its third quarter release.
The growth strategy it speaks of involves building new e-communication services that will combine with its traditional print services to produce a single communications management solution, for which clients can sign multi-year contracts. It will also selectively expand into the U.S. and continue to reduce costs.
Poseidon Concepts Corp. (TSX:PSN)
Poseidon provides fluid handling services to oil and natural gas companies in North America, with a fleet of large frac tanks and innovative products.
With a $114 million market cap, Poseidon pays a 27.1% dividend yield.
Poseidon pays a $0.09 dividend per month, which it chose in the third quarter to keep unchanged in November and December.
TSX:PSN data by GuruFocus.com
This company also, however, determined to change its dividend policy. It announced on Dec. 27 that it would suspend dividend payments effective Jan. 16, 2013, until a committee delivers a report to the board. After that, the company is unsure whether it will continue to pay dividends or if it does, whether they will be the same rate as historically. It may need to use cash flows toward more pressing matters, such as reducing debt or capital expenditures.
“In recent months, exploration and development activity has slowed considerably due to weakness in commodity prices and uncertainty in the financial markets,” the company said in a statement. “As a result, some oilfield service companies, including Poseidon, are seeing reductions in realized pricing and contraction in earnings margins. In the face of reduced oilfield demand and increased market competition, all operational and cost components of Poseidon's business are being reviewed to ensure the company's profitability.”
The company continued that it is confident that the slowdown is temporary and its products and the potential for growth in the industry are sound.
Matrix Asset Management (TSX:MTA)
Matrix Asset Management is an asset and wealth management company that aims to produce consistent returns through three divisions. It combines an emphasis on retail, expertise in venture capital, a broad variety of mutual funds and investment professionals with over 450 years of combined investment management experience.
With a market cap of $10, MTA has a dividend yield of 21.4%. The company’s dividend has been disintegrating over recent years, falling down to $0.1 in the second quarter.
TSX:MTA data by GuruFocus.com
On Nov. 13, the dividend was declared to be $0.015 per share for the third quarter, but would be paid through additional common shares in the capital of the company. The company remains hopeful, it said, that it will reinstate a cash dividend as it meets its goals of growing assets under management and cutting costs.
Assets under management at MTA were $1.1 billion in the third quarter, compared to $1.1 billion in the second quarter and $1.9 billion in the third quarter of 2011. Growing AUM through sales, marketing and portfolio performance, is part of the company’s strategy to returning to profitability, in addition to making new acquisitions.
Caldwell Partners International (TSX:CWL)
Caldwell Partners is North America’s fastest-growing executive search firm, with offices in the U.S. and Canada, and partners in Europe and China.
The company’s market cap is $15 million, and dividend yield is 20%. Historically, it has paid dividends periodically:
TSX:CWL data by GuruFocus.com
In the third quarter, it restarted its quarterly dividend, starting at $0.015 per common share. The dividend payment was made possible by a shareholder vote on May 1, 2012, to reduce the stated capital of common shares by 75%, which added $12,048 to its contributed surplus.
“While it is the Board of Director’s intention to continue quarterly dividend payments, dividends for future periods will be declared at the discretion of the Board of Directors and dependent on the Company’s ongoing performance and cash flow requirements,” the company said in its 10-K.
IBI Group (TSX:IBG)
IBI Group is engaged in urban design and planning, engineering, building and landscape architecture, real estate analysis, advanced transportation management and traffic systems, communications specializations and software development. It has 80 offices globally as the fourth largest architectural firm in the world.
The firm has a $111 million market cap, as well as a 16.5% dividend yield. After a generous dividend history since 2007, just after going public in 2004, IBI Group reduced its dividend to $1.10 in 2011.
TSX:IBG data by GuruFocus.com
On Dec. 12, a further reduction was announced. Its current dividend of $1.10 annually, paid monthly at $0.092 per share, would decrease by 50% to $0.55 per share per year, or $0.1375 per share quarterly, for shareholders of record as of Feb. 28, 2013.
Resetting its dividend will enable the company to save $13 million in cash annually, which it will use to pay debt and enhance its profitability and balance sheet. Recently the company has laid off workers due to slower business.
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