Mike, Author at MOOSE MARKETS

How Have I Never Posted This Before?

How is it possible that I keep talking about this store… but never shared a full, public analysis of it?

If you’ve followed me for a while, you already know I’m a big fan of this one. Some companies make headlines. Others make results. Couche-Tard (ATD.TO) does both. Whether it’s Circle K on a road trip or a late-night Couche-Tard pit stop, this company is everywhere — and still expanding.

Between fuel, snacks, coffee, and now EV charging, this business is evolving fast. It’s not a high-yielder, but it’s consistent, resilient, and cash flow rich. So yes — it’s about time we break it down properly.

Business Model: Fuel, Coffee, and Convenience at Global Scale

ATD is one of the largest convenience store operators in the world. With more than 17,000 stores across 29 countries, it operates primarily under the Couche-Tard and Circle K banners. Roughly 13,000 of those stores also sell road transportation fuel.

The company generates revenue from:

Fuel sales (still the most significant slice)
In-store merchandise (snacks, drinks, convenience goods)
Food service (prepared foods, coffee, fresh grab-and-go)
Service offerings like car washes, ATM fees, and mobile payment partnerships

Its North American operations are structured into 17 business units and it has deep market penetration in Canada, the U.S., and Northern Europe. The company is currently focused on strengthening its margins and customer experience through its 10 for the Win strategic plan, aiming to exceed $10 billion in EBITDA by 2028.

Alimentation Couche-Tard (ATD.TO) Global Retailer Highlights from its Q4-FY2025 Investor Presentation.

Investment Thesis: The Steady Compounder that Never Stops Moving

Couche-Tard is one of those businesses that feels boring… until you look at the numbers.

The company has built a long-term track record of revenue, EPS, and dividend growth through steady execution and smart acquisitions. It’s rare to find a company that consistently integrates new stores and finds ways to unlock margin — but ATD has done it for years.

While the market worries about declining fuel consumption and cigarette sales, Couche-Tard is already pivoting — expanding fresh food offerings, testing EV charging stations, and rolling out smart loyalty programs to drive in-store traffic.

Its scale advantage allows for pricing power, while its operational playbook enables new acquisitions to become accretive faster than most peers. The company generates serious free cash flow and operates with discipline — which is why it has quietly become one of the most efficient operators in retail.

It’s not immune to headwinds, but it adapts. And in a recession? This business gets even more interesting.

The Dividend Triangle in Action

Alimentation Couche-tard (ATD.TO) 5-Year Dividend Triangle.

Let’s put Couche-Tard through the Dividend Triangle:

Revenue Growth: Over $100B in trailing twelve-month revenue, up from ~$85B just a few years ago. The business continues to expand both organically and through acquisitions.
EPS Growth: Normalized EPS is hovering near all-time highs ($3.70 TTM), showing the business continues to scale and manage costs effectively — even as fuel margins fluctuate.
Dividend Growth: Still a very low yield (under 0.3%), but the company has increased its dividend annually with a solid CAGR. Payout ratio remains extremely low (~5%), leaving plenty of room for future hikes.

This is a classic low-yield, high-growth name and fits the long-term compounding strategy like a glove.

Bull Case: Built to Scale, and Still Growing

Couche-Tard has proven over the decades that it can scale, integrate, and execute across borders. Its dominance in the convenience store space is the result of:

Smart, disciplined M&A
Margin expansion through cost synergies
Adapting to consumer trends (e.g., food, loyalty, digital)

It has the balance sheet and operational know-how to weather changing trends (EVs, tobacco decline) and shift its model accordingly. And with its 10 for the Win plan in place, management has a clear roadmap to create shareholder value.

Bear Case: Fuel Reliance & Acquisition Risk

Despite its strengths, Couche-Tard isn’t without risks:

Fuel remains a key profit driver — any long-term demand drop will pressure margins
Cigarette sales, a high-margin category, are in secular decline
The company’s reliance on acquisitions means missteps (like the failed Carrefour deal) could be costly
Food service expansion brings Couche-Tard into competition with grocery chains and QSRs — not easy battlegrounds

In short, execution must remain tight. This isn’t the time for acquisition blunders or weak integration.

Latest Results: A Slower Quarter(s), but Strategy Intact

Q1 FY2026 Earnings (June 26, 2025)

Revenue: Down 7.5% (fuel price/demand weakness)
EPS: Down 4.2%
Merchandise Revenue: Up 2.4% (led by Canada & Europe)
Operating Expenses: Up, due to strategic investments
Fuel Gross Margin: Improved, softening the impact of the revenue drop
M&A Activity: No update on the potential 7-Eleven acquisition

While the numbers were soft, the long-term thesis remains. The company is investing to reposition its business — and short-term pain may unlock future gain.

Final Word: Simple. Strong. Still Compounding.

Couche‑Tard just posted a softer quarter: revenue fell 7.5%, EPS dipped 4%, and growth in fuel sales took a breather. But dig deeper, and you’ll see why it still matters.

Merchandise and service revenue is growing. They’re investing intentionally — stepping up fresh food, EV charging, and loyalty tools. The business is evolving, not collapsing.

Look, I’m not here for flash. I’m here for resiliency, adaptability, and cash flow. And despite a bump in the road, Couche‑Tard remains all three. That’s exactly why I’m comfortable rolling the cash into this full position: it’s a compounder, even when it’s slow.

Remember to review all of your holdings quarterly, though.

Want a Step-by-Step Approach to Dividend Investing?

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Whether you’re starting from scratch or cleaning up a messy portfolio, this is the framework to help you build something strong, clear, and personalized.

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Why I Keep Watching This Underdog Bank

It’s not flashy, it doesn’t have thousands of branches, and it definitely doesn’t get the media attention of Canada’s Big 6. But this bank has quietly built a niche in one of the most profitable corners of the financial sector — and it keeps delivering.

EQB Inc. (EQ Bank) blends digital efficiency with high-margin lending, and while the road isn’t always smooth, it continues to grow, raise its dividend, and find ways to outmaneuver bigger competitors. That’s exactly why I keep watching.

Business Model: Digital-First, Credit-Focused

EQB is a challenger bank that’s carved out its niche by focusing on alternative-A mortgage lending, commercial real estate loans, and a 100% digital banking platform. Through EQ Bank, it offers high-interest savings accounts, GICs, and personal lending products — all without branches.

On the commercial side, it’s expanded into equipment leasing, multi-unit residential financing, and business lending through strategic fintech and credit union partnerships. The result? A growing loan book, solid margins, and a nationwide customer base that now tops 560,000.

Unlike traditional banks, EQB lends to self-employed individuals, newcomers, and businesses that don’t always check all the Big Bank boxes. That adds risk — but also reward.

Equitable Bank Overview from the Covered Bond Invetsor Presentation. — Equitable Bank Overview from the Covered Bond Investor Presentation.

Investment Thesis: The Right Niche, The Right Time

EQB has done an impressive job turning its smaller size into an advantage. Its fully digital platform means lower costs, faster innovation, and no legacy branch network dragging it down. Instead, it focuses on tech-enabled growth: direct-to-consumer banking, alternative mortgage lending, and commercial finance.

What sets EQB apart is its ability to serve customers that others overlook — and do it profitably. Its net interest margins are among the highest in the industry, thanks to higher-yielding loans and a more agile model.

Yes, it’s not immune to credit cycles. But this is a stock that’s grown steadily over the past five years, raised its dividend regularly, and delivered a solid return for investors willing to go beyond the Big 6. That makes it a name worth watching — or holding.

The Dividend Triangle in Action: Growth with a Side of Volatility

Equitable Group (EQB.TO) 5-Year Dividend Triangle.

Let’s run EQB through the Dividend Triangle and see if it still checks the right boxes despite a bumpy quarter.

1. Revenue Growth: Revenue stands at $1.279B, nearly doubling over the past few years as EQB expanded its loan book and deposit base.

2. Earnings Growth: EPS currently sits at $10.03, though it’s dipped due to higher provisions for credit losses (PCLs). Long term, the trend remains positive despite short-term volatility.

3. Dividend Growth: The dividend now stands at $0.53, up again by 4% last quarter. That’s steady growth for a company reinvesting heavily while still rewarding shareholders.

Summary: EQB passes the Dividend Triangle test — even if earnings hit speed bumps, its top line and dividend trend continue to move in the right direction.

The ONLY List Using the Dividend Triangle

After this first example, you may wonder how I was able to differentiate these positions.

I analyze companies according to their dividend triangle (revenue, earnings, and dividend growth trends), combined with their business model and growth vectors. While this may seem too simple, two decades of investing have shown me it is reliable.

While many seasoned investors also use these metrics in their analysis, no one has created a list based on them before. This is exactly why I created The Dividend Rock Stars List.

The Rock Stars List isn’t just about yield—it’s built using a multi-step screening process to ensure the highest-quality dividend stocks. You can read more about it or enter your name and email below to get the instant download in your mailbox.

Bull Case: Undervalued and Underappreciated

EQB might not get the spotlight like the Big Banks, but its fundamentals are compelling:

Higher NIMs and lower costs thanks to its digital-first model
Niche mortgage lending to underserved segments = stronger yields
Commercial finance growth = new profit centers
Fintech partnerships & open banking readiness position EQB well for the future
Consistent dividend hikes + long-term loan growth

It’s lean, focused, and still has room to scale — especially outside the Big Bank footprint.

Bear Case: Credit Risk and Rate Sensitivity

Still, this isn’t a stock for the risk-averse:

Rising PCLs (up 36% last quarter) show pressure in equipment & commercial lending
EPS dropped 17%, reminding us that loan quality can shift quickly
Sensitive to interest rate changes and tighter regulations
Commercial loan exposure could drag returns if the economy slows
Not “too big to fail” — lacks the stability of Big 6 peers

It’s a bank that works well in calm markets — but needs careful monitoring when the environment gets rocky.

Latest News: Soft Quarter, but the Growth Continues

EQB’s most recent quarter was mixed:

Revenue flat | EPS -17%
Net interest income +1% | NIM 2.20%
EQ Bank customers +23% (to 560K)
Higher impaired loans + two commercial accounts added risk
Dividend increased 4% — again!

Even with some weakness, EQB’s management remains confident — and the long-term growth path is still intact.

Want to See My Full Breakdown?

If you want to hear more about why I’m keeping EQB on my radar — especially after a soft quarter — I’ve got you covered.

Watch the full EQ Bank analysis on YouTube:

In the video, I break down:

What’s driving EQB’s growth
What worries me about recent results
Where I see an opportunity going forward

Final Word: Lean, Digital, and Worth the Risk (for the Right Investor)

EQB isn’t for everyone. It doesn’t have the brand recognition or the scale of Canada’s Big 6. But that’s the point.

It’s leaner, faster, and focused on segments that others ignore — and it’s done a great job turning that into long-term growth. With a strong Dividend Triangle, regular dividend hikes, and a clear digital vision, EQB is the kind of stock that can reward patient investors willing to go off the beaten path.

Just be ready to hold on through the bumps.

Initiating a Full Position in This Amazing Stock

I’ve had my eye on this one for a while — first adding it to my Smith Manoeuvre portfolio as a defensive play in case of a recession. Funny enough, the recession never came… but the stock still delivered.

What drew me in wasn’t just its resilience — it was the consistency. Quarter after quarter, this company executes. It’s not flashy, and the dividend won’t knock your socks off, but the fundamentals? Rock solid.

With a perfect dividend triangle and more room to grow through its Latin American expansion (and now Australia!), I’ve decided it’s time to go all in. I’m using all available cash in my pension account this month to build it into a full position.

Let me be clear: I don’t want small, forgettable holdings. If I take the time to research and monitor a stock, it needs to matter in my portfolio. This one earns that spot.

Business Model: Discount Done Right

This isn’t just a dollar store chain — it’s a value-focused retail machine.

With 1,600+ stores across Canada, Dollarama (DOL.TO) sells low-cost, high-turnover merchandise across general goods, food, and seasonal items. Most products are under $5 (soon going up to $6), and nearly 60% are private label, giving it better margins and pricing control.

It also owns a majority stake in Dollarcity, a fast-growing Latin American chain with 600+ stores across Colombia, Guatemala, El Salvador, and Peru. Together, they deliver value to cost-conscious shoppers — and strong returns to investors.

Dollarama geographic presence as at the first quarter ended May 4, 2025 (Q1-FY26).

Investment Thesis: Consistency that Compounds

This company thrives because it keeps things simple: offer everyday essentials at fixed low prices, run tight operations, and grow methodically. That formula has worked across Canada — and now it’s gaining traction internationally through Dollarcity and its pending acquisition of The Reject Shop in Australia.

What makes it a standout is the consistency. It continues to grow revenue and earnings through store openings, disciplined cost control, and steady foot traffic — even in a tough economic environment. At the same time, its high private-label mix and fixed pricing model help maintain healthy margins while giving shoppers predictability.

It’s also preparing for long-term growth. With a new distribution center in Calgary, expansion plans into Mexico, and higher price tiers on the horizon, the company is building the foundation for even more scale. Combine that with its performance during inflationary periods and its strong execution quarter after quarter, and you have a business built for both offense and defense.

This may not be the flashiest stock — but it’s the kind of compounder you’ll be glad you held onto.

The Dividend Triangle in Action: Steady as it Goes

Dollarama (DOL.TO) 5-Year Dividend Triangle.

Let’s break it down by the three Dividend Triangle pillars:

1. Revenue Growth: Revenue hit $6.53B, up 8% year-over-year, driven by 69 net new stores and strong same-store sales.

2. Earnings Growth: EPS climbed to $4.34, up 27% — a result of stronger margins and increased customer transactions.

3. Dividend Growth: The dividend has grown slowly to $0.106, reflecting a conservative payout strategy. It’s not an income play today, but the consistent growth signals stability.

Summary: Dollarama nails the dividend triangle with smooth, upward trends across revenue, earnings, and dividends.

Bull Case: Defensive, Disciplined and Growing Globally

There’s a lot to like for long-term investors:

Dominant position in Canadian value retail
60%+ of sales from private-label = strong margins
International growth through Dollarcity and upcoming expansion into Mexico and Australia
$450M investment in Western Canadian distribution = future scale
Resilient even in inflationary or recessionary environments

Bear Case: Margins Could Be Pressured as It Grows

Even with a strong moat, there are some risks:

High exposure to imports = FX, tariffs, and shipping disruption risks
Canadian market could approach saturation
Competitive pressure from Walmart, Amazon, and e-commerce
International expansion adds political/economic risk (especially in Latin America)

Still, DOL’s execution track record has been solid — and the moat is wider than most think.

Latest News: New Markets, Bigger Margins

Dollarama’s most recent quarter was another beat:

Revenue +8% | EPS +27%
69 new stores (now at 1,638)
Comparable sales +4.9%
Plans to enter Mexico soon
Acquisition of The Reject Shop in Australia expected to close in July

Management reaffirmed its full-year targets and continues to deliver quarter after quarter.

Want More Stocks Like This?

We track more than yield. The Dividend Rock Star List includes Canadian and U.S. stocks that hit all the right metrics — even when yield is low.

Here’s what’s inside:

Filter by revenue, EPS, and dividend growth
Screen for quality with payout ratio, sector, and more
Updated monthly so you’re always working with fresh data
Great for building long-term portfolios focused on dividend resilience

Start browsing the Dividend Rock Star List now and find your next winner before everyone else does.

Final Word: Make Every Holding Count

This isn’t just about filling space in a portfolio — it’s about owning companies that matter.

Dollarama continues to perform across all fronts: growth, margins, international expansion, and shareholder returns. While the dividend is small, the compounding machine behind it is strong.

There aren’t many names on the TSX that combine operational discipline, international growth, and defensive qualities like this one.

Dollarama remains one of the best Canadian stocks on the market — and building a full position just makes sense for me.

All the Traits of a Dividend Star… Without the Dividend

Some companies scream “dividend grower” — stable revenue, rising earnings, mountains of cash flow — and yet, they barely pay a cent. One Canadian tech giant has delivered monster returns without ever becoming a traditional dividend payer. Instead of chasing yield and dividend payments, it reinvests cash into an aggressive, proven acquisition engine that keeps shareholders happy through capital gains, not distributions.

If you’re willing to make an exception for ultra-low yield in exchange for serious long-term wealth creation, this one might change how you define “dividend investing.”

Business Model: Buying, Holding, and Growing Software Niches

Constellation Software (CSU.TO) doesn’t build flashy apps or compete in crowded software categories. Instead, it acquires mission-critical software companies serving niche industries — often the kind of businesses no one’s ever heard of… except their loyal customers.

CSU acts like a holding company for vertical market software (VMS). It targets stable, low-churn software businesses with substantial recurring revenue, then lets them run independently with support from the parent. This decentralized model keeps local talent in place while improving capital discipline and operations.

Through six operating groups — Volaris, Harris, Topicus, Vela, Jonas, and Perseus — CSU now serves over 100 markets globally, spanning utility billing, health records, and marina management. The result? Low customer churn, sticky cash flows, and consistent margins — all without relying on a single industry.

Investment Thesis: Why Dividend Investors Should Still Care

At first glance, CSU doesn’t belong in a dividend portfolio. Its yield is barely noticeable, and it hasn’t raised its dividend in years. But dig deeper, and you’ll find a stock with all the hallmarks of a dividend growth engine — just without the dividend.

Revenue, EPS, and free cash flow all rise steadily thanks to one thing: disciplined acquisitions. CSU buys small, stable, and boring software companies at fair prices, then lets them thrive. Its decentralized playbook and capital discipline allow it to scale this model across dozens of verticals.

With low debt, high returns on capital, and a management team focused on long-term wealth creation, CSU continues to grow shareholder value — even if it keeps the cash in-house. For investors who prioritize compounding over current income, this is a name worth watching.

The Dividend Triangle in Action: Strong Fundamentals, Minimal Yield

Constellation Software (CSU.TO) 5-Year Dividend Triangle.

Despite its low payout, CSU checks all three boxes of the Dividend Triangle:

1. Revenue Growth: TTM revenue now sits at $14.41B, with a steady climb year after year. Q1 2025 revenue rose 13%, fueled by acquisitions and minor organic growth.

2. Earnings Growth: EPS reached $49.50, a 10% YoY increase. CSU continues to drive profit growth through smart integrations and operating efficiency.

3. Dividend Growth: This is where CSU “fails” the test. The dividend is stuck at $1.36, with no growth in sight — but that’s by design. With better uses for cash, management chooses to reinvest in new deals that generate higher long-term returns.

In short: this is a textbook Dividend Triangle stock — minus the dividend growth.

Bull Case: Serial Acquirer, Proven Playbook

For investors who don’t need yield today, CSU is a compounding machine with plenty to like:

Proven decentralized structure that scales across 100+ industries
Strong revenue, EPS, and cash flow growth — even in tough markets
Low debt, with $1.8B spent on acquisitions last year alone
Consistent history of finding, buying, and growing niche software companies
Organic growth may be small, but the acquisition pipeline is always full

Bear Case: All In on Acquisitions

Still, there are real risks to watch:

Growth depends on continuous deal flow. Slowdown = valuation hit
Acquisition multiples could rise as private equity and competitors enter the space
Complex structure makes it hard to track individual performance
Any stumble in capital allocation could rattle investor confidence
Sky-high valuation = little room for error

This stock is priced for execution. If the M&A engine stalls, so could the returns.

Latest News: Growth on Track, Expectations Higher

CSU’s most recent quarter showed solid results — but didn’t quite wow the market:

Revenue +13% | EPS +10%
Organic growth flat at 0.3% (2% with currency)
Free cash flow +14%
Acquired a significant stake in Asseco Poland S.A., expanding its global reach

Bottom line: growth continues, but with expectations so high, CSU needs to maintain a near-flawless execution pace.

Want More Stocks Like This?

We track more than yield. The Dividend Rock Star List includes Canadian and U.S. stocks that hit all the right metrics — even when yield is low.

Here’s what’s inside:

Filter by revenue, EPS, and dividend growth
Screen for quality with payout ratio, sector, and more
Updated monthly so you’re always working with fresh data
Great for building long-term portfolios focused on dividend resilience

Start browsing the Dividend Rock Star List now and find your next winner before everyone else does.

Final Word: All the Fundamentals, None of the Yield

Constellation Software isn’t for every dividend investor — and that’s okay. But if you’re willing to make a strategic exception, you’ll find a stock that does everything we want from a dividend grower… except pay one.

With decades of growth-by-acquisition success, low debt, high margins, and world-class capital allocation, CSU offers a blueprint for compounders. No fluff. No gimmicks. Just consistent, disciplined execution in a market that rewards it.

If you can live without the yield, this one might be worth the hold.

A Business Built Around Utility Poles and Railway Ties — And It Works

Lumber stocks usually run hot with housing booms and crash just as fast. But not this one. This Canadian company built its business around utility poles and railway ties — essential infrastructure that keeps cities powered and freight moving. In a sector known for wild swings, this one offers surprising consistency (and a few earnings surprises too).

Business Model: Where Wood Meets Infrastructure

Most investors hear “lumber” and think housing starts, sawmills, and cyclical chaos. However, Stella-Jones (SJ.TO) took a different route — it built its business around utility poles and railway ties, two products that are essential in modern infrastructure.

Instead of chasing construction booms, Stella-Jones established long-term supply relationships with power utilities, telecommunications companies, and railroads. These customers aren’t just placing one-time orders — they come back again and again for maintenance, upgrades, and replacements. That’s the kind of stability we like to see in a dividend-paying company.

Here’s what Stella-Jones focuses on:

Utility poles for electrical and telecommunications grids
Railway ties for short lines and commercial railroads across North America
Industrial wood products are used in bridges, marine pilings, and foundations
Residential treated lumber, primarily sold through Canadian retailers

With over 70% of revenue coming from poles and ties, Stella-Jones sits in a unique niche: boring, essential, and high-repeat. Sounds like a recipe for reliable cash flow.

Stella-Jones (SJ.TO) Nort American Network from its Annual Report of 2024.

Investment Thesis: Stable Demand, Smart Expansion

Stella-Jones isn’t your typical lumber stock. It built its business around utility poles and railway ties, supplying essential infrastructure with steady, repeat demand. These are not one-time purchases — they’re part of long-term maintenance cycles for utilities and railroads.

This provides SJ with a reliable customer base and predictable cash flow, even when residential construction slows. Its clients — power companies, telecoms, and railroads — don’t delay upgrades when interest rates rise.

Additionally, management has executed strategic acquisitions effectively, expanding its North American footprint in a fragmented market. With its core products tied to infrastructure — not housing — Stella-Jones offers steady growth potential backed by disciplined operations and rising margins.

Build a Smarter, Safer Dividend Portfolio

Whether you’re looking for income today or wealth tomorrow, you need stocks that deliver on all three parts of the Dividend Triangle.

That’s precisely what the Dividend Rock Star List is built for:

No fluff — just fundamentally strong dividend stocks
Includes both Canadian and U.S. dividend payers
Easily sort by dividend growth rate, payout ratio, and more
Updated every month — no stale picks, no guesswork

Use it to build your watchlist, strengthen your portfolio, or start fresh with confidence.

Explore the Dividend Rock Star List now:

The Dividend Triangle in Action: Solid, Steady, and Sharpening Margins

Stella-Jones (SJ.TO) 5-Year Dividend Triangle.

Looking at Stella-Jones through the Dividend Triangle lens reveals exactly why it stands out in a volatile sector:

1. Revenue Growth: Revenue reached $3.467B, showing a stable, upward trajectory since 2021. While growth has flattened recently, the trend remains positive, particularly in infrastructure-facing segments like utility poles and industrial products.

2. Earnings Growth: EPS sits at $5.58, up firmly from 2021 levels. Despite fluctuations in specific segments, SJ has improved its margin profile through disciplined cost management and pricing power — especially visible in the latest 23% jump in EPS.

3. Dividend Growth: The dividend increased to $0.31, representing a nearly doubling since 2021. While still modest in yield, it reflects a sustainable and consistent payout strategy, backed by stable cash flows and a conservative payout ratio.

Summary: SJ delivers on all three fronts. Even when revenues stall (as seen in the latest quarter), earnings and dividends continue to rise, signaling healthy operations and a resilient business model.

Bull Case: Built-In Repeat Business

There’s a lot to like here for investors who value stability and recurring demand. Consider the following:

Over 70% of sales from utility poles and railway ties = repeat demand
Clients include utilities and railroads that replace wood regularly
Growing U.S. presence and acquisition strategy support long-term growth
Low payout ratio = dividend growth runway

This isn’t a timber boom stock. It’s an infrastructure business disguised as a lumber company.

Bear Case: Macro + Tariffs = Wild Swings

Still, the company isn’t without its risks — and some of them could hit hard in a volatile year:

Revenue can get hit by currency fluctuations or sudden order shifts
One Class 1 railroad started producing its own ties — not great
The residential lumber business still relies on housing demand
Volatile stock: Double-digit daily moves aren’t rare, especially with tariff concerns brewing

Investors should expect bumps along the way — even if the long-term story looks solid.

Latest News: Flat Top Line, Fat Bottom Line

The latest quarter had a little bit of everything:

Revenue flat, but $38M FX headwind masked real progress
Utility poles +4% thanks to pricing power
Railway ties -8% due to client production shift
Residential lumber stable
EPS +23%, helped by insurance gains and leaner operations

In short: management delivered higher profits even without growth fireworks. That’s how you win long-term.

Want More Stocks Like This One?

The Dividend Rock Star List is our hand-picked collection of quality dividend stocks.
Here’s what you’ll find inside:

🔍 Over 300 U.S. and Canadian dividend-paying stocks
✅ Screened using our Dividend Triangle: Revenue growth, EPS growth, and dividend growth
🚨 Updated monthly with the latest data
📊 Filter by yield, sector, payout ratio, dividend growth rate, and more
💡 Discover reliable growers that can power your portfolio through bull and bear markets

Start browsing the Dividend Rock Star List now and find your next winner before everyone else does.

Final Word: You’re Not Buying a Lumber Company. You’re Buying a Utility Supplier

Stella-Jones isn’t sexy. It’s not flashy. But it is essential.

Between utility poles, railway ties, and disciplined execution, SJ has carved out a strong niche in a cyclical space. If you’re looking for dividend growers that do the job year after year — not just when lumber prices spike — this name should be on your radar.

Just don’t expect it to sit still. Volatility is part of the deal. Growth, however, is still on the table.

This Canadian IT Stock Deserves a Spot in Your Portfolio

In a tech world obsessed with disruption, some firms win by delivering mission-critical services with precision and consistency. This company has built one of the most dependable consulting and IT infrastructures supporting governments and enterprises across the globe — and its latest results show it’s still gaining ground.

Business Model: The Backbone of Digital Bureaucracy

CGI Inc. (GIB.A.TO) is a global consulting and IT services company that thrives on long-term contracts, particularly in the public sector. With operations in over 40 countries and more than 90,000 employees, its core strategy is simple: being close to the client.

The firm deploys a proximity-based model, which places offices near its customers — especially effective for sensitive government work where data sovereignty, security, and compliance are paramount. Its comprehensive service suite spans:

IT and business consulting
Managed IT and business process services
System integration
Proprietary software solutions

Its client-first approach is underscored by a 95% contract renewal rate, proving the strength of its long-term relationships.

CGI Revenue Mix from their Q2 F2025 Presentation.

Investment Thesis: Built for Resilience, Positioned for Growth

This company stands out not through flash, but through stability and execution. Serving governments and large enterprises with critical infrastructure, it builds high-retention, multi-year recurring revenue. Its book-to-bill ratio of 110% signals sustained demand, while public sector work — nearly 40% of total revenue — provides a defensive core.

In a world accelerating toward digital transformation and automation, this firm is well-positioned with capabilities in AI, cybersecurity, and data analytics. As governments modernize and enterprises automate, this company is the quiet engine behind the upgrade.

For an even more detailed investment thesis, watch my video on CGI below.

Want More Stocks Like This One?

The Dividend Rock Star List is our hand-picked collection of quality dividend stocks.
Here’s what you’ll find inside:

🔍 Over 300 U.S. and Canadian dividend-paying stocks
✅ Screened using our Dividend Triangle: Revenue growth, EPS growth, and dividend growth
🚨 Updated monthly with the latest data
📊 Filter by yield, sector, payout ratio, dividend growth rate, and more
💡 Discover reliable growers that can power your portfolio through bull and bear markets

Start browsing the Dividend Rock Star List now and find your next winner before everyone else does.

The Dividend Triangle in Action: Growth, Growth and… Not Much Yield

GIC (GIB.A.TO) 5-Year Dividend Triangle. — CGI Inc. (GIB.A.TO) 5-Year Dividend Triangle.

Let’s look at the company through the lens that matters: the Dividend Triangle.

1. Revenue Growth: Revenue sits at C$15.14B, up steadily over the past three years. That’s what you want to see — clients are spending, and the firm is landing new contracts.

2. Earnings Growth: EPS climbed to $7.87, tracking right alongside top-line growth. This shows substantial operating leverage and margin discipline.

3. Dividend Growth: The dividend is symbolic: $0.15 per share. This isn’t an income stock. Management prefers to reinvest capital into growth and acquisitions. And frankly? With these returns on equity, that’s not a bad call.

Bull Case: A Backlog that Buys Time and Growth

Investors bullish on this name point to several strengths:

A backlog of C$30.99B, equivalent to 2x annual revenue
Strong public sector exposure — offering resilience during economic downturns
A scalable global model with recent acquisitions driving margin improvements
Expanding into AI-driven solutions, where demand is surging
Financial discipline with rising EPS and a history of effective capital allocation

This is a stock built for compounders who value visibility, execution, and sticky client relationships.

Bear Case: Acquisition Risks and Margin Ceilings

While its recurring revenue model is attractive, bears flag a few key risks:

Its growth strategy leans heavily on acquisitions, raising concerns about integration execution and potential overpayment
Government contracts, while stable, tend to come with lower margins
The company’s low dividend payout (currently $0.15) and slow dividend growth may turn off income-seeking investors
In a talent-driven industry, maintaining headcount and quality amid global wage inflation could become a drag

Any stumble in acquiring, integrating, or retaining key staff could pressure performance.

Latest News: Booking Big, Growing Steady

The most recent quarterly report was strong across the board:

Revenue and EPS up 8% YoY
U.S. Commercial & State Government segment up 24.6% in EBIT
Scandinavia, Northwest & Central-East Europe EBIT up 21.7%
Book-to-bill ratio: 111.5%, with solid new contract momentum

These results reinforce the strength of the firm’s international footprint and its ability to scale contracts profitably.

Final Word: A Low-Yield, High-Confidence Compounder

This company may miss the spotlight like tech giants, but it compounds value through consistency, thoughtful acquisitions, and long-term client relationships. For dividend growth investors, the fundamentals are in the right place.

With its deep backlog, public sector strength, and push into AI and digital transformation, this is a stock worth watching — and potentially owning.

Build a Smarter, Safer Dividend Portfolio

Whether you’re looking for income today or wealth tomorrow, you need stocks that deliver on all three parts of the Dividend Triangle.

That’s exactly what the Dividend Rock Star List is built for:

No fluff — just fundamentally strong dividend stocks
Includes both Canadian and U.S. dividend payers
Easily sort by dividend growth rate, payout ratio, and more
Updated every month — no stale picks, no guesswork

Use it to build your watchlist, strengthen your portfolio, or start fresh with confidence.

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