Morneau Shepell Inc (MSI.TO)

Thinks the dividend is pretty safe, and is probably going to continue to grow over the next few years. This has very strong visibility and stability of their cash flows. 95%-99% of their annual revenues are recurring year-to-year. They are now growing in the US, so they are getting traction. The state of Illinois has just become a new customer. They keep making acquisitions to add to their cash flow and earnings. He definitely likes this. 4.5% dividend yield, which he thinks will grow nicely.

Primarily a pension and human resources consultant with a very solid history. A very good company and well-run. They have been in the US for the last few years and are continuing to grow their earnings. Dividend growth has been slow in the last few years because they were getting into acquisitions. Presumes dividend growth will resume in the next few years.

Kind of a boring company, which is great in this kind of a market. They are in the human resources consulting and outsourcing business. They’ll monitor a company’s payroll for them as well as healthcare benefits and pension funds. Dividend yield of 5.29%, which he thinks they may raise.

It is a well run business, focusing on the human resource area. They have long term relationships with companies and help with pensions and HR. Investors should take a close look at this one. This is a stable business and a good place for investors to hide.

Originally a pension benefits consulting firm. Also, provide employee assistance programs. Likes the strong recurring revenue, good cash flow and that the average client has been with them for 20 years. 90% of revenues are in Canada. Very stable dividend during uncertain times. They have the ability to grow in the US. Dividend yield of 5.45%.

This is for income investors. It has a nice dividend of 5.4%. Haven’t grown their dividend for a while, but are getting near the bottom of their range for payout ratio of about 65%. They are in the outsourcing business, human resources, pension benefits, etc. Also, growing in the US.

Human resource consulting and IT outsourcing. Most recently they added an employment assistance program. They will grow organically and with acquisitions. The dividend is safe, but growth will only be mid-single digits. Own it for income. There were specific issues with costs and credit and they recovered well from that, but the stock pulled back because of it.

It is a great company. They are in the Human Resources outsourcing business and dominate that field. It grows nicely and is expanding into the US. They always make sure acquisitions are immediately accretive. They are starting to get closer to where the payout ratio will allow them to grow the dividend again. It is a slow growing, well run company. Their clients are the Who’s Who of Canadian companies.

This is investment dollar management, i.e. if you left a company, they would transfer your funds for you. A pretty stable business and they are pretty good at it. Mostly a growth by acquisition story. He always looks at it and finds growth is not high enough for its valuation.

This has been a surprisingly great stock for him. They are in the pension benefits HR outsourcing business and it has done quite well. He doesn’t see the dividend growing much. They have been moving into the US, and growth has been coming out of the US markets. 4.4% dividend yield.

Tied to the benefit space; really for large corporate Canada. As corporate Canada adds bodies to its power house, there’s a bit of a growth spurt. Modest growth and the dividend is reasonable and is sustainable.

Decent yield that has been growing and has grown well over the last year. You might get more bang for your buck with some of the insurers.

A pension consulting business. Tends to look after benefits packages. An outsource relationship. Relatively slow growing company, but has a decent dividend. Very defensive. A little expensive here.

Provides services to other companies in pension benefits, etc. Dividend is quite safe as it does not use up a lot of capital. Reported this morning and the numbers are fine, 10% up across the board. Had a big depreciation number which was a little unusual for a company like this. Doesn’t expect the dividend to be raised anytime soon. For an income name, it is a pretty good stock. 5.7% yield.

(Market Call Minute.) A pension consulting company and do all sorts of employee benefits for different companies. Very under followed and unknown. Slow and steady. Good name.