Sunday, 1 March 2015

Recent Dividend Increases

   In the past month quite a few of the companies that I hold, as well as a couple comparable sector companies have raised their dividends. And as more companies release their earnings I am looking forward to seeing some more dividend increases in the near future. The following companies in my portfolio gave me a raise in the last month: Toronto Dominion Bank (TD), National Bank of Canada (NA), Royal Bank of Canada (RY) and BCE (Bell Media). As well as Canadian Imperial Bank of Commerce (CM) and Rogers Communications (RCI.B).

    TD increased its dividend on February 26th by 8.5%, raising its quarterly payouts to $0.51 from $.047, giving it a yield of 3.72%. With my current 18 shares I now receive $.072 more a quarter and $2.88 per year.

    NA had a great increase of 14% in December, which brought its dividend to $.50 from $.48, with a yield of 4.16%. Being a small position of mine with only 6 shares, that makes out to only $.12 more a quarter and $.48 a year, but hey I didn't have to work to get it!

    RY when compared to the previous two banks made a more modest increase to their dividend with a 3% increase on February 25th, taking their quarterly payout to $.77 from $.75, with a yield of 3.93%. My 7 shares now give me $.14 more per payout and $.98 a year.

    BCE increased their dividend by 5.3% after it reported a solid fourth quarter on February 5th. The new dividend is $.65 from $.62 with a yield of 3.93%. BCE represents about 9% of my portfolio, and I have 21 shares so this increase gives me a nice .63 more a quarter and $2.52 a year.

Edit(march 3rd):
BNS raised their dividend by 2% to %.68 from $.66, with a yield of 4%. With only 6 shares, this increase adds $.48 to my expected dividend income per year.
    The other two companies that are on and off my personal watchlist:

    CM went from paying out $1.03 to $1.06, with a yield of 4.43% on February 26th.

    RCI.B made a comparable increase to BCE of 5%, going up two cents from $.46 to $.48 with a yield of 4.34%. This increase occurred on January 29th.

    Individually those increases were not really all that much, with half of them representing a less than a dollar increase within a year. However, between the four companies combined, the dividend increases now generates an additional total of $7.30! To get that same increase in income, I would have to invest around $200. So looking at it that way, these little increases are comparable to a $200 addition of dividend paying stocks.


  1. Some nice raises coming in recently eh? I own BCE and TD from that list. Congrats on the raises.


    1. For sure, although some were pretty small, but I'm guessing they are using caution in tying up too much cash till market conditions settle down.

  2. Happy to own TD and RY from the list above. I think it's great that the Canadian banks are able to increase their dividends despite facing some serious headwinds with low oil and a depressed currency. Thanks for sharing.

    1. For sure there are some hurdles for them, but I think for the banks with heavier US exposure the lower $CAD will help them out, but will make M&A a bit harder.
      Thanks for stopping buy.

  3. Owning some of NA and glad to see this bank performing in hard times! :-)

    1. Yeah NA has been doing pretty good recently, although its still down about 7% IIRC from a few months ago.