There’s nothing quite like coming home from a bad day at work ,spent battling the cold, to find out my dividend income increased!
TORONTO, Feb. 22, 2012 /CNW/ – Rogers Communications Inc. (“Rogers”) announced that its Board of Directors has approved an 11% increase to the annualized dividend rate from $1.42 to $1.58 per Class A Voting and Class B Non-Voting share. Effective immediately, the new quarterly dividend rate will be 39.5 cents per share.
What’s the big whoop about $.16 cents you ask? Well it’s been 4 years since my company gave any raises, and everything has gone up in price. Last year the price of food increased by 5% alone.
When my dividends increase, not only does it keep up with and often surpass inflation, but it also means my total wealth increases without me having to lift a finger.
When I first purchased RCI.B two years ago my yield on cost was 3.77%. Now after a dividend increase each year my yield on cost is now 4.66%. Next year it should be over 5%. Is there any other financial product that offers increasing rates of return each year? I think not! If I was living off my dividends, every dividend increase would be like a raise in pay.
My retirement income would kick inflation in the pants and then some. This will allow me to live a luxurious lifestyle of buying fresh food instead of rummaging through the half price shelf like the other retiree who only earned 1% in a savings account.
Do you own shares in RCI.B?
I own Rogers and we got a nice present!
You mention a very big point that our pay doesn’t always keep up with inflation and it’s a benefit of dividend growth that allows our nest egg to keep up
I’m counting on dividend growth well into my retirement so that I won’t be overwhelmed when it costs $75 for a burger and fries!