Dec 092013

 CALGARY, ALBERTA–(Marketwired – Dec. 4, 2013) - Enbridge Inc. (TSX:ENB) (NYSE:ENB) today announced that its Board of Directors has declared a quarterly dividend of $0.350 per common share, payable on March 1, 2014 to shareholders of record on February 14, 2014. The dividend reflects an 11 per cent increase from the prior quarterly rate. Enbridge also announced a guidance range for 2014 adjusted earnings of $1.84 to $2.04 per share.

 11% More Joy

Christmas always seems to come early in December thanks to Enbridge’s yearly dividend increases. It’s like a gift for making a smart investment that keeps on giving all year long. As the dividends keep increasing, my yield on cost goes up. My initial yield was 3.5% but now after 3 years of dividend increases my yield on cost is now 5.77%. Where else can you find an investment with a rate of return that grows over time? (since I never plan on selling my ENB shares, I consider my yield on cost to be my yearly return) Merry Christmas indeed!

Just take a look at Enbridge’s dividend history from 1996 to its projected dividend payout in 2014: Continue reading »

Oct 162013

I was excited to learn that Emera increased its dividend. The board of directors approved an increase of $0.05 to its common share annual dividend from $1.40 to $1.45, an increase of 3.57%. Not the biggest dividend increase I’ve ever seen, but I’ll take what I can get these days.

Every dividend increase brings me one step closer to a financially fortified retirement. With the uncertain future of CPP and OAS, I’m not counting on any help from the government. In fact, I wish my CPP and EI premiums were put in a separate account instead of being pooled with everyone else. Wishful thinking indeed but it sure would stop people from abusing the system.

Regardless, the Canadian utilities aren’t doing so well in this low interest environment so any increases are a welcomed sight. If anything it’s a great time to buy more shares of Emera or Fortis while the price is right. I’m still a little leery with what’s happening with the U.S government and the ridiculous amount of debt that keeps getting pushed under the rug. Until they come up with an actual solid game plan to deal with such a large debt, I’ll be waiting to see how their decision affects the markets.

In the meantime…

I’ll just be watching the markets for a good time to buy in. The dividends just keep rolling in so I’ll be able to buy more shares the longer I wait. Some might argue I lose out on more dividend payments as I wait but it all evens out with lower entry points by the way I calculate it. The more shares I can buy with less capital, the better it is over time.

I have more important things to currently worry about now than in the future. Instead of investing a majority of my money in dividend stocks, I need to save more money for a down payment on a house yet again. This time I’ll be building in a smaller center so it won’t take as much money as it did in Edmonton. Life always likes to throw curveballs to catch you off guard no matter how much you plan for them. I’ll be posting more about the plan in future posts and I keeping you updated on the progress. Thanks for reading and may your dividends always increase!

Do you own shares in Emera?

Sep 042013

Loonies.jpgThere’s nothing like the smell of dividends in the morning, especially on the morning they are increased! What do dividends smell like, you ask? Well I’d say take your favourite aroma, whether it be fresh baked bread, that fresh baby smell, or even the kitchen exhaust from your favourite steakhouse and mix them all together! Well that might not be a good aroma but let’s just say that dividends smell amazing!

TD Bank announced that they increased their quarterly dividend last week by $0.04 cents a share. Even in a quarter that had preannounced insurance losses because of all the flooding throughout Canada, they were still able to pull off  a 1.53 billion dollar profit. That just goes to show you where all your high insurance premiums go…

Regardless, this is the second dividend increase for TD Bank this year for a total increase of 12% since 2012. You can’t ask for more from a stock from a dividend investor prospective. $0.12 a year might not seem like much, but if you had 1000 shares of TD, that’s an extra $120 coming in every year on top of the $3400 you would already be making. You could spend that $120 on a night out with your wife, get that expensive mayonnaise dispenser you’ve always wanted Continue reading »

Sep 042013

Dividend growthRoyal Bank of Canada’s profit soared to new heights in the third quarter as the bank reported record earnings of $2.3-billion. As a result they raised its quarterly dividend by $0.04 cents to $0.67 cents per share, a very generous 6% increase! This is the second dividend increase from RY in 2013, bringing the total increase to $0.07 or 11.6%.

Although to some it might not seem like a huge deal to most people, to dividend investors 11.6% is a monster of an increase. Even if inflation averaged out to be 4% in 2013, the remaining 7.6% would still be pocket change to anyone living off their dividend income. Instead of scrounging up the couch change to meet the other pensioners at the coffee shop, you could buy everyone coffee AND a donut AND still leave a whopping Continue reading »