Dividend Increase: TRP February 2013

Feb 212013

TransCanada increased its dividend by 5% last week increasing the quarterly dividend to $0.46 per share. I recently added TRP to my portfolio in hopes that it will really take off once the Keystone pipeline has the go ahead to expand into the United States. A lot of people are protesting the pipeline but I hope they all walked or rode their bikes to the protests. Since the big oil producers keep all new clean energy sources from the light of day, eventually we are all going to need Alberta’s dirty, dirty oil

Let’s take a look at TRP’s dividend history:

TRP had cut its dividend in 1999 but it was undergoing a transition and has had 13 years of solid dividend growth since then. I think more than ten years was enough to establish a solid dividend growth history to please me as an investor. TransCanada has a current dividend payout ratio of 100% which does somewhat concern me, but I’m willing to risk my capital on the odds that Keystone pipeline will proceed because, well, there is no other option to keep up with today’s energy demands.

The current yield for TRP is 3.9% which is a decent return on an investment. I’m sure the stock price will eventually level out again and continue to rise in the near future. Until then, I’ll keep re-investing my dividends and keep true to my investment strategy.

Do you own shares in TRP? Are you satisfied with the 5% increase?

Dividend Increase: BCE Feb 2013

BCE, Dividend Increase 2 Responses »

Feb 192013

The board of directors of BCE announced a dividend increase of 3%. It’s not a huge dividend increase by any means, but I suspect there will be another one later on this year. For now I’ll gladly take the $2.33 per share and re-invest it to buy even more shares of dividend paying stock. A 3% increase means my dividend income from my BCE stock will keep its buying power as the costs for everyday goods and services increase with inflation. As long as the increase negates the average yearly inflation rate, I’ll be a happy dividend investor!

Let’s take a look at BCE’s dividend history:

In 2008 BCE only made two dividend payments due to the fall out with the Ontario’s teacher pension deal. Since then the stock has recovered and the board of directors have focused on increasing the dividend every year.

The current dividend payout ratio for BCE is 75% with the new dividend increase. Not the lowest ratio I’ve seen, but I’m confident that BCE will be able to maintain their dividend for a while. Let’s hope the deal with Astral Media will go through this time and perhaps BCE will pick up momentum.

Currently the dividend yield for BCE is still a hefty 5% which sure beats anything the bank will pay you. My initial investment in BCE is paying me 8.4% and with every dividend increase, that yield on cost will keep increasing as well. It sure will be nice to have an investment paying me over 10% every year down the road and it will, as long as the dividend is maintained.

Do you own shares in BCE? Are you happy with the 3% increase?

Enbridge Dividend Increase

Dividend Increase, Enbridge 6 Responses »

Dec 072012

It’s that time of year again where we celebrate the holidays AND dividend increases. Enbridge announced yesterday that their board of directors declared a quarterly dividend of $0.315 per common share that will be paid on March 1, 2013. I was over-joyed to hear that it was a whopping 12% increase from $0.2825 to $0.315. Why am I so excited over a couple of pennies, you ask? Take a look at this!

Yield on Cost

I originally bought my shares of Enbridge for $48.53 and it paid a yearly dividend at the time of $1.70 per share. My yield on cost for that particular investment was 3.5%. No matter if the stock’s value increased or decreased, I was actually paid 3.5% of my initial investment in dividends. Over the years the dividends kept increasing and every year my yield on cost kept increasing as well. Continue reading »

TD and RY Dividend Increase

CIBC, Dividend Increase, RY, TD 6 Responses »

Aug 302012

There’s nothing like a bad day at work to make the news of dividend increases even more exciting. TD and RBC both increased their dividends today which means my passive dividend income is going up, and that makes me one happy camper. I don’t tell anyone at work anymore because well, they just don’t seem to care. I’ve stopped the lunch time presentations on dividend investing and they seem much happier now. Who would have thought dividend investing was so boring? Not this guy!

Two timing TD

This is the second dividend increase for TD bank this year bringing their total increase into the double digits. Thanks to a $1.7 billion profit, the board of directors thought a nice 7% increase would please investors. The quarterly dividend increased from $0.72 cents to $0.77 cents per share which makes for a total dividend increase of 12.9% this year. Let’s take a look at TD’s dividend history since 2000:

TD’s dividend growth has recovered quite nicely since the bomb of 2009 and was the first major Canadian bank to begin raising its dividend since then. Looks like I’ll be updating my spreadsheets AGAIN tonight. Thanks a lot TD for making my life miserable with all this extra work and slowly making me rich! *shakes fist mockingly*

What the deuce, RBC?!

After a mind blowing quarterly profit of a mere $2.2 billion, the kind board of directors decided to pass on some lovin’ to the wise shareholders and increased the dividend by 5.3%. The quarterly dividend increased from $0.57 cents to $0.60 cents for a yearly dividend of $2.40 per share. Now, thanks to a previous dividend increase in March, RBC’s total dividend increase for 2012 is 11.3%. Let’s take a look at RBC’s dividend history:

Since a slight plateau from 2008-2010, RBC’s dividend growth has regained its momentum and is going strong now. I picked up more RY when it dipped to $43 a share and I’d like to thank all of the bandwagon speculators for selling me their shares for cheap. My ever-increasing passive income thanks you too!

Oh yeah, CIBC too…

CIBC increased its dividend by 4.4% as well today making it a memorable week for banks raising their dividends at the same time. I don’t own any shares but don’t take it personally, CIBC. I don’t want to be too heavy in financials so someone had to sit out. BMO might be joining you too if they keep skimping out on their dividends. *Stern look at BMO*

How many dividend increases did you receive this week?

BMO and Scotia Bank Dividend Increase

BMO, Dividend Increase, Dividend Investments, Scotiabank 2 Responses »

Aug 282012

Today was a good day to be a dividend investor as BMO finally increased its dividend and BNS added a second dividend increase already this year. As I shared this news with the rest of my co-workers, they failed to see the significance of my celebrating and left the break room to go back to work. Sometimes I wonder whether they have actually been paying attention to my lunch time investing seminars. Oh well, more dividends for me and the other smart investors out there.

It’s about time, BMO

After five long years, the super cautious board of directors at BMO decided it was time to increase the dividend by 3%. The quarterly dividend is up $0.02 cents a share to $0.72 with a yearly dividend payment of $2.88 going forward. BMO had a quarterly profit of $907 million which was up 37% from a year ago. This increase means that all of the big 5 banks are now dividend growers once again and BMO finally caught up after stopping to tie its shoe lace. Let’s take a look at BMO’s dividend history since 2000:

That’s quite the plateau between 2008 and 2012 but at least the dividend growth is activated once more. These slumps are a part of dividend stock investing and the key thing to remember is that the dividend was maintained. BMO was just playing it safe while they were busy trying to expand in the United States. In fact, my BMO dividends were just deposited into my account today and still have that fresh dividend smell that I’ll never get tired of. I just wish there were more dividends so I wouldn’t have to slave away each day. All in good time I guess!

Another one already, BNS?

It seems like I just finished updating my spreadsheet with Scotiabank’s last dividend increase in March and now I have to do it all over again. Normally extra work makes me cranky but I don’t mind my passive dividend income increasing one bit! Scotiabank’s quarterly profit rose 57% to 2.05 billion dollars which is up from 1.3 billion a year ago. (Gee, I sure wish I could loan out other people’s money and charge interest for it!)

BNS boosted its dividend by 3.6% increasing its quarterly dividend by $0.02 cents to $0.57 cents and yearly dividend of $2.28 per share. This second dividend increase makes a total of 9.6% from Scotiabank so far this year and I couldn’t be happier. I just added BNS to my TFSA self-directed investing account this year and so far it’s been a smart move. Let’s take a look at Scotiabank’s dividend history since 2000:

There’s a slight lag in the dividend growth thanks to the housing market debacle in the U.S., but since then BNS has slowly made it back on track and those lovely dividends keep on increasing. It will be interesting to see if BNS can pop out a third dividend increase later in the year, but I don’t want to push my luck. I’m more than happy with a solid 9.6% dividend increase that will help combat the ever increasing cost of living that’s been kicking my butt as of late.

What’s this? More you say?!

Just when you thought it couldn’t get any better, analysts are hopeful of more dividend increases later this week when the rest of the Canadian banks report their quarterly earnings on Thursday. I could be one happy investor as I own shares in Royal Bank and TD as well. Let’s see which Canadian bank comes out with the largest dividend increase for the 2012 year. My money is on TD so stay tuned to find out!

Which Canadian bank do you think will have the largest dividend increase this year?

BCE Made My Day

BCE, Dividend Increase, Dividend Investments 11 Responses »

Aug 082012

After another exhausting day of working under the hot sun, I was given some very rewarding news at lunch time today. BCE increased it’s yearly dividend by 4.6% from $2.17 to $2.27 per share. An increase of 10 cents might not seem like a lot, but I’ll take anything I can get to help offset the cost of living that always seems to increase while my paycheque stays the same.

The media giant had a 2nd quarter profit of $773-million which is up from $590-million a year ago. While BCE has been in the spotlight lately with a controversial $3.4-billion takeover bid of Astral Media Inc, this latest dividend increase is the board of director’s way of showing investors that they are confident with how this bid will play out. Even if the bid doesn’t go through, BCE will still remain a quality company that I will continue to personally invest in.

Dividend Growth History

BCE has been paying a dividend since 1949 and like most companies, the dividend has had both periods of growth and stagnation. In 2008 the dividend was even suspended for tw0 quarters when it was about to become a private stock which is why 2008′s dividend is so low. Let’s take a look at BCE’s dividend growth from the last few years:

Having that deal fall through was the best thing that could have happened to new dividend investors. I caught the tail end of it in 2009 and was able to buy shares for $27.84 while some were lucky enough to buy in closer to $22 a share.

Yield On Cost

My yield on cost for my investment in BCE is now 8.15% thanks to many dividend increases. The current yield on BCE with the increased dividend is 2.27/44.30 = 5.12%. This is why I’ll be holding onto my BCE shares for as long as possible. Having an investment that pays you an almost guaranteed 8% or more each year is an excellent investment in my books. It’s the main reason why dividend investing works so well.

It will be interesting to see if BCE has another dividend increase in December and how much it might increase. My prediction will be a 6% increase making it an even 10% for 2012. I guess we’ll find out in 5 months….ugh.

What’s your take on BCE? Care to share your yield on cost?

Dividend Income July 2012

Dividend Income Update, Dividend Increase, Dividend Investments 2 Responses »

Aug 062012

I can’t believe it’s already time for July’s dividend income update. I’ve been trying to spend most of my time outside enjoying the warm weather and I hope you all have been as well. It’s only a matter of time before the white stuff will be back so you have to make the most of the warm summer months!

I was looking back through my spreadsheets from previous years this week and I was amazed to see how well my portfolio is growing. Some may argue that dividend investing is not the best way to invest money but I, quite frankly, don’t care. Investing in dividend paying stocks is working very well for me and it suits my investing style with low maintenance and sleep filled nights. What else could you want from an investment strategy?

After compiling figures from last year, my dividend income from July of 2011 was calculated to be $338. After a year of collecting and re-investing dividends that increased, as well as investing new capital through my TFSA and RRSP matching through my employer, my dividend income for the month of July 2012 is:

$519

That’s an increase of $181 of monthly income in only 1 year. If I had purchased mutual funds instead of dividend stocks, I would have had $0 deposited automatically in my account and I would have some extra units of the fund worth less then what I paid for them. Yes, it seems dividend investing was the better choice indeed!

Watchlist Dividend Increase

I would like to mention that Saputo had a quarterly dividend increase of 10.5% from $0.19 cents to $0.21 cents per share. I know this is old news from July, but it has helped me determine my next stock to scoop up when the price is right. I would like to add some consumer staples to my portfolio and since Canada has a very limited amount of stocks in that sector, Saputo is a clear choice.

The only problem is I happen to have horrible timing when it comes to buying stocks(another reason I’m a dividend investor). I think if the price dips below $40 a share I will be hitting the buy button but only time will tell. Until the next update, may your dividends always increase!

How’s your monthly dividend income coming along? What are your thoughts on Saputo?

Scotiabank Dividend Increase

Dividend Increase, Dividend Investments, Scotiabank 5 Responses »

Mar 062012

Scotia Bank had a 15% increase in their 1st quarter earnings and decided to increase their dividend by 6%. The quarterly dividend increase is three cents from $.52 to $.55 for a total yearly dividend of $2.20 per share.

After working myself out of a job today, that increase is great news! I’m really glad I decided to add BNS to my self-directed TFSA this year. With the new dividend increase and stock price appreciation, I know Scotiabank will be a valued stock in my portfolio. I have BNS on my watchlist, hoping to add to my position when the price is right.

Every dividend increase brings me one step closer to an early retirement. Also, every increase means my money is worker harder for me instead of me working for it the conventional way. If we take a look at Scotiabank’s split adjusted dividend history since 2000, we can see that it increased almost every year and was sustained through the 2008 and 2009.

I know dividend growth won’t be this good all the time, but as long as dividend payments can at least be sustained and not cut, I’m confident my dividend income will grow and compound over the years to a sizable amount. Until that day, I’ll be stuck breaking my back wishing I had found out about dividend investing sooner.

Do you own shares in BNS?

Weekend Reading: Making It Rain Addition

Dividend Increase, RY, TD, Weekend Reading 6 Responses »

Mar 012012

I was pleasantly surprised today with not one, but two dividend increases! I really felt like a big financial player explaining to my co-workers that I received another raise during my coffee break.

RBC increased its dividend by 6% from $0.54 to $0.57 cents per share payable on May 24th, 2012. The share price closed at a 2 percent increase even though first quarter profit fell 5 percent due to a sharp downturn in capital markets income.

TD Bank increased its dividend by 5.9% from $0.68 to $0.72 cents per share payable on April 30, 2012. TD also had a lower profit this quarter by 5.4% but for this investor, a $1.48 billion profit is nothing to scoff at.

As my living expenses grow and my paycheque remains stagnant, it’s comforting to know my dividend income is always increasing. If only a wise person would have taught me how to invest in dividend stocks when I was younger, then I would be well on my way to a very early retirement. Alas, here I am trying to show that anyone can slowly increase their wealth through dividend investing.

Both RBC and TD are on my current watchlist for 2012. You can check out my updated watchlist every Friday after the markets close.

Now, on with some weekend reading!

Boomer and Echo compared index funds to mutual funds. I definitely think Index funds are the way to go.

Dividend Growth Investor shared how he accumulates his positions over a long period of time.

Freedom 35 wrote about how he thinks paying down the mortgage may not be for everyone. With my hefty mortgage, I’d be a fool not to make extra payments.

Dividend Monk wrote about 4 dividend growth businesses with their own natural monopolies. I <3 CNR personally.

Invest It Wisely shared why you need spare cash to cover emergencies.

Susan Brunner reviewed my golden boy stock, Enbridge.

Dividend Watchdog spotted the two new dividend increases from RBC and TD.

Brad at Triage Investing Blog wrote an excellent article on when to sell stocks.

Young and Thrifty asks what your travel style is. I’m more of a Hippo lazing in the pool never venturing too far from the swim up bar at an all inclusive myself.

Have a great weekend, everyone!

Watchlist Dividend Increase

Dividend Increase, Dividend Watchlist, MRU No Responses »

Feb 012012

After reporting higher profits and revenues this last quarter, Metro increased its dividend from $0.77 cents per share, to $0.86 cents. That’s a whopping 12% increase that will definitely help with the ever increasing food prices.

Consumer staples is an excellent sector to be invested in because no matter what state the economy is in, everyone has to eat! The TSX has a very limited selection in consumer staples so a lot of Canadian investors turn to the U.S for a more diverse selection.

I do not own shares in Metro because of the low dividend yield but I would like to include it in my portfolio once it’s completed and that’s why it’s on my watch list. Even though Metro has an incredible dividend growth record, I personally consider it more of a growth stock. Today it closed at its 52 week high of $54.74 and even with its new dividend, it only yields 1.5%. Even if I bought in today, and the dividend increased 10% each year, after 15 years my yield would only be 5.6%. Like I said, once my portfolio is close to being complete, I will add MRU for some solid stock growth and minimal dividend payments.