Monday, June 1, 2009

State Of Dividends May 2009

Today, I am putting up a spreadsheet (see dividend income spreadsheet) showing two things about my dividend income for 2009. The first column called “Div May” and the second is called “09”. Under “Div May”, I have recorded the dividend increase for that particular stock for 2009 compared to 2008. In the second column of “09”, I have recorded if the company actually declared a dividend increase so far in 2009. I have also shown dividend increase information for 2007 and 2008.

In the last 2 months that is in April or May, BCE (TSX-BCE), Toromont Industries Ltd (TSX-TIH) and TransCanada Corp (TSX-TRP) have raised their dividends. Husky Energy (TSX-HSE) has decreased their dividend. For the companies that have raised their dividends in the last two months, I have shown the increase for the year. Take TransCanada Corp, where I have shown the increase as being 4.1%. I will get one dividend of $.36 and three dividends of $.38 for a total of $1.50. This is an increase of 4.1% over last year’s dividend of $1.44. However, I expect to get at least 4 dividends in 2010 of $.38 for a total of $1.52. So my dividends for 2010 will have already increased by 1.3%.

You will note that I have shown increases in the “Div May” columns where the “09” column does not show an actual increase for the year. For example, my dividend for Emera (TSX-EA) will be 4.7% higher in 2009 then in 2008. However, Emera have not yet declared a dividend increase for 2009. They did declare a dividend increase in November 2008. So the dividends I will receive in 2009 were those declared as of November 2008. So while I will get more money in dividends from them in 2009, they have not actually yet declared a dividend increase for 2009.

In 2008, I got dividends from Emera in February, May, August and November at the per share rate of $.2375, $.2375, $.2375, and $.2525 for a total of $.965 per share. In 2009, I have gotten 1 dividend from then in February of $.2525 per share and if this continues for 2009, I will get from them a total of $1.01 per share in dividends. Going from $.965 per share to $1.01 per share for year gives me an increase in dividends of 4.7%.

On my list, I have 12 companies that have increased their dividends already in 2009. I also have 6 companies that have decreased their dividends. The rest have not yet made changes. My total projected Dividend income for 2009 has gone up 13.4%. Also, my projected income for 2010 is 5.2% higher than that I will earn in 2009.

Of the decreases for April and May 2009, Penn West Energy has again decreased their dividend. This company is an oil and gas producer. Prices for these products have come down, so it is no surprise the dividends have decreased. Dividends on this company have always changed with the prices of oil and gas. Dividends on oil and gas companies tend to fluctuate.

The new decrease for April and May is Husky Energy (TSX-HSE). This is also an oil company and the price for oil fluctuates. The dividends for these companies tend to fluctuate also.

This blog is meant for educational purposes only, and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. See my website at for a list of the stocks for which I have put up spreadsheets.

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