Thursday, April 8, 2010

State of My Dividends, Q1 2010 2

Yesterday, I updated my spreadsheet on dividends. For all my stocks, I am showing in the “10” (for 2010) column, if a company has actually increased their dividend yet for the current year of 2010. In the “div” column preceding, I show the percentage increase in the dividends for the company’s financial year ending in 2010. I will continue today to talk about my stocks that have increased their dividends in the first quarter of 2010.

The first stock I want to talk about today is one of my favorites. That stock is Fortis Inc (TSX-FTS). I have just recently reviewed this stock because of receipt of the 2009 annual report. This stock has been raising their dividends every year since 1973. That is, they have raised their dividend every year over the past 36 years. The dividends have been increased on average of 14% per year over the last 5 years. Their 10 year average dividend increases are a little lower, at 8.7% per year. For the stock in Fortis that I bought in 1987, I am seeing a yield of over 15% on my original investment. The dividend increase this year is just 7.7%, but considering the economic climate, it is a good increase. See the spreadsheet.

The next stock to talk about is Metro Inc (TSX-MRU.A). This stock just increased their dividend by over 25%. This is an excellent increase, although the yield on this stock is quite low. The yield is currently at 1.7%. For this stock, the 5 and 10 year increases in the dividends has been 10.6% and 15.7% per year. The thing is, the dividend increases were much higher in the years from 1999 to 2005. Also, these rates a much higher than inflation, and if you live off dividends, this is a very good thing. See the spreadsheet.

Richelieu Hardware Ltd (TSX-RCH) is another of my stocks with a dividend increase in the first quarter of 2010. This stock has not been paying a dividend very long, as they just started in 2002. The stock’s dividend yields are low, with a 5 year average of just over 1.3%. The 5 and 10 year dividend increases are 14.9% and 16.5% per year. These are very good increases. The current one is a bit lower, at only a 12.5% increase. The dividends on this stock are a bit erratic as there was an 11% decrease in dividends in 2004 and in 2009, there was no increase. It is a bit hard at the moment to know if this stock will end up being a good dividend paying stock. See the spreadsheet.

The last stock to talk about is Barclays Bank (NYSE-BCS). This is the only foreign stock I own and it is in my US Trading Account. This is a bank stock that had a lot of problems in our recent crisis. It stopped its dividend payments in the first part of 2009 and in the end gave me one quarterly dividend of $.066 US. However, in March of this year, it increased it dividend to $.090 US. On an annualized basis, this is an increase of 37.5%. I do think this stock is on the way to recovery, but it has a long way to go. See the spreadsheet.

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 for stocks followed and investment notes. Follow me on twitter.

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