Today, I am updating my spreadsheet on dividends. For all my stocks, I have shown 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.
For the first quarter of this year, I have had 7 companies increase their dividends. Since I do dividend calculations based on the applicable company’s financial year, I have also started columns for 2011. I will explain this shortly, but it only currently affects Alimentation Couche Tard (TSX-ATD.B) for this quarter.
There are other increases shown in the columns for 2010 and this is because when a company increases its dividend part way through their financial year, the total dividends for the following financial year will also be affect.
First I will explain the increase in 2010 which shows a “N” in the “10” column. Take the stock Canadian Real Estate Trust (TSX-REF.UN). I have an increase in the “Div” and “09” fields of 1.2% and “Y”. This means that the dividends paid in 2009 were 1.2% higher than for 2008. Since this increase occurred in November of 2009, it will affect the dividends that I receive in 2010. In 2009, I received 10 dividend payments of $.1133 and 2 dividends payments of $.115. This totals $1.363 of dividends per share for 2009. This was an increase of 1.2% over 2008 dividends of $1.3471. If I receive 12 dividends of $.115 for 2010, I will receive in 2010 dividends of $1.38 per share. This is an increase of 1.25% over dividends received in 2009. However, this company hasn’t actually increased their dividends for 2010. At least, they have not increased them yet. See the spreadsheet.
Alimentation Couche-Tard Inc. B (TSX-ATD.B) only started to pay dividends 2006 and they pay dividends at a very low rate. The yield is usually under 1% and they started out with a yield of just .40%. However, their average annual increase in dividends has been at a rate of almost 12%. Accordingly, to my spreadsheet, after holding this company for some 10 years, you would be looking at a yield on your original investment of about 6%. As I said above, the recent dividend increase I received will affect my dividends received also in 2011. This is because this company has a financial year ending in April of each year. See the spreadsheet.
The next stock to talk about is Canadian National Railway (TSX-CNR). This stock’s yield is also not very high, and the 5 year average is just 1.6%. Since the company usually increases their dividend at the beginning of each year, the increases do not affect the following year. They have a financial year ending in December of each year. Although this company has a 5 year average dividend increase of just over 20%, the recent dividend increases have been much lower. The increases were high between 2005 and 2007 and since then have been much lower. The current increase is just 6.9%. See the spreadsheet. This company is still being affected by the current recession.
The last company I will talk about today is Enbridge Inc (TSX.ENB). The current dividend increase is very good, coming in at almost 14.9%. This is higher than the 5 year average of increases of just over 10% per year. Last year’s increase was also healthy at just over 12%. This stock has been a favorite of a number of analysts lately. The yield on this stock is also not bad as it is has an average yield over the last 5 years of around 3.2%. After about 10 years of holding this stock, you can expect a return on your original investment around 10% per year. If you live off your dividends, this is great. See the spreadsheet.
Tomorrow, I will continue talking about my stocks with dividend increases in this first quarter of this year.
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.
No comments:
Post a Comment