Wednesday, July 14, 2010

State of My Dividends, Q2 2010 2

Yesterday, I updated 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.

Pareto Corp (TSX-PTO) is a small cap company that has just recently started to pay dividends in 2008. For 2009, they raised their dividends 50% and for 2010, they have raised their dividends 25%. They have also paid a special dividend of $.04 per share in 2010. This special dividend is half the dividend to be paid this year, which is at the rate of $.08 per share. The dividend yield for this stock is quite good at 4.8%. They also have paid in dividends just, on average, about 30% of their cash flow, so this is good also. See the spreadsheet.

Shoppers Drug Mart (TSX-SC) is the stock I have bought for my TFSA. They did not have a good year in 2009 and did not raise their dividends. I had an increase in dividends of 6.8% in 2009 because the dividend increase in 2008 was made part way through the year. The current dividend increase is at 4.65% because it is going from $.215 to $.225, but because it is made part way through the year, my increase in dividends this year is only 3.5% as the total dividends for the year increased from $.86 per share in 2009 to $.89 per share in 2010. If the dividends are kept at this rate for 2011, I will get, in 2011, $.90 per share and this will be an increase of 1.1% for 2011. See the spreadsheet.

SNC-Lavalin Group Inc (TSX-SNC) is a favorite stock of mine. They consistently raise their dividends each year and for the past 5 years, the average increase is 27%. However, 2009 was not a great year and for 2010, the dividend increase is just 13.3%. The other thing to mention about this stock is that the dividend yield is low and is currently at 1.5% (a high for this stock). The dividend yield is usually closer to 1%, or just below 1%.

SNC is a dividend paying growth stocks and it is the sort you would buy after buying more conservative for your portfolio. Conservative stocks would be utility and financial stocks. This stock is considered to be a consumer stock and most consumer stocks have low yields, but they are a good way to diversify your portfolio. Also, I did not show this stock increase in my first quarter as the first quarterly dividend came in, in the first part of April, not in March as expected. My second quarterly payment came in June. Some stocks are more consistent with their dividends payments than other stocks. See the spreadsheet.

TransCanada Corp (TSX-TRP) is my last stock to talk about today. This is a solid, conservative, utility type stock. Since the quarterly dividend payments went from $.38 per share to $.40 per share, the dividends have gone up about 5.3%. My increase in dividends for 2010 is about 5.3% as this company raised their dividends after the first quarter in 2009 also. This stock has a good dividend yield, which is running a bit higher than usual at 4.5%. The average dividend increase over the past 5 years is running at around 5.3% per year, so this year increase is quite normal. 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.

No comments:

Post a Comment