Wednesday, January 5, 2011

State of My Dividends Q4 2010

Today, I am updating my spreadsheet on my stocks for stock I own and dividend increases for the 4th quarter of 2010, see dividends. My total dividend increases this year is quite low at just 5.3%. Low dividend increases using follow in the trail of a recession. However, because of dividend increases in the later part of 2010, my dividend income for 2011 will already be over 5% more than it was last year. I cannot wait to see what happens when the banks again start to increase their dividends.

For all the stocks I own, 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 last quarter of 2010, I have had 8 companies that changed their dividends (these dividends are in blue to distinguish them from changes that occurred in other quarters). Since I do dividend calculations based on the applicable company’s financial year, I have also started columns for 2011. There are changes shown 2011 because when a company increases or decreases its dividend part way through their financial year, the total dividends for the following financial year will also be affected.

The first stock to discuss is Alimentation Couche Tard (TSX-ATD.B). This stock is a retail stock and such stocks tend to do badly in a recession. However, this stock has been recovering and it stock price is now back to its highs of 2007. Also, Alimentation Couche Tard has raised their dividend twice this year, once in Mar and now again in December. This latest rise is a 25% one with the dividend going from $.04 a share to $.05 a share.

I first bought this stock in 2004 and some more in 2006 and 2007. I have made a total return on this stock of just over 11% per year. However, less than 1% of this return is in dividends as the dividend yield is very low. The average 5 year yield is just .7% and I am making only 1.4% on my investment. The dividend potential on this stock is not very high, although they do have very nice dividend increases. See my spreadsheet.

The next stock to talk about is BCE (TSX-BCE). This stock also has raised their dividends twice this year, once in April and once again in October. The April increase was for 7.4% and the second one just over 5%. This means that the dividends were raised almost 13% this year. This is a very good showing. The stock has also been recovering, but it is not yet back to highs of 2007.

On this stock 4 to 4.5% of the total return would be in dividends. This is one of the first stocks that I bought. I got some for my trading account in 1982. It is rather hard to judge how well I have done because of the splitting off of Nortel in 2000 and Bell Aliant in 2006. Needless to say, this stock has not done well over the past 10 years and was certainly languishing until the Teachers’ Pension Fund tried to buy it. See my spreadsheet.

Computer Modelling Group Ltd (TSX-CMG) has certainly been a great company for me. It is a dividend paying small cap. Computer Modelling Group Ltd has raised their dividends twice this year, once in September and now again in December. The first dividend rise was for 5.6% and the second was for 5.3% for a total rise of 11% this year. They also paid a special dividend in June. They had paid a special dividend last year too, so the total dividend this year equals the total dividend paid last year.

I first bought this stock in 2008 and then some more in 2009. I have to date, make a return on my investment of 54% per year. About 8% of my total return is in dividends. I probably will not buy any more as my current investment would probably be too large for my portfolio soon enough. See my spreadsheet.

The last stock to talk about today is Leon's Furniture Ltd (TSX-LNF). This is another rather small cap dividend paying stock. Leon’s raised dividends in Oct 2010. The dividends for this stock increased at the rate of 28.6%. However, since last year they gave out a very good special dividend, my total dividends on this stock this year is less than last year.

I first bought this stock in 2006 and I have made a return of 11.5% per year on this stock. The part of my total return in dividends is probably around 3.5%. See my spreadsheet.

I will talk about my last four stocks with dividend changes tomorrow.

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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