Wednesday, April 13, 2011

State of My Dividends, Q1 2011 2

Yesterday, I updated my spreadsheet on dividends. For all my stocks, I have shown in the “11” (for 2011) column, if a company has actually increased their dividend yet for their current financial year ending in December 2011. In the “div” column preceding, I show the percentage increase in the dividends for the company’s financial year ending in 2011. I have also added columns of “Div” and “12” for two of my stocks that have financial years not ending in December 2011 and they are therefore into their 2012 financial year.

For the first quarter of 2011, I had 10 companies increase their dividends. The last 5 are shown below. I covered the first 5 yesterday.
Barclays Bank (NYSE-BCS).
Thomson Reuters Corp (TSX-TRI);
Russel Metal (TSX-RUS);

The first stock to talk about today 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 last year, it increased it dividend to $.090 US. On an annualized basis, this is an increase of 37.5%. This March, Barclay’s increased their dividends for the quarter to $.1625US or $.65US on an annul basis. This is an almost 89% increase in dividends. However, the dividend was at $2.64US in 2008, before this crisis. Dividends have along ways to go to fully recover. See the spreadsheet.

The next company is CDN Tire Corp (TSX.CTC.A). The current dividend increase is very good, coming in at almost 31%. However, this is after two years of no dividend increases. The 5 and 10 year growth for dividends for this company is 11% and 7.7% per year. The yield on this stock is low with a current yield of 1.65 and a 5 year median yield is just 1%. After about 10 years of holding this stock, you can expect a return on your original investment around 4% per year. See the spreadsheet.

The next company is TECSYS (TSX-TCS). The current dividend increase is not bad at 9.1%%. It is really hard to say with this stock what sort of growth there will be in dividends. In 2010, the increase was 25%, but only 10% in 2011 and now it is 9.1%. This stock has a financial year end in April each year, so it is in the 2012 reporting year. This is a small cap dividend paying stock, so it is also a risky stock, but it is cheap at only $1.90 a share. See the spreadsheet.

The next company to talk about is Thomson Reuters Corp (TSX-TRI). This TSX company not only reports in US$, but pays its dividend in US$. I bought this stock in 1985. On my original investment in this stock, I am making a yield of 7.2%. The 5 year median dividend yield is ok at 2.8%, but recently it has been higher at 3%. For me, the dividend growth is around inflation. However, it is better in US$, where the 5 and 10 year growth rates are 4.7% and 5.5% per year. Part of the problem, of course, with any stock reporting and paying dividends in US$ is that the CDN$ has risen strongly over the past while. See the spreadsheet.

The last stock to talk about is Russel Metal (TSX-RUS). This company started dividend payments in 2000. In most years, it has increased its dividend, but in 2009, the dividends were decreased from $1.80 to $1.00. There was no increase in 2010 and the latest increase of 10%, gets the dividends back to $1.10. They had good reason to reduce the dividends in 2009, as they made no money in that year. Even considering the above, the dividend growth over the past 5 and 10 years has been at 7.4% and 20% per year. This company is considered to be a growth company, so it is riskier than a lot of dividend paying companies, but over the long term should do just fine. 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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