Category: Dividend Raises

W. W. Grainger

W. W. Grainger’s 46th Consecutive Dividend Increase

Dividend Raises

On April 26th, W. W. “W.W. Grainger, Inc. (NYSE: GWW) announced today that its board of directors voted to raise the quarterly cash dividend by 5 percent to $1.28 per share payable on June 1, 2017, to shareholders of record on May 8, 2017. Grainger has delivered 46 consecutive years of increased dividends.” (invest.grainger.com)

This is a position I have been re-evaluating for quite some time and am thinking of exiting. I am down around 20% due to a very bad reaction to their latest earnings release.

Dividend Income increased 0.04%

Considering the Dividend Beginner portfolio contains 5 shares of W. W. Grainger, Inc., my annual income from GWW has increased by $1.20 USD, from $24.40 USD to $25.60 USD. My 12-month forward dividend income has increased from $2,899.83 to $2,901.03, an increase of 0.04% (this is probably the lowest net dividend income to the portfolio so far). GWW accounts for 0.88% of my annual dividend income. 

While a $1.02 increase in annual dividend income seems quite low, think about how it would require an investment of $45.45, at a yield of 2.64% (GWW’s dividend yield on the day of the raise) to generate $1.20 in dividend income. That’s the equivalent of getting four hours of your life back, at Quebec’s minimum wage of $11.25.

Note: I use a 1:1 ratio when calculating dividend income for $CAD and $USD since it would be too complicated to constantly account for currency difference and it’s constantly changing. The portfolio only generates $120 USD annually with all other income being $CAD.

Before Net Increase After
Annual Dividend Income $2,899.83 $1.20
$2,901.03
Monthly Dividend Income $241.65 $0.10
$241.75
Percentage Increase 0.04%
Apple Technology

Apple Announces a 10.5% Dividend Raise

Dividend Raises

On May 2nd, according to Apple’s second quarter results, “The Board has approved a 10.5% increase to the Company’s quarterly dividend, and has declared a dividend of $0.63 per share of the Company’s common stock, payable on May 18, 2017 to shareholders of record as of the close of business on May 15, 2017.” (apple.com)

At the same time, they increased their share repurchase authorization to $210 billion from last year’s $175 billion, as they expand their capital return program to $300 billion.

Since they started the capital program in mid 2012, Apple has spent $151 billion in share repurchases, propping up their earnings per share. I’m a big fan of how much capital Apple returns to their shareholders in share buybacks and dividend increases.

Dividend Income increased 0.20%

Considering the Dividend Beginner portfolio contains 23 shares of Apple Inc., my annual income from AAPL has increased by $5.52 USD, from $52.44 USD to $57.96 USD. My 12-month forward dividend income has increased from $2,825.02 to $2,830.53, an increase of 0.20%. My income from AAPL accounts for 2.05% of my annual dividend income.

While a $5.52 increase in annual dividend income seems quite low, think about how it would require an investment of $324.71, at a yield of 1.7% (AAPL’s dividend yield on the day of the raise) to generate $5.52 in dividend income. That’s the equivalent of getting twenty nine hours of your life back, at Quebec’s minimum wage of $11.25.

Note: I use a 1:1 ratio when calculating dividend income for $CAD and $USD since it would be too complicated to constantly account for currency difference and it’s constantly changing. The portfolio only generates $120 USD annually with all other income being $CAD.

Before Net Increase After
Annual Dividend Income $2,825.02 $5.52 $2,830.53
Monthly Dividend Income $235.42 $0.46
$235.88
Percentage Increase 0.20%
Canadian Natural Resources

CNQ Comes Through with Another 9% Dividend Raise

Dividend Raises

On March 2nd, “Canadian Natural Resources Limited announces its Board of Directors has declared a quarterly cash dividend on its common shares of C$0.275”. (cnrl.com)

This dividend payment compares to the previous quarter’s C$0.25 (paid in January), where it was also increased 8.7%. The quarterly distribution before that was C$0.23, paid in October 2016.

Canadian Natural Resources effectively increased their dividend by 16.4% in back-to-back dividend increases.

CNQ has increased their dividend for 16 consecutive years and I originally bought this name for it’s impressive dividend growth history – they have not let me down. It is my favourite Canadian stock for exposure to the oil exploration industry.

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Bank of Nova Scotia

Bank of Nova Scotia raises dividend 2.7%

Dividend Raises

On Feb. 28, 2017, as Bank of Nova Scotia announced their quarterly results they also added “our strong capital position allows us to grow and make investments in our businesses as well as return capital to our shareholders. This quarter we announced a 2 cent increase in the quarterly dividend to 76 cents per share – up 6% from a year ago.” (scotiabank.com)

While the dividend is up 6% from one year ago, they only increased the dividend by 2.7% this quarter. BNS is known to increase their dividend twice a year – both in the second and fourth quarter.
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Royal bank of canada

Royal Bank of Canada raises dividend 4.8%

Dividend Raises

On February 24, 2017, “Royal Bank of Canada (RY on TSX and NYSE) announced today that its board of directors declared an increase to its quarterly common share dividend of four cents per share, or five per cent, to 87 cents per share.” (rbc.com)

Royal Bank of Canada has seen an incredible run-up consisting of a 44% one year gain in share price. The stock is at an all-time high now and is constantly pushing on them, which is what I’m coming to really like in stock investing.

That’s the strategy I followed on Apple. Unfortunately, I don’t see as many catalysts with RY. However, the reason I chose RY over some other Canadian bank was due to it’s U.S. exposure, which comes second after TD. Overall I preferred RY’s valuation at the time I purchased my shares.

I have a pretty small position in RY which has increased 50% and makes it difficult for me to stomach adding any more at these prices. The share price has been pushing hard to reach $100.

I have positions in many of the Canadian banks and they have all done incredibly well in the last year. In addition, my exposure to the Financials sector is about 1/3 of my entire portfolio. I feel as though, unless I’m adding U.S. financials to geographically diversify, then I should be building my positions in other sectors as it’s slowly becoming sizable.

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Walmart

Walmart’s 44th Consecutive Dividend Increase

Dividend Raises

On Feb. 21, 2017, “The Board of Directors of Wal-Mart Stores, Inc. (NYSE: WMT) approved an annual cash dividend for fiscal year 2018 of $2.04 per share, an increase of 2 percent from the $2.00 per share paid for the last fiscal year.” (walmart.com)

Walmart’s share price rose significantly as they reported Q4 FY 2017 earnings. While their e-commerce appears to be gaining traction, there is a lot of uncertainty surrounding brick & mortar retail.

However I like Walmart’s business resistance in a recessionary period as they provide low-cost products. It appears lately they have been pushing for even lower costs from providers.

My largest concern for Walmart is President Trump’s border tax talk. The details have not yet been released but it does not favor Walmart… However with the tax cuts and deregulation, it’s possible that Walmart will still come out stronger despite everything. This is why, at least for the time being, I’m holding on to my WMT shares.

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H&R REIT

H&R REIT raised dividends 2.2% in Q3 2016

Dividend Raises

On November 24th, H&R REIT (TSX: HR.UN) released their Q3 press release which read: “the trustees have approved an increase in the current monthly distribution per Stapled Unit resulting in a $0.03 annual increase to a total of $1.38 per annum.” (hr-reit.com)

Note that this is a belated post. I missed this announcement in November, but want to keep my dividend income spreadsheet up-to-date. HR.UN is one of the first stocks I bought for real estate income; it’s roughly 6% dividend caught me in as I started my journey. I was recently thinking of selling this position to consolidate into PLZ.UN but finding out that they increased their distribution makes me think otherwise.

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Enbridge Income Fund

Enbridge Income Fund’s Dividend Shoots up 10%

Dividend Raises

On January 5th, “Enbridge Income Fund Holdings Inc. (TSX:ENF) (the “Company”) announced that its Board of Directors has declared a cash dividend of $0.1711 per common share of the Company (“Share”) to be paid on February 15, 2017 to shareholders of record at the close of business on January 31, 2017. This represents a 10% increase in the monthly dividend over 2016.” (enbridgeincomefund.com)

I just recently bought some more ENF last month as I thought it was attractively valued. I consider it a very safe, sit-and-relax position that I can reap very large dividends from. Not to mention they are committed to a shareholder-friendly dividend growth program like the parent company Enbridge.

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National Bank of Canada Logo

National Bank of Canada raises dividend 2%

Dividend Raises

On December 2nd, the Board of Directors at National Bank of Canada announced “a dividend of 56 cents per common share, up 1 cent or 2%, payable on February 1, 2017 to shareholders of record on December 28, 2016” (www.nbc.ca)

Before Net Increase After
Annual Dividend $2.20 $0.04 $2.24
Monthly Dividend $0.183 $0.004 $0.187
Percentage Increase 1.82%

National Bank was one of my smallest investments made, and yet bears the largest gain at over 55%. That was an unfortunate combination, but this Quebec-based company continues to deliver dividend raises and so I will hold on to my shares and perhaps add more when the market valuation drops and the dividend returns to my large yield-on-cost. At the time, however, it appears that banks with exposure to the U.S.A offer more upside (Royal Bank, or TD).

Dividend Income increased 0.05%

Considering the Dividend Beginner portfolio contains 30 shares of NA, my annual income from NA has increased by $1.20, from $ 66.00 to $67.20. My 12-month forward dividend income has increased from $2,294.04 to $2,295.24, an increase of 0.05%. My income from NA accounts for 2.7% of my annual dividend income.

While a $1.20 increase in annual dividend income seems quite low, think about how it would require an investment of $29.48, at a yield of 4.07% (NA’s dividend yield) to generate $1.20 in dividend income. That’s the equivalent of getting one to three hours of your life back, depending on your wage.

Before Net Increase After
Annual Dividend $ 2,294.04 $1.20 $ 2,295.24
Monthly Dividend $191.17 $0.10 $191.27
Percentage Increase 0.05%
Plaza Retail REIT

Plaza Retail REIT Delivers a 4% Dividend Raise

Dividend Raises

On November 9th, “Plaza Retail REIT (TSX: PLZ.UN) (“Plaza” or the “REIT”) today announced that its Board of Trustees has approved an increase in its annual distribution to unitholders to $0.27 per unit, representing a 3.8% increase.” (plaza.ca)

Before Net Increase After
Annual Dividend $0.26 $0.01 $0.27
Monthly Dividend $0.0217 $0.0008 $0.0225
Percentage Increase 3.85%

Plaza Retail REIT is my only real estate trust which has a consecutive dividend increase streak, with 14 straight years under their belt. There are very few Canadian REIT which also sport a dividend increase streak. The increases are small but reliable on PLZ.UN, and the share price has been very conservative / non-volatile, while increasing steadily.

Michael Zakuta, President and CEO said, “The distribution increase represents the fourteenth consecutive annual increase since we began paying distributions in 2003.  We have more than tripled our distribution over the last 14 years, as our initial 8 cents per unit distribution has grown to 27 cents per unit.  The more than tripling of our distribution over the last 14 years is a strong confirmation of our value-add business model and our ability to consistently grow our business and deliver results to our unitholders.  Our business continues to benefit and grow from development and redevelopment activity.  Our goal is always to achieve cash flow per unit and NAV growth and pass that growth onto our unitholders.” (plaza.ca)

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My publishings on dividendbeginner.com references an opinion and is for information or entertainment purposes only. It is not intended to be investment advice. Seek a duly licensed professional for investment advice. I am not responsible for any decisions you make concerning finances, taxes, or investments. You must perform your own research and always take caution when extending capital.