Fortis (FTS) increases the dividend by 6.7%, marking their 43rd annual increase
Dividend Raises
On September 27th, Fortis announced a 6.7% boost to the quarterly dividend, raising it from $0.375 to $0.40 per share. The annual dividend payment, as a result, is now $1.60 from $1.50.
Before | Net Increase | After | |
Annual Dividend | $1.50 | $0.10 | $1.60 |
Quarterly Dividend | $0.375 | $0.025 | $0.40 |
Average Monthly Dividend | $0.125 | $0.008 | $0.13 |
Percentage Increase | 6.7% |
This marks Fortis’ 43rd consecutive dividend increase. The corporation is one of the few high-quality Canadian companies which have a defined dividend growth plan; which I am a humongous fan of. I would love for more Canadian companies to define dividend growth plans as Fortis, Telus and Enbridge have. Fortis’ dividend growth plan is to increase the dividend by 6% through 2021.
Dividend Income increased 0.18%
Considering the Dividend Beginner portfolio contains 40 shares of FTS, my annual income from FTS has increased by $4.00, from $60.00 to $64.00. My 12-month forward dividend income has increased from $2,209.34 to $2,2013.34, an increase of 0.18%. My income from FTS accounts for 2.89% of my annual dividend income. I’m incredibly comfortable with my exposure to FTS and would very much like to add to my position in the near future.
While a $4.00 increase in annual dividend income seems quite low, think about how it would require an investment of $106.00, at a yield of 3.79% (FTS’ dividend yield) to generate $4.00 in dividend income. That’s the equivalent of getting one to eleven hours of your life back, depending on your wage.
Before | Net Increase | After | |
Annual Dividend Income | $2,209.34 | $4.00 | $2,213.34 |
Monthly Dividend Income | $184.11 | $0.33 | $184.145 |
Percentage Increase | 0.18% |
1 Comment
Loved seeing this news, more money for no reason is always welcome 🙂 Will definitely be increasing my position in FTS when I have more money.