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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%

 

Dividend Beginner

A 22 year old Canadian dividend growth investor striving for early financial independence; building as many passive income streams as early as possible.
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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.