# Recent Dividend Increases (News and Updates)



## FrugalTrader (Oct 13, 2008)

I couldn't find a thread already started, so I thought a thread on dividend increases would be interesting for dividend investors out there.

I'll start!

August 8/12

BCE says it’s dividend rate will be increased to $2.27 per share annually, or 56.75 cents per share quarterly, beginning with the October payout.


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## Beaver101 (Nov 14, 2011)

Maybe late in the game but my favourite small-cap RSI had a dividend increase to $.36 (from $.34 or ~5.6% increase) per annum effective July 20, 2012 (found out only when paid - nice surprise so no complaint). each:


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## dubmac (Jan 9, 2011)

gotta luv Bell :love-struck:
(buy it, DRIP it & forget about it)


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## doctrine (Sep 30, 2011)

Telus's July dividend was $0.61, which was an increase from $0.58, although it was announced a while ago.


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## FrugalTrader (Oct 13, 2008)

August 2012 - FCR increased their quarterly dividend by 5% to $0.21 (up from $0.20).


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## HaroldCrump (Jun 10, 2009)

How recent are we talking about?
Agrium doubled their dividend earlier this year.
Some of the banks raised their dividends too.


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## FrugalTrader (Oct 13, 2008)

August 2012 - Ritchie Bros. Auctioneers, Inc ( TSX : RBA ) increased their quarterly dividend by 8.8% to $ 0.1225.


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## doctrine (Sep 30, 2011)

Autocanada from $0.15 to $0.16, an increase of 6.7% and the 6th dividend increase in 6 quarters.


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## Eder (Feb 16, 2011)

Algonquin Power increased their div by 11% today....they should yield about 4.7% now.

edit: I just noticed High Liner Foods increased their div by 10%.


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## Square Root (Jan 30, 2010)

BNS/TD/RY are likely to raise their divs when they report q3 results later this month.


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## Jungle (Feb 17, 2010)

Sure? They already did in the spring. Another increase would be great, but I was unsure if the multiple yearly increases were behind us. If anything seems like TD could handle it.


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## Square Root (Jan 30, 2010)

Jungle said:


> Sure? They already did in the spring. Another increase would be great, but I was unsure if the multiple yearly increases were behind us. If anything seems like TD could handle it.


Obviously one can never be sure but in decreasing order of probability would be TD/BNS/RY. Probably in the range of 3-5%. TD may even raise it's payout ratio as it is the only bank at 35-45%. Rest are higher.


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## FrugalTrader (Oct 13, 2008)

This was posted in another thread, but here it goes again:

BMO boosted its quarterly dividend to 72 cents, an increase of 2 cents. The 3-per-cent hike in the quarterly payout is the first such increase since late 2007. BMO was the only one of Canada’s major banks to have not hiked its dividend since the payouts were put on hold during the credit crisis.

http://www.theglobeandmail.com/glob...end-for-first-time-in-5-years/article4504618/


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## FrugalTrader (Oct 13, 2008)

Scotia Bank has also boosted their dividend:



> The results are slightly above analysts’ expectations, and the bank is boosting its quarterly dividend by 2 cents to 57 cents per share.


http://www.theglobeandmail.com/glob...hits-205-billion-hikes-payout/article4504624/


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## Square Root (Jan 30, 2010)

BNS also raised by $.02 so I would think we will see all 5 banks (not sure about CM's timing as it is the only bank I don't own) raising this Q. Dividends from my portfolios are up over 10% in the past year.


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## Jungle (Feb 17, 2010)

Good call Square Root, I was shocked this morning to hear BNS raised again, you were right. Let's hope RY gives us something a little extra 

And I don't own TD  could never get into the right price. More less went with RY, bns, bmo and cm when it dipped.


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## Jungle (Feb 17, 2010)

Sorry to post again, but I thought the stock price today for BMO and BNS was unflattering... I was expecting 3-5% jump in share price when estimates are smashed and dividend is hiked.


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## Square Root (Jan 30, 2010)

Jungle said:


> Sorry to post again, but I thought the stock price today for BMO and BNS was unflattering... I was expecting 3-5% jump in share price when estimates are smashed and dividend is hiked.


The market reacted positively at first but once they digested the results it eased a bit. It turns out that the results once adjusted for non recurring items wasn't as good as first appeared. Cdn retail banking was better than expected as volume growth continues to be pretty good. Given this, I think TD will do well tomorrow. I expect at least 2-3 cent div hike from TD but it could be 4cents. Interesting that BMO reduced it's payout range to be in line with the other banks, other than TD, which is lower. RY should raise it's div by 2 cents to $59/Q. In general there has traditionally been a weaker than expected link between dividend hikes and stock price. IMHO TD is the " class" stock in this group.


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## FrugalTrader (Oct 13, 2008)

Looks like RBC has increased their div as well.



> Royal Bank of Canada, the country’s largest bank, says it earned $2.2-billion in the third quarter, its highest quarterly profit ever, and is raising its dividend by 5 per cent to 60 cents per share.


http://www.theglobeandmail.com/glob...uarterly-profit-of-22-billion/article4509258/


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## 0xCC (Jan 5, 2012)

FrugalTrader said:


> Looks like BNS has increased their div as well.
> 
> 
> 
> http://www.theglobeandmail.com/glob...uarterly-profit-of-22-billion/article4509258/


I think you meant RBC...


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## FrugalTrader (Oct 13, 2008)

Looks like TD has done the same.



> In a quarter when all of Canada’s Big Five banks boosted their dividends, TD also announced it was increasing its quarterly payout to investors by 5 cents, to 77 cents, an increase of 7 per cent. It is the second time this year TD has increased its payout to shareholders.


http://www.theglobeandmail.com/globe-investor/td-profit-rises-14-increases-dividend/article4509272/


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## FrugalTrader (Oct 13, 2008)

CIBC is up!



> CIBC boosted its quarterly dividend 4 cents to 94 cents, an increase of 4.4 per cent. The bank also said it plans to buy back as many as 8.1 million shares, or roughly 2 per cent of its outstanding common shares.


http://www.theglobeandmail.com/globe-investor/cibc-profit-jumps-42-boosts-dividend/article4509250/


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## 0xCC (Jan 5, 2012)

And TD increased by 5 cents, beating Square Root's 4 cent estimate.
http://www.theglobeandmail.com/globe-investor/td-profit-rises-14-increases-dividend/article4509272/


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## Jungle (Feb 17, 2010)

Wow.. I am a couple years now in the bank stocks and I would love for this to keep going. The dividend growth is awesome.


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## Spudd (Oct 11, 2011)

Woo hoo!! $$ in the bank. (pun intended)


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## Square Root (Jan 30, 2010)

Listening to TD's analyst call. They implied that they will continue increasing divs twice per year and gradually ease into the new higher payout ratio. I think this means at least $.05 increases in Feb/Aug for the next year or two. Sounds good to me.


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## Jungle (Feb 17, 2010)

So do you think they could average 14-15% yearly dividend increases now? 
I was thinking about switching BMO and CM into TD for the higher dividend growth. It would only take 3 years at these prices to match the yield of BMO and CM.


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## MrMatt (Dec 21, 2011)

TD is a much stronger bank than BMO and CM IMO.

I do hold some TD and BNS.


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## Square Root (Jan 30, 2010)

Jungle said:


> So do you think they could average 14-15% yearly dividend increases now?
> I was thinking about switching BMO and CM into TD for the higher dividend growth. It would only take 3 years at these prices to match the yield of BMO and CM.


Analysts are saying 12-14% over next 2-3 years. I'm thinking at least $.05 raise twice next year and in 2014 This would make it $3.28 next year and $3.68 in 2014. I put that at 13.5% growth next year and 12% in 2014. Could be a little more for 2014. This is very good news for a retired guy like me who is living off my pension and dividends. Thanks Ed. All they need to do now is start paying the divs monthly.


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## Jungle (Feb 17, 2010)

How come the market does not like that BNS bought ING? 
Some analysts on BNN were turning their noses up to it as well. 
CM may not be that bad.. they have increased dividend twice in the last two years (but nothing like td and ry).. I guess it's just BMO I am frustrated with. Or would rather have bought td instead. 

Our biggest holding is RY. I went overweight really and don't regret it right now.


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## Square Root (Jan 30, 2010)

Markets often react negatively to acquistions. If my memory serves me right, the market didn't like TD's purchase of CT in 1999 either. There is integration risk and they always think the purchaser paid too much. In the case of ING there is also dilution of current shareholdets. 
The thing that I find interesting is that a higher payout ratio doesn't have much if any effect on price. Classic finance theory says investors should be indifferent to higher divs but I would have thought that in this envireonment the market would have reacted positively. Their (TD) CEO did say they raised the payout ratio in response to what their institutional investors wanted. Maybe we need to wait longer for the market to react. Quite often higher divs mean a lack of investment opportunities within the company. This has been the case at BMO until recently.


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## FrugalTrader (Oct 13, 2008)

Emera (EMA) increased their quarterly dividend from $0.3375 to $0.35 ($1.40 annually) .


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