Dividend and Distribution Hikes - 2012

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AltaRed
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Re: Dividend and Distribution Hikes - 2012

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Technically, companies who deploy capital effectively and efficiently, e.g. earnings growth in the order of 5-10% per year, should be able to increase dividend payout by the same amount each and every year without affecting payout ratios. It is just that there are not many companies who have managements capable of delivering ROE/ROCE in a long term rolling average of 10% or greater. Some speculate and overreach such as MFC with its risk management, and the banks with their alphabet soup of financial instruments, while others succumb to growth egos of their CEOs and/or their institutional shareholders and buy expensive acquisitions that burden the company for years. Not many can stay true to their calling though Buffett seems to have the ability to search these out.
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Re: Dividend and Distribution Hikes - 2012

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It's dividend increase day in Canada :thumbsup:

Fortis Earns $318 Million in 2011, Delivers Record Earnings for 12th Consecutive Year, Completes Record $1.2 Billion Annual Capital Program
Fortis increased its quarterly common share dividend to 30 cents from 29 cents, commencing with the first quarter dividend payable on March 1, 2012, which translates into an annualized dividend of $1.20. Fortis has raised its annualized dividend to common shareholders for 39 consecutive years, the record for a public corporation in Canada. The dividend payout ratio was 66% in 2011.
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Pickles
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Re: Dividend and Distribution Hikes - 2012

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Peculiar_Investor wrote: [url=http://www.marketwire.com/press-release ... 617625.htm]Fortis increased its quarterly common share dividend to 30 cents from 29 cents, commencing with the first quarter dividend payable on March 1, 2012, which translates into an annualized dividend of $1.20. Fortis has raised its annualized dividend to common shareholders for 39 consecutive years, the record for a public corporation in Canada. The dividend payout ratio was 66% in 2011.
[/quote]

Previously announced. I hate when they announce twice.
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Re: Dividend and Distribution Hikes - 2012

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Pickles wrote:Previously announced. I hate when they announce twice.
Me too :evil: I did a search within the topic for "Fortis" and nothing turned up, so presumed it was a new announcement. Prompted by your post, did a forum search of Stocks, Bonds, ETFs, Funds, REITS and More and found it was announced more than once. :oops:
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Nemo2
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Re: Dividend and Distribution Hikes - 2012

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Peculiar_Investor wrote:
Pickles wrote:Previously announced. I hate when they announce twice.
Me too :evil: I did a search within the topic for "Fortis" and nothing turned up, so presumed it was a new announcement. Prompted by your post, did a forum search of Stocks, Bonds, ETFs, Funds, REITS and More and found it was announced more than once. :oops:
Me three.....when I read the announcement earlier I went straight to our spreadsheet to update....and found I'd already previously posted it. Bummer.
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Re: Dividend and Distribution Hikes - 2012

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CMG up 18%
Computer Modelling Group Ltd. ("CMG" or the "Company") (TSX:CMG) announces an 18% increase in its quarterly dividend to $0.13 per share on CMG's Common Shares. The dividend will be paid on March 15, 2012 to shareholders of record at the close of business on March 8, 2012.
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Re: Dividend and Distribution Hikes - 2012

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jeremy wrote:CMG up 18%
Computer Modelling Group Ltd. ("CMG" or the "Company") (TSX:CMG) announces an 18% increase in its quarterly dividend to $0.13 per share on CMG's Common Shares. The dividend will be paid on March 15, 2012 to shareholders of record at the close of business on March 8, 2012.
In addition of paying a special dividend almost every year, CMG has increased its quarterly dividend so many times in the last seven years that I lost the count. Great little Canadian company, still not very well known in spite of its incredible success.
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Re: Dividend and Distribution Hikes - 2012

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I've more than doubled my money on CMG in two years. It's been one of my best investments.
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Re: Dividend and Distribution Hikes - 2012

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Lorillard, Inc. Reports Record Fourth Quarter and Annual 2011 Results and 19% Dividend Increase
Lorillard announced today that its Board of Directors approved a 19% increase in the quarterly dividend on its common stock from $1.30 per share to $1.55 per share.
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During the fourth quarter of 2011, the Company repurchased approximately 3.3 million shares at a cost of $366 million
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Re: Dividend and Distribution Hikes - 2012

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Jo Anne wrote:I've more than doubled my money on CMG in two years. It's been one of my best investments.
I bought my shares in 2005. Sold part of the position over the years, but still maintain a good chunk. Who said that Buy and Hold doesn't work anymore?
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Re: Dividend and Distribution Hikes - 2012

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Thomson Reuters (TSX: TRI) (NYSE: TRI)

The Board approved $0.04 annual dividend increase to $1.28 per share
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adrian2
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Re: Dividend and Distribution Hikes - 2012

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Pickles, with my underlinings, wrote:I'm not sure how TRI's 12 year dividend history compares to the banks and insurance companies but it looks like the latter's were based on financial activity that caused a worldwide crisis and required government intervention. Also, Canadian banks and insurance companies could not sustain their annual dividend increases during the crisis whereas Thomson-Reuters has. For a dividend investor, this slow growth is better than a cut or dividend increase for years.
- Canadian banks have been paying dividends for well over 100 years.
- Some of the Canadian banks and insurance companies chose not to increase their dividends through the financial crisis, all of them were strongly advised by the OSFI not to do it, as to send "the correct message" to the public. I seriously doubt that for any Canadian bank, paying a dividend of x dollars annually through the crisis would be that different from paying x + 10 cents or x -10 cents. IMO, they could have increased their dividends by a token amount every year.
- I refuse to invest in Reuters as a principled position against their news policy of failing to identify terrorists with the appropriate wording, and calling them "militants". My money, my call.
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Pickles
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Re: Dividend and Distribution Hikes - 2012

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adrian2 wrote: - Some of the Canadian banks and insurance companies chose not to increase their dividends through the financial crisis, all of them were strongly advised by the OSFI not to do it, as to send "the correct message" to the public. I seriously doubt that for any Canadian bank, paying a dividend of x dollars annually through the crisis would be that different from paying x + 10 cents or x -10 cents. IMO, they could have increased their dividends by a token amount every year.
- I refuse to invest in Reuters as a principled position against their news policy of failing to identify terrorists with the appropriate wording, and calling them "militants". My money, my call.
I take your point about the banks making a prudent call. As to the terrorist/militant issue, I'm not familiar with it. I am not heavily enamored of TRI, but find trading in and out -- and collecting the dividend in the meantime -- has worked reasonably well for me. This time it's the dividend that's motivating me most.
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Re: Dividend and Distribution Hikes - 2012

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Compass Minerals (CMP) increased its quarterly dividend by 10% to $0.495 per share.

LINK
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Re: Dividend and Distribution Hikes - 2012

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Pickles wrote: I'm not sure how TRI's 12 year dividend history compares to the banks and insurance companies but it looks like the latter's were based on financial activity that caused a worldwide crisis and required government intervention. Also, Canadian banks and insurance companies could not sustain their annual dividend increases during the crisis whereas Thomson-Reuters has. For a dividend investor, this slow growth is better than a cut or dividend increase for years.
I agree with adrian2 here (woah!) -- the lack of dividend growth at the Canadian banks is one of policy, not of underlying stress on the banks' balance sheets. The lack of dividend growth at the banks may actually have induced a tautology -- excess capital on the banks' balance sheets forced the banks to compete aggressively with each other, driving down lending spreads across the industry, and hence, reducing earnings growth (and prolonging the housing bubble/inflating it to new levels!).

When dividends at the banks rise, wham, spreads should start widening as the banks aren't trying to deploy excess capital in competition with each other.

If we see a broad lending contraction in Canada, it wouldn't surprise me to see the banks paying out dividends far in excess of earnings, as shrunken balance sheets require less capital to achieve the same levels of earnings.

ie: with $1T of mortgages at 4%, and a 20:1 multiplier, the banks require $50B of capital to hold such positions. With $500B of mortgages at 8%, the banks only require $25B of capital. $25B thus becomes excess capital held within the banking system that can be paid as dividends to the owners of the bank. Additionally, if the BoC/GoC holds interest rates down in an attempt to reflate housing prices -- not only can the banks dividend out the excess capital, but earnings would also grow dramatically.
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Re: Dividend and Distribution Hikes - 2012

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The Board of Directors (Board) of TransCanada declared a quarterly dividend of $0.44 per common share for the quarter ending March 31, 2012 on the Company's outstanding common shares, a five per cent increase over the $0.42 per share paid in each of the previous four quarters.

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Re: Dividend and Distribution Hikes - 2012

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andyt wrote:The Board of Directors (Board) of TransCanada declared a quarterly dividend of $0.44 ...

TransCanada's dividend growth has averaged $0.08 per year for the last 12 years (since they cut their dividend).
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Re: Dividend and Distribution Hikes - 2012

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Next up, Cenovus Energy -- Cenovus Q4 news release
The Board of Directors approved a dividend increase of 10% for the first quarter of
2012 resulting in a quarterly dividend of $0.22 per share.
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Re: Dividend and Distribution Hikes - 2012

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This one looks to be turning into a decent yield play.

TEVA pharmaceutical increases dividend by 25%

Glad to see that they're focusing on reducing their dependence on Copaxone. After all, one of the big (potential) attractions of this company as an investment for me is getting away from the patent expiry/litigation risks associated with blockbuster drugs.
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Re: Dividend and Distribution Hikes - 2012

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Stantec (STN) declares first dividend
Stantec (STN) is pleased to announce that its board of directors has approved a dividend policy, and concurrently declared its first quarterly dividend of C$0.15 per share, payable on April 17, 2012, to shareholders of record on March 30, 2012. The declaration of a dividend reflects the confidence of Stantec’s board of directors and management in the Company’s ability to generate ongoing cash flow from operations, continue to grow revenue, and complete strategic acquisitions while providing enhanced shareholder returns.

Of this first quarterly dividend, C$0.10 per share has been designated as an “ineligible dividend” and C$0.05 per share has been designated as an “eligible dividend” for Canadian income tax purposes.
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Re: Dividend and Distribution Hikes - 2012

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ThinkDividends wrote:Stantec (STN) declares first dividend
Stantec (STN) is pleased to announce that its board of directors has approved a dividend policy, and concurrently declared its first quarterly dividend of C$0.15 per share, payable on April 17, 2012, to shareholders of record on March 30, 2012. The declaration of a dividend reflects the confidence of Stantec’s board of directors and management in the Company’s ability to generate ongoing cash flow from operations, continue to grow revenue, and complete strategic acquisitions while providing enhanced shareholder returns.

Of this first quarterly dividend, C$0.10 per share has been designated as an “ineligible dividend” and C$0.05 per share has been designated as an “eligible dividend” for Canadian income tax purposes.
It's interesting. I have been following it for years, but never bought because it did not distribute a dividend.
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Re: Dividend and Distribution Hikes - 2012

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AutoCanada Inc. Announces an Increase in its Quarterly Dividend

EDMONTON, Feb. 15, 2012 /CNW/ - AutoCanada Inc. ("AutoCanada") (TSX: ACQ) today announced that its Board of Directors has declared a quarterly eligible dividend of $0.14 per common share, an increase of 17% from the previous quarterly dividend of $0.12 per common share. The dividend is payable on March 15, 2012 to shareholders of record at the close of business on February 29, 2012. The declared dividend represents a rate of $0.56 per share on an annualized basis.

"Having reviewed the Company's performance, Management and the Board of Directors believe that the dividend is appropriate and are pleased to have raised our dividend for the fourth consecutive quarter." stated Pat Priestner, Chief Executive Officer of AutoCanada.
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Re: Dividend and Distribution Hikes - 2012

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m1ax wrote:
ThinkDividends wrote:Stantec (STN) declares first dividend
It's interesting. I have been following it for years, but never bought because it did not distribute a dividend.
Not often I get to toot my own horn, but Best stock investment you have made in past 10 years owned it since 2000. And a view relative to buying it when it didn't pay a dividends. Now it is even a better investment. :D
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Re: Dividend and Distribution Hikes - 2012

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Agnico-Eagle Reports Fourth Quarter and Full Year 2011 Results; Record Full Year Operating Cash Flows; Dividend Increased 25% - Declared for 30th Consecutive Year.
Quarterly dividend up 25% to $0.20 per share.
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Re: Dividend and Distribution Hikes - 2012

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m1ax wrote:Agnico-Eagle Reports Fourth Quarter and Full Year 2011 Results; Record Full Year Operating Cash Flows; Dividend Increased 25%
Oh yeah... Kinross Gold (K) declared a dividend of US$0.08 per share, a 33% increase from the previous dividend of US$0.06 per common share paid on September 30, 2011.
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