Thursday, October 20, 2016

Recent Dividend Increase

 As an investor in a dividend growth stock, what is that I look for as an investor?  As an investor, I look for a history of dividend growth.  On October 20th, Transforce Inc (ticker symbol : TFI ) released its earnings for their most recent quarter. Some of the highlights are as follows:

  • Operating income of $72.4 million, or 8.1% of revenue before fuel surcharge; solid year-over-year improvements in Package and Courier, as well as in LTL
  • Adjusted net income from continuing operations* of $56.4 million, or $0.60 per diluted share*, versus $48.6 million last year, or $0.48 per diluted share
  • Free cash flow from continuing operations* of $81.3 million, or $0.88 per share*, a portion of which was returned to shareholders through the repurchase of common shares ($41.8 million) and dividends ($15.8 million)
  • Quarterly dividend increased 12% to $0.19 per share from $0.17 previously 
  •  Revenue before fuel surcharge from continuing operations of $897.4 million

Transforce Inc. is a North American leader in the transportation and logistics industry, that is headquartered in Montreal, Canada.  They operate across Canada and operate through subsidiaries in the United States.  Transforce Inc. operates in various sectors as follows:

  • Package and courier
  • Less-than-truckload
  • truckload
  • logistics


The annual dividend rate of Transforce Inc was increased from $0.68 per year to $0.76.  This represents an increase of 11.76%.  What are the chances of getting a raise of 11.76% in a year at a job? Most jobs people never even get raises.  The might get a cost of living increase, which they interpret as a raise.  Personally, I do not consider a cost of living increase a raise as everyone usually gets this regardless of when they started to work at the particular company.  I currently own 50 shares of this company, so that means my annual dividends received increase by $4.00 for doing absolutely nothing. This is equivalent of investing $114.29 of my own money at a 3.5% yield.

Disclosure:   Long TFI

I am not a financial planner, financial advisor, accountant or tax attorney. The information on this blog represents my own thoughts and opinions and should NOT be taken as investment or business advice.

Every individual should do their due diligence to make their own financial decisions based on their financial situation and tolerance for risk.


  1. I don't know anything about TFI so thanks for the article!

    1. Passive Income Dude,

      This is a company that is often overlooked. I was lucky to get in several months ago and the price appreciated a lot.