Saturday, February 18, 2017

Recent Dividend Increases

  We are just past the mid point of February 2017, and I have received 4 dividend increases so far. Dividends are "proof in the pudding" that a company has profits.  Therefore dividend increases indicate the Board of Directors believe the company will grow its profits and therefore like to award their shareholders with a dividend increase.  A lot of companies increase the dividends every year.  If  a company has increased their dividend for 25 consecutive years, an investor can be confident that the company will increase the dividend the following year.

     The first dividend increase I received was from Enbridge Inc, which you can read about here.  Enbridge Inc. (ENB) trades on both the NYSE and the Toronto Stock Exchange.  This dividend increase was 10%.  This past week, Enbridge's deal to acquire Spectra Energy was approved by regulators. The deal was previously approved by shareholders of both companies.  ENB has stated the dividend would likely increase some more once the Spectra Energy acquisition was approved.  As of Feb 18, this dividend increases mean I will collect $10.38 more in dividends over the next 12 months.

     Canadian National Railway is the only railway in North America that services 3 coasts.  These coasts are east coast via Halifax and Montreal, west coast via ports of Vancouver and Prince Rupert, and the Gulf coast.  Currently, Halifax is the closest port to Europe and Asia on the East Coast.  Bill Gates company owns approximately 14% of CN Rail. CN Rail trades on the NYSE (CNI) and Toronto Stock Exchange (CNR).  CN Rail, became was part of a crown corporation and became privatized on Nov 17, 1995. Since the privatization of CN RAIL and becoming a public company, CN Rail is considered to be the best railroad company in North America. CN Rail increase its dividend by $0.15 per share annually, from $1.50 to $1.65.  I currently own 38 shares of CNR, which means my dividend income increases $5.70.

    Bell Canada Enterprises (BCE) is one of the big 3 telecom providers in Canada. They communication services include internet, digital TV, telephone and wireless.  The industry has lots of regulations to contend with via the CRTC. CRTC is the Canadian Radio-Television and Telephone Commission. The CRTC is an administrative tribunal that regulates and supervises broadcasting and telecommunications in the public interest.  On February 2, BCE released its 4Q earnings and announced a dividend increase of 5.1%. This represents a $0.14 per share per year increase from $2.73 to $2.87 per share.  Currently, I own 100 shares so this means my annual dividend income increases $14.00  over the next 12 months.   BCE is also a significant investor in Canada's leading sports and entertainment institutions, the Montreal Canadiens and Maple Leafs Sports and Entertainment. Bell  is a minority owner  of the Montreal Canadiens, represents 18%. So I own a tiny sliver of the Montreal Canadiens and the Maple Leafs via my investment in BCE.

    Killam Properties REIT, is a real estate investment trust, headquartered in Halifax, Nova Scotia. Killim Properties REIT (KMP.UN) operated as a corporation and converted to a REIT on January 1, 2016. KMP.UN owns, manages and develops multi-family residential properties in Atlantic Canada, Ontario and Alberta. Alberta is currently going through a major recession due to the price of a barrel of crude oil. Fortunately, KMP.UMN does not have a lot of exposure to the Alberta market. KMP.UN could pick up new properties in Alberta as well below Net Asset Value due to this recession.  During the last week, KMP.UN releases its earnings and announced a distribution increase of 3.3% from $0.60 to $0.62 per unit per year. KMP.UN pays a monthly distribution.  The distribution increase comes into affect for March's distribution that is paid out mid April.  I currently own 302 units of KMP.UN, so this means my dividend income will increase $6.04 over the next 12 months.

  • ENB   - $10.38 increase in total between 2 different accounts
  • BCE - $14.00
  • CNR - $5.70
  • KMP.UN - $6.04
The net increase in my dividend income is $36.12.  If I was to invest my own money and using a yield of 3.5%, I would have to invest $1032.00 of my own money.

Disclosure:  Long ENB, BCE, CNR, KMP.UN

Photo Credit: www.mipaq,

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. Awesome increases. Then if you drip those will become larger and larger. That's what I love about this.

  2. Regular dividend increases are great! Helps that snowball get larger and larger! Congratulations and take care.