Saturday, March 4, 2017

Recent Dividend Increase


      I recently wrote about purchasing 100 shares of TD and then selling a covered call for that stock.   At the time of purchase the annual dividend rate was $2.20 per share.  The purchase was during earnings releases for a majority of companies.

     All the big 5 banks have now released their earnings.  On March 2, TD released their earnings for the recent quarter.  They announced an increase in the annual dividend rate from $2.20 to $2.40 per share.  This represents an increase of 9.09%, which far greater than the rate of inflation.  For the past couple of years TD increases their dividend once a year, whereas the other banks of been increasing their dividend twice a year. The dividend raises of the other big banks over the span of 4 quarters usually represents an yearly increase between 7% to 10%.

    Prior to TD increasing their dividend,  my annual dividend income was increase $220.00. 

    Since I own 100 shares of TD, the dividend increase has raised my annual dividend income by $20.00.  If I was to invest my own money and assuming a 3.5%, it would mean I would have to invest roughly $571.43 of my own money.

Please Note:  My shares were purchased on the Toronto Stock Exchange. TD trades on both the Toronto Stock Exchange and NYSE.

Disclosure:  Long TD

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.

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