Saturday, February 24, 2018

Recent Dividend Increases

        I do not know about you, but the first think I check in the morning is to see if I got any dividend increases. Some of the headlines do not state "dividend increase" or "distribution increase" in the title of the headline.
        Ideally, we look for dividend increases that are above the rate of inflation.  Some people will complain about a 5% dividend increase.  Being an employee, how often do you hear people getting raises in the way of being called into the office of the boss and are given a raise.  Well, these raises are more difficult to come by.  The other type of "raise" that an employee receives is a cost of living increase.  This cost of living increase is more than likely to be across the board and is usually 3% or less.


    During the past month, the Canadian banks started to report earnings.  The Canadian Imperial Bank of Commerce, or CIBC, reported their earnings and announced a dividend increase of $0.12 annually.  The dividend was increase from $5.20 to $5.32 annually, which represents an increase of 2.31%.  The Canadian banks have been raising their dividends twice annually the past several years. The TD Bank raises their dividend once a year.

   I own 28 shares of CIBC (ticker symbol CM.TO ), so this increase adds $3.36 to my annual dividend income.  This is equivalent to investing $96 of my own money at 3.5% yield.

    Killiam Properties REIT (ticker symbol KMP.UN.TO), reported earnings a few weeks back.  I did not see "distribution" increase in any headline title.  So, I clicked on a headline of their earnings release and discovered KMP.UN.TO increased their distribution.  KMP.UN.TO pays a monthly distribution, so the increase is to take effect for the March distribution that will be paid in April.  KMP.UN.TO increased their annual distribution from $0.62 to $0.64 per unit per year.  This represents a distribution increase of 3.23%.

  I own 302 units of KMP.UN.TO, the distribution increase adds $6.04 to my annual dividend / distribution income.  The is equivalent to investing $172.57 of my own money at an average yield of 3.5%.

Each an every increase helps.

Disclosure:  Long CM.TO, KMP.UN.TO

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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