Thursday, July 25, 2019

Recent Dividend Increase

The plant based burgers have started to become a goto burger place of choice for more people these days.  Also, the organic movement in general is gaining more momentum.  A documentary on Netflix called Knives and Forks have made people more aware of the benefits of eating a plant based diet.  

A&W Restaurants have for the past several years have changed they way make their food and where their food comes from at the beginning of the food chain.  Using meat from animals that were not giving antibiotics or growth via hormones for starters.

A&W released their earnings for their A&W Royalties Income Fund on July 24.  A&W announced a distribution increase from $0.154 to $0.159 starting with the July distribution to be paid on Aug 31.  This represents a distribution increase of 3.25%.  

I currently own 38 shares of AW.UN, so this increase adds $2.28 to my annual dividend income. This is equivalent of investing $65.14 of my own money at 3.5%.

A&W Royalties Income Fund has raised their distribution 5 times in last 13 months. The monthly distribution was increased from $0.138 to $0.159 over that time span, which is an increase 15.2%.

Immediately below, is a graph of the monthly distribution rate per unit over the past year.  

Monthly Distribution Rate Over Past Year

Immediately below, is the monthly distribution I have received over the past 12 months for owing 38 units of AW.UN. 

Distributions Received Over The Last Year. 

A&W Restaurants have most of their restaurants in Western Canada, primarily in Alberta.  The restaurants have been effected by the fall of world oil prices over the past several years.  However, with more and more people looking for healthier food options these days, the restaurants have saw an increase in people over their competition like McDonald's.  

Disclosure:  Long AW.UN

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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