Recent Dividend Increases

As an investor in dividend paying stocks, I look forward to getting paid on regular scheduled  basis.  

You know what is even better?   I like when the company that I own raises their dividend or distribution payout, just like any other investor.  

One of the stocks I mention below have slashed their dividend over the years and it remained at a low amount for a few years.

 

Dividend Increase #1

On August 5,  Killam Properties REIT (Ticker symbol  KMP.UN.TO) announced increased their annual distribution from $0.68 CAD to $0.70 CAD.  This is an increase of 2.94%.  The distribution is paid monthly to investors.

I currently own 302 units of Killam Properties REIT.  Therefore, this increase adds $6.04 to my annual dividend income. 

This distribution increase will start with the September 2021 distribution to paid out in middle of October 2021.  

Dividend Increase #2

On August 5,  Enerplus Corporation increased their quarterly dividend from $0.033 to $0.038, or from $0.132 to $0.152 annually.  The dividend is paid in Canadian dollars.  This is an increase of 15.15%.

I currently own 753 shares of Enerplus Corporation (ERF.TO).  Therefore, this increase adds $15.06 to my annual dividend income. 

The increase will start with the next dividend payment in mid-September 2021.

Enerplus paid a monthly dividend up to May 2021.  This dividend is then switched to quarterly starting with the June payment date.  

This 15.15% dividend increase  follows a 10% increase announced in May 2021.  These two increases came after several years of dividends  cuts followed by about 5 years of the same monthly dividend. 

This is one investment that I regret as I am still down a lot.  Some of the dividend reduction was the result a structure change.  Enerplus Corporation was previously an income trust in Canada.  With an income trust, a business would paid a high dividend to investors to avoid paying taxes.  The taxes would be paid by the individual investors.

After 2011, Enerplus switched to a corporation as the federal government started to take income trusts differently.  Majority of income trusts converted to corporations for the same reason.  This was what the government wanted to happen.   

Dividend Increase #3

On August 11, Intertape Polymer Group increased their quarterly dividend from $0.1575 to $0.17 USD, or $0.63 to $0.68 USD annually.  This is an increase of 7.94%.

I currently own 120 shares of Intertape Polymer Group  (Ticker Symbol  ITP.TO).  This increase adds $6.00 USD to my annual dividend income.  This is equivalent to $7.57 in Canadian dollars at the time of this writing.

Summary:

These increases show that being patient  and owning investments for the long term will result is being rewarded.  As the profits of these companies grow, the companies will reward their investors with increasing dividend and distribution cash payments.

These 3 increases have increased my annual dividend income by $28.67 CAD, at the time of this writing.  This is equivalent of investing $819.14 of my own money at a 3.5% yield.

Disclosure:  Long  ITP.TO, KMP.UN.TO, ERF.TO

DISCLAIMER

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.