Saturday, October 23, 2021

Recent Dividend Increase

 A&W Royalties Income Fund announced their earnings on October 20, 2021.  The fund indicated that same store sales increase 17% in the recent quarter.  As COVID19 restrictions are being relaxed to a degree, means the A&W restaurants can serve more customers.

The restaurants can serve customers for take out, in-person dining and via the drive thru.  Not everyone owns a vehicle, so restaurants lost a lot of revenue when in-person dining was not allowed as part of COVID19 restrictions.

 The amount of open restaurants in the royalty pool increased by 23 over 2020.

A&W Royalties Income Fund increased their distribution from $0.15 per unit per month to $0.155 per unit per month.  This is an increase of 3.3%.

 I currently own 38 units of AW-UN.TO.  Therefore, this increase adds $2.28 CDN to my annual dividend income. 


Summary:

This distribution increase is the 3rd distribution increase in 2021.  The monthly distribution went from $0.10 per unit, too $0.135 per unit, to $0.15 per unit to $0.155 per unit.  From the start of the 2021, the distribution increased 55%.  A reason for the big increase was due to the distribution was suspended around March 2020 due to the rise of COVID19.   

With the most recent distribution increase,  the distribution is near what it was pre-pandemic.  

Note:  The distribution payments are considered non-eligible dividends for this fund, which means that the distributions are not eligible for the dividend tax credit.  Therefore, I own the units inside my TFSA. 

Disclosure:  Long AW-UN.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

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