Tuesday, October 25, 2011

Dividend Increase, Third Quarter 2

Today, I am updating my spreadsheet on dividends. For all my stocks, I have shown in the “11” (for 2011) column, if a company has actually increased their dividend yet for their current financial year ending in December 2011. In the “div” column preceding, I show the percentage increase in the dividends for the company’s financial year ending in 2011. I have also added columns of “Div” and “12” for any of my stocks that have financial years not ending in December 2011 and they are therefore into their 2012 financial year.

For the second quarter of 2011, I had 7 companies increase their dividends. I will cover the remaining 4 today. You can use your mouse to highlight a line in my htm documents.

Davis & Henderson (TSX-DH) down, then up
Royal Bank (TSX-RY)
Saputo Inc. (TSX-SAP)
Alimentation Couche Tard (TSX-ATD.A)

The first company to talk about is Davis & Henderson. I first bought this company in 2009. It was an income trust at that time and it duly converted to a corporation and cut it dividends by almost 35%. Now in the third quarter, it has raised its dividend 3.3%. This is not a great rise, but it is probably more than inflation.

I bought more of this company in 2010 and 2011 and my total return is 10.75% per year. This stock currently has a great yield of 7.38%. Recently, analysts have upped expect CF for 2011 and 2011, downgraded the EPS for 2011, but upped it for 2012. The Dividend Payout Ratios for Earnings and CF are probably a little high for 2011 at estimates of 64% and 54%, but the company hasn’t got much debt.

For my last full blog entries on this stock in May 2011, click here or here.

For Royal Bank, the dividend raise for the third quarter of this year is the first one since 2008. I guess the increase of 8% is fine, but it is lower than past rises, which were about twice this. The expected DPR for 2011 are 47% for both earnings and cash flow. Estimates have recently changed with Earnings going up and cash flow going down for 2011. I have been invested in the Royal Bank since 1995 and my total return is 18% per year.

For my last full blog entries on this stock in December 2010, click here or here.

The next stock to talk about is Saputo. This is a retail stock with a low dividend yield (currently at 1.8%) and a usually high dividend increase. This recent dividend increase of 18.8% is good. I bought this stock in 2006 and 2007 and my total return is 18.7% per year. Probably only 2% is dividends. This stock has low DPRs, probably because it needs money for growth. It also has good debt ratios.

For my last full blog entries on this stock in July 2011, click here or here.

The last stock to talk about is Alimentation Couche Tard. This is another retail stock. It has extremely low dividend yields (less than1%), but very low DPRs and ok debt ratios. The recent dividend increases was 25% with the total increase in dividends for their financial year ending in 2012 at 39%, as this company increased their dividend in the middle of their last financial year also (that is two dividends ago).

I have bought stock in this company in 2004, 2006 and 2007 and have made a total return of 11.3% per year. Less than 1% would be attributable to dividends. For my last full blog entries on this stock in August 2011, click here or here.

This blog is meant for educational purposes only, and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. See my website for stocks followed and investment notes. Follow me on twitter.

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