Monday, January 14, 2008

supercharged dividends

Recently there have been a few notable dividend increases in Canadian and U.S. markets. These companies recently "supercharged" their dividends by raising them more than 20% per annum.

Telus Corp. (T.A) ------------------------ +20%
Automatic Data Processing (ADP) -------- +26%
Corus Entertainment Inc. (CJR.B)-------- +20%
Stryker Corp. (SYK) --------------------- +50%
Astral Media Inc. (ACM.B)---------------- +25%
Alimentation Couche Tard (ATD.B)------- +40%
EnCana Corp. (ECA) ---------------------- +100%
Rogers Communications (RCI.B) ---------- +100%


Anonymous said...

what would be equally if not more interesting would be a list of recently 'undercharged dividends' or recently cut.

Citi group and Washington mutual come to mind, but i'm sure more will come? The Canadian trust sector is another with impending doom and TDG.un is one that has already taken the payout plunge.

Anonymous said...

Not to be a pessimist, but true dividend investing means buying companies with a solid history of dividends ie. 10 years.

I don't see many like that on your list except Telus who was kind enough to slash its dividend by 50% 6 years ago and only recently surpass that old payout mark.

marr said...

You seem to be a friend of Telus. I would like what is your take about the following two points on Telus for your valuation of the stock.

1)Telus use CDMA standard not GSM, which is widely adapted except N. America. This means Telus customers cannot use roaming service outside N. America most of the time. Also, most of the roaming service fee goes to Rogers, the only GSM provider in the country.

2)Even if Telus does switch to GSM, it would be huge expense, which could result in dividend cut. They probably need to absorb the cost for its customers to change their handsets as well.