On Friday, SNC Lavalin (SNC.TO) increased its dividend by 4.5%, from $0.88 to $0.92 per year. Given the stocks low yield, I was expecting an 8-10% increase. On the bright side, 4.5% probably covers real inflation. It would seem that management is being cautious given the Libyan, Canadian, and now Algerian scandals.
The new CEO, Robert Card, is cleaning house and I have faith the company will be back on track in a year.
In early 2012, I traded in and out of SNC Lavalin and made capital gains of $903.16 + $50.60 in dividends. Then in August and September 2012, I established a long-term position of 350 shares for $12,769.90 ($36.49/share).
My initial yield was 2.4% ($0.88/$36.49). With the recent increase, my yield on cost is 2.5% ($0.92/$36.49).