Wednesday, 12 October 2016

Future Dividend Increases

Four companies I own stock in have provided guidance on future dividend growth; AQN, ENB, FTS and T.

Using their guidance, I calculated what your future YOC would be if you were to purchase shares at today's closing price.


FTS      
   
Annual Div Increase 6% $41.34  Today's Price
   
Q4 2016 $1.60 3.87%  Initial Yield
Q4 2017 $1.70  
Q4 2018 $1.80  
Q4 2019 $1.91  
Q4 2020 $2.02  
Q4 2021 $2.14 5.18%     YOC
AQN      
   
Annual Div Increase 10% $11.40  Today's Price
   
Q3 2016 USD 0.4236 4.90%  Initial Yield - Converted USD to CAD @ 1.3200
Q3 2017 USD 0.4660  
Q3 2018 USD 0.5126  
Q3 2019 USD 0.5638 6.53%  YOC - Converted USD to CAN @ 1.3200
T (Telus)      
   
Annual Div Increase 8% $42.82  Today's Price
   
2016 $1.80 4.20%     Initial Yield
2017 $1.94  
2018 $2.10  
2019 $2.27 5.30%  YOC
ENB      
   
Annual Div Increase 11% $57.94  Today's Price
   
2016 $2.12 3.66%     Initial Yield
2017 $2.35  
2018 $2.61  
2019 $2.90  
2020 $3.22  
2021 $3.57  
2022 $3.97  
2023 $4.40  
2024 $4.89 8.43%  YOC

8 comments:

  1. Is that T as in AT&T or is it from a different market? I tried searching on YahooFin CA but the only T that came up was AT&T. If that is AT&T do you mind pointing me to that guidance because that's big stuff. All the best.

    ReplyDelete
    Replies
    1. I believe it is Telus (TSE:T), a Canadian communication company

      Delete
    2. That's what I expected but then YF CA said Telus' stock symbol was TU. Must be a quirk of the YF site.

      Delete
    3. Maxime is correct. T is for Telus and you can check it out at tmxmoney.com.

      The dividend growth guidance can be found at http://about.telus.com/community/english/investor_relations/dividend_information

      Cheers

      Delete
  2. Hey, I just found out your blog! There's some really great content here. Pretty interesting post. I'm just starting as a DGI and my horizon is 25-30 years. We own a lot of the same stocks :) Good luck on your goals!

    Max

    ReplyDelete
    Replies
    1. Thanks! My advice to new investors is buy when stocks are cheap, which generally means everyone is selling. And long-term return = initial yield + div growth.

      Have fun and good luck.

      Delete
  3. Hi ADY,
    I missed the announcement from AQN. I cant seem to find that info on their IR page. Can you point me to that info?

    thanks
    R2R

    ReplyDelete
    Replies
    1. Page 5 of the 2015 annual report says: The addition of this large, well run utility to the Algonquin family will support our 10% annual dividend growth target through signi cant accretion to shareholder cash ows and earnings.

      The statement is not very clear but I took that to mean that they are targeting 10% annual dividend growth for the next 2-3 years. This may be incorrect though.

      Delete