December Sitrep 2016

December is never a fantastic month for dividend increases.

Nevertheless, we still had three which is always a welcome addition in the run-up to Christmas.

National Bank of Canada and Bank of Montreal both beat analysts expectations and we were rewarded with our second dividend increase this year from both of the banks.

The surprise dividend increase was from General Electric.

This is another dividend increase that I am not supportive of. Their pay-out ratio is already very high as they have spun off the financial services part of the business. I would have rather seen the money used for debt reduction or share buy backs.

I would much rather have a healthy growing business that have an unstainable pay-out ratio with a dividend that should not be increased.

Hopefully you will reach you investing goals in 2017, see you in a month.

Company Date Number of Shares old dividend new dividend % increase old annual new annual Amount increase
National Bank 02-Dec-15 590 2.2 2.24 2 1298 1321.6 23.6 CDN
BMO 05-Dec-16 368 3.44 3.52 2.3 1265.92 1295.36 29.44 CDN
GE 09-Dec-16 954 0.92 0.96 4 877.68 915.84 38.16 USD

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