June Sitrep

stock market

Another good couple of months of dividend increases, we are getting some nice pay raises for doing absolutely nothing. Such is the good thing about being part owner of businesses. It certainly makes up for the cuts in the energy sector last year and the early part of this year.

Oil prices are hovering around $50/barrel, up form their lows of the mid 20’s.

The Canadian banks continue to have good revenue growth, despite strong economic headwinds in the western commodity producing provinces.

My favourite utility company, Emera also gave us a nice 10% pay raise and reaffirmed guidance for an 8% compounding dividend increase through to 2020.

Many of the dividend increases look small, but do recall companies like CIBC and Telus normally increase them twice a year. Even a 7% compounding annual increase, doubles your income every 10 years. Such is the miracle of compound interest meaning that even in retirement your income can continue to grow. Of course this is not without risk as I have experience the past 18mos with the collapse in oil prices.

 

The good weather is here in Western Canada, that means we are off to Funcouver for a bit followed by soccer summer camps for the kids and plenty of time on the Mt bike. We are also heading back to Peurto Vallarta to see the dentist at Just Smiles again as a family and a bit of family time, surfing, boogie boarding, kayaking and crushing a few fish tacos.

This time we are staying a little further north on the coast as I here the surfing is better and the same dentist has a satellite location there.

Company Date Number of Shares old dividend new dividend % increase old annual new annual Amount increase
Pepsi 03-May-16 200 2.81 3.01 7.10% 562 602 40 USD
CIBC 26-May-16 383 4.36 4.84 4.00% 1669.88 1853.72 183.84 CDN
BMO 27-May-15 368 3.28 3.44 5% 1207.04 1265.92 58.88 CDN
Company Date Number of Shares old dividend new dividend % increase old annual new annual Amount increase
national bank 01-Jun-16 590 2.16 2.2 2% 1274.4 1298 23.6 CDN
Telus 10-Jun-16 1781 1.76 1.84 4.50% 3134.56 3277.04 142.48 CDN
H&P 01-Jun-16 100 2.75 2.8 1.8 275 280 5 USD
Company Date Number of Shares old dividend new dividend % increase old annual new annual Amount increase
Emera 04-Jul-16 1126 1.9 2.09 10 2139.4 2353.34 213.94 CDN

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