September 2016 Sitrep

stock market

September was another fine month for dividend increases. We had decent size pay raises from Lockheed Martin, the worlds biggest defence contractor as well as a few others.

I expect LMT to continue to see steady growth in earning per share in the long term, as the west seeks ever more sophisticated weapons systems to counter the expansionist Chinese ambitions in the pacific and belligerent Russian actions in the east.

One of the many things I like about LMT is their diversification, they aren’t just building the F-35, they also build ships, missiles and countless other weapon systems. Nearly all of which are best in class and all of them require long term maintenance contracts.

I don’t see these trends ending anytime soon as the US, China and Russia each vie to be the words top superpower in the coming decades.

We also saw nice increases from Saputo the dairy producer, Fortis the utility company and token increase from Philip Morris the tobacco company, as PM continues to face currency headwinds.

I am expecting hefty dividend increases in October for both Starbucks and Visa as both of them continue to report solid quarterly growth and remain best in class.

Company Date Number of Shares old dividend new dividend % increase old annual new annual Amount increase
PM 12-Sep-16 220 4.08 4.16 2 897.6 915.2 17.6 USD
Saputo 16-Sep-16 1170 0.54 0.6 11.1 631.8 702 70.2 CDN
LMT 22-Sep-16 125 6.6 7.28 10.3 825 910 85 USD
FTS 28-Sep-16 1421 1.5 1.6 6.7 2131.5 2273.6 142.1 CDN

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