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Income Investing

8 Recent Dividend Raises by Canadian Companies

Why is this important? Because any management team that has the conviction to raise a dividend during an economic depression is confident in their company’s ability to pay that dividend in perpetuity.

Why are dividend raises important?

Because any management team that has the conviction to raise a dividend during an economic depression is confident in their company’s ability to pay that dividend in perpetuity. They have every excuse to not raise the dividend, yet they made the explicit choice to do so. This level of conviction from company insiders gives me – the investor – greater confidence in the viability of the business and its ability to pay its bills while generating enough free cashflow for stockholders.

Here are a few Canadian (TSX-listed) companies that have recently raised their dividends. This isn’t necessarily a recommendation to buy, but use this information as part of your mosaic of research into dividend paying stocks.

These announcements all happened between June and August 2020:

Barrick Gold

Declared a dividend of 8c (US$) / share, a 14% increase on the previous quarter’s dividend.

Ritchie Brothers Auctioneers

Increased dividends by 10% to $0.22.

TMX Group

Increased dividend by 6% to $0.70 per common share.

Centerra Gold

Increased quarterly dividend by 25% to C$0.05 per common share.

Capital Power Corp

Declared a quarterly dividend of $0.5125 per common share compared to the previous $0.48 dividend represents a 6.8% increase, and an annualized dividend of $2.05 per common share.

Yamana Gold

Increased its annual dividend by a further 12% to $0.07 per share.

Canadian Pacific

Increased dividends by 14.5% to $0.95.

Empire Company Ltd

Declared a quarterly dividend of $0.13 per share, an increase in the annualized dividend rate of 8.3%.

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