Income Investing

Manulife Investment Management on Dividend Growth Strategy

I follow a wide range of investing podcasts, journalists, pundits and more. When I come across one I think my readers would like, I share.

This recent podcast by Philip Petursson, Chief Investment Strategist, Manulife Investment Management, covers the dividend growth investing strategy.

As chief investment strategist and head of capital markets research, Philip has a range of investment strategy responsibilities, from market and economic analysis to investor education. He analyzes and interprets the economy and markets on behalf of Manulife Investment Management and works with the portfolio management teams to provide clients and investment intermediaries with guidance and commentary on strategies, and asset allocation weightings.

What happens when a dividend growth strategy is applied to exchange-traded funds (ETFs)? In this episode of Investments Unplugged, Brett Hryb, Head of Beta Management at Manulife Investment Management, joins host Philip Petursson to talk about this and related topics, including:

  • portfolio building and management
  • dividend payout ratios
  • blending active and passive investment strategies
  • what equity investors should consider.
Income Investing Investing

Canadian Natural Resources Increases Dividend by 11%

Canadian Natural Resources Limited (TSX: CNQ) (NYSE: CNQ) announces its Board of Directors has declared a quarterly cash dividend on its common shares of C$0.47 (forty-seven cents) per common share. The dividend will be payable on April 5, 2021 to shareholders of record at the close of business on March 19, 2021.

From CNQ’s recent Q4 2020 earnings announcement:

“The sustainability of our free cash flow generation provides the Board of Directors confidence to increase our dividend by 11% to $1.88 per share annually, marking the 21st consecutive year of dividend increases representing a CAGR of 20% since inception. The 2021 capital budget of approximately $3.2 billion drives targeted annual production growth of approximately 61,000 BOE/d, at the mid-point of our production range, from 2020 levels and robust free cash flow generation. At the current 2021 annual strip pricing of approximately US$57 WTI per barrel, the Company targets to generate significant annual free cash flow of approximately $4.9 billion to $5.4 billion, after our capital program and increased dividend. As a result, our balance sheet is targeted to strengthen further in 2021, with year end debt to adjusted EBITDA targeted to improve to approximately 1.2x and debt to book capitalization targeted to improve to approximately 29%, at the mid-point of the targeted free cash flow range. Subsequent to year end, in March 2021 the Board of Directors authorized management, subject to acceptance by the TSX, to repurchase shares under a Normal Course Issuer Bid (“NCIB”), equal to options exercised throughout the coming year, in order to eliminate dilution for shareholders. Our strong financial position, unique long life low decline asset base and effective and efficient operations continue to generate long-term shareholder value.”

Income Investing

S&P/TSX 60 Constituent Dividend Yields

I updated the data to March 4, 2021. The table includes forward dividend yield, p/e ratios, ex dividend dates, price to book and price to sales for all S&P/TSX 60 constituents.