Thursday, June 4, 2015

Three Dividend Raises by Canadian Banks

     As Canadian banks reported their second quarter earnings last week, I was the lucky recipient of three dividend raises. Even with the price of oil still depressed, Canadian banks continued to churn out record-setting profits that supported boosting their dividends. My three raises were expected (all three banks raised their dividends in the same quarter last year) and are outlined below.

-          Laurentian bank increased their quarterly dividend by $0.02 (3.7%) to $0.56 per share.
-          Bank of Montreal raised their quarterly payout by $0.02 (2.5%) to $0.82 per share.
-          National Bank increased their quarterly dividend by $0.02 (4.0%) to $0.52 per share.

     I continue to be a big believer in the long-term prospects for Canadian banks. Their strong industry lobby group The Canadian Bankers Association , along with a favorable regulatory environment, and little foreign competition should help keep profits and dividends growing.  As you can see on my Investment Holdings page, I own every major Canadian bank with the exception of CIBC.  I wait patiently for the next time Canadian banks go on sale so that I can add more to my holdings in this important sector of the Canadian economy.



3 comments:

  1. Always nice getting a dividend raise. While I'm a big fan of the Canadian banks I don't own any of the names mentioned. I have TD, BNS and RY in my ROTH account instead. Thanks for sharing.

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  2. Thanks for your comment Keith. I'm also invested in BNS, TD, and RY (just bought more today). Do you own any US banks with similarly high yields and histories of dividend growth?

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    1. I own WFC and that's it for U.S. banks. The only other U.S. bank I would consider is USB. If you want to see my portfolio click here http://divhut.com/portfolio/

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