Wednesday, December 11, 2019

10 Canadian Companies Providing Dividend Growth Guidance

Two years ago, I posted a summary of Canadian companies that provide dividend growth guidance. I find this guidance useful as it helps me assess the capital allocation plans for companies, introduces a soft control by which to judge management's actions, and assists me in projecting the organic dividend growth rate of my portfolio for the next year. 

Of the Canadian companies that provide dividend growth guidance, Enbridge Inc. (TSE: ENB, NYSE: ENB) is likely the best known. During their Investor Day presentation yesterday (December 10th), they raised their dividend by 9.8% (slightly below their previous guidance of 10%), and said that after 2020, dividend growth was projected to be in the 5% - 7% range, in-line with their distributable cashflow growth projections. 

This downward adjustment to dividend growth guidance seems to be the norm lately for Canadian energy producers and pipeline companies. Given this trend of adjusting dividend guidance downward, and since it's the point in the year that dividend growth investors think about setting their dividend income goals for next year, I thought it would be an opportune time to update my list of Canadian companies providing dividend growth guidance. 

Please consider the table below a starting point for further research and let me know of any other Canadian companies that provide dividend growth guidance. I'll gladly update the table with your input. Lastly, I almost included BCE Inc. as management has stated their goal to grow their dividend by 5% next year. However, given management's language of the 5% dividend growth was pretty vague, I opted for the conservative approach of not including them below. 

TC Energy Corp (TRP)
Dividend growth of 8-10% through 2021, 5-7% after 2021
Enbridge Inc (ENB)
Dividend growth of 5-7% per year after 2020
Emera Inc (EMA)
Dividend growth of 4-5% per year through 2021
Telus Corp (T)
Dividend growth of 7-10% per year through 2022
Capital Power Corp (CPX)
Dividend growth of 7% per year through 2021, 5% in 2022
Fortis Inc (FTS)
Dividend growth of 6% per year through 2024
Algonquin Power (AQN)
Dividend growth of 10% per year through 2021
Brookfield Infrastructure Partners (BIP.UN)
Annual distribution increases of 5-9%
Brookfield Renewable Partners (BEP.UN)
Annual distribution increases of 5-9%
Brookfield Property Partners (BPY.UN)
Annual distribution growth of 5-8%

Does dividend growth guidance make you more likely to invest in a company? 


  1. Thanks for compiling this list. Should be another good round of raises in early 2020 for investors.


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  3. The guidance is mildly helpful, but I prefer to look at the past record. My wife and I have owned all of the above (except Algonquin) for many years.


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