The thing is that stocks may not be currently growing their dividends now as they did in the past. Times change and the economic conditions for certain stocks can change. So I thought it would be interesting to see for the stocks I talked about Tuesday what the current growth is compared to the growth I had.
In looking at Royal Bank of Canada (TSX-RY, NYSE-RY) I noticed that my dividend growth over the past 22 years was at 11.60% per year. However, the dividend growth on this stock over the past 5 and 10 years is lower at 9.00% and 8.93% per year.
For Bank stocks the slowdown has happened since banks had trouble in 2008. There were no increases in 2009 and 2010. There is only one year of 2014 with an increase of 12.20% where the increase was at or above my growth rate of 11.60%.
For SNC-Lavalin Group Inc. (TSX-SNC, OTC-SNCAF) the current dividend growth rates are lower also and the slowdown occurred after 2011. For this stock, the problem was the scandal that occurred in 2012. You can read about this with an article at CBC News.
For SNC-Lavalin Group Inc. my dividends grew at 17.64% per year over the 19 year period I held them. Currently the dividends have growth at 4.36% and 13.24% per year over the past 5 and 10 years. As the sandal was handled by the company, they are doing better and you can see that in the current higher growth in dividends. The last increase was in 2017 and it was for 5%.
For Metro Inc. (TSX-MRU, OTC-MTRAF) the dividend growth is slightly lower. For the 13 years I held this stock I have had a growth rate of 18.63% per year. The current growth rates over the past 5 and 10 years are at 17.30% and 14.52% per year. The last increase was in 2017 and it was for 16.1%
For the Canadian Tire Corp (TSX-CTC.A, OTC-CDNAF) stock that I have held for 17 years, I have an average growth of 13.39% per year. Currently the dividend growth is stronger with the 5 and 10 year growth at 15.90% and 13.30% per year. The last increase was in 2017 and it was for 13%.
For Emera Inc. (TSX-EMA, OTC-EMRAF) during the 12 years I held this stock my dividend growth rate was 9.35% per year. On this stock the current growth rate is slightly lower with 5 and 10 year growth rates at 8.73% and 8.41% per year. The last increase was in 2016 and it was for 10%.
For Canadian Real Estate Investment Trust (TSX-REF.UN, OTC-CRXIF), for the 11 years I held this stock, I have a distribution growth rate of 4.50% per year. Currently, the 10 year growth in distribution is lower and the 5 year growth rate is higher. Currently the 5 and 10 year distribution growth rate is 4.95% and 3.49% per year. The last increase was in 2017 and it was for 2.2%.
For the stock that I follow, when look at 5 and 10 year dividend growth rates, I find that 50% of the stock have 5 year growth higher than the 10 year growth. Some 47% of my stocks have a 5 year growth rate lower than the 10 year rate. Some 3% have the same growth over the past 5 and 10 years.
On my other blog I wrote yesterday about Badger Daylighting Ltd. (TSX-BAD, OTC- BADFF)... learn more. Tomorrow, I will write about Chemtrade Logistics Income Fund (TSX-CHE.UN, OTC-CGIFF)... learn more on Friday, September 1, 2017 before 11am. I have another Friday road trip.
This blog is meant for educational purposes only, and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.
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