In this post I am talking about my actual experience. In most of these accounts there was activity besides the original investment. Why I want to talk about actual experience is because life is messy. I will talk about the theory behind original yields and dividend growth and the percentage of the cost that dividends could cover in another post.
One of the earliest stocks I bought that I still have is Bank of Montreal (TSX-BMO). I bought this stock in 1983 just over 31 years ago. It is a great illustration of why I like dividend growth stocks. On my original investment, I am earning a dividend yield of 44.23%. I paid $7.28 per share when I bought this stock and the current dividend is $3.22 per shares. On my shares I have collected $44.84 per share of dividends or I have collected 615.9% of my cost in dividends.
My dividends on BMO have grown at 6.24% per year. My original dividend yield was 6.73%. The current dividend yield for this stock is 4.05%. This historical median dividend yield is 4.62%. The historical median dividend yield is important as it says where the yield is most likely to be most of the time.
I bought Fortis Inc. (TSX-FTS) in 1987 some 27 years ago. I am making a dividend yield of 29.27% on my original investment. I have received $17.69 in dividends per share on shares costing $4.65. I have received dividends equal to 380.23% of my cost.
My dividends on Fortis have grown at 5.47% per year. My original dividend yield was 6.88%. The current dividend yield is 3.5% and the historical median dividend yield is 3.67%
I bought RioCan Real Estate (TSX-REI.UN) for my Trading Account in 2000 some 15 years ago. I am making a dividend yield of 16.89% on my original investment. I paid $13.39 for my shares in this company in my Trading Account as I bought this stock on 3 different occasions. I have received in dividends $16.13 per share or 120.46% of my costs.
My Dividends have grown at 1.92% per year. When I first bought this stock the dividend yield was 12.75%. The current dividend yield is 5.1%. The historical median dividend yield is 7.81%.
I bought Canadian National Railway (TSX-CNR) almost 10 years ago. I am making 6.93% dividend yield on my original investment. I paid $19.11 per share for my shares in this company. I have collected $5.62 per share and so my dividends have covered 27.8% of the cost of my shares.
My dividends have grown at 18.48% per year. When I bought this stock my dividend yield was 1.39%. The current dividend yield for this stock is 1.43%. The historical median dividend yield is 1.44%.
I also Bought Metro Inc. (TSX-MRU) some 10 years ago. I am currently earning 7.93% in dividends on my original stock purchase price. I paid $5.89 per share for this stock and I have earned $2.45 per share in dividends. Dividends paid to date cover some 41.6% of the original stock cost.
Dividends have grown at 14.9% per year. When I bought this stock my dividend yield was 1.87%. The current dividend yield is 1.51%. The historical median dividend yield is 1.44%.
My stock Computer Modeling Group (TSX-CMG) is a little charmer. I bought this in 2008, just less than 7 years ago. I am earning 17.39% on my original investment. I have so far collected $2.42 per share in dividends and the stock cost me $3.15. That is dividends have paid for 76.7% of the share price. I was originally earning 5.2% dividend yield when I bought this stock.
Dividends have grown at 20.43% per year. When I bought this stock my dividend yield was 5.22%. The current dividend yield is 2.73%. The historical median dividend yield is 3.52%.
In the chart below, the Yield is the one I am getting on my original investment. The Collect Div refers to the amount in dividends per share I have so far collected. The Div % of Cost is showing how much of my stock's original cost is covered by the dividends I have received so far. The Div Grth refers to the rate my dividends have been growing since I bought the stock. The Years refers to the number of years I have held the stock.
| Name | Yield | Collect Div | Div % of Cost | Div Grth | Years |
|---|---|---|---|---|---|
| BMO | 44.23% | $44.84 | 615.9% | 6.24% | 31.6 |
| FTS | 29.25% | $17.69 | 380.32% | 5.47% | 27.55 |
| REI.UN | 16.89% | $16.13 | 120.46% | 1.92% | 15.2 |
| MRU | 7.93% | $2.45 | 41.63% | 14.9% | 10.8 |
| CNR | 6.93% | $5.30 | 27.8% | 18.48% | 9.9 |
| CMG | 17.39% | $2.42 | 76.67% | 20.43% | 6.8 |
On my other blog I am today writing about WSP Global Inc. (TSX-WSP, OTC- WSPOF) ... continue...
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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