Dividend Growth 2

This article by Bob Carrick in the Globe and Mail talks about how dividends had much better growth in 2007 than today. One thing he does not mention is inflation rates compared to dividend growth. According to the Bank of Canada inflation is really low compared to the past.

In another post about Dividend Growth I looked at dividend increases and decreases for the 5 years to 2007 and to 2015. In this post, I want to look at my portfolio's dividend growth compared with the TSX and inflation.

In this first table I am looking at these items for the 5 year period to December 2015. This looks at my dividend growth average per year and actual growth per year and compares it to the TSX Stock Market, Inflation Total and Inflation Core growth and growth per year. The last column gives my actual dividend growth per year over the period.

Item	Grwth	Dec-15	Dec-14	Dec-13	Dec-12	Dec-11	Dec-10
Div Grwth	8.16%	7.58%	3.83%	10.53%	9.63%	9.23%	5.29%
Change		97.83%	-63.59%	9.31%	4.34%	74.47%
TSX	-0.65%	13009.95	14744.70	13621.55	12433.53	11955.09	13443.22
Change		-11.77%	8.25%	9.55%	4.00%	-11.07%
I Total	1.49%	126.5	124.5	122.7	121.2	120.2	117.5
Change		1.61%	1.47%	1.24%	0.83%	2.30%
I. Core	1.68%	126.1	123.7	121.0	119.5	118.2	116.0
Change		1.94%	2.23%	1.26%	1.10%	1.90%
Act Div Grwth	8.13%

In this second table I am looking at these items for the 5 year period to December 2007. This looks at my dividend growth average per year and actual growth per year and compares it to the TSX Stock Market, Inflation Total and Inflation Core growth and growth per year. The last column gives my actual dividend growth per year over the period.

Item	Grwth	Dec-07	Dec-06	Dec-05	Dec-04	Dec-03	Dec-02
Div Grwth	15.90%	23.21%	23.96%	7.77%	11.64%	12.91%	32.27%
Change		-3.15%	208.53%	-33.25%	-9.84%	-99.60
TSX	15.90%	13833.06	12908.39	11272.26	9246.65	8220.89	6614.54
Change		7.16%	14.51%	21.91%	12.48%	24.29%
I Total	2.07%	112.0	109.4	107.6	105.4	103.2	101.1
Change		2.38%	1.67%	2.09%	2.13%	2.08%
I. Core	1.78%	110.0	108.4	106.2	104.6	102.8	100.7
Change		1.48%	2.07%	1.53%	1.75%	2.09%
Act Div Grwth	15.71%

What looks interesting is that even with the decline of the TSX, my dividends grew on average at 8.16% per year or totally by 8.13% per year in the 5 year period to 2015. For the 5 year period to 2007, my dividends grew per year around the same amount as the TSX.

For the years heading into 2015, when the dividend increases were the lowest, the next year was negative growth for the TSX. See Year 2010 with 5.29% dividend increase and 2011 TSX decline of 11.07%. Again when the dividend growth was low in 2014 at 3.83%, the following year had the TSX decline by 11.77%.

This does not happen in the years leading into 2007. However you can see lower TSX growth when dividend declined a lot in 2003 the TSX did not raise as much as in the previous year. When the dividend growth declined some 99% in 2003, the TSX grow only 12.48% compared to the growth of 24.29% the year before. This occurred again in 2005 and 2006 when dividend growth declined by some 33% in 2005, the TSX grow only 14.51% in 2006 compared to the 21.91% of the year before. However, dividend growth was really good in 2006, but TSX only grew at the lowest level between 2002 and 2007.

I got information on inflation from the Bank of Canada

On my other blog I wrote yesterday about Atlantic Power Corp. (TSX-ATP, NYSE-AT)... learn more. Tomorrow, I will write about Alaris Royalty Corp (TSX-AD, OTC-ALARF)... learn more on Thursday, July 20, 2016 around 5 pm.

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