Canadian Dividend All-Stars Expected To Announce Dividend Increases - Week Of Jan. 8

by: Mat Litalien

No All-Stars are expected to announce earnings but a few should make their dividend announcements.

Canadian Utilities and Atco Limited are all but guaranteed to raise dividends.

Atrium Mortgage Investment Corporation is also well positioned to raise dividends.

Welcome to the first Canadian Dividend All-Star article of 2018! Last year, there were seven Canadian Dividend All-Stars who raised their dividends in January. Although no dividend announcements are expected with earnings this coming week, there are a few who are poised to announce a dividend bump. Of note, because the companies listed below are not expected to announce their dividends along with earnings, it makes the exact timing difficult to predict. However, in recent years they have all consistently raised dividends in early to mid-January.


Atrium Mortgage Investment Corporation (OTC:AMIVF) [TSE: AI] – Current Streak – 6 YRS, Current Yield – 7.37%

Earnings Release Date: N/A

Atrium Mortgage Investment Corporation is a non-bank lender which provides residential and commercial mortgages that lends in urban centers in Canada. The Company has a range of property and loan types, including land for redevelopment, bridge and term financing, residential apartment buildings, industrial properties, retail properties, office buildings, condo inventory loans, mixed use properties, parking lots and storage facilities. They have historically announced their dividend increase along with the first declaration of the year which comes in early January.

What can investors expect: Atrium aims to payout 100% of earnings and does so via a regular monthly dividend and a special dividend. The regular monthly dividend accounts for approximately 90% of earnings, while the special dividend which is typically announced with year-end financials in February, bumps the dividend payout close to 100%. Since they started raising dividends, the company has raised dividends by exactly C$0.02 per year. In keeping with historical trends, a yearly C$0.02 increase in 2018 would result in a 2.3% raise for a new monthly payout of approximately C$0.075/share.

Canadian Utilities (OTCPK:CDUAF) [TSE: CU] – Current Streak – 46 YRS, Current Yield – 3.88%

Earnings Release Date: N/A

Canadian Utilities is an Alberta-based corporation with approximately $15 billion in assets and is comprised of rate regulated utility operations in pipelines, natural gas and electricity transmission and distribution. Since 2008, the company has consistently raised dividends in early January.

What can investors expect: Canadian Utilities has the distinction of owning Canada`s longest dividend growth streak at 46 years. Although there are no guarantees in life, CU is as close as it comes with respect to announcing a dividend raise year after year. Not only are they reliable, but they have been incredible consistent with their 1YR, 3YR and 5YR dividend growth rates all at 10%. Another 10% increase this year would result in a new quarterly dividend of approximately C$0.3950 per share.

Atco Limited (OTC:ACLTF) [TSE: ACO.X] – Current Streak – 24 YRS, Current Yield – 2.94%

Earnings Release Date: N/A

With approximately $21 billion in assets, ATCO is a diversified global corporation delivering service excellence and innovative business solutions in Structures & Logistics, Electricity and Pipelines & Liquids. Atco is also a model of consistency having raised Q1 dividends in January since 1995.

What can investors expect: Atco`s 24 year streak is complimented by consistent dividend raises. Their 1YR, 3YR and 5YR dividend streaks all hover around 15%. Their current payout ratio of 51% is the lowest among their Utility industry peers and as such, another 15% increase seems likely. Such a raise would result in a new quarterly dividend of approximately C$0.3765.


Investors will be sure to ring in the New Year with multiple increases as two of the most consistent dividend growth companies, Canadian Utilities and Atco Limited, are sure to reward investors with a raise. Both companies are also likely to raise dividends in-line with their short term historical dividend growth rates. Likewise, although Atrium is a relatively new All-Star, with a payout ratio of 92% they are still well positioned to announce a dividend increase in 2018.

Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Editor's Note: This article discusses one or more securities that do not trade on a major U.S. exchange. Please be aware of the risks associated with these stocks.