Canadian Dividend All-Stars Expected To Announce Dividend Increases - End Of Year

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Includes: APYRF, BMO, ENB, LRCDF, NTIOF
by: Mat Litalien
Summary

There are a few All-Stars left to report earnings but none are expected to raise dividends.

Last week unfolded inline with expectations as all four All-Stars raised dividends.

Still no word from Enbridge, which is looking increasingly unlikely to raise by end of year.

I am happy to report that it has been another year of success dividend growth investing. Although there are still a couple of All-Stars scheduled to report earnings by end of year, none are expected to announce a dividend increase. As such, let’s recap the results from last week. Of note, all figures are in Canadian dollars unless otherwise noted.

Last Week's Results

Last week unfolded with few surprises. The Bank of Montreal (BMO)[TSX:BMO] and Laurentian Bank of Canada (OTCPK:LRCDF)[TSX:LB] both raised in line with expectations. National Bank of Canada (OTCPK:NTIOF) [TSX:NA] and Allied Properties REIT (OTCPK:APYRF) [TSX:AP.UN] raised slightly higher than expected.

EST

DGR

EST

Increase

ACTUAL

DGR

ACTUAL

Increase

NEW

DIV

Bank of Montreal

3.13%-4.17%

$0.03-0.04

4.17%

$0.04

$1.00

Laurentian Bank

1.56%

$0.01

1.56%

$0.01

$0.65

National Bank

3.32%

$0.02

4.84%

$0.03

$0.65

Allied Properties

1.92%

$0.0025

2.54%

$0.0033

$0.1333

BMO raised inline with the higher-end of estimates, a $0.04 per share quarterly raise. This brings the company’s quarterly dividend to an even $1.00 per share. Combined with its $0.03 per share raise this past May, the company has grown its dividend by 7.5% in 2018. This is a few percentage points higher than its historical three and five-year rates that have hovered around 5%.

Laurentian Bank of Canada also came through for investors despite a less than impressive quarter. The market didn’t react too kindly sending its shares to new 52-week lows. Not even the company’s $0.01 per share dividend raise could save the bank. Headwinds remain and analysts have been downgrading the stock. This is one to watch in 2019.

On the other side, National Bank of Canada posted a solid quarter beating on the top and bottom lines. It also raised slightly higher than expected with a $0.03 per share bump. Along with its raise from earlier this year, the bank has raised dividends by a healthy 8.3% in 2018.

Finally, Allied Properties crushed estimates with a $0.0033 per share raise to its monthly dividend. Ok, maybe ‘crushed’ is over-exaggerating, but its 2.54% raise was ahead of last year’s 1.96% bump. The REIT isn't flashy, but Allied has a reliable streak which is now seven years long.

Expected Dividend Raises

None! We are done for the year. That being said, there is an off-chance that there may some dividend announcements between now and end-of-year - think Enbridge (ENB). If that happens, I’ll be sure to report back and keep you all informed.

Look for my yearly recap over the next few weeks. In the meantime, I encourage you to please let me know your thoughts via the comments below. Hopefully my weekly series has been of value to you as readers.

Disclosure: I am/we are long BMO, ENB. 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.