The Globe and Mail reports in its Wednesday, Oct. 22, edition that dividends are the Swiss trains
of investing, they always arrive
on schedule, regardless of what
sort of turmoil the market is
experiencing.
The Globe's John Heinzl writes in the Yield Hog column that some firms are so predictable,
in fact, that investors can anticipate
not only when they will receive
a dividend, but when the company
will raise it.
Mr. Heinzl says Enbridge will, barring a catastrophe, increase its dividend in the next
few months.
Few dividend companies are as
predictable as pipeline operator
Enbridge, which has raised its
payment for 19 consecutive years.
With about $36-billion of commercially
secured growth projects
(as of March) and a business
model that largely insulates it
from volatile commodity prices,
the company expects to increase
its dividend by 10 per cent to 12 per cent
annually through 2017 -- matching growth in earnings per
share. Mr. Heinzl says increases are typically
announced in early December. CIBC World Markets analyst Paul Lechem maintained his "sector outperformer" rating on Enbridge in The Globe on June 26. Enbridge shares could then be had for $50.63.
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