Canadian Dividend All-Stars – Week of Aug 9

Posted on August 10, 2021 by Mathieu Litalien

We are entering the second week of August and once again we are expecting a couple of dividend raises from Canadian dividend stocks. Unfortunately, there won’t be much action beyond this coming week because the banks still have not been given permission to raise dividends. That means, the next set of dividend raises by Canadian Dividend All Stars are likely to come in September.

But first, there is plenty of action to recap from last week.

Of note, all figures are in Canadian dollars unless otherwise noted.

Recent dividend updates

Last week had a little bit of everything. There was some disappointment as Stingray Group (TSE:RAY.A) kept its dividend steady. A surprise, as Open Text (TSE:OTEX) raised sooner than expected. Some steady results, as both Ritchie Bros Auctioneers (TSE:RBA) and Saputo (TSE:SAP) both came through with their annual raises.

Company

EST DGR

EST Increase

Actual DGR

Actual Increase

New Div

OTEX

N/A

N/A

10.01%

$0.0201

$0.2209

RBA

9.52%

$0.02

13.64%

$0.03

$0.25

SAP

2.86%

$0.005

2.86%

$0.005

$0.18

Let’s start with Open Text which surprised investors with a 10% raise to the dividend. Historically, the company had a pretty reliable dividend growth pattern but the pandemic has impacted the timing. This last raise came only three months after its previous raise. 

Open Text once again raised by double-digits and extended its dividend growth streak to nine years.

For its part, Saputo raised inline with expectations. A token $0.005 raise, which is inline with its previous two dividend bumps. The company is now one year off reaching 25 consecutive years of dividend growth – a notable streak.

Despite posting quarterly results in which it missed on the top and bottom lines, Ritchie Bros announced a higher than expected dividend raise. It raised dividends by $0.03 (~14%), and with the raise it effectively extends its dividend growth streak to 19 years.

As we discussed last week, Stingray is in tough times due to the pandemic. Given this, it was not surprising to see the company extend its period of dividend stagnation to nine consecutive quarters.

Stingray is now on the clock. If the company doesn’t raise the dividend by end of year, it will lose its status as an All-Star.

Upcoming dividend raises, cuts or suspensions

Exchange Income Corp (TSX:EIF)

Current Streak: 10 years

Current Yield: 5.55%

Earnings: Thursday, August 12

What can investors expect:  Exchange Income Corp (TSE:EIF) is an aerospace and aviation services and equipment company. The Aerospace & Aviation segment provides scheduled airline and charter services, and emergency medical services to primarily northern communities. It also recognizes revenue on the sale or lease of aircraft, and aftermarket parts. Whereas it’s manufacturing segment recognizes revenue on the sales of manufacturing products and services.

As an airline, Exchange Income Corp has been one of most impacted by COVID-19. The company has no discernible raise pattern, but it last raised the monthly dividend in August of 2019. 

Thus far, the company has kept the dividend steady, an impressive accomplishment all things considered. The company has had plenty of opportunity to cut the dividend as it declares monthly. It hasn't and given the uncertainty that still exists, the most likely course of action is no action.

If the company does surprise with a raise, don’t expect more than a low, single-digit raise - in line with its pre-pandemic dividend growth rate. Of note, if the company does not raise by end of year, it will lose its status as an All Star. 

EST DGR

EST Increase

New Div

2.63%

$0.005

$0.195

Are you analyzing the right metrics for pipeline dividends? Lets see if Enbridge’s (TSX:ENB) dividend safe.

Disclaimer: The writer of this article or employees of Stocktrades Ltd may have positions in securities listed in this article. Stocktrades Ltd may also be compensated via affiliate links in the post below.

Mathieu Litalien

About the author

Mathieu is an individual investor and has been investing part-time for the better part of the past 20 years. He is primarily interested in fundamental analysis, focusing on the long-term and his portfolio is composed primarily of dividend-paying equities. Mathieu has a moderate risk profile and also looks for growth and value. His passion for finance and the markets have led him to his MBA and writing for Seeking Alpha and Stocktrades. Mathieu also focuses primarily on stock research and content production for Stocktrades.ca Premium and the Stocktrades blog.