Since the economic crash of 2008, Wall Street is still looking for more stimulus. Not only have they asked for low interest rates but also got a promise from the FED that they will be low for several years. They also asked for the FED to help in terms of economic stimulus which led to QE1 and QE2 (and are now anxiously waiting for a hypothetical QE3). They were not entirely satisfied so the FED also danced for them (Operation Twist with bonds). And now… Wall Street is seeking another kind of stimulus. At least, this time, it won’t come from the Government.
Letting Money Sleep In a Bank Account Is A Crime
I often use this line when I talk to people who let their money hibernate (‘cause the sleeping period is too short to describe this phenomenon) in their bank account without interest. Well, this is exactly what a lot of companies are doing right now.
The amount estimated as liquidity in companies’ bank accounts is at $2.23 trillion. This is the equivalent to 19% of the US disposable income according to Paul Ashworth from Capital Economics. When you think about it, huge companies such as Apple or Google should imitate Microsoft and start giving money back. This is exactly what Apple did by announcing its first dividend payout not so long ago. But when you think about it, how many companies could contribute sustainably to a higher dividend payout?
I was curious so I pulled out all US stocks over $10 paying at least a 2% dividend yield and a payout ratio under 50% and a dividend growth of at least 2%. My point is to know how many stocks could use a good part of their liquidity to increase their dividend payouts up to a payout ratio of 50%.
Stocks With a Huge Possibility of Dividend Increase
178 US Stocks:
Ticker | INDUSTRY_SUBGROUP | Name | Price | Dividend Yield | Payout Ratio | Dividend 5 year growth |
---|---|---|---|---|---|---|
PBT | Oil-US Royalty Trusts | Permian Basin Royalty Trust | 21.3 | 6.27 | 0 | 2.02 |
THFF | Commer Banks-Central US | First Financial Corp/IN | 31.05 | 3.03 | 33.29 | 2.03 |
WABC | Commer Banks-Western US | Westamerica Bancorporation | 46.08 | 3.21 | 47.41 | 2.04 |
DD | Chemicals-Diversified | EI du Pont de Nemours & Co | 52.62 | 3.12 | 44.52 | 2.07 |
NIDB | S&L/Thrifts-Central US | Northeast Indiana Bancorp Inc | 14.65 | 4.91 | 42.65 | 2.1 |
HTLF | Commer Banks-Central US | Heartland Financial USA Inc | 17 | 2.35 | 32.18 | 2.13 |
PNBI | Commer Banks-Southern US | Pioneer Bankshares Inc | 18.5 | 3.24 | 36.93 | 2.17 |
UVV | Tobacco | Universal Corp/VA | 45.9 | 4.27 | 31.78 | 2.2 |
KWR | Chemicals-Specialty | Quaker Chemical Corp | 41.42 | 2.32 | 27.51 | 2.22 |
MRINA | Divers Oper/Commer Serv | McRae Industries Inc | 17.09 | 2.11 | 17.8 | 2.22 |
FDBC | Commer Banks-Eastern US | Fidelity D&D Bancorp Inc | 21.3 | 4.69 | 43.81 | 2.59 |
HMN | Multi-line Insurance | Horace Mann Educators Corp | 17.83 | 2.92 | 26.94 | 2.71 |
FFIC | S&L/Thrifts-Eastern US | Flushing Financial Corp | 12.64 | 4.11 | 45.01 | 2.93 |
WASH | Commer Banks-Eastern US | Washington Trust Bancorp Inc | 23.49 | 3.92 | 48.12 | 2.94 |
PSBQ | Commer Banks-Central US | PSB Holdings Inc/WI | 28 | 2.64 | 21.62 | 2.95 |
UTMD | Disposable Medical Prod | Utah Medical Products Inc | 30.85 | 3.11 | 46.3 | 2.99 |
GSBC | Commer Banks-Central US | Great Southern Bancorp Inc | 22.96 | 3.14 | 36.93 | 3.04 |
WHR | Appliances | Whirlpool Corp | 64.17 | 3.12 | 38.01 | 3.06 |
CTBI | Commer Banks-Southern US | Community Trust Bancorp Inc | 32.37 | 3.83 | 48.51 | 3.1 |
MTB | Commer Banks-Eastern US | M&T Bank Corp | 87.39 | 3.2 | 43.04 | 3.13 |
SRCE | Commer Banks-Central US | 1st Source Corp | 23.02 | 2.78 | 32.42 | 3.18 |
MBCN | Commer Banks-Central US | Middlefield Banc Corp | 22.25 | 4.67 | 42.71 | 3.21 |
HUB/B | Power Conv/Supply Equip | Hubbell Inc | 79.53 | 2.06 | 33.86 | 3.26 |
NFG | Electric-Integrated | National Fuel Gas Co | 45.85 | 3.1 | 44.75 | 3.42 |
QNBC | Commer Banks-Eastern US | QNB Corp | 25.85001 | 4.02 | 35.48 | 3.51 |
CPK | Gas-Distribution | Chesapeake Utilities Corp | 41.13 | 3.36 | 47.24 | 3.53 |
CBSH | Commer Banks-Central US | Commerce Bancshares Inc/MO | 39.85 | 2.31 | 30.87 | 3.57 |
TFX | Medical Products | Teleflex Inc | 62.44 | 2.18 | 45.88 | 3.59 |
ESBF | S&L/Thrifts-Eastern US | ESB Financial Corp | 13.01 | 3.08 | 37.03 | 3.71 |
FFIN | Commer Banks-Central US | First Financial Bankshares Inc | 33.39 | 2.88 | 43.57 | 3.71 |
PFS | S&L/Thrifts-Eastern US | Provident Financial Services Inc | 13.75 | 3.49 | 43.63 | 3.71 |
INDB | Commer Banks-Eastern US | Independent Bank Corp/Rockland MA | 28.38 | 2.96 | 35.88 | 3.71 |
KRO | Coatings/Paint | Kronos Worldwide Inc | 22.8 | 2.63 | 38.82 | 3.71 |
SVBC | S&L/Thrifts-Southern US | Sistersville Bancorp Inc | 16 | 4 | 22.46 | 3.78 |
MMM | Diversified Manufact Op | 3M Co | 87.48 | 2.7 | 36.31 | 3.79 |
PEG | Electric-Integrated | Public Service Enterprise Group Inc | 30.41 | 4.67 | 49.26 | 3.8 |
BHB | Commer Banks-Eastern US | Bar Harbor Bankshares | 35.6 | 3.2 | 38.29 | 3.83 |
SNA | Tools-Hand Held | Snap-on Inc | 61.65 | 2.21 | 27.76 | 4.1 |
MMC | Insurance Brokers | Marsh & McLennan Cos Inc | 32.38 | 2.72 | 48.54 | 4.1 |
TSH | S&L/Thrifts-Southern US | Teche Holding Co | 36.8 | 3.97 | 41.05 | 4.14 |
SYBT | Commer Banks-Southern US | SY Bancorp Inc | 22.64 | 3.36 | 42.07 | 4.35 |
LKFN | Commer Banks-Central US | Lakeland Financial Corp | 25.28 | 2.69 | 32.8 | 4.4 |
FMAO | Commer Banks-Central US | Farmers & Merchants Bancorp Inc/Archbold OH | 22 | 3.45 | 41.85 | 4.5 |
CNAF | Commer Banks-Eastern US | Commercial National Financial Corp/PA | 23.29 | 4.47 | 40.91 | 4.56 |
ALV | Auto/Trk Prts&Equip-Orig | Autoliv Inc | 65.78 | 2.86 | 25.49 | 4.77 |
ESBK | S&L/Thrifts-Eastern US | Elmira Savings Bank FSB/The | 18.05 | 4.88 | 45.85 | 4.91 |
CBU | Commer Banks-Eastern US | Community Bank System Inc | 28.58 | 3.64 | 49.27 | 5.24 |
SWX | Gas-Distribution | Southwest Gas Corp | 41.55 | 2.84 | 43.9 | 5.27 |
HBNC | Commer Banks-Central US | Horizon Bancorp/IN | 21.31 | 2.44 | 20.27 | 5.3 |
BMTC | Commer Banks-Eastern US | Bryn Mawr Bank Corp | 20.84 | 3.07 | 38.95 | 5.35 |
LANC | Food-Misc/Diversified | Lancaster Colony Corp | 64.9 | 2.22 | 33.56 | 5.42 |
CAG | Food-Misc/Diversified | ConAgra Foods Inc | 26.25 | 3.66 | 45.88 | 5.48 |
GNTX | Electronic Compo-Misc | Gentex Corp | 21.23 | 2.45 | 41.79 | 5.5 |
DIMC | Commer Banks-Eastern US | Dimeco Inc | 36 | 4 | 43.48 | 5.53 |
PUSH | Food-Retail | Publix Super Markets Inc | #N/A N/A | 3.81 | 28.06 | 5.79 |
TMP | Commer Banks-Eastern US | Tompkins Financial Corp | 39.8 | 3.62 | 43.54 | 5.9 |
MOCO | Instruments-Controls | MOCON Inc | 16.8 | 2.5 | 39.41 | 5.92 |
CATC | Commer Banks-Eastern US | Cambridge Bancorp | 34.00999 | 4.35 | 43.15 | 5.92 |
GMT | Transport-Equip&Leasng | GATX Corp | 42.47 | 2.83 | 48.58 | 6.1 |
LARK | Commer Banks-Central US | Landmark Bancorp Inc/Manhattan KS | 19.85 | 3.83 | 44.92 | 6.13 |
SXT | Chemicals-Specialty | Sensient Technologies Corp | 38.35 | 2.19 | 34.68 | 6.26 |
BA | Aerospace/Defense | Boeing Co/The | 73.55 | 2.39 | 31.49 | 6.34 |
NKSH | Commer Banks-Southern US | National Bankshares Inc | 29.42 | 3.54 | 39.34 | 6.5 |
BKYF | Commer Banks-Southern US | Bank of Kentucky Financial Corp | 25.32 | 2.37 | 26.82 | 6.67 |
ACO | Diversified Minerals | AMCOL International Corp | 29.45 | 2.44 | 38.03 | 6.72 |
FISI | Commer Banks-Eastern US | Financial Institutions Inc | 16.46 | 3.16 | 29.33 | 6.79 |
EEI | Environ Consulting&Eng | Ecology and Environment Inc | 14.91 | 3.22 | 28.21 | 6.96 |
MGRC | Rental Auto/Equipment | McGrath RentCorp | 28.87 | 3.26 | 45.75 | 6.98 |
MPR | Air Pollution Control Eq | Met-Pro Corp | 10.16 | 2.8 | 14.61 | 7.04 |
SPLS | Retail-Office Supplies | Staples Inc | 15.655 | 2.81 | 28.23 | 7.17 |
FLIC | Commer Banks-Eastern US | First of Long Island Corp/The | 27.43 | 3.35 | 40.59 | 7.29 |
FRS | Retail-Restaurants | Frisch\'s Restaurants Inc | 27.44 | 2.33 | 30.88 | 7.44 |
TUP | Consumer Products-Misc | Tupperware Brands Corp | 61.66 | 2.34 | 33.21 | 7.44 |
MLGF | S&L/Thrifts-Western US | Malaga Financial Corp | 15.25 | 3.28 | 21.12 | 7.74 |
STLD | Steel-Producers | Steel Dynamics Inc | 12.89 | 3.1 | 31.44 | 7.78 |
GCBC | S&L/Thrifts-Eastern US | Greene County Bancorp Inc | 17.7 | 3.95 | 31.13 | 7.84 |
NEE | Electric-Integrated | NextEra Energy Inc | 63.46 | 3.78 | 47.66 | 7.95 |
EBTC | Commer Banks-Eastern US | Enterprise Bancorp Inc/MA | 16.53 | 2.66 | 36.05 | 7.98 |
XOM | Oil Comp-Integrated | Exxon Mobil Corp | 85.3 | 2.2 | 22.71 | 7.99 |
CZFS | Commer Banks-Eastern US | Citizens Financial Services Inc | 36.75 | 3.27 | 24.53 | 8 |
CASC | Machinery-Material Handl | Cascade Corp | 47.54 | 2.94 | 15.69 | 8.09 |
CMP | Quarrying | Compass Minerals International Inc | 74.13 | 2.67 | 39.75 | 8.36 |
TWX | Multimedia | Time Warner Inc | 36.6 | 2.84 | 34.55 | 8.39 |
HPQ | Computers | Hewlett-Packard Co | 24.51 | 2.15 | 11.93 | 8.45 |
COL | Aerospace/Defense | Rockwell Collins Inc | 55.56 | 2.16 | 24.07 | 8.45 |
BANF | Commer Banks-Central US | Bancfirst Corp | 43.45 | 2.49 | 34.6 | 8.65 |
NU | Electric-Integrated | Northeast Utilities | 36.46 | 3.22 | 49.56 | 8.69 |
CB | Property/Casualty Ins | Chubb Corp/The | 71.92 | 2.28 | 26.52 | 8.72 |
R | Transport-Services | Ryder System Inc | 49.2 | 2.36 | 33 | 8.73 |
CVX | Oil Comp-Integrated | Chevron Corp | 102.52 | 3.16 | 22.83 | 8.86 |
CBE | Diversified Manufact Op | Cooper Industries PLC | 62.11 | 2 | 29.63 | 9.05 |
CNND | Commer Banks-Eastern US | Canandaigua National Corp | 105.01 | 2.86 | 33.14 | 9.11 |
ODC | Chemicals-Specialty | Oil-Dri Corp of America | 20.6 | 3.3 | 47.56 | 9.17 |
CCFN | Commer Banks-Eastern US | CCFNB Bancorp Inc | 35 | 3.54 | 40.66 | 9.44 |
FL | Retail-Apparel/Shoe | Foot Locker Inc | 31 | 2.32 | 36.33 | 9.44 |
NOC | Aerospace/Defense | Northrop Grumman Corp | 61.81 | 3.24 | 26.03 | 9.51 |
TRV | Property/Casualty Ins | Travelers Cos Inc/The | 62.75 | 2.93 | 46.95 | 9.54 |
ROK | Industrial Automat/Robot | Rockwell Automation Inc | 78.33 | 2.17 | 30.19 | 9.55 |
AIT | Machinery-General Indust | Applied Industrial Technologies Inc | 39.3 | 2.14 | 30.7 | 10.2 |
ACE | Multi-line Insurance | ACE Ltd | 75.3 | 2.6 | 22.33 | 10.4 |
NHC | Medical-Nursing Homes | National Healthcare Corp | 45.06 | 2.66 | 29.45 | 10.76 |
MDNB | S&L/Thrifts-Southern US | Minden Bancorp Inc | 14.25 | 2.22 | 17.83 | 10.8 |
JCI | Auto/Trk Prts&Equip-Orig | Johnson Controls Inc | 31.96 | 2.25 | 26.79 | 10.83 |
SJM | Food-Confectionery | JM Smucker Co/The | 79.97 | 2.4 | 41.01 | 10.91 |
EV | Invest Mgmnt/Advis Serv | Eaton Vance Corp | 26.3 | 2.89 | 39.93 | 10.96 |
DOV | Diversified Manufact Op | Dover Corp | 60.12 | 2.1 | 25.92 | 10.97 |
SRE | Gas-Distribution | Sempra Energy | 64.51 | 3.72 | 33.97 | 11.01 |
CBKM | Commer Banks-Central US | Consumers Bancorp Inc | 14 | 3.14 | 37.23 | 11.1 |
APD | Chemicals-Diversified | Air Products & Chemicals Inc | 89.75 | 2.85 | 38.99 | 11.2 |
BAX | Medical Products | Baxter International Inc | 54.17 | 2.47 | 32.36 | 11.47 |
AVX | Electronic Compo-Misc | AVX Corp | 12.82 | 2.34 | 13.24 | 11.63 |
UBNK | S&L/Thrifts-Eastern US | United Financial Bancorp Inc | 15.58 | 2.31 | 45.31 | 11.65 |
CCF | Diversified Manufact Op | Chase Corp | 15.31 | 2.29 | 28.67 | 11.84 |
FIS | Data Processing/Mgmt | Fidelity National Information Services Inc | 33.07 | 2.42 | 15.39 | 11.84 |
BOBE | Retail-Restaurants | Bob Evans Farms Inc/DE | 37.07 | 2.7 | 43.67 | 11.96 |
COP | Oil Comp-Integrated | ConocoPhillips | 72.88 | 3.62 | 29.21 | 12.12 |
WEYS | Footwear&Related Apparel | Weyco Group Inc | 22.85 | 2.8 | 46.46 | 12.2 |
ITW | Diversified Manufact Op | Illinois Tool Works Inc | 55.79 | 2.58 | 33.97 | 12.3 |
ETN | Diversified Manufact Op | Eaton Corp | 47.44 | 3.2 | 34.22 | 12.41 |
SPAN | Medical Products | Span-America Medical Systems Inc | 16.52 | 2.66 | 31.54 | 12.42 |
UTX | Aerospace/Defense-Equip | United Technologies Corp | 81 | 2.37 | 32.13 | 12.62 |
WSM | Retail-Mail Order | Williams-Sonoma Inc | 38.39 | 2.29 | 32.21 | 12.79 |
RTN | Aerospace/Defense | Raytheon Co | 53.11 | 3.77 | 32.4 | 12.92 |
BDX | Medical Products | Becton Dickinson and Co | 76.43 | 2.36 | 28.59 | 13.33 |
ARLP | Coal | Alliance Resource Partners LP | 60.47 | 6.55 | 34.26 | 13.44 |
MSFT | Applications Software | Microsoft Corp | 32.42 | 2.47 | 23.33 | 13.63 |
HRL | Food-Meat Products | Hormel Foods Corp | 28.59 | 2.1 | 28.69 | 13.86 |
GD | Aerospace/Defense | General Dynamics Corp | 69.76 | 2.92 | 26.84 | 14.4 |
INTC | Electronic Compo-Semicon | Intel Corp | 27.6 | 3.04 | 31.89 | 14.48 |
EAT | Retail-Restaurants | Brinker International Inc | 27.9 | 2.29 | 36.46 | 14.62 |
TAP | Brewery | Molson Coors Brewing Co | 41.3 | 3.1 | 34.18 | 14.87 |
BOKF | Commer Banks-Central US | BOK Financial Corp | 54.69 | 2.41 | 26.73 | 15.06 |
DE | Machinery-Farm | Deere & Co | 80.91 | 2.27 | 22.79 | 15.28 |
TROW | Invest Mgmnt/Advis Serv | T Rowe Price Group Inc | 61.88 | 2.2 | 41.11 | 15.42 |
WMT | Retail-Discount | Wal-Mart Stores Inc | 62.45 | 2.55 | 32.02 | 15.62 |
AFL | Life/Health Insurance | Aflac Inc | 41.62 | 3.17 | 28.11 | 15.8 |
XLNX | Electronic Compo-Semicon | Xilinx Inc | 34.4 | 2.56 | 26.34 | 16.12 |
AMP | Invest Mgmnt/Advis Serv | Ameriprise Financial Inc | 53.45 | 2.1 | 18.66 | 17.13 |
MDT | Medical Instruments | Medtronic Inc | 37.61 | 2.58 | 31.3 | 17.13 |
MTSC | Computers-Integrated Sys | MTS Systems Corp | 47.85 | 2.09 | 25.95 | 17.18 |
CL | Cosmetics&Toiletries | Colgate-Palmolive Co | 98.88 | 2.51 | 49.49 | 17.37 |
BBY | Retail-Consumer Electron | Best Buy Co Inc | 21.47 | 2.98 | 18.64 | 17.61 |
LLL | Electronics-Military | L-3 Communications Holdings Inc | 69.91 | 2.86 | 19.67 | 17.89 |
OXY | Oil Comp-Explor&Prodtn | Occidental Petroleum Corp | 88.61 | 2.44 | 22.55 | 17.98 |
CCE | Beverages-Non-alcoholic | Coca-Cola Enterprises Inc | 28.96 | 2.21 | 21.72 | 18.04 |
SSI | Retail-Regnl Dept Store | Stage Stores Inc | 15.49 | 2.32 | 35.64 | 18.13 |
NSC | Transport-Rail | Norfolk Southern Corp | 69.53 | 2.7 | 30.06 | 18.51 |
CAH | Medical-Whsle Drug Dist | Cardinal Health Inc | 41.55 | 2.07 | 29.06 | 19.03 |
SGK | Data Processing/Mgmt | Schawk Inc | 12.94 | 2.47 | 39.78 | 19.74 |
RSRV | Oil Comp-Explor&Prodtn | Reserve Petroleum Co | 335.01999 | 5.97 | 30.52 | 20.11 |
CA | Enterprise Software/Serv | CA Inc | 26.56 | 3.77 | 9.84 | 20.11 |
AM | Consumer Products-Misc | American Greetings Corp | 15.12 | 3.97 | 25.69 | 20.11 |
TGT | Retail-Discount | Target Corp | 57.28 | 2.09 | 26.53 | 20.11 |
HAS | Toys | Hasbro Inc | 35.92 | 4.01 | 41.07 | 20.11 |
SWY | Food-Retail | Safeway Inc | 22.09 | 2.63 | 36.31 | 20.32 |
LMT | Aerospace/Defense | Lockheed Martin Corp | 90.84 | 4.4 | 40.93 | 21.91 |
HRS | Telecommunication Equip | Harris Corp | 44.1 | 2.99 | 21.6 | 22.69 |
STX | Computers-Memory Devices | Seagate Technology PLC | 29.21 | 3.42 | 31.77 | 23.05 |
WAG | Retail-Drug Store | Walgreen Co | 35.93 | 2.5 | 25.24 | 23.36 |
BLK | Invest Mgmnt/Advis Serv | BlackRock Inc | 190.4 | 3.15 | 43.39 | 23.85 |
IVZ | Invest Mgmnt/Advis Serv | Invesco Ltd | 24.18 | 2.03 | 30.27 | 26.05 |
CME | Finance-Other Services | CME Group Inc | 273.05 | 3.27 | 20.61 | 27.95 |
UNP | Transport-Rail | Union Pacific Corp | 107.26 | 2.24 | 28.49 | 28.03 |
STRA | Schools | Strayer Education Inc | 86.13 | 4.64 | 46.31 | 28.88 |
IPHS | Chemicals-Diversified | Innophos Holdings Inc | 49.33 | 2.19 | 25.05 | 29.51 |
DRI | Retail-Restaurants | Darden Restaurants Inc | 49.93 | 3.44 | 36.83 | 30.18 |
CSX | Transport-Rail | CSX Corp | 21.61 | 2.22 | 26.4 | 30.19 |
ACN | Computer Services | Accenture PLC | 63.4 | 2.13 | 28.26 | 30.99 |
CLF | Metal-Iron | Cliffs Natural Resources Inc | 67.3 | 3.71 | 7.26 | 31.42 |
HUN | Chemicals-Diversified | Huntsman Corp | 14.49 | 2.76 | 38.95 | 31.95 |
AWH | Reinsurance | Allied World Assurance Co Holdings AG | 70.66 | 2.12 | 15.63 | 37.97 |
TWGP | Property/Casualty Ins | Tower Group Inc | 21.29 | 3.52 | 46.34 | 49.63 |
CPA | Airlines | Copa Holdings SA | 80.65 | 2.03 | 23.51 | 53.89 |
ESV | Oil&Gas Drilling | Ensco PLC | 52.95 | 2.83 | 44.82 | 70.12 |
CALM | Food-Misc/Diversified | Cal-Maine Foods Inc | 35.41 | 4.11 | 33.37 | 79.86 |
GES | Retail-Apparel/Shoe | Guess? Inc | 29.79 | 2.69 | 27.93 | 92.84 |
WU | Commercial Serv-Finance | Western Union Co/The | 18 | 2.22 | 16.66 | 102.44 |
GKSR | Linen Supply&Rel Items | G&K Services Inc | 33 | 2.36 | 21.43 | 116.13 |
20 CDN Stocks:
Ticker | Name | INDUSTRY_SUBGROUP | Price | Dividend Yield | Payout Ratio | Dividend 5 year growth | |
---|---|---|---|---|---|---|---|
NMC | Newmont Mining Corp of Canada Ltd | Gold Mining | 50.2 | 2.79 | 0 | 20.79 | 20.79 |
IMG | IAMGOLD Corp | Gold Mining | 12.21 | 2.13 | 0.02 | 26.46 | 26.46 |
BEI-U | Boardwalk Real Estate Investment Trust | REITS-Apartments | 58.88 | 3.16 | 7.25 | 6.02 | 6.02 |
MRD | Melcor Developments Ltd | Real Estate Oper/Develop | 15.05 | 2.66 | 14.81 | 5.92 | 5.92 |
DII/B | Dorel Industries Inc | Home Furnishings | 29.37 | 2.04 | 18.62 | 32.76 | 32.76 |
MG | Magna International Inc | Auto/Trk Prts&Equip-Orig | 45.57 | 2.39 | 23.18 | 6.43 | 6.43 |
CWB | Canadian Western Bank | Commer Banks Non-US | 28.51 | 2.1 | 24.04 | 14.87 | 14.87 |
CSU | Constellation Software Inc/Canada | Computer Software | 88.43 | 4.48 | 26.97 | 41.18 | 41.18 |
CCL/B | CCL Industries Inc | Containers-Metal/Glass | 37.67 | 2.07 | 27.55 | 9.86 | 9.86 |
ESI | Ensign Energy Services Inc | Oil&Gas Drilling | 14.26 | 2.95 | 28.13 | 5.23 | 5.23 |
MX | Methanex Corp | Chemicals-Specialty | 31.4 | 2.15 | 30.75 | 3.54 | 3.54 |
SNC | SNC-Lavalin Group Inc | Engineering/R&D Services | 39.25 | 2.24 | 33.46 | 23.16 | 23.16 |
LB | Laurentian Bank of Canada | Commer Banks Non-US | 44.55 | 4.04 | 33.69 | 8.45 | 8.45 |
SC | Shoppers Drug Mart Corp | Retail-Drug Store | 44 | 2.41 | 35.29 | 14.31 | 14.31 |
NA | National Bank of Canada | Commer Banks Non-US | 78.64 | 3.81 | 38.36 | 7.02 | 7.02 |
TD | Toronto-Dominion Bank/The | Commer Banks Non-US | 83.94 | 3.43 | 40.57 | 7.26 | 7.26 |
ADW/A | Andrew Peller Ltd | Beverages-Wine/Spirits | 10.08 | 3.57 | 43.12 | 8.14 | 8.14 |
BNS | Bank of Nova Scotia | Commer Banks Non-US | 54.75 | 4.02 | 44.36 | 5.43 | 5.43 |
RY | Royal Bank of Canada | Commer Banks Non-US | 57.15 | 3.99 | 46.61 | 6.88 | 6.88 |
BDI | Black Diamond Group Ltd | Rental Auto/Equipment | 20.51 | 3.22 | 49.85 | 18.33 | 18.33 |
Obviously, this won’t happen tomorrow for several reasons. Some companies prefer to reinvest in their business, make acquisitions and others would rather pay off debts or start a share repurchase program, etc. But the point is that the potential is there. As investors, we can see how many stocks have the power to increase their dividend greatly and reward us.
The Dividend Impact on the Economy
If there was a massive dividend increase movement, I can see 2 very interesting impacts. The first one would be a great interest in these stocks. Every time that the market foresees a sustainable dividend increase, they are more likely to buy this stock for future payouts. Therefore, I guess this would be quite beneficial for CEO’s who wish to exercise some of their options in a near future ;-). This would probably push is into an official bullish market. For the past 2 years, analysts tend to say, after the fact, that “last year was bullish. It would be refreshing to hear them talking about the future for once.
This would lead to the other impact, that would probably be more important than just stocks skyrocketing (mind you, I’d love to see my portfolio get a solid boost!). If there are more dividends distributed to investors, it also means that there is more cash available to spend! Mr. Ashworth’s theory is that it could increase the population’s disposable income by 2%. This would create a great economic boost!
I think it’s an interesting theory since retirees would tend to spend a little bit more to enjoy life if they can count on stronger income. It would also give a break to defined contribution pension plan where companies have to make sure there is enough money to fund the pensions. If the market was ecstatic when there were those stimulus checks back in 2008-20009, I guess that “continuous” stimulus dividend checks would create a positive reaction on the overall economy as well. In addition to that, even the Government would get its share in taxes. So the company sees its stock go higher, the investor sees more money coming in and the Government sees additional revenues. It sounds like a win-win-win situation for everybody!
The Problem is Volatility
Unfortunately, chances are that we won’t see tons of companies boosting their dividend to reach a 50% payout ratio. The economic volatility and uncertainty around the Euro Zone, the slower growth from emerging markets and the slow economic restart in the US are among the reasons why companies prefer being full of cash instead of distributing their liquidity. But I’m expecting to see some steady dividend increase from many companies in the years to come. Since profit is still rising, they will continue to hike their dividend and make some of us happy. I personally think that we are in the middle of an awesome investing opportunity where the stock you buy right now will provide you incredible yield in 10 years.
I can’t wait to write that I’m earning a 10% dividend yield on my INTC or KO shares in 10 years ;-).
Hi Mike,
Back to Cornwall (snow falling) after 6 months in Florida. Your Ipad is great!
I’m sure your INTC will be earning above 10% (YOC) in 10 years. I’ve had TD for 15 years! Thanks for the great posts!
Excellent! Thanks for putting this together 🙂