2021 ended on a really strong note with many companies announcing dividend increases. As the New Year has begun, I want to continue to remind you that if you are a shareholder of wonderful companies that pay growing dividends, your income is increasing which you can either live off of or reinvest to allow your investments to compound further.
Below is a list of companies in Canada and the United States that have increased their dividends in the month of December.
The companies we list are not the complete list of companies that have increased their dividends in Canada and the United States or the rest of the world however, they are companies we follow or own.
Canadian Companies
| Company | Previous ($) | New ($) | Change (%) |
| Bank of Montreal | 1.060 | 1.330 | 25.470 |
| Canadian Imperial Bank of Commerce | 1.460 | 1.610 | 10.270 |
| Canadian Western Bank | 0.290 | 0.300 | 3.45 |
| Enbridge Inc. | 0.835 | 0.860 | 2.990 |
| Great-West Lifeco | 0.438 | 0.490 | 11.870 |
| National Bank of Canada | 0.710 | 0.870 | 22.540 |
| Ritchie Bros Auctioneers | 0.310 | 0.316 | 1.940 |
| Royal Bank of Canada | 1.080 | 1.200 | 11.11 |
| Toronto-Dominion Bank | 0.790 | 0.890 | 12.660 |
US Companies
| Company | Previous ($) | New ($) | Change (%) |
| Abbott Laboratories | 0.450 | 0.470 | 1.400 |
| CVS Health | 0.500 | 0.550 | 10.00 |
| Pfizer | 0.390 | 0.400 | 2.56 |
| Union Pacific | 1.070 | 1.180 | 10.280 |
| WD-40 | 0.72 | 0.78 | 8.33 |
The dollar value listed per share represents a quarterly dividend payment.
Information was obtained from the companies directly.
Dividend Increases – Canadian Banks
In the month of December, there were substantial dividend increases from the Canadian banks. During the pandemic, Canada’s banking regulator froze dividends and placed a temporary ban on buybacks to protect the financial system. Canada’s Office of the Superintendent of Financial Institutions has now lifted the dividend increase freeze and the ban on buybacks which has led to the Canadian banks to once again increase their dividends.
Taking this point a step further, typically when companies stop increasing their dividends or stop paying a dividend it is related to mismanagement or a decrease in revenue, which, rightfully, might lead us to sell the company. Having lived or shall I say still living through a pandemic, the Canadian banks refraining from dividend increases was a smart tactical move to maintain their capital and is a reminder that you have to evaluate the reason for each company when they stop increasing or paying dividends.
"How will you replace your current income in retirement?" - Jim Seyers