Bad week for dividends

Not all dividend cuts are created equal though.

In Yellow Pages' case, I'm pretty sure management at one point promised/suggested the distribution would be safe through 2011 (conversion to corp) and beyond.

In Biovail's case, management had explicitly explained to shareholders a few months back that acquisition(s) in this environment would carry a higher priority over maintaining the dividends. This week they followed through with that plan by buying the rights to Wellbutrin XL in US, and cutting distribution. No idea why shares were down 13% right after announcement, but at least they're rising back.

FinancialJungle said:

Not all dividend cuts are created equal though.

In Yellow Pages' case, I'm pretty sure management at one point promised/suggested the distribution would be safe through 2011 (conversion to corp) and beyond.

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You are correct...they indicated that it was safe and with an approx. 80% payout ratio would be ok beyond conversion. One of the reasons I sold my position in YLO.UN is that I no longer trust their management .

Yellow pages price had been so hammered lately and it's yield was so high that despite what management was telling investors you knew there was a high degree of a cut. More so considering how economically sensitive the business is.

Dividends are doing well if you know where to look for. Just recently Pepsi, Exxon Mobil, and many other large cap companies continued increasing their dividend payments. My theory is that a company which has a sound business model which is not cyclical that throws off enough cash flow to support a growing dividend will likely grow its dividend. The Johnson & Johnsons, Coca Cola's , Procter & Gambles are prime examples of companies with long histories of rising dividends whose management is likely to raise distributions in the long run..

Dividend Growth Investor said:

Dividends are doing well if you know where to look for. Just recently Pepsi, Exxon Mobil, and many other large cap companies continued increasing their dividend payments. ..

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Any suggestions for Canadian dividend growers?

Other than the banks that is, who in my opinion will not be able to increase dividends, at least not at the rates we have seen in the recent past.

Thanks

joes_k said:

Any suggestions for Canadian dividend growers?

Other than the banks that is, who in my opinion will not be able to increase dividends, at least not at the rates we have seen in the recent past.

Thanks

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Here are some ideas from the CDZ ETF (tracks the dividend achievers index)
http://www.claymoreinvestments.ca/etf/fund/cdz/holdings

joes_k said:

Any suggestions for Canadian dividend growers?

Other than the banks that is, who in my opinion will not be able to increase dividends, at least not at the rates we have seen in the recent past.

Thanks

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Lot's of great CDN dividend growers outside the financials. Metro, Empire, SNC Lavalin, CNR, Rogers, Tim Hortons even to name a few.