DividendGrowth.ca Subscribers
Differences
This shows you the differences between two versions of the page.
| Both sides previous revision Previous revision Next revision | Previous revision | ||
|
home [2024/07/21 19:24] tom |
home [2025/03/05 15:16] (current) tom |
||
|---|---|---|---|
| Line 12: | Line 12: | ||
| The Connolly Report (since 1981) is no longer printed. It's a blog for subscribers inside this site. The blog is four or so pages a month with scores of ideas, links, yield and dividend data (going back decades) about dividend growth investing. Summaries of printed reports over the last decade (up to December 2018) are inside too. [[report summaries]] | The Connolly Report (since 1981) is no longer printed. It's a blog for subscribers inside this site. The blog is four or so pages a month with scores of ideas, links, yield and dividend data (going back decades) about dividend growth investing. Summaries of printed reports over the last decade (up to December 2018) are inside too. [[report summaries]] | ||
| + | [[About us]] → information for new subscribers is here | ||
| + | |||
| + | Nov 1 2024 → The Connolly Report blog in October was essentially a practice run for our 2024 year-end, decade-long summary. This decade-long summary is done every year. My dividend data goes back to 1977. We show the list of the companies followed, their dividend and yield in 2014 (ten years ago) and their dividend and yield this October. On average, the dividend grew by 8.4%. Does your retirement income grow by eight point four percent a year? We are not counting capital gains here. Our yield grew to 6.9% and prices | ||
| + | |||
| + | * Jan 26 2025 | ||
| + | * Here simply is what I do. Begin by making, say, a $1,000 investment in a fine individual company. The annual dividend yield would be about 3%. Now, that dividend yield would grow at 5% a year and the annual appreciation would be about the same 5%. In 20 years your $1,000 would grow to some $4,000 (342%) That’s it. The magic is simple. Believe it works. Thirteen percent on you money (3+5+5). Repeat year after year and gradually build your own personal pension. | ||
| + | * March 2025 - What’s | ||
| + | * | ||
| * July 20 2024 | * July 20 2024 | ||
| * A 26% dividend yield eventually was the topic of Rob Carrick’s column: how to set yourself up to get 26%. On the date of the Rob’s column Fortis’ yield was 4.2%. How do you get the yield up to 26%%. It’s easy! You can do it too. Here’s some detail behind how to do it. In 2000 when the dividend was 46¢ the yield 4.2% as the price of Fortis $9. The next year FTS’s dividend rose to .47, then .49, .52, .54, .59. In 2006 there was a bigger dividend jump to .67, .82 then $1.00 per share in 2008. The financial crisis did not bother Fortis’ dividend (it’s an electrical utility), so in 2004 the dividend rose to $1.04 and in 2010 way up to $1.12. At the $1.12 dividend level, the yield had grown to 12.4% (1.12 / $9.). Continuing to $1.16, $1.20, $1.24, $1.28, $1.40, $1.53, $1.63, 1.73, 1.83, and in 2020 $1.94. Just now Fortis’s dividend is 59¢ a quarter, $2.36 a year (up 4.3% this year alone). Do your wages rise by 7% a year? Your retirement income can. | * A 26% dividend yield eventually was the topic of Rob Carrick’s column: how to set yourself up to get 26%. On the date of the Rob’s column Fortis’ yield was 4.2%. How do you get the yield up to 26%%. It’s easy! You can do it too. Here’s some detail behind how to do it. In 2000 when the dividend was 46¢ the yield 4.2% as the price of Fortis $9. The next year FTS’s dividend rose to .47, then .49, .52, .54, .59. In 2006 there was a bigger dividend jump to .67, .82 then $1.00 per share in 2008. The financial crisis did not bother Fortis’ dividend (it’s an electrical utility), so in 2004 the dividend rose to $1.04 and in 2010 way up to $1.12. At the $1.12 dividend level, the yield had grown to 12.4% (1.12 / $9.). Continuing to $1.16, $1.20, $1.24, $1.28, $1.40, $1.53, $1.63, 1.73, 1.83, and in 2020 $1.94. Just now Fortis’s dividend is 59¢ a quarter, $2.36 a year (up 4.3% this year alone). Do your wages rise by 7% a year? Your retirement income can. | ||
| + | * So, what’s the strategy? You buy one of these great dividend growing companies. Then you wait. Are you the patient? It’s the eventual cash flow you’re after. Save up your money and then buy another well-managed company in another sector: a financial, say. Eventually you will have a few fine companies. You define how many is ‘a few”. This process as nothing to do with the stock market. You are investing. No ETFs. I own no bonds (fixed income, never!. You need the growth. Return is yield plus growth. It’s as simple as that. You don’t need or want an advisor. Your wealth, eventually, will grow. It’s the **cash flow** you’re after. The cash flow makes your companies safer and more valuable: as a result your risk of poor returns falls sharply. Bill Gates knows dividends are important: he receives over a $million$ a day (yep . . . a day) in dividends from five holdings. One is CNR. | ||
| * | * | ||
| - | * Here’s proof. Think on this for a jif. If the yield was 4.2% in 2000 and the yield is 4.3% today and as the dividend went up by some 7% a year over the period, the price must have risen by about the same amount. It did. As the dividend grows, so does the price, eventually. Your pot gets bigger. Some other companies we own with date of purchase and the yield now: BMO 1987 87%, NA 2007 15%, ENB ‘04 29%, Emera ‘03 19%, Atco in 2003, yield grown to 16%, Great West Life ‘09 15%. | + | You ask: is Fortis a good buy now? We keep track of our company’s average yield inside this site. For Fortis the yield average over the last couple of decades is 4.3%. FTS’ current yield is roughly the same. So, Fortis is properly priced…not a bargain, not expensive. Yield is my main valuation indicator. I use CAPE to verify yield (cyclically adjusted P/E). All our data is ten year. Fortis’ cape is 25, average cape of the companies I follow is is 20 - so, FTS is a bit expensive by cape. Our new ten year valuation spreadsheet with year-by-year dividends comes out in late September when we get back from Nova Scotia. This September will be special. I started teaching business sixty, yes 60, years ago. Louise and I got married three weeks before . . . We went to Newfoundland for our honeymoon. |
| - | * So, what’s the strategy? You buy one of these great dividend growing companies. Then you wait. Are you the patient? It’s the eventual cash flow you’re after. Save up your money and then buy another well-managed company in another sector: a financial, say. Eventually you will have a few fine companies. You define how many is ‘a few”. This process as nothing to do with the stock market. You are investing. No ETFs. I own no bonds (fixed income, never!). Return is yield plus growth. It’s as simple as that. You don’t need or want an advisor. Your wealth, eventually, will grow. It’s the **cash flow** you’re after. The cash flow makes your companies safer and more valuable: their prices increase. | + | ♦ |
| - | * | + | * Here’s proof. Think on this for a jif. If the yield was 4.2% in 2000 and the yield is 4.3% today and as the dividend went up by some 7% a year over the period, the price must have risen by about the same amount. It did. As the dividend grows, so does the price, eventually. Your pot gets bigger. Some other companies we own with date of purchase and the yield now: BMO 1987 87%, NA 2007 15%, ENB ‘04 29%, Emera ‘03 19%, Atco in 2003, yield grown to 16%, Great West Life ‘09 15%. ♣ Not all our holdings went double digit though. I purchased SunLife Financial in 2005 at $43. With the current dividend, the yield is just 7%. After the financial crisis at $20, SLF’s yield would have been 15%. Your initial purchase price is important. |
| - | You ask: is Fortis a good buy now? We keep track of our company’s average yield inside this site. For Fortis the yield average over the last couple of decades is 4.3%. FTS’ current yield is roughly the same. So, Fortis is properly priced…not a bargain, not expensive. Yield is my main valuation indicator. I use CAPE to verify yield (cyclically adjusted P/E). All our data is ten year. Fortis’ cape is 25, average cape of the companies I follow is is 20 - so, FTS is a bit expensive by cape. Our new ten year valuation spreadsheet with year-by-year dividends comes out in late September when we get back from Nova Scotia. This September will be special. I started teaching business sixty, yes 60, years ago. Louise and I got married three weeks before . . . Went to Newfoundland for our honeymoon. | + | |
| - | + | ||
| ---- | ---- | ||
