Canadian Utilities Dividend Increase

CU
The first dividend raise of the year! Canadian Utilities Ltd (CU.TO) announced a 10.17% increase in its cash dividend. (On a side note, the sister company Atco Ltd (ACO.X.TO) shareholders got a 15% raise) The quarterly cash dividend will increase from C$0.2950 to C$0.3250 per share and payable on Mar 01, 2016 to shareholders on record as of Feb 05, 2016.

 

Canadian Utilities has the longest streak of dividend raises in Canadian Dividend All-Star list with a 44-year streak. This raise keeps that tradition going on. The annual dividend rate goes up from C$1.18 to C$1.30. Yield going forward based on today’s closing stock price is 4.20%.

Canadian Utilities Dividends

Canadian Utilities (CU.TO) Dividends & Dividend Growth Rates

My portfolio consists of 50 shares of Canadian Utilities (read about my purchase here from Aug 2015), which increases my annual dividends from C$59.00 to C$65.00, an increase of C$6.00.

11 thoughts on “Canadian Utilities Dividend Increase

  1. Who wants some more money for doing nothing?!

    To have a yield of 4.2% as well as all that decades of growing dividends too, is a great mix. With the mix of energy that it has, sounds like it has a long future too.

    Here’s to more dividends 🙂

    Tristan

    • Yup, its one of those gems hiding in plain sight. Lot of ppl write it off because its a boring utilities company – but the track record speaks for itself. CU/Atco also has some decent amount of operations in Australia btw 🙂

      Love the increased dividends coming our way as investors. Heres to another great year of increased profits in our pockets in 2016.

      cheers
      R2R

  2. It’s exciting to read these dividend increase. The market has been crashing 9-10%, ouchy, but somehow my utilities stocks are holding up. Humm! It makes sense since whether the market do well or not, people still use their utilities the same way.

    Most people would have limited exposure, but I might add more at the next down turn.

    • Yup, I liquidated last my utilities ETF last year and decided to invest in individual companies instead and Im glad I made those moves. I knew when volatility returned – utes will probably hold up pretty well.

      Good luck with your investments. Hold tight as the market crashes will try to tempt you with kneejerk reactions.

      Best
      R2R

  3. Hey R2R,

    Congrats on receiving the div. Increase! If I had known these were both due for an increase now I would have taken a look. Will definitely be comparing both ACO.X and CU very soon.

    Both have incredible dividend growth streaks. I want to load up on some more of these Canadian companies with the longer streaks. Had two companies I bought last year cut their dividends and it’s really rotten. If they went back up and I broke even on them I’d definitely sell. Especially since one is in my TFSA.

    Thanks for the write up,
    DB

    • Hey DB,
      Both CU and ACO are great companies to own (well, they are essentially the same company – depending on if you want more exposure to Structure & Logistics or not). With CU, you get a higher starting yield but slightly lower div growth rate, and with ACO you get a lower starting div yield but high div growth rate.

      Thats too bad your holdings saw div cuts last year. I had one too (KMI).

      Best wishes
      R2R

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