Scotia Bank Dividend History

Now that BNS has increased its dividend last week, let's take a closer look at its dividend growth for the last 15 years.

With an average increase of 12.89% every year, BNS is a strong addition to any dividend growth portfolio. If an investor bought shares on Jan 2, 1996 the cost per share was $30.25 and the yield was a mere 1.05% . If that same investor held on to those shares over the years, the return on that initial investment would now be 6.87%.

Personally I would not have bought in with such a low yield, but it does show you that there is a potential for growing returns over the years that keeps your investment ahead of inflation. You'll be happy with your increasing dividends when a loaf of bread costs $20.00 in the near future, trust me!

CIBC is the next big bank in line to declare its dividend and hopefully they follow TD and BNS with an dividend increase; only time will tell.

Have a good week!

Scotia Bank Dividend Increase

Although you wouldn't have known it from the 1.43% loss today, BNS raised its quarterly dividend by three cents to $0.52 per share. That's the second major bank to raise dividends since 2009 and that 6% increase will be welcomed with open arms to patient dividend investors.

I had the chance to buy shares at $46.50 a share but I ran out of funds when I sold all my mutual funds. Had I done that, my return on my investment would have gone from 4.2% to almost 4.5%. Not a huge increase, but it will keep inflation at bay and get the ball rolling for the other big banks.

Which Canadian big bank will raise its dividend next?

TD Bank Dividend History

Now that we finally have a dividend increase from one of the big five Canadian banks, let's take a look at the dividend growth history for TD bank for the last 15 years.

Compliments of Think Dividends

At first glance TD's dividend growth may look like it's all over the map, but it averages just over 12% per year. That's a very solid dividend growth record even though there was no increase in 2010.  

If an investor had bought TD shares on the first trading day of January 1996, they would have paid $24.63 per share with a yield of 4% on their initial investment. If the shares were kept over the last 15 years, the yield on that same investment would be 10.71%. That's the meat and potatoes of dividend investing right there; a proven, growing return year after year that allows your investment to stay ahead of inflation. 

If only I had someone guide my investments back then instead of being stuck in the mutual fund rut like so many others. I probably would have been able to shave four to six years off of my retirement date. C'est la vie! Oh well, the way I see it now is every dividend increase brings me one step closer to financial freedom.

Have a good week everyone!

TD Dividend Increase

It's nice to come home after a long day at work to hear about a dividend increase. TD Bank has increased its quarterly dividend from $0.61 per share to $0.66 which is an increase of 8.2% .

My yield on TD went from 3.68% to 3.98% and brought my total dividend yield up .02%.

I was sure Royal Bank was going to announce a dividend increase today as well seeing as the share price rose 5.23% but alas no. Perhaps CIBC or Scotia Bank will have a dividend increase for us next month.


Any predictions as to which of the big 5 will be the next to raise their dividend?