CALGARY, ALBERTA--(Marketwire - Jan. 12, 2012) - Shaw Communications Inc. ("Shaw") (TSX:SJR.B) (NYSE:SJR) announced today that its Board of Directors has increased the equivalent annual dividend rate to $0.97 on its Class B Non-Voting Participating Shares and $0.9675 on its Class A Participating Shares. This represents an increase of 5% or $0.05 per share. Shaw's dividends are declared and paid on a monthly basis and this increase will commence March 29, 2012. Based on the January 11, 2012 closing stock price, the new dividend rate represents a yield of 4.7%.
I just found out that Shaw increased their dividend today by 5%. My philosophy when investing is to invest in what you know. My telephone, T.V and Internet all come from Shaw so naturally I own shares.
My initial investment in Shaw was yielding 4.39% but after a few dividend increases it's yielding 4.84%. Normally my yield after a few dividend increases would be a lot higher, but for some reason Shaw's stock price is hovering around my entry price and hasn't gone up over the past few years. I read recently that the number of subscribers is dwindling and that Jim Shaw's retirement package is draining the company's profits so investors are spooked.
When there is no stock growth, it's hard to justify increasing the dividend. Hopefully Shaw can get their act in gear and start making a recovery. I will keep a small stake in Shaw until they are unable to maintain the dividend or they lower their standard in quality and service.
Do you own shares in SJR.B?
2 comments:
I do. I bought them in the spring of last year. I was particularly intrigued by the fact they pay their dividends out on a monthly basis. That's more compounding!
The monthly dividends are nice and would be missed if I had to sell.
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