Bank Dividend Increases for 2023

The weather has been mild for Christmas as we head for New Years Day and 2024.

Holiday groceries cost more this year and the biggest ongoing expense on my end going forward that will only increase despite inflation falling back.

Grocery big box stores have reported higher profits this year and consumers are not liking it and that has the Feds grilling managements currently, which won't make any difference to prices.

The stock market had a rally into the Christmas break and good to see. Will it continue? ... no one knows but with Central Bankers putting a hold on interest rates in the US and forecasting cuts in 2024, it's more of an upbeat scene. The Bank of Canada is not committed to interest rate cuts so far with a possible (hopefully not) rate hike coming but speculators figure they will cut rates at some point in 2024.

The big banks of Canada and where I'm interested in dividends, increased dividend payments ranging from a 2.9% increase from the Bank of Nova Scotia (BNS) to a high of 10.4 % with the National Bank (NA). An average increase of 6.1%.

BNS has an ex-dividend date of January 2nd, 2024, TD on January 9th and probably the top ranked bank currently ... Royal Bank (RY) with an ex-dividend date of January 24th.

The Royal Bank recently got the go ahead to take over HSBC Canada and further expand, adding their people and clients with an agreement to boost housing start funding. 

One can also get a package of the big banks in an ETF or Fund with decent monthly cash dividends coming in at a lower cost and bulk buy or add with an investment budget over time. There are too many out there to list here but most every broker who deals in ETFs has various versions such as "Covered Call Banks" or "Equal Weight Banks" to "Enhanced Banks" with higher yields and possibly more risk to capital.

Concluding for today, I read an interesting post from Liquid and The Freedom 35 Blog about Canada's population timeline, what the Fed's goals are with population growth and a suggestion what sectors in the Markets will benefit from that.

Fastest Growth Since 1867

Commission Free December, 2023

 

With long term dividend investing being a mission, which is better? Holding individual stocks or ETFs?

Nobody likes paying taxes and I don't like fees with the exception of what the fees are for and if they are justified in my mind such as a performing ETF with dividends and Holdings I prefer to see listed. Such as the top companies in Canada by yield in the TSX with some growth stocks added.

While I continue to buy stocks on my hit list such as Power Corporation of Canada (POW) and TC Energy Corporation (TRP)  having ex-dividend dates in the last week of December, I'll be buying them on TD's App called Easy Trade with zero commissions for the first 50 trades. (Wealthsimple's unlimited "no commission" stock and ETF trades are another option). So, no fees/commissions going forward with the buying of individual stocks.

Oh baby, that's what I like! ... from the Big Bopper hit, Chantilly Lace.

Whether it be a portfolio of individual stocks or all ETF's, many have retired early with the sizeable growing dividends they produce and usually with a Side Hustle or two along with pensions when eligible. Side Hustles, where it's not recommended to retire on cash dividends alone and that advice can play on one's mind when they start spending some or all of their cash dividends, instead of reinvesting for further growth.

Particularly with individual stocks, there is what is called organic growth where companies and banks announce they are raising their dividend and that builds over time.

I guess I would call myself a type of hybrid investor where I like the monthly distributions a decent ETF can produce with some growth plus the quarterly dividends from my individual holdings. The ETF: RCDC being an example with a decent yield of just below 4% at this time that moves with the Markets. 

Have a Merry Christmas and enjoy the holidays.

Banking in December, 2023

 

It's feeling more like winter now on the Atlantic coastline. Makes me think about the t-shirt and shorts weather down south although after the high humid summer here, I welcome the cold and fresh air. Winters here overall have become more milder and shorter than years ago.

Owning the Big Banks of Canada, I was interested to see their quarterly earnings come out last week and they were kind of what I was expecting as they raked in their billions once again with dividend increases announced.

They continue to be undervalued in this current interest rate scene with inflation a factor. They are setting aside big money for loan defaults where an expected 80% of mortgages are due for renewal at a higher interest rate in the next year or two than previously signed for. Some figure those people will adjust to keep their homes in this housing shortage fiasco Canada is in. 

The Bank of Canada with eyes and ears everywhere knows this and there are recent articles about BoC lowering interest rates a tad next year to avoid the possible financial crisis which some home owners may face. That would be a good thing, if it happens.

December and it's another Telecom ex-dividend month with Telus (T) and Bell Canada (BCE) dates coming in the first half of this month. Telus with a 3.4% dividend increase for 2024.

With the Pipelines, Pembina Pipelines (PPL) has a current dividend yield of 5.85% and is an interest of mine where I hold the stock. Pipelines are more in the news these days it seems after Enbridge (ENB) announced a 3.1% dividend hike going forward and an upbeat forecast for 2024.

I rank the sectors in order of what I'm most interested in with Banks, Pipelines, Telecoms along with Utilities being top ranked. We all need the services these sectors provide. 

Bitcoin (BTC) is once again flirting with $40,000 USD these days as the once "wild west" crypto world is being tamed by regulations around the world with the US SEC making the most noise lately while Coinbase and Kraken owners and their lawyers prepare their cases against the SEC.

The consensus is ... as Bitcoin becomes more regulated. more whale type institutions will get involved over time but it's either "rat poison" to some or the they like of it being volatile with the hopes of gains when the coin falls back to a low price with it's cycles over the years.

Lately, it seems the boost in BTC's price is due to a possible Blackrock BTC spot price ETF being approved by the US SEC, which has kept all past requests by various outfits on the backburner to date ... and the "Halving" event of BTC in the spring of 2024.

It's "double your money" if a person bought BTC at the beginning of 2023 when it was around $17,000 USD in the risky and volatile world of Crypto, which many like with billions changing hands daily.