The Final Quarter for 2023

 

The cooler evenings here on the east coast of Canada are most welcome starting October with humidity levels falling off. The cooler stock market is not what investors went to see in their portfolios lately but as long as dividends are being paid by Holdings, it's patience with me as I wait for most stock values to recover once again.

Meanwhile, it's a mix of fear taking hold for some and selling while others buy at lower prices looking for more gains in the future. The big five Banks in Canada, for example are expected to rebound next year after the 2023 adjustment to interest rates staying higher for longer. But, as always, these are predictions.

It's good to see the dividend increases from Fortis (FTS) with 50 consecutive years and Emera (EMA) with 31 years so far and 4-6% increases for the next few years in their recent news releases. That keeps me motivated and continue to accumulate shares in these utilities.

Emera (EMA) has an ex-dividend date for Halloween with payment on the 15th of November.

Emera Approves Increase in Common Dividend

Company Release - 9/20/2023

HALIFAX, Nova Scotia--(BUSINESS WIRE)-- On September 20, 2023 the Board of Directors of Emera Inc. (TSX: EMA) approved an increase in the annual common share dividend to $2.87 from $2.76 per common share and extended its dividend growth rate target of four to five per cent through 2026.

“Today’s dividend increase is in line with our dividend growth rate target of four to five per cent and reflects our continued confidence in our assets, our strategy and the strength of our business,” said Scott Balfour, President and CEO of Emera Inc. “We remain focused on executing a balanced energy transition that drives value for our customers and generates reliable returns for our shareholders.”

As always, some great articles being posted by Bloggers and Investors on my right sidebar. How they increase dividends over time with patience looking at the long term by staying in the Market.

The stock market history has shown that overall, the final quarter in the year is more positive compared to say ... how September ended for example. Interesting to see if that's still a trend.

Discount Stock Buying

 

Dollar Cost Averaging and/or discount DRIP buying is a long term strategy I use. 

Cash dividends from companies and banks are the reason I started in the stock market while I check on the stocks I buy next to read the latest news if they are undervalued or overvalued. What's the latest P/E ratio ... Price to Earnings. 

There's a lot of focus these days with higher interest rates on the debt companies have to pay and if they buy more outfits or build/expand their business (Pipelines for example) ... which usually follows with news about the more expense burden and press articles about dividends and if they are they safe from cuts.

I prefer to buy "undervalued" but that's not always in the cards where I'm primarily looking to boost my cash dividends from that company. Ex-dividend dates seem to come up fast at times when debating the price but in the long term... 5 years, 10 years and longer ... price haggling doesn't matter much where a lot can happen with stock prices over the years.

Reminds me of discount grocery shopping ... I want the cheapest price but there's not always sales on the go at the time I need it. 

Where's my focus with stocks? ... usually in the top twenty of the highest dividend paying stocks on the TSX ... TSX 60 by Dividend Yield

With more concentration on the top ten and the BTSX portfolio except AQN.

How is the BTSX performing so far this year with rate of return? Not too shabby all things considered with all the ups and downs so far with inflation and holdings dealing with higher interest rates, etc. But overall ... kind of steady going.

BTSX: 4.6%   (3 year average) 14.90%

TSX60 Benchmark: 6.04%  (3 year average) 9.09%

Concluding for today, I prefer steady and/or rising cash dividends coming in but I am into a commodity driven royalty outfit called Labrador Iron Ore Royalty Corporation, which is into the Newfoundland iron miner ... Iron Ore Company of Canada (Overview Here). 

LIF-T, Labrador Iron Ore Royalty Corporation is dependent on the price of iron, how much can be sold and shipped and one of the largest importers in the world of iron is China. 

A surprise increase in LIF's dividend of 0.95 per share or unit was declared this month. The ex-dividend date is next week on September 28th with a payment date of October 26, 2023.

On the LIF site, the quarterly fluctuating dividend payments can be seen and as I mentioned, dependent on the iron market place. 

Update: 20 September, 2023

Fortis, FTS-T has increased it's dividend by 4.4%, from 0.565 to 0.59 per share for the December 1st, 2023 payment with an ex-dividend date of November 16, 2023.

This increase is a milestone with 50 years of dividend increases with a 4-6% increase in dividends in the years to come.