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.