BCE common share dividend increasedToday's dividend announcement is BCE's 13th increase to its annual common share dividend since Q4 2008, representing a 97% increase. The BCE annualized common share dividend will increase 5.1%, or 14 cents per share, from $2.73 to $2.87 effective with BCE's Q1 2017 dividend payable on April 15, 2017 to shareholders of record at the close of business on March 15, 2017. This is BCE's 9th consecutive year of 5% or better dividend growth, while maintaining the dividend payout ratio(3) within the target policy range of 65% to 75% of free cash flow. The higher dividend for 2017 is fully supported by projected growth in free cash flow.
http://www.bce.ca/news-and-media/releases/show/BCE-reports-2016-Q4-and-full-year-results-announces-2017-financial-targets-Common-share-dividend-increased-5-1-to-2-87-per-year-1?page=1&month=&year=Wow, since Q4 2008 the dividend increased by 97%! In hindsight, BCE continues to be a dividend machine. I decided to pull some numbers to see what this means for long term dividend investors.
The Q4 2008 dividend was declared on December 12, 2008 payable January 15, 2009 at $0.365/share, annualized $1.46. Let's take the closing price on the declaration date: $21.23. This means BCE offered a yield of 6.877%.
Taking the Q1 2017 dividend of $0.7175/share annualized to $2.87. We're looking at a yield to cost of 13.518%. That's a 13.518% cash-in-hand return per year without having to trade and without having to worry about price fluctuations.
Looking at it in another way; I took all the dividend payments since Q4 2008 until Q1 2017. One share of BCE at $21.23 was yielding 6.8771% and paid out $0.365 in Q4 2008. By the upcoming Q1 2017 that one share would yield 13.5186%, an increase, as BCE stated of 96.5741%.
Taking it even further, the chart at end of my post below shows how one share would have returned $18.8425 in cash, an 88.75% cash-in-hand return on the original principle of $21.23. This doesn't include the capital appreciation. Adding share price gains today's close was $57.44, a
| Total Dividend | $18.84250 |
| Share Price | $21.23000 |
| Cash Return | 88.75% |
Dividend + Share Appreciation = $55.0525
Total Return = 259.3146%
There
| Declaration Date | Record Date | Payment Date | Dividend | Annual Dividend | Share Price | Yield to Cost |
| 2008-12-12 | 2008-12-23 | 2009-01-15 | $0.36500 | $1.46000 | $21.23 | 6.8771% |
| 2009-02-10 | 2009-03-16 | 2009-04-15 | $0.38500 | $1.54000 | $21.23 | 7.2539% |
| 2009-05-06 | 2009-06-15 | 2009-07-15 | $0.38500 | $1.54000 | $21.23 | 7.2539% |
| 2009-08-05 | 2009-09-15 | 2009-10-15 | $0.40500 | $1.62000 | $21.23 | 7.6307% |
| 2009-11-11 | 2009-12-15 | 2010-01-15 | $0.40500 | $1.62000 | $21.23 | 7.6307% |
| 2010-02-03 | 2010-03-15 | 2010-04-15 | $0.43500 | $1.74000 | $21.23 | 8.1959% |
| 2010-05-05 | 2010-06-15 | 2010-07-15 | $0.43500 | $1.74000 | $21.23 | 8.1959% |
| 2010-08-04 | 2010-09-15 | 2010-10-15 | $0.45750 | $1.83000 | $21.23 | 8.6199% |
| 2010-12-09 | 2010-12-15 | 2011-01-15 | $0.45750 | $1.83000 | $21.23 | 8.6199% |
| 2011-02-09 | 2011-03-15 | 2011-04-15 | $0.49250 | $1.97000 | $21.23 | 9.2793% |
| 2011-05-11 | 2011-06-15 | 2011-07-15 | $0.51750 | $2.07000 | $21.23 | 9.7504% |
| 2011-08-03 | 2011-09-15 | 2011-10-15 | $0.51750 | $2.07000 | $21.23 | 9.7504% |
| 2011-11-02 | 2011-12-15 | 2012-01-15 | $0.51750 | $2.07000 | $21.23 | 9.7504% |
| 2012-02-08 | 2012-03-15 | 2012-04-15 | $0.54250 | $2.17000 | $21.23 | 10.2214% |
| 2012-05-03 | 2012-06-15 | 2012-07-15 | $0.54250 | $2.17000 | $21.23 | 10.2214% |
| 2012-08-07 | 2012-09-14 | 2012-10-15 | $0.56750 | $2.27000 | $21.23 | 10.6924% |
| 2012-10-31 | 2012-12-14 | 2013-01-15 | $0.56750 | $2.27000 | $21.23 | 10.6924% |
| 2013-02-06 | 2013-03-15 | 2013-04-15 | $0.58250 | $2.33000 | $21.23 | 10.9750% |
| 2013-05-08 | 2013-06-14 | 2013-07-15 | $0.58250 | $2.33000 | $21.23 | 10.9750% |
| 2013-08-07 | 2013-09-16 | 2013-10-15 | $0.58250 | $2.33000 | $21.23 | 10.9750% |
| 2013-11-06 | 2013-12-16 | 2014-01-15 | $0.58250 | $2.33000 | $21.23 | 10.9750% |
| 2014-02-05 | 2014-03-14 | 2014-04-15 | $0.61750 | $2.47000 | $21.23 | 11.6345% |
| 2014-05-05 | 2014-06-16 | 2014-07-15 | $0.61750 | $2.47000 | $21.23 | 11.6345% |
| 2014-08-06 | 2014-09-15 | 2014-10-15 | $0.61750 | $2.47000 | $21.23 | 11.6345% |
| 2014-11-05 | 2014-12-15 | 2015-01-15 | $0.61750 | $2.47000 | $21.23 | 11.6345% |
| 2015-02-04 | 2015-03-16 | 2015-04-15 | $0.65000 | $2.60000 | $21.23 | 12.2468% |
| 2015-04-29 | 2015-06-15 | 2015-07-15 | $0.65000 | $2.60000 | $21.23 | 12.2468% |
| 2015-08-05 | 2015-09-15 | 2015-10-15 | $0.65000 | $2.60000 | $21.23 | 12.2468% |
| 2015-11-04 | 2015-12-15 | 2016-01-15 | $0.65000 | $2.60000 | $21.23 | 12.2468% |
| 2016-02-03 | 2016-03-15 | 2016-04-15 | $0.68250 | $2.73000 | $21.23 | 12.8592% |
| 2016-04-27 | 2016-06-15 | 2016-07-15 | $0.68250 | $2.73000 | $21.23 | 12.8592% |
| 2016-08-03 | 2016-09-15 | 2016-10-15 | $0.68250 | $2.73000 | $21.23 | 12.8592% |
| 2016-11-02 | 2016-12-15 | 2017-01-15 | $0.68250 | $2.73000 | $21.23 | 12.8592% |
| 2017-02-01 | 2017-03-15 | 2017-04-15 | $0.71750 | $2.87000 | $21.23 | 13.5186% |
