$BCE Q4 F2016: "dividend since the end of 2008 – a total increase of 97%"

BCE released their Q4 F2016 earnings today and rewarded shareholders with a +$0.14, +5.128% dividend increase from $2.73 to $2.87.

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 +$36.21 or 170.5605% share appreciation. Putting dividend and share appreciation together we hit 259.3146% returns. Not bad at all.

There are many other dividend stocks out there that have provided lucrative and passive returns. The risk is always there of share price declines due to a negative shift in the business and dividends are not guaranteed. With hindsight we can say BCE so far has been a successful dividend play.

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%