First let me give a warning note. I am only dealing with approximately 150 stocks so the sample is small. I have mostly, but not exclusively large dividend growth stocks. So it is probably best to look at this as interesting but it may not reflect what is happening in the TSX. However, I feel that it applies to me as I cover the stocks I own and also I am basically only interested in large dividend growth stocks and how they are doing.
On my Index Spreadsheet I record for each stock I follow what the dividend growth per year is for the past 5 years and for the past 10 years. In the chart below I am showing increases and decreases in growth between the 5 and 10 years growth. The implication is that if the 5 year growth is greater than the 10 year growth then dividend growth is increasing
For example if the 5 year dividend growth per year is 9% and the 10 years dividend growth is 5%, then dividend growth is higher in the past 5 years than in years 6 to 10. If growth has not change for example it was 9% per year for past 5 years and 9% per year for the past 10 years. My spreadsheet shows that few stocks have the same growth over both time periods. It also shows that stocks increasing their dividend growth are fewer at 36% than those decreasing their dividend growth which is 61%.
|Dividend growth increased||36.30%|
|Dividend growth decreased||61.48%|
|Dividend growth same||2.22%|
I keep copies of my index spreadsheet each year. If I do the same analysis on my index at the end of 2015, the story is different. In this spreadsheet there are still few stocks keeping their dividends the same and amore decreasing their dividends. At the end of 2015 there were fewer dividend increases at 32%. The stocks with dividend increases are higher at 66%
|Spreadsheet of 2015||Change|
|Dividend growth increased||32.31%|
|Dividend growth decreased||66.15%|
|Dividend growth same||1.54%|
So comparing these spreadsheet results it seems that today, fewer companies are decreasing their dividends that at the end of 2015. My index for 2016 has data for stock year end of 2015 and 2014. My index for 2015 has stock year end data for 2014. We are only just over half way through the year so I have updated some 58% of the stocks I follow.
On my other blog I wrote yesterday about Canam Group Inc. (TSX-CAM, OTC-CNMGA)... learn more. Tomorrow, I will write about Dorel Industries Inc. (TSX-DII.B, OTC-DIIBF)... learn more on Friday, July 29, 2016 date around 5 pm.
This blog is meant for educational purposes only, and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.
See my site for an index to these blog entries and for stocks followed. I have three blogs. The first talks only about specific stocks and is called Investment Talk. The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter.