H&R REIT raised dividends 2.2% in Q3 2016


On November 24th, H&R REIT (TSX: HR.UN) released their Q3 press release which read: “the trustees have approved an increase in the current monthly distribution per Stapled Unit resulting in a $0.03 annual increase to a total of $1.38 per annum.” (hr-reit.com)

Note that this is a belated post. I missed this announcement in November, but want to keep my dividend income spreadsheet up-to-date. HR.UN is one of the first stocks I bought for real estate income; it’s roughly 6% dividend caught me in as I started my journey. I was recently thinking of selling this position to consolidate into PLZ.UN but finding out that they increased their distribution makes me think otherwise.

Dividend Income increased 0.05%

Considering the Dividend Beginner portfolio contains 44 shares of H&R REIT, my annual income from HR.UN has increased by $1,32, from $59.40 to $60.72.

My 12-month forward dividend income has increased from $2,542.07 to $2,543.39, an increase of 0.05%. My income from HR.UN accounts for 2.39% of my annual dividend income.

This 2.2% dividend increase is small but very welcome since HR.UN has kept a steady dividend since it was last increased in 2013. This is also my 3rd smallest position, larger only than my positions in the Dream Office and Dream Global REITs, which makes the increase much less meaningful.

This would have required an investment of $20.18, at a yield of 6.54% (HR.UN’s dividend yield on the date of the raise) to generate $1.32 in dividend income. That’s the equivalent of getting up to 2 hours of your life back, at a Quebec minimum wage of $10.75.

Before Net Increase After
Annual Dividend $2,542.07 $1.32
Monthly Dividend $211.84 $0.11
Percentage Increase 0.05%

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