CNQ Raises their Dividend by 9% Despite Depressed Oil Environment

Canadian Natural Resources

On November 3rd, “Canadian Natural Resources declared a quarterly cash dividend on common shares of C$0.25 per share payable on January 1, 2017, increasing approximately 9% over the previous quarterly dividend. This is the sixteenth consecutive year of dividend increases since the Company first paid a dividend in 2001.” (cnrl.com)

Before Net Increase After
Annual Dividend $0.92 $0.08 $1.00
Quarterly Dividend $0.23 $0.02 $0.25
Average Monthly Dividend $0.076 $0.007 $0.083
Percentage Increase 8.7%

While my other oil & gas stocks have cut their dividends, Canadian Natural Resources came through and raised their dividend. I had just about given up on the thought but am very satisfied with the increase.

A 16 year dividend increase streak is really quite significant as a Canadian company, and even more so considering this is a company which has no control over the price of their product. I keep CNQ for the oil exposure, but have sold my shares in Pengrowth and plan to sell my shares in Whitecap Resources when I get a good chance.

Dividend Income increased 0.14%

Considering the Dividend Beginner portfolio contains 40 shares of Canadian Natural Resources, my annual income from CNQ has increased by $3.20, from $36.80 to $40.00. My 12-month forward dividend income has increased from $2,306.44 to $2,309.64, an increase of 0.14%. My income from CNQ accounts for 1.73% of my annual dividend income.

While a $3.20 increase in annual dividend income seems quite low, think about how it would require an investment of $137.92, at a yield of 2.32% (CNQ’ dividend yield) to generate $3.20 in dividend income. That’s the equivalent of getting one to thirteen hours of your life back, depending on your wage.

Before Net Increase After
Annual Dividend Income $2,306.44 $3.20 $2,309.64
Monthly Dividend Income $192.20 $0.27 $192.47
Percentage Increase 0.14%

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