Inter Pipeline Boosts Monthly Dividend 3.9%

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On November 3rd, “Inter Pipeline Ltd. (“Inter Pipeline”) (TSX:IPL) announced today that its board of directors has approved a 3.8 percent increase to its monthly cash dividend from $0.13 to $0.135 per share. On an annualized basis, dividends will increase by $0.06 per share from $1.56 to $1.62.” (interpipeline.com)

Before Net Increase After
Annual Dividend $1.56 $0.06 $1.62
Monthly Dividend $0.13 $0.005 $0.135
Percentage Increase 3.85%

Inter Pipeline continues their dividend increase streak; the company has now increased their annual dividend every year since 2009. From 2007 to 2008, the dividend remained consistent, if we disregard this pause, IPL has increased their dividend since 2003. I’ve thoroughly enjoyed the high-yielding monthly dividend IPL pays out religiously; in large part thanks to their business model as a pipeline, rather than an oil & gas development company.

Dividend Income increased 0.26%

Considering the Dividend Beginner portfolio contains 100 shares of IPL, my annual income from IPLhas increased by $6.00, from $156.00 to $162.00. My 12-month forward dividend income has increased from $2,309.64 to $2,315.64 , an increase of 0.26%. My income from IPL accounts for 6.98% of my annual dividend income.

While a $6.00 increase in annual dividend income seems quite low, think about how it would require an investment of $101.35, at a yield of 5.92% (IPL’ dividend yield) to generate $6.00 in dividend income. That’s the equivalent of getting one to ten hours of your life back, depending on your wage.

Before Net Increase After
Annual Dividend Income $2,309.64 $6.00 $2,315.64
Monthly Dividend Income $192.47 $0.50 $192.97
Percentage Increase 0.26%

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