I enjoy predictions, I treat them as entertainment. I had some fun with my 2015 predictions and I actually got a few of them right.
Many months ago I predicted the financial markets would be a wild ride in 2016. It’s actually been a decent uphill climb since the beginning of the year – but the year isn’t over yet! What stocks would raise their dividends in 2016? How would our dollar finish this year? Here was my forecast for 2016 and where things stand today.
- The Ottawa Senators will make the playoffs.
Nope. I didn’t come close to getting this prediction right, unfortunately. With new head coach Guy Boucher in town now, the Senators should be able to turn the page on an old chapter and start a new one for the 2016-2017 campaign. At least Sens fans like me are hoping so.
- The Chicago Blackhawks will win The Stanley Cup.
Wrong again. Did you have Sid the Kid and his Pens on your Stanley Cup shortlist at the Christmas break? I doubt it and neither did I.
- Telus will increase their dividend by 5%.
Finally a layup! In May 2016, the TELUS Board of Directors declared a quarterly dividend of $0.46 Canadian per share, payable to shareholders like me (coming soon) on July 4. TELUS intends to keep increasing their dividend annually in the range of 7 to 10% from 2017 through to the end of 2019.
- Enbridge will increase their dividend by 5%.
Enbridge has paid dividends for over 63 years. Their annualized dividend is currently $2.12 per share, and has been increased in each of the last 21 years. Over the past 11 years the dividend has delivered an average compound annual growth of 14%. No dividend increase yet but it’s going to happen friends.
- The Dow will finish the year at 16,500.
At the time of this post the Dow is around 18,432. Impressive but I didn’t see it coming.
- Coca-Cola will increase their dividend by 3%.
Coke is it. Back in February 2016, Coca-Cola raised their dividend to $0.35 per share. This was the 54th consecutive year they raised their dividend.
- Bonds will have a positive return in 2016, returning 3%, to be measured by iShares ETF XBB.
At the time of this post the ETF XBB has returned about 4.4%.
- The TSX will finish the year at 13,000.
At the time of this post our TSX index is about 14,582.
- Oil will finish at $45.
It might but it’s lower than that now.
- Our dollar will be $0.74, against the U.S. dollar, by the end of 2016.
Due to Brexit and other macro factors, it’s hard to know how our dollar will finish the year but for now, it’s past my target trading close to $0.77.
- I’ll play more golf this summer (when compared to last summer).
So far, so good. Actually this post is a good reminder to call the golf course and make sure I have a tee time for Men’s Night.
- Royal Bank will increase their dividend by 5%.
Yes and no. Although Royal Bank missed street expectations earlier this year they still managed to raise their dividend by three per cent (not 5%) to $0.81 per share.
Another five months to go folks – let’s see how things shake down.