November 2010 Dividend Income Update
A few days late with my dividend income update, but better late than never!
It’s been hectic week since we got back from vacation but in a good way. My wife celebrated her birthday this past week, we started packing for our move (coming in two weeks, whoa) and we got some Christmas shopping done. Fun and productive I must say!
Like some of my fellow bloggers shareholders of Enbridge were also given a reason to celebrate this week: the Calgary-based pipeline giant said it will increase its dividend by 15% to $0.49 per share. If anyone is counting, that’s the second dividend increase for ENB in the last 12 months.
I guess Enbridge is generating much more cash flow than expected, surviving two high-profile pipeline leaks in the process. Certainly a good news story for the company and its shareholders.
Without this increase included into our dividend income calculations (the increase will not take effect until the March 1, 2011 paydate), we’re on pace to earn just over $4,300 this year – if dividends were paid to us in cash. Instead, we reinvest most dividends into new stock to keep our dividend-compounding machines running. We like it that way – reinvested dividends buy more stock, more stock pays more dividends each quarter, more dividends get reinvested – simple process, extraordinary results over time. With various dividend machines humming with every payment, every quarter (for example, we recently earned 4 free shares of Bank of Montreal stock), we’ve had a slight increase in our dividend income over last month, yet another small reason to celebrate this week.
Now if only my Ottawa Senators can get their act together…
Do you think Pat Daniel, President and CEO of Enbridge has any clout there? You’re right, probably not. Even if he did, I know, I’m definitely pushing my luck.