3 stocks that increased dividends in June


Income investors who rely on stable and stable dividends in retirement have not had much to cheer about recently. Dividend stocks have been very volatile and investors are justifiably nervous. However, there is good news. For the first time since the start of the pandemic, dividends have stabilized. This means that we are seeing a decrease in dividends and an increase in dividends. In fact, June saw the first case of a company returning to dividend growth after announcing a decline just a few months ago. Today we’re going to focus on this good news, as we recap the companies that raised their dividends in June.

Old New Percentage Date
Arc Resources (TSX: ARX) 0,02 $ 0,06 $ 200,00% 06/12/2020
B2Gold (TSX: BTO)(NYSE: BTG) 0,01 $ 0,01 $ 100,00% 06/12/2020
Empire Company (TSX: EMP.A) 0,12 $ 0,13 $ 8,30% 18/06/2020

A Canadian aristocrat in dividends

In June, several Canadian dividend aristocrats were expected to increase their dividends. Unfortunately, only one came for income investors – Empire Company. Empire is the first aristocrat to raise the dividend since early May, and the next batch of raises from this group will not arrive until August.

It is not surprising that the company was able to announce a dividend increase in this environment. Being one of the largest grocery chains in the country, this is an essential service.

The 8.30% increase extended the company’s dividend growth streak to 26 years, which is equal to the seventh longest streak in the country. This makes it one of the most reliable dividend stocks in the country.

A cheap stock of gold

The gold industry is definitely the place to be right now. Analysts are calling for gold to break all-time records, and $ 2,000 in gold by the end of the year is possible. With high gold prices, producers like B2Gold are returning to dividend growth.

B2Gold only recently started paying a dividend, its first payment being made last November. Less than a year later, B2Gold doubled the dividend by a penny to $ 0.02 per share. It should be noted that B2Gold pays the dividend in US dollars.

This senior producer is in the process of rewarding investors for the years to come. It increases production, reduces costs and, at today’s gold prices, generates significant cash flow. Gold companies are quietly becoming reliable dividend stocks.

A surprise increase

In mid-March, Arc Resources was one of the first companies listed on the TSX to reduce the dividend. At the time, he reduced the dividend from $ 0.05 to $ 0.02 per share – a reduction of 60%. Less than two months later, he shocked the markets by declaring a dividend of $ 0.06 per share.

Not only did this represent a 200% increase, it was also higher than the pre-pandemic dividend. It is the first company to announce a dividend increase after cutting or suspending the dividend at the height of the pandemic. Will the others follow suit? It is too early to say, but the increase in Arc is certainly a positive development.

However, investors should approach with caution, as the company has not yet emerged from the woods. About three-quarters of production is linked to natural gas. Although natural gas prices rebounded from March lows, it started to collapse again in June. As long as spot prices remain below $ 2 per million BTUs, Arc’s dividend is far from certain.

Are these dividend shares bought today?

Given our current environment, Empire and B2Gold are excellent dividend stocks. They are defensive in nature and should continue to do well given the current volatility. In addition, both are likely to outperform if we see another wave of pandemic wreckage wreaking havoc on the economy.

Arc Resources, for its part, remains a speculative investment. The price of natural gas is still facing considerable headwinds and is trading near the lows of the decade. Until the fundamentals improve, the company’s shares are reserved for high-risk investors.

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The crazy contributor Mat Litalien has no position on any of the titles mentioned.


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