Thursday, May 29, 2014

Cineplex Inc (CGX.TO) Dividend Increase

Cineplex Inc (CGX.TO) announced that it will be raising its dividend by 4.2% from an annual $1.44 per share to $1.50 per share. The dividend increase is effective immediately; and since Cineplex pays its dividends monthly, shareholders will see a hike in dividends starting this month. The new dividend rate results in an annualized yield of 3.74% based on yesterday's closing price.


Cineplex has increased dividends since it converted from income trust to a corporation in 2011. This marks its 4th consecutive annual increase in dividends. My portfolio consists of 40 shares of Cineplex, which increases my annual dividend raise from $57.60 to $60. My yield-on-cost rises to 4.92%.


4 comments:

  1. great yield on cost! They essentially have a monopoly in Canada with them charging $6 for a small popcorn with butter lol !If you cant beat em join them!

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    1. Thats what I figured! Their margins are small on the movie business (or atleast, used to be a couple of years ago - I havent looked at the latest financial report yet) and they make a lot money on the food business. I've noticed that most of the locations have started expanding their food offerings over the last few years...and decided to initiate a position. That investment worked out well, but I currently find it a bit expensive to add to that position.

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  2. Woohoo! always love a good dividend increase :) I purchased some shares as well back in 2011. It's been one of my best performing Canadian stocks since :D Are you looking forward to any movies coming out this year? I want to go see the new Planet of the Apes, Guardians of the Galaxy, and the Hobbit.

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    1. I think you've captured all the good upcoming ones in the list. I stopped myself from seeing the first 2 hobbit movies as I wanted to see all 3 together - so, come December I'll be catching up on the first two as well.

      I picked some up in late 2012 and still managed a good return after the runup in 2013. Heres to more blockbuster movies and a stock return :)

      cheers

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