Dividend Increase and decrease – AEP(up) , TD(down)

The Board of Directors of American Electric Power Co. today declared a regular quarterly cash dividend of 56 cents a share on the company’s common stock, increasing the dividend 5.7 percent from the previous 53 cents a share.It has increased its dividend every year since 2006.
With this hike, YOC of my position in AEP will become 5.2% and I will receive a gross dividend of $224 from AEP. The value of my position has increased by 32.8% since the initiation.

On the other hand, the most recent quarterly dividend from Toronto Dominion Bank(TD) downed from $0.4083 to $0.3827 by 6.3%. I think that this decrease is due to change in the exchange rate between US$ and C$ because TD’s quarterly dividend remains C$ 0.51. Investment in TD turned out a bad decision. YOC has now become merely 3.4% and I have -8.3 unrealized loss in this position.

Disclosure Long AEP, TD

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「Dividend Increase and decrease – AEP(up) , TD(down)」への2件のフィードバック

  1. You are correct in that TD’s dividend was (is) impacted by the US/CAD exchange rate. When (if) the US$ weakens you will be treated a little more favorably. You also have a secondary exchange issue when (if) moving from your US broker to Japan.

    いいね

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