I do not own this stock of Valener Inc. (TSX-VNR, OTC-VNRCF). I was looking for another utility to invest in, in 2009 2009 and I had been taking a look at another pipeline stock possibly. This ongoing company has gas pipelines in Quebec. I also recognized the name of the company. This year 2010 it reorganized and made a public utility stock out of 29% of what was Gas Metro. This makes the valuation of the stock highly complex.
What I noticed upgrading my spreadsheet is that dividends have gone both up and down, but on the longer term there is absolutely no increase. I’ve dividend growth over the past 5, 10, 15, 20, and 24 years and only in last 5 12 months duration will there be an increase in dividends at the rate of 2.1% per 12 months. For the 10, 15, 20 and 24 12 months intervals dividends have declined by 1.1%, 1%, 0.9%, and 0.2% per year. The dividend yield is definitely quite high. Surprisingly, the total return is reasonable quiet.
The total return over the past 5, 10, 15, 20, and 24 years reaches 12.86%, 9.32%, 7.15%, 7.45% and 10.39% per season. Total come back includes both dividends and capital gains. From December to December That is a compounded return rate which is. I looked at what area of the total return was dividend and what part was the capital gain.
Turns out the majority of the total return is dividend. To me this would … Read more