The number of TSX-listed firms raising dividends is no where near the level prior to the market collapse in 2008. But it is improving, says Peter Buchanan, CIBC market strategist.
"So far this year, 17% of TSX dividend announcements have provided increases, he said in a note to clients. "That’s nearly double the level that did so in Q4."
At the same time, the number of firms that are cutting payouts continues to fall.
Mr. Buchanan noted that over half of utilities have recently enriched their payouts.
"Looking ahead, retailers, capital goods manufacturers and non-energy resource firms (materials) all have unusually high levels of cash, suggesting possible room for dividend increases down the road," he said.