On Wednesday, March 18, 2026, the Board of Directors of Power Corporation of Canada (TSE: POW) announced a quarterly dividend increase from C$0.6125 to C$0.6675 per share. The dividend will be payable on May 1, 2026, to shareholders of record as of March 31, 2026. This represents an 8.98% increase over the prior quarterly dividend.
Current Dividend Yield and Income Impact
At today’s opening price of C$66,37, this increase raises POW’s forward dividend yield to approximately 4.02%.
As an owner of 115 shares of Power Corporation of Canada, this dividend increase adds approximately $13.73 to my projected annual net dividend income. I was expecting an increase of around 5%, so this nearly double-sized increase came as a very pleasant surprise.
Long-Term Dividend Growth Track Record
Power Corporation of Canada is a member of the Canadian Dividend All-Star List with an 11-year streak of dividend increases. According to the Canadian Dividend All-Star data, its dividend growth rates are:
- 1-year: 8.9%
- 3-year: 7.4%
- 5-year: 6.5%
- 10-year: 7.2%
This recent dividend increase marks the fourth consecutive raise I’ve received since initiating my position in March 2022. Over that time, the quarterly dividend has grown from C$0.525 to C$0.6675 per share—an increase of approximately 27.1%, reflecting solid dividend growth.
At the time of writing, POW represents about 0.57% of my portfolio and contributes approximately 0.57% of my projected annual dividend income. Following this increase, my yield on cost stands at 7.27%.
Quick Valuation Take
Power Corporation appears reasonably valued at current levels. The company benefits from a diversified portfolio of financial services businesses, providing stable earnings and cash flow.
Dividend Safety and Outlook
The dividend is well supported by consistent earnings and a prudent payout ratio. Power Corporation has demonstrated a reliable commitment to dividend growth, and the recent increase suggests confidence in continued business performance.
Final Thoughts
This was a strong dividend increase and a clear positive surprise. Power Corporation continues to deliver solid income growth and remains a dependable dividend-paying holding in my portfolio.
Summary of 2026 Dividend Increases / Cuts
Click here to see my portfolio holdings
You can follow the development of my dividends here
Full Disclosure: Long TSE:POW
Thanks for stopping by!
No comments:
Post a Comment