Cineplex Raises Dividends

Cineplex recently reported its best first quarter adjusted EBITDA (earnings before interest, tax, depreciation and amortization) result in company history. This was partly due to hit films such as The Hunger Games (which I enjoyed quite a bit) and Dr. Seuss' The Lorax.The Hunger Games had highest grossing first quarter weekend of all time and the third largest opening weekends of all time.

The company declared that it will raise the annual dividends from $1.29 to $1.35. This will be the 2nd increase since converting from an income trust to a corporation in 2011. Cineplex has the majority of the Canadian market and operates theatres under the names Cineplex Odeon, Galaxy, Famous Players, Colossus, Coliseum, SilverCity, Cinema City and Scotiabank Theatres.

April Budget 2012 Review

Since school was out, I didn't spend as much money on transportation as usual. My house needed a new router so I pitched in my part. I didn't buy myself anything this month, except for deodorant, which I think is kind of necessary. Those two offset the overspending of Food & Entertainment (are you even surprised anymore?) which would have been a little less if I read my coupon for the fine print. My girlfriend finished her hospital placement so we went out to celebrate. It was a nice dinner with a great view which means it was pricey. That's okay though, how often do you finish school?

I forgot to take into consideration that my 6th year anniversary is coming up in May so most likely I'll be going over budget. For now I'll enjoy the $31.32 that I saved.

-the Paperboy

Rogers Communication Position

Today I picked up some shares of Rogers Communications. During the first quarter, the company announced the acquisition of Saskatchewan Communications Network (subject to CRTC approval) and an increase of 11% in dividends. However, Rogers has been effected by a highly competitive environment where it not only competes with the other "Big Three" telecoms, Telus and BCE, but new entrants like Wind are offering consumers lower prices. The industry is also "maturing" meaning that growth will be hard to find and will slow down dramatically.  

Canadian Oil Sands Raises Dividends

At the end of April, Canadian Oil Sands Ltd announced that it will hike its dividends 17% from 30 cents to 35 cents. Sale volumes were low compared to the first quarter of 2011 mainly due to maintenance issues. The company also reported lower and lower net income compared to last year's first quarter.

Here's a quote from Marcel Coutu, President and Chief Executive Officer:

The increase in the dividend to $0.35 per share reflects confidence in our business fundamentals and the commitment to delivering excess cash to our investors," said Marcel Coutu, President and Chief Executive Officer. "Continued strength in oil prices and Syncrude's solid operating base generated strong revenues, resulting in a growing cash balance over the first quarter. Combined with our recent US$700 million debt issuance, we have the liquidity to fund our major capital projects over the next few years while maintaining a strong balance sheet and dividend.
 
From the highlights of the report, it seemed to me like the company wasn't having a good  quarter relative to last year. While increasing dividends is usually a boon for shareholders and I enjoy getting a raise when I sat around and did nothing, I'm bothered by the quote.