Methanex Corporation (TSX: MX)(NASDAQ: MEOH) and Brookfield Property Partners LP (TSX: BPY.UN)(NYSE:BPY) recently made very shareholder-friendly moves and raised their dividends by 6-10%. Let’s take a closer look at each company and their dividends, so you can determine if you should invest in one of them today.
Methanex Corporation
Methanex is the world’s largest producer and supplier of methanol with an estimated 14% share of the global market as of 2016, which is a larger share than its closest two competitors combined.
In its fourth-quarter earnings release on January 31, Methanex announced a 10% increase to its quarterly dividend to US$0.33 per share, equating to US$1.32 per share annually, which brings its yield up to about 2.4%.
Investors must also make the following three notes regarding its dividend.
First, the first quarterly payment at the increase rate will come on March 31 to shareholders of record at the close of business on March 17.
Second, 2017 marked the seventh straight year in which Methanex has raised its annual dividend payment, and this hike has it on track for 2018 to mark the eighth straight year with an increase.
Third, I think the company’s very strong financial performance as of late, including its 247.1% year-over-year increase in operating cash flow to US$788 million in 2017, and the growing global demand for methanol, including an estimated 5% compound annual growth rate from 2017 to 2020, will allow it to continue to grow its dividend in 2019 and beyond.
Brookfield Property Partners LP
Brookfield Property Partners is a diversified global real estate company. It owns, operates, and develops one of the world’s largest portfolios of office, retail, industrial, hospitality, triple net lease, and self-storage assets.
In its fourth-quarter earnings release on February 8, Brookfield announced a 6.8% increase to its quarterly distribution to US$0.315 per unit, equating to US$1.26 per unit annually, which brings its yield up to about 6.1%.
Foolish investors must make the following three notes as well.
First, the first quarterly installment at the increased rate is payable on March 29 to shareholders of record on February 28.
Second, 2017 marked the third consecutive year in which the real estate giant has raised its annual distribution, and this hike has it positioned for 2018 to mark the fourth consecutive year with an increase.
Third, Brookfield has a long-term distribution-growth target of 5-8% annually, and I think its consistently strong growth of funds from operations, including its 5.9% year-over-year increase to US$1.44 per share in 2017, will allow it to easily achieve this growth target into the late 2020’s.
