Content
Dividends
Dividends per Common Share
(dollars per share)
The Company has paid common share dividends since its inception. Based on estimated 2008 dividends, the rate of increase has averaged 10% since 1953. The Company's dividend payout ratio reflects a strong and stable long-term outlook for the business. While balancing shareholders' preference for income and its own need for capital, the Company targets to pay out approximately 60% to 70% of adjusted operating earnings as dividends. In 2007, dividends paid per share were 69% of adjusted operating earnings per share (2006 – 66%, 2005 – 65%).
The chart below shows dividends per share for the last 10 years and estimated dividends for 2008, based on the quarterly dividend of $0.33 per common share declared by the Board of Directors on February 5, 2008. Average annual growth is 9%.
Effective with dividends payable on March 1, 2008, participants in the Company's Dividend Reinvestment and Share Purchase Plan will receive a 2% discount on the purchase of common shares with reinvested dividends.