EARNINGS PER COMMON SHARE AND DIVIDENDS PER SHARE

9 Months Ended

Sep. 30, 2022

EARNINGS PER COMMON SHARE AND DIVIDENDS PER SHARE

BASIC

Earnings per common share is calculated by dividing earnings attributable to common shareholders by the weighted average number of common shares outstanding. On December 30, 2021, we closed the sale of our minority ownership in Noverco Inc. (Noverco). For both the three and nine months ended September 30, 2021, the weighted average number of common shares outstanding was reduced by our pro-rata weighted average interest in our own common shares of approximately 2 million, resulting from our reciprocal investment in Noverco.

DILUTED

The treasury stock method is used to determine the dilutive impact of stock options and restricted stock units (RSU). This method assumes any proceeds from the exercise of stock options and vesting of RSUs would be used to purchase common shares at the average market price during the period.

Weighted average shares outstanding used to calculate basic and diluted earnings per share are as follows:


	Three months ended September 30,		Nine months ended September 30,
	2022	2021	2022	2021
(number of shares in millions)
Weighted average shares outstanding	2,025	2,024	2,026	2,023
Effect of dilutive options and RSUs	3	2	3	2
Diluted weighted average shares outstanding	2,028	2,026	2,029	2,025

For the three months ended September 30, 2022 and 2021, 11.4 million and 13.3 million, respectively, of anti-dilutive stock options with a weighted average exercise price of $56.49 and $56.16, respectively, were excluded from the diluted earnings per common share calculation.

For the nine months ended September 30, 2022 and 2021, 9.2 million and 20.5 million, respectively, of anti-dilutive stock options with a weighted average exercise price of $56.63 and $52.19, respectively, were excluded from the diluted earnings per common share calculation.

DIVIDENDS PER SHARE

On November 2, 2022, our Board of Directors declared the following quarterly dividends. All dividends are payable on December 1, 2022 to shareholders of record on November 15, 2022.


			Dividend per share
Common Shares1			$0.86000
Preference Shares, Series A			$0.34375
Preference Shares, Series B2			$0.32513
Preference Shares, Series D			$0.27875
Preference Shares, Series F			$0.29306
Preference Shares, Series H			$0.27350
Preference Shares, Series L3			US$0.36612
Preference Shares, Series N			$0.31788
Preference Shares, Series P			$0.27369
Preference Shares, Series R			$0.25456
Preference Shares, Series 1			US$0.37182
Preference Shares, Series 3			$0.23356
Preference Shares, Series 5			US$0.33596
Preference Shares, Series 7			$0.27806
Preference Shares, Series 9			$0.25606
Preference Shares, Series 11			$0.24613
Preference Shares, Series 13			$0.19019
Preference Shares, Series 15			$0.18644

Preference Shares, Series 19			$0.30625

1The quarterly dividend per common share was increased 3% to $0.86 from $0.835, effective March 1, 2022.

2The quarterly dividend per share paid on Preference Shares, Series B was increased to $0.32513 from $0.21340 on June 1, 2022 due to reset of the annual dividend on June 1, 2022. On June 1, 2022, all outstanding Preference Shares, Series C were converted to Preference Shares, Series B.

3The quarterly dividend per share paid on Preference Shares, Series L was increased to US$0.36612 from US$0.30993 on September 1, 2022 due to reset of the annual dividend on September 1, 2022.

PREFERENCE SHARE REDEMPTIONS

On March 1, 2022, we redeemed our $750 million outstanding Cumulative Redeemable Minimum Rate Reset Preference Shares, Series 17. On June 1, 2022, we also redeemed our US$200 million outstanding Cumulative Redeemable Preference Shares, Series J. Dividends are cumulative, payable quarterly and are included in Preference share dividends in the Consolidated Statements of Earnings.