These 3 Companies Have Raised Dividends for 19 Years Straight

These are some of Canada’s most reliable and stable companies.

| More on:
The Motley Fool

The ideal holding in any portfolio is one that you don’t have to think about after buying it, one you can hold for the long term without having to worry. But how do you know which names can stand the test of time?

One way is to look at companies that have consistently raised dividends not just when times are good, but throughout the business cycle. On that note, the following three companies have increased their dividend for at least 19 years straight, including during the economic crisis.

1. Enbridge

It should come as no surprise that Enbridge (TSX: ENB)(NYSE: ENB) is on this list of long-term dividend growers. As Canada’s largest pipeline operator, Enbridge operates critical infrastructure and collects revenue based on long-term contracts. And of course, the company has benefited immensely from the growth in Canada’s energy sector.

This shows up in Enbridge’s numbers. The company has grown its dividend by an average of 13% per year over the past decade, and raised its dividend in each of the past 19 years. There’s no reason to expect this streak to stop — continued growth in the energy patch should translate into increased earnings for Enbridge. The company is growing earnings per share by 10% to 12% per year, and expects to grow its dividend at roughly the same rate.

2. Metro

Like pipelines, selling groceries is a fairly resilient business; after all, even if the economy is doing poorly, we all still need to eat. Over the past two decades, no grocery retailer has performed as consistently as Montreal-based Metro (TSX: MRU). The company has managed to earn a return on equity of at least 14% for each of the past 20 years, including during the economic crisis.

As a result, Metro has been able to raise its dividend every year over the same time period. There is plenty of reason to expect the dividend to increase further; last year, the company paid out only 20% of its adjusted earnings to shareholders.

3. Fortis

Fortis (TSX: FTS) is Canada’s largest investor-owned distribution utility, and also one of Canada’s most stable companies. This should surprise no one. Like Metro, Fortis sells a product that we all must continue to buy even when times are tough.

However, Fortis takes consistency to a whole new level, with 41 consecutive years of dividend growth. It also has a current dividend yield over 4%, well above those of Enbridge and Metro. Yield-focused investors should take notice.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Benjamin Sinclair holds no positions in any of the stocks mentioned in this article.

More on Investing

Glass piggy bank
Dividend Stocks

New Investors: How to Make the RRSP Work for You Now and Not Just in Retirement

The RRSP can work for you in retirement, but it can also bring huge benefits right now for investors looking…

Read more »

Senior couple at the lake having a picnic
Dividend Stocks

Retirees: 2 High-Yielding Dividend Stocks to Buy Today

These TSX dividend-paying stocks can be a retiree’s best friend in their self-directed portfolios for additional income in retirement.

Read more »

money while you sleep
Dividend Stocks

2 Stable Stocks for Sleep-Better Investing

Boasting rock-solid underlying businesses and great financials, these two stable stocks can be perfect holdings for your portfolio.

Read more »

Money growing in soil , Business success concept.
Investing

3 Growth Stocks to Keep Your Eyes on

Growth stocks could make you lots of money, especially if you are able to buy them on sale and hold…

Read more »

Dividend Stocks

2 Dividend Stocks to Double Up on Right Now

After their recent declines, these two Canadian dividend stocks look even more attractive to buy for the long term.

Read more »

Young woman sat at laptop by a window
Investing

Should You Buy Savaria at These Levels?

Given Savaria's solid financials, healthy growth prospects, and attractive valuation, I am bullish on the company.

Read more »

A bull outlined against a field
Investing

These 3 High-Growth Stocks Could Power the Bull Market’s Next Record Run

Are you interested in high-growth stocks? These companies could power the bull market’s next record run!

Read more »

Male IT Specialist Holds Laptop and Discusses Work with Female Server Technician. They're Standing in Data Center, Rack Server Cabinet with Cloud Server Icon and Visualization
Tech Stocks

2 Top Tech Stocks Under $20 Per Share

Tech stocks are known for making millionaires. While it is difficult to identify them, these two tech stocks, each under…

Read more »