5 Stocks Poised to Hike Their Dividends in 2015

The Toronto-Dominion Bank (TSX:TD)(NYSE:TD), Fortis (TSX:FTS), and Enbridge Inc (TSX:ENB)(NYSE:ENB) are just three stocks on my list of companies poised to hike their dividends this year.

| More on:
The Motley Fool

Dividends are the McDonald’s of investing: No matter if you’re eating in Toronto, Tokyo, or Toledo, you always know exactly what to expect.

Nobody can tell you where the stock market is going from one day to the next. But with dividends, I can always count on a steady stream of cash to be deposited into my brokerage account.

Some firms, however, are so reliable, you can predict not only when they’ll pay a dividend, but also when the company will raise it.

With that in mind, here are five stocks that are poised to hike their payouts in 2015. Nobody knows what their share prices will do in the short term. But barring a nasty surprise, these five firms should be able to pass on lucrative dividend increases this year.

1. Telus Corporation

Telus Corporation (TSX:T)(NYSE:TU) is one of the most reliable dividend payers around. It’s also one of the most predictable. Executives have pledged to raise the firm’s distribution twice per year through 2016, at an annual rate of about 10%. Of course, those dividend hikes will depend on Telus’s future earnings and cash flow. However, management would not have raised investors’ hopes unless they were confident in the company’s future.

2. Enbridge Inc

Enbridge Inc (TSX:ENB)(NYSE:ENB) shares have been caught up in the malaise of all things oil-related. Not to mention the company’s flagship Northern Gateway pipeline has been stonewalled by one roadblock after another. But there’s still plenty to like about the firm. Thanks to the oil boom we’re seeing across the continent, Enbridge has about $33 billion in smaller projects that are likely to go ahead. This should allow the company to grow its dividend by about 10% to 12% annually through 2018.

3. Toronto-Dominion Bank

With more than 25% of revenues coming from the United States, the Toronto-Dominion Bank (TSX:TD)(NYSE:TD) is levered to growth in the world’s biggest economy. South of the border, household debt has come down sharply and the housing market is on the mend. That means more loans, fewer defaults, and higher profits for the Green Machine. And given that the financial institution’s dividend yield and payout ratio are below average for a big five bank, I expect TD will raise its dividend again this year.

4. TransCanada Corporation

With so much attention focused on TransCanada Corporation’s (TSX:TRP)(NYSE:TRP) controversial Keystone XL pipeline, it’s easy to forget about all of the other growth avenues this company has in front of it. In total, the business has more than US$45 billion in secured expansion projects, including thousands of miles of pipeline extensions as well as dozens of new processing and storage facilities. This should allow the company to grow earnings (and by rough extension dividends) at an 8% to 10% annual clip through 2017.

5. Fortis Inc

My boldest prediction for 2015: Fortis Inc (TSX:FTS) will raise its dividend in December. How can I be so sure? Well, the electric utility giant has hiked its payout every year since 1972, the longest streak of any company in Canada. Unless there is some sort of financial crisis between now and the end of the year, I don’t expect Fortis to end that tradition any time soon.

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 Robert Baillieul has no position in any stocks mentioned.

More on Investing

Stock analysts were once excited about construction company Aecon as an investment.
Coronavirus

Bull or Bear: Why Analysts Changed Their Tune on Aecon Stock

Analysts had been champing at the bit for the construction company, but the tides have turned.

Read more »

Specialty Brands faces higher raw materials costs.
Dividend Stocks

What’s Next for Premium Brands Stock?

Shares of the specialty food production and distribution company have fallen about 25% since last October.

Read more »

Double exposure of a businessman and stairs - Business Success Concept
Dividend Stocks

2 Interesting Buys in Any Market

Here are two intriguing buys in any market climate that offer defensive appeal as well as growth and income earning…

Read more »

Bank sign on traditional europe building facade
Bank Stocks

Should You Buy Bank Stocks Now?

Canadian bank stocks are getting cheap. Is this the right time to buy?

Read more »

stock data
Stocks for Beginners

2 Reliable Stocks Beginners Can Buy Amid the Market Selloff

As the broader market turmoil continues, new investors can buy these two reliable dividend stocks to get good returns on…

Read more »

Biotech stocks can be good yet risky investments.
Coronavirus

Is Bellus Health Stock Still a Buy After 30% Earnings Jump?

The biotech continues to make progress on obtaining FDA approval for its chronic-cough therapy.

Read more »

IMAGE OF A NOTEBOOK WITH TFSA WRITTEN ON IT
Dividend Stocks

TFSA Investors: 3 TSX Stocks for Tax-Free Passive Income

These Canadian corporations have strong visibility over future earnings and dividend payouts.

Read more »

Piggy bank next to a financial report
Investing

Do You Have Cash Sitting in Your TFSA? Now Is a Great Time to Buy Stocks

If you have cash in your TFSA that you're looking to invest, now is a great time to buy high-quality…

Read more »