As savvy investors know, dividend-paying stocks outperform non-dividend-paying stocks over the long term, and the top performers are those that increase their payments as often as possible. With this in mind, let’s take a look at three stocks that have increased their dividends for more than 10 consecutive years that you should consider buying today.
1. Fortis Inc.: 42 consecutive years of increases
Fortis Inc. (TSX:FTS) is one of the largest electric and gas utilities companies in North America. It pays a quarterly dividend of $0.34 per share, or $1.36 per share annually, giving its stock a 3.9% yield at today’s levels. The company has also increased its dividend for 42 consecutive years, the record for a public corporation in Canada, and its increased amount of free cash flow could allow this streak to continue for the foreseeable future.
2. Toromont Industries Inc.: 25 consecutive years of increases
Toromont Industries Inc. (TSX:TIH) is one of the largest dealers of Caterpillar equipment and one of the leading manufacturers of industrial and recreational refrigeration systems in North America. It pays a quarterly dividend of $0.17 per share, or $0.68 per share annually, which gives its stock a 2.2% yield at current levels. The company has also increased its annual dividend payment for 25 consecutive years, and its consistent free cash flow generation could allow this streak to continue for the next several years.
3. Shaw Communications Inc.: 12 consecutive years of increases
Shaw Communications Inc. (TSX:SJR.B)(NYSE:SJR) is one of the largest telecommunications and media companies in Canada. It pays a monthly dividend of $0.09875 per share, or $1.185 per share annually, giving its stock a 4.35% yield at today’s levels. The company has also increased it annual dividend payment for 12 consecutive years, and its increased amount of free cash flow could allow this streak to continue for another 12 years at least.
Which of these dividend aristocrats should you buy?
Fortis, Toromont Industries, and Shaw Communications are three of the top dividend-growth stocks in the market. All Foolish investors should strongly consider making one or more of them a core holding today.
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 Joseph Solitro has no position in any stocks mentioned.