One of the most well-known facts about investing is that dividend-paying stocks far outperform their non-dividend-paying counterparts over the long term, and the top performers are those that increase their payments as often as possible. With these facts in mind, let’s take a look at three stocks that have increased their dividends for 16 consecutive years or more that you could add to your portfolio today.
1. SNC-Lavalin Group Inc.: 25 consecutive years of increases
SNC-Lavalin Group Inc. (TSX:SNC) is one of the world’s largest engineering and construction companies. It pays a quarterly dividend of $0.25 per share, or $1.00 per share annually, giving its stock a 2.4% yield at today’s levels. The company has also increased its annual dividend payment for 25 consecutive years, and its strong operational performance, including a 10.4% increase in net income to $104.83 million in the first quarter, and its low payout ratio could allow this streak to continue for another 25 years.
2. Empire Company Limited: 20 consecutive years of increases
Empire Company Limited (TSX:EMP.A) is one of the largest owners and operators of grocery stores in Canada. It pays a quarterly dividend of $0.30 per share, or $1.20 per share annually, which gives its stock a 1.4% yield at current levels. The company has also increased its annual dividend payment for 20 consecutive years, and its increased amount of free cash flow, including a 65% increase to $1.44 billion in the first quarter, and its low payout ratio could allow this streak to continue for another decade at least.
3. Saputo Inc.: 16 consecutive years of increases
Saputo Inc. (TSX:SAP) is the largest dairy processor in Canada and one of the 10 largest in the world. It pays a quarterly dividend of $0.13 per share, or $0.52 per share annually, giving its stock a 1.75% yield at today’s levels. The company has also increased its annual dividend payment for 16 consecutive years, and although it has been negatively impacted by lower cheese prices as of late, its consistent free cash flow generation and low payout ratio could allow this streak to reach 20 years easily.
Which of these top dividend stocks belongs in your portfolio?
SNC-Lavalin, Empire, and Saputo are three of the top dividend-growth stocks in the market today. Foolish investors should strongly consider making one of them a core holding.
