As intelligent investors know, dividend-paying stocks outperform non-dividend-paying stocks over the long term, and the top returners are those that increase their payments on an annual basis. With this in mind, let’s take a look at three stocks that have increased their dividends for five consecutive years or more, so you can decide which would be the best fit for your portfolio.
1. CAE Inc.: eight consecutive years of increases
(All figures are in U.S. dollars)
CAE Inc. (TSX:CAE)(NYSE:CAE) and its subsidiaries design, manufacture, and supply simulation equipment, provide training, and develop integrated training solutions for the defense, security, airline, and healthcare industries.
It pays a quarterly dividend of $0.075 per share, or $0.30 per share annually, giving its stock a 2.1% yield at today’s levels. The company has also increased its annual rate for eight consecutive years, and its consistent free cash flow generation and low payout ratio could allow this streak to continue in 2016.
2. Algonquin Power & Utilities Corp.: six consecutive years of increases
(All figures are in U.S. dollars)
Algonquin Power & Utilities Corp. (TSX:AQN) is one of the largest operators of regulated and non-regulated utilities in North America.
It pays a quarterly dividend of $0.09625 per share, or $0.385 per share annually, which gives its stock a 5.2% yield at current levels. The company has also increased its dividend for six consecutive years, and it has a long-term goal of increasing its dividend by 10% annually, so I think this streak could continue for another six years at least.
3. Alaris Royalty Corp.: five consecutive years of increases
Alaris Royalty Corp. (TSX:AD) is one of the largest alternative financing companies in North America. It pays a monthly dividend of $0.135 per share, or $1.62 per share annually, giving its stock a 5.6% yield at today’s levels.
The company has also increased its dividend for five consecutive years, including 10 increases in that span, and its strong financial results could allow this streak to continue for the next several years.
Should you buy one of these stocks today?
CAE, Algonquin Power & Utilities, and Alaris Royalty are three of the top dividend-growth plays in their respective industries. Foolish investors should take a closer look and consider buying one or more of them today.
