If you are new to investing, there are two things you must know. First, dividend-paying stocks far outperform non-dividend-paying stocks over the long term, and second, the top returners are those that increase their dividends as often as possible. With these two facts in mind, let’s take a look at three industry giants that recently raised their dividends, so you can determine if you should buy one of them today.
1. First National Financial Corp.
First National Financial Corp. (TSX:FN) is Canada’s largest non-bank lender with more than $92 billion in mortgages under administration.
In its third-quarter earnings report on October 27, it announced a 3.3% increase to its dividend to $0.129167 per share monthly, or $1.55 per share annually, and this gives its stock a 7% yield at today’s levels.
It is also important to note that First National Financial has raised its annual dividend payment for four consecutive years, and this increase puts it on pace for 2016 to mark the fifth consecutive year with an increase.
2. Telus Corporation
Telus Corporation (TSX:T)(NYSE:TU) is one of the largest telecommunication companies in Canada with over 14 million total customer connections and more than 8.4 million wireless subscribers.
In its third-quarter earnings report on November 5, it announced a 4.8% increase to its dividend to $0.44 per share quarterly, or $1.76 per share annually, and this gives its stock a 4.25% yield at today’s levels.
Investors should also make two very important notes. First, Telus has raised its annual dividend payment for 12 consecutive years. Second, the company has a dividend-growth program in place to raise it by another 10% annually through 2016, and there is a very good chance that it will announce a new program as soon as this one is completed.
3. Canadian Tire Corporation Limited
Canadian Tire Corporation Limited (TSX:CTC.A) is one of the largest retailers of general merchandise, automotive products, sporting goods, and apparel in Canada.
In its third-quarter earnings report on November 12, it announced a 9.5% increase to its dividend to $0.575 per share quarterly, or $2.30 per share annually, and this gives its stock a 1.8% yield at today’s levels.
It is also very important for investors to note that Canadian Tire has raised its annual dividend payment for five consecutive years, and this increase puts it on pace for 2016 to mark the sixth consecutive year with an increase.
Which of these dividend growers would fit best in your portfolio?
First National Financial, Telus, and Canadian Tire recently raised their dividends, and all represent great long-term investment opportunities today. Foolish investors should take a closer look and strongly consider initiating positions in at least one of them in the trading sessions ahead.
Fool contributor Joseph Solitro has no position in any stocks mentioned.