3 Stocks That Recently Hiked Their Dividends

Sun Life Financial Inc. (TSX:SLF)(NYSE:SLF), Alimentation Couche-Tard Inc. (TSX:ATD.B), and Valener Inc. (TSX:VNR) recently hiked their dividends. Should you buy one of them today?

| More on:
The Motley Fool

As savvy investors know, dividend-paying stocks outperform non-dividend-paying stocks over the long term, and the top returners are those that increase their rates as often as possible. With these facts in mind, let’s take a look at three stocks that recently hiked their dividends, so you can decide if you should add one of them to your portfolio.

1. Sun Life Financial Inc.

Sun Life Financial Inc. (TSX:SLF)(NYSE:SLF) is the third-largest insurance company in Canada with more than $846 billion in assets under management.

In its third-quarter report on November 4 it announced a 2.6% increase to its dividend to $0.39 per share quarterly, or $1.56 per share annually, and this gives its stock a 3.65% yield at today’s levels.

It is also important for investors to make two notes. First, this was the second time that Sun Life raised its dividend in 2015. Second, the company has a medium-term objective to have a dividend payout ratio of 40-50% of net income, so its consistent growth should allow for another increase in 2016.

2. Alimentation Couche-Tard Inc.

Alimentation Couche-Tard Inc. (TSX:ATD.B) is one of world’s largest owners, operators, and franchisors of convenience stores and gas stations with over 14,900 locations.

In its second-quarter earnings report on November 24, it announced a 22.7% increase to its dividend to $0.0675 per share quarterly, or $0.27 per share annually, and this gives its stock a 0.4% yield at today’s levels.

Investors should also note that Alimentation Couche-Tard has raised its dividend for six consecutive years, and it is currently on pace for 2016 to mark the seventh consecutive year with an increase.

3. Valener Inc.

Valener Inc. (TSX:VNR) is a public company that serves as an investment vehicle in Gaz Metro, which owns a diversified and largely regulated energy portfolio in Quebec and Vermont.

In its fourth-quarter report on November 27, it announced a 3.8% increase to its dividend to $0.27 per share quarterly, or $1.08 per share annually, and this gives its stock a 6.1% yield at today’s levels.

Investors should also make two important notes. First, this was the second time Valener raised its dividend in 2015. Second, the company has stated that it intends to increase its annualized dividend by approximately 4% per year through fiscal 2018.

Should you buy one of these dividend growers today?

Sun Life Financial, Alimentation Couche-Tard, and Valener recently hiked their dividends, and all represent attractive long-term investment opportunities today. Foolish investors should take a closer look at each and consider initiating positions in one of them in the near future.

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. Alimentation Couche-Tard is a recommendation of Stock Advisor Canada.

More on Dividend Stocks

Businessman holding tablet and showing a growing virtual hologram of statistics, graph and chart with arrow up on dark background. Stock market. Business growth, planning and strategy concept
Dividend Stocks

TFSA Magic: Earn Enormous Passive Income That the CRA Can’t Touch

If you're seeking out passive income, with zero taxes involved, then get on board with a TFSA and this portfolio…

Read more »

Man with no money. Businessman holding empty wallet
Dividend Stocks

2 Stocks Under $50 New Investors Can Confidently Buy

There are some great stocks under $50 that every investor needs to know about. Here’s a look at two great…

Read more »

think thought consider
Dividend Stocks

Down 10.88%: Is ATD Stock a Good Buy After Earnings?

Alimentation Couche-Tard (TSX:ATD) stock might not be the easy buy-case it once was. Here’s a look at what happened.

Read more »

money cash dividends
Dividend Stocks

TFSA Dividend Stocks: Earn $1,200/Year Tax-Free

Canadian stocks like Fortis are a must-have in your portfolio to earn tax-free yields for decades.

Read more »

sale discount best price
Dividend Stocks

1 Dividend Stock Down 11 Percent to Buy Right Now

Do you want a great dividend stock down 11% that can provide years of growth potential? Here's one heavily discounted…

Read more »

Growth from coins
Dividend Stocks

1 Grade A Dividend Stock Down 11% to Buy and Hold Forever 

If you're looking for the right dividend stock at the right price, you're going to want to consider this insurance…

Read more »

Target. Stand out from the crowd
Dividend Stocks

2 Dividend Stocks to Double Up on Right Now

Are you looking for dividend stocks to buy right now? Here are two top picks!

Read more »

edit Taxes CRA
Dividend Stocks

Tax Time: How to Keep More of Your Money

Nearly everyone hates paying taxes, although Canadians can lessen the financial pain with the right tax strategies.

Read more »