If you’re a fan of companies with extensive streaks of annual dividend increases, then this article is for you. I’ve compiled a list of three companies that have raised their dividends for 20 consecutive years or more, so let’s take a closer look at each to determine which would be the best fit for your portfolio.
1. Metro Inc.
Metro Inc. (TSX:MRU) is one of Canada’s largest owners and operators of grocery stores, convenience stores, and pharmacies, and it is the company behind retail banners such as Metro, Metro Plus, Super C, Food Basics, and Brunet. It currently pays a dividend of $0.117 per share quarterly, or $0.468 per share annually, which gives its stock a 1.2% yield at today’s levels.
At first glance, a 1.2% yield is far from impressive, but it is very important for investors to make two notes.
First, Metro has raised its annual dividend payment for 21 consecutive years.
Second, the company has a policy of paying dividends representing approximately 20-30% of its net earnings from the previous year before extraordinary items, so its 13.6% year-over-year growth to an adjusted $523.6 million in fiscal 2015 should allow its streak of annual increases to continue in 2016.
2. Ensign Energy Services Inc.
Ensign Energy Services Inc. (TSX:ESI) is one of the world’s leading land-based drilling and well-servicing contractors. It currently pays a dividend of $0.12 per share quarterly, or $0.48 per share annually, which gives its stock a 7.3% yield at today’s levels.
It is also important for investors to note that Ensign Energy Services has raised its annual dividend payment for 20 consecutive years, and its ample funds from operations, including $247.4 million in the first nine months of fiscal 2015, could allow this streak to continue in 2016.
3. Imperial Oil Limited
Imperial Oil Limited (TSX:IMO)(NYSE:IMO) is the largest petroleum refiner in Canada and one of the largest integrated oil and gas companies in the world. It currently pays a dividend of $0.14 per share quarterly, or $0.56 per share annually, which gives its stock a 1.3% yield at today’s levels.
Investors must also note that Imperial Oil has raised its annual dividend payment for 21 consecutive years, and its 7.7% increase in July 2015 puts it on pace for 2016 to mark the 22nd consecutive year with an increase.
Which of these dividend-growth all-stars should you buy?
Metro, Ensign Energy Services, and Imperial Oil are three of the top dividend-growth plays in the market today, so Foolish investors should strongly consider making one of them a core holding.
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Fool contributor Joseph Solitro has no position in any stocks mentioned.