As most investors know, dividend-paying stocks far outperform non-dividend-paying stocks over the long term. However, what many forget is that the top returners are those that increase their dividends every year. With this in mind, let’s take a look at three stocks that have raised their annual dividend payments for six consecutive years, so you can determine if you should buy one of them today.
1. CI Financial Corp.
CI Financial Corp. (TSX: CIX) is the third-largest investment fund company in Canada with over $111 billion in assets under management. It currently pays a dividend of $0.11 per share monthly, or $1.32 per share annually, which gives its stock a yield of approximately 4.6% at today’s levels.
Investors must also note that CI Financial has raised its annual dividend payment for six consecutive years, and its 4.8% increase in June 2015 puts it on pace for 2016 to mark the seventh consecutive year with an increase.
2. Genworth MI Canada Inc.
Genworth MI Canada Inc. (TSX:MIC) is Canada’s largest private residential mortgage insurer through its subsidiary Genworth Financial Mortgage Insurance Company Canada. It currently pays a dividend $0.42 per share quarterly, or $1.68 per share annually, which gives its stock a yield of approximately 6.8% at today’s levels.
It is also important for investors to note that Genworth has raised its regular annual dividend payment for six consecutive years, and its recent increases, including its 7.7% hike in October 2015, puts it on pace for 2016 to mark the seventh consecutive year with an increase.
3. Brookfield Infrastructure Partners L.P.
Brookfield Infrastructure Partners L.P. (TSX: BIP.UN)(NYSE: BIP) is one of the largest owners and operators of utilities, transport, energy, and communications infrastructure assets in North America, South America, Australia, and Europe. It currently pays a dividend of US$0.57 per share quarterly, or US$2.28 per share annually, which gives its stock a yield of approximately 6.6% at today’s levels.
Investors must also make two important notes.
First, Brookfield has raised its annual dividend payment for six consecutive years, and its 7.5% increase on February 3 puts it on pace for 2016 to mark the seventh consecutive year with an increase.
Second, the company has a target payout ratio of 60-70% of its funds from operations, so it believes that its strong operational performance will enable 5-9% annual distribution growth going forward.
Should you buy one or all of these dividend-growth stars today?
CI Financial, Genworth MI Canada, and Brookfield Infrastructure Partners have high dividend yields and impressive streaks of annual increases, making them ideal investment options for long-term investors. Take a closer look and strongly consider initiating positions in at least one of them today.
