As Foolish investors, we know that dividend-paying stocks outperform non-dividend-paying stocks over the long term. However, what many of us forget is that the top performers are those that raise their dividends as often as possible. With this in mind, let’s take a look at three stocks that raised their dividends in the last two days, so you can determine if you should buy one of them today.
1. Transcontinental Inc.
Transcontinental Inc. (TSX: TCL.A) is Canada’s largest printer with operations in print, flexible packaging, publishing, and digital media, and it is one of the leading providers of proximity media solutions.
In its first-quarter earnings report on March 9, it announced an 8.8% increase to its dividend to $0.185 per share quarterly, or $0.74 per share annually, and this gives its stock a yield of about 3.7% at today’s levels.
Investors must also note that Transcontinental has raised its annual dividend payment for 14 consecutive years, and its recent increases, including the one noted above and its 6.3% hike in March 2015, has it on pace for fiscal 2016 to mark the 15th consecutive year with an increase.
2. Tricon Capital Group Inc.
Tricon Capital Group Inc. (TSX: TCN) is an asset manager and principal investor focused on the residential real estate industry in North America, and it has approximately US$2.7 billion in assets under management.
In its fourth-quarter earnings report on March 9, it announced an 8.3% increase to its dividend to $0.065 per share quarterly, or $0.26 per share annually, and this gives its stock a yield of about 3% at today’s levels.
Investors should note that this was the first time Tricon has raised its dividend since it began paying one in September 2010.
3. Premium Brands Holdings Corp.
Premium Brands Holdings Corp. (TSX: PBH) is one of North America’s leading producers, marketers, and distributors of branded specialty food products.
In its fourth-quarter earnings report on March 10, it announced a 10.1% increase to its dividend to $0.38 per share quarterly, or $1.52 per share annually, and this gives its stock a yield of about 3.1% at today’s levels.
Investors must also note that Premium Brands has raised its annual dividend payment for three consecutive years, and this increase puts it on pace for 2016 to mark the fourth consecutive year with an increase.
Should you buy one of these stocks today?
Transcontinental, Tricon Capital Group, and Premium Brands raised their dividends this week, and I think all three represent attractive long-term investment opportunities today, but I would pick Transcontinental as my favourite of the three because of its very impressive streak of annual increases. Foolish investors should take a closer look at each and strongly consider initiating positions in at least one of them.
