2 Dividend-Growth Superstars That Recently Hiked Their Payouts

SNC-Lavalin Group Inc. (TSX:SNC) and Stella-Jones Inc. (TSX:SJ) recently hiked their dividends, continuing their streaks of annual increases. Which should you buy today?

| More on:

As Foolish investors know, dividend-paying stocks outperform non-dividend-paying stocks over the long term, and the top performers are those that increase their payouts every year. With this in mind, let’s take a look at two stocks that recently announced increases and have done so for over a decade, so you can determine which would fit best in your portfolio.

1. SNC-Lavalin Group Inc.

SNC-Lavalin Group Inc. (TSX:SNC) is one of the world’s largest engineering and construction companies, and it is a major player in the ownership of infrastructure. Its service offerings include engineering, procurement, construction, training, operations, and maintenance, and its infrastructure investments are typically for public services, such as airports, bridges, highways, mass transit systems, and water treatment facilities.

In its fourth-quarter earnings report on March 3, it announced a 4% increase to its dividend to $0.26 per share quarterly, or $1.04 per share annually, and this gives its stock a yield of about 2.2% at today’s levels.

Investors must also note that SNC-Lavalin Group has raised its annual dividend payment for 15 consecutive years, and this increase puts it on pace for 2016 to mark the 16th consecutive year with an increase.

2. Stella-Jones Inc.

Stella-Jones Inc. (TSX:SJ) is one of North America’s leading producers of pressure-treated wood products. Its product offerings include railway ties, construction timbers, utility poles, foundation and marine pilings, highway guardrail posts, and lumber for residential use.

In its fourth-quarter earnings report on March 16, it announced a 25% increase to its dividend to $0.10 per share quarterly, or $0.40 per share annually, and this gives its stock a yield of about 0.8% at today’s levels.

A 0.8% yield may not seem like much at first, but it is very important for investors to note that Stella-Jones has raised its annual dividend payment for 11 consecutive years, and this increase puts it on pace for 2016 to mark the 12th consecutive year with an increase.

Should you buy one of these dividend aristocrats?

SNC-Lavalin Group and Stella-Jones recently hiked their dividends, continuing their impressive streaks of annual increases, and I think both represent great long-term investment opportunities today. Foolish investors should strongly consider initiating positions in at least one of them.

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.

More on Dividend Stocks