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

Canadian dollars are printed
Dividend Stocks

Beat the TSX With This Cash-Gushing Dividend Stock

Toronto-Dominion Bank (TSX:TD) stock could do well in the year ahead.

Read more »

monthly desk calendar
Dividend Stocks

Monthly Income: Top Dividend Stocks to Buy in November

Here are two of the best monthly dividend stocks in Canada you can buy in November 2024 and hold for…

Read more »

profit rises over time
Dividend Stocks

These 2 Dow Stocks Are Set to Soar in 2025 and Beyond

Two Dow Jones stocks are screaming buys but Canadians must hold them in an RRSP or RRIF to avoid paying…

Read more »

TFSA (Tax free savings account) acronym on wooden cubes on the background of stacks of coins
Dividend Stocks

How to Use Your TFSA to Earn Ultimate Passive Income

If you have a TFSA, then you have the key to creating ultimate passive income. All you need is a…

Read more »

Confused person shrugging
Dividend Stocks

Better Buy: Fortis Stock or Hydro One Stock?

Let's do a compare and contrast of these two top utilities stocks right now, shall we?

Read more »

A close up color image of a small green plant sprouting out of a pile of Canadian dollar coins "loonies."
Dividend Stocks

Boost Your Passive Income: 2 Canadian High-Yielders at a Bargain

Nutrien (TSX:NTR) stock and another play that appear like fantastic dividend bargains in mid-November.

Read more »

3 colorful arrows racing straight up on a black background.
Dividend Stocks

TSX Stocks Soaring Higher With No Signs of Slowing

Three TSX stocks continue to beat the market and could soar higher in an improving investment landscape.

Read more »

Hourglass and stock price chart
Dividend Stocks

Goeasy Stock: Is It Heading for a 52-Week High?

Goeasy stock has been edging higher, especially after another record-setting earnings report. So are 52-week highs in sight?

Read more »