As dividend investors, it’s our goal to build a portfolio of stocks with high and safe yields that have the ability to grow their payouts over time. One way to find a great dividend stock is to take a closer look at those that recently announced increases, so with this in mind, let’s take a look at two industry giants that did so on March 17.
1. Pembina Pipeline Corp.
Pembina Pipeline Corp. (TSX:PPL)(NYSE:PBA) is one of the leading transportation and midstream service providers to North America’s energy industry.
On March 17, it announced a 4.9% increase to its dividend to $0.16 per share monthly, or $1.92 per share annually, and this gives its stock a yield of about 5.5% at today’s levels.
Investors must also make two notes.
First, Pembina has raised its annual dividend payment for four consecutive years, and its two hikes in the last 12 months, including the one noted above and its 5.2% hike in May 2015, has it on pace for 2016 to mark the fifth consecutive year with an increase.
Second, I think the company’s strong growth in cash flows from operating activities, including its 6.3% year-over-year growth to an adjusted $2.53 per share in fiscal 2015, and its growing fee-for-service asset base will allow its streak of annual increases to continue going forward.
2. Fiera Capital Corp.
Fiera Capital Corp. (TSX:FSZ) is the third-largest publicly traded asset manager in Canada and the sixth-largest overall with over $101 billion in assets under management.
In its fourth-quarter earnings report on March 17, it announced a 7.1% increase to its dividend to $0.15 per share quarterly, or $0.60 per share annually, and this gives its stock a yield of about 4.4% at today’s levels.
Investors must also make two notes.
First, Fiera Capital has raised its annual dividend payment for five consecutive years, and its two hikes in the last 12 months, including the one noted above and its 7.7% hike in August 2015, has it on pace for 2016 to mark the sixth consecutive year with an increase.
Second, I think the company’s consistent growth in cash flows from operating activities, including its 4.9% year-over-year growth to $66.9 million in fiscal 2015, will allow its streak of annual increases to continue going forward.
Should you buy Pembina or Fiera today?
Pembina Pipeline and Fiera Capital announced dividend hikes on March 17, and I think both represent very attractive long-term investment opportunities. Foolish investors should strongly consider establishing positions in at least one of them today.
