If you’re in search of a great dividend-growth stock to buy and hold for decades, then you’ve come to the right place. I’ve scoured the market and compiled a list of four stocks with yields up to 4.5%, active streaks of annual increases, and the ability to continue growing their payouts going forward, so let’s take a quick look at each.
1. Toromont Industries Inc.
Toromont Industries Inc. (TSX:TIH) is one of North America’s largest owners and operators of Caterpillar and Agco dealerships with more than 100 locations across Canada and the United States. It’s also one of the leading providers of commercial and industrial equipment rentals in Canada, and one of the leading designers of industrial and recreational refrigeration systems in Canada and the United States.
It pays a quarterly dividend of $0.18 per share, or $0.72 per share annually, giving its stock a yield of about 1.9% at today’s levels. A 1.9% yield may not seem impressive at first, but it’s important to note that the company’s 5.9% dividend hike in February has it on pace for 2016 to mark the 27th consecutive year in which it has raised its annual dividend payment, and it has a target payout range of 30-40% of its earnings from continuing operations.
2. BCE Inc.
BCE Inc. (TSX:BCE)(NYSE:BCE) is Canada’s leading provider of internet and television services and its third-largest wireless provider. Overall, it’s the country’s largest communications company with 20.96 million subscribers as of March 31, 2016.
It pays a quarterly dividend of $0.6825 per share, or $2.73 per share annually, giving its stock a yield of about 4.4% at today’s levels. It’s also important to note that the company’s 4% dividend hike in February has it on pace for 2016 to mark the eighth consecutive year in which it has raised its annual dividend payment, and it has a target payout range of 65-75% of its free cash flow.
3. Algonquin Power & Utilities Corp.
Algonquin Power & Utilities Corp. (TSX:AQN) is a renewable energy and regulated utility company with operations across Canada and the United States. Its subsidiaries include Algonquin Power Company, which has ownership interests in 33 clean energy facilities across Canada and the United States, and Liberty Utilities, which provides water, electricity, and gas utility services to over 560,000 customers in 11 U.S. states.
It pays a quarterly dividend of US$0.1059 per share, or US$0.4235 per share annually, giving its stock a yield of about 4.5% at today’s levels. It’s also important to note that the company’s two dividend hikes since the start of 2015, including its 10% hike in May of this year, have it on pace for 2016 to mark the sixth consecutive year in which it has raised its annual dividend payment, and it has a long-term dividend-growth target of 10% annually.
4. First Capital Realty Inc.
First Capital Realty Inc. (TSX:FCR) is one of Canada’s largest owners, developers, and managers of grocery-anchored, retail-focused urban properties. It has ownership interests in 161 properties across four provinces that total approximately 24.9 million square feet.
It pays a quarterly dividend of $0.215 per share, or $0.86 per share annually, giving its stock a yield of about 3.9% at today’s levels. It’s also important to note that the company has raised its annual dividend payment for four consecutive years, and its strong growth of adjusted funds from operations could allow it to continue this streak in 2016 by announcing a slight hike before the end of the year.
