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2 Stocks With Over 15 Years of Dividend Growth

Investing in dividend-growth stocks is one of the most powerful and time-proven strategies to build wealth. This means that investors should favour stocks with modest yields that have the ability to grow their dividends over time over ones with very high yields that have little to no growth potential. With this in mind, let’s take a look at two dividend-growth stocks that you could buy right now.

Finning International Inc.

Finning International Inc. (TSX:FTT) is the world’s largest Caterpillar dealer with operations across western Canada, Chile, Argentina, Bolivia, the United Kingdom, and Ireland. It sells, rents, and provides parts and services for equipment and engines to help its customers maximize their productivity.

Finning currently pays a quarterly dividend of $0.19 per share, equal to $0.76 per share annually, which gives its stock a yield of about 2.7% at the time of this writing.

A 2.7% yield may not impress you at first, so it’s very important to make the following two notes.

First, Finning has raised its annual dividend payment for 15 straight years, and its 4.1% hike last month has it on pace for 2017 to mark the 16th consecutive year with an increase.

Second, I think the company’s very strong financial performance, including its 6.4% year-over-year increase in revenue to $2.98 billion and its 59% year-over-year increase in net earnings to an adjusted $0.62 per share in the first half of 2017, will allow its streak of annual dividend increases to continue for the foreseeable future.

Transcontinental Inc.

Transcontinental Inc. (TSX:TCL.A) is the largest printer in Canada with operations in print, flexible packaging, publishing, and digital media. Its mission is “to create products and services that allow businesses to attract, reach, and retain their target customers.”

Transcontinental currently pays a quarterly dividend of $0.20 per share, equal to $0.80 per share on an annualized basis, which gives its stock a yield of about 3% at the time of this writing.

Investors must also make the following two notes about Transcontinental’s dividend.

First, it has raised its annual dividend payment for 15 straight years, and its recent hikes, including its 8.1% hike in March, have it on track for 2017 to mark the 16th consecutive year with an increase.

Second, I think Transcontinental’s consistently strong financial performance, including its 10.7% year-over-year increase in operating earnings to an adjusted $194.9 million, and its 12.3% year-over-year increase in net earnings to an adjusted $1.73 per share in the first half of 2017, will allow its streak of annual dividend increases to continue for the next decade.

Is now the time to buy?

I think Finning International and Transcontinental would make great additions to any Foolish portfolio, so take a closer look at each and consider adding one or both of them to yours today.


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Fool contributor Joseph Solitro has no position in any stock mentioned. Finning is a recommendation of Stock Advisor Canada.

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