The S&P/TSX Index moved up in September, so investors may be eager to double up capital gains with the income provided by dividend stocks. Big yields are tempting, but those with a long-term outlook should target dividend stocks that have a proven track record of dividend growth over many years. Let’s take a look at four dividend stocks today that have +15 years of dividend growth.
Canadian National Railway Company
Canadian National Railway Company (TSX: CNR)(NYSE: CNI) stock has climbed 12.2% in 2017 as of close on September 26. The Montreal-based company released its second-quarter results on July 25. Net income increased 20% to $1 billion, and revenues experienced growth of 17% to $3.3 billion, which was a quarterly record. Canadian rail has experienced some pressure with a high Canadian dollar souring sentiment on manufacturing stocks.
Canadian National Railway has experienced dividend growth for over 20 years. Currently, it offers a dividend of $0.41 per share, representing a dividend yield of 1.6%.
Saputo Inc.
Shares of the Montreal-based dairy company Saputo Inc. (TSX: SAP) have declined 9% in 2017 and 5.9% year over year. Saputo released its fiscal 2018 first-quarter results on August 1. It posted net earnings of $200.3 million — up 13.4% — and revenues of $2.89 billion — up 9%. The rising Canadian dollar had a positive impact on Saputo results, which could bode well for the fiscal 2018 second-quarter results set for release in October. Saputo will also be eagerly watching the developments of NAFTA negotiations as supply management continues to be a hot topic.
Saputo has announced dividend growth for 17 consecutive years now. The stock offers a dividend of $0.16 per share, representing a dividend yield of 1.5%.
Canadian Western Bank
Canadian Western Bank (TSX: CWB) is an Edmonton-based regional bank with most of its operations located in western Canada. The bank released its third-quarter results on August 31. Earnings were impressive with net income increasing 24% to $56.3 million. Canadian Western Bank has ambitions to expand its wealth management enterprise after seeing positive growth in that area. Assets under management grew to $2 billion from $1.9 billion in Q3 2016.
The bank also hiked its dividend by 4% to $0.24 per share, representing a 3% dividend yield. Canadian Western Bank has boasted dividend growth for 25 consecutive years.
Finning International Inc.
Shares of Caterpillar Inc. distributor Finning International Inc. (TSX: FTT) have increased 7.4% in 2017 and 14.5% year over year. The company reported its second-quarter results on August 9. Revenue was up 21% from Q2 2016. Finning saw higher profitability in Canada, the U.K., and Ireland due to superior market conditions that drove operating performance. The company has benefitted from a big boost at Caterpillar following the 2016 U.S. election as the Trump administration has promised big investments in construction and infrastructure.
Finning hiked its dividend to $0.19 per share, representing a dividend yield of 2.7%. The company has experienced dividend growth for 15 years.
