Retirees: Target These Dividend-Growth Stocks Yielding up to 3%

Stocks such as ATCO Ltd. (TSX:ACO.X), Thomson Reuters Corp. (TSX:TRI)(NYSE:TRI), and others have delivered decades of dividend growth and solid yields that should entice retirees.

The Motley Fool

There has been a good deal of discussion about the length of the current bull market. It stands as one of the longest in history following the 2007-2008 Financial Crisis. For those in or nearing retirement the threat of another downturn should be motivation to check up on their respective portfolios in order to mitigate risk.

Let’s take a look at four stocks with over 10 years of dividend growth and some solid yields to provide retirees income.

ATCO Ltd. (TSX: ACO.X) is a Calgary-based holding company with stakes in gas, electricity, and construction industries mainly. The stock has increased 3.5% in 2017 as of close on October 6. ATCO released its second-quarter results on July 27. Adjusted earnings were down to $71 million from $81 million in Q2 2016. The company has made over $700 million in capital investments in the first half of 2017. ATCO declared a dividend of $0.33 per share, representing a 2.8% dividend yield. This marks a 23-year streak of dividend growth.

Thomson Reuters Corp. (TSX: TRI)(NYSE:TRI) is a Toronto-based multinational mass media and information firm. Shares of Thomson Reuters are down 1.8% in 2017 and have increased 7.2% year over year. The company released its second-quarter results on August 1. Higher recurring revenues and acquisitions boosted total revenue 2% at constant currency. Free cash flow climbed 10% to $580 million, but cash flow from operations was weighed down by the loss of revenue from the recently sold IP and Science. The stock offers a dividend of $0.44 per share with a 3% dividend yield. The company has delivered 23 straight years of dividend growth.

Ritchie Bros. Auctioneers Inc. (TSX: RBA)(NYSE: RBA) is an industrial auctioneer based in British Columbia. The stock has declined 18.3% in 2017 and 20% year over year. In its second-quarter results reported on August 8, the company saw its revenues increase by 8% to $166.2 million. According to CEO Ravi Saligram, second-quarter results were pulled down by a significant shortage in the utilization of used construction equipment in the United States. This was due to a boost in local infrastructure projects. Ritchie Bros. is confident its partnership with IronPlanet will bode well for its 2018 performance.

The company also declared a dividend of $0.21 per share, representing a dividend yield of 2.3%. It has also delivered dividend growth for 14 years running.

Enghouse Systems Limited (TSX: ENGH) is a software and services company that serves a number of markets through its three divisions. Shares of Enghouse Systems have dropped 7% in 2017 and are up a modest 1% year over year. The company released its third-quarter results on September 7. Revenue increased 8.4% to $82.8 million, and net income climbed to $11.2 million compared to $10.4 million in Q3 2016. The board of directors approved a declared dividend of $0.16 per share, representing a dividend yield of 1.2%. Enghouse Systems has delivered a dividend for 10 years and counting.

Fool contributor Ambrose O'Callaghan has no position in any stocks mentioned.

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