4 Stocks Boasting Over a Decade of Dividend Growth

Stocks such as Finning International Inc. (TSX:FTT) can provide rock-solid income.

Ambrose O'Callaghan

Ambrose O'Callaghan graduated with a BA in Political Science from McMaster University. After that, he jumped into the banking world. He worked from the front line to an investment associate role. After that, he found a way to marry his experience and knowledge in the world of banking and finance to his love and passion for writing. Ambrose is a passionate believer in Warren Buffett's value investing model.

Published November 21, 2017 12:00 pm EST

The S&P/TSX Index has declined 1.4% week over week as of November 15 and temporarily fell below the 16,000 mark. This is after an impressive run that saw the index gain over 1,000 points since early September. In an article on October 31, I discussed several reasons why November could be a shaky month for the Canadian stock market.

Let’s take a look at four dividend stocks investors can target if they choose to take profits and opt for income generation as we near the end of 2017.

TransCanada Corporation (TSX: TRP)(NYSE: TRP) is a Calgary-based energy infrastructure company. Shares of TransCanada have increased 3.9% in 2017 and 6.7% year over year. In an October article, I covered the Energy East cancellation and how it could affect TransCanada stock. The company was bolstered by news early in the year that the Keystone Pipeline would go forward. The stock also offers a dividend of $0.62 per share, representing a 3.9% dividend yield. The company has delivered dividend growth for 16 consecutive years.

Finning International Inc. (TSX: FTT) is a Vancouver-based supplier of Caterpillar Inc. products and support services. Finning stock has climbed 17.6% in 2017 and 21% year over year. In its most recent third-quarter results released on November 7, revenue jumped 16% to $1.54 billion and net income rose 41% to $52 million. The Trump administration has made clear that it intends to dramatically increase infrastructure spending, which should give a boost to Caterpillar and, by extension, Finning. The stock also boasts a dividend of $0.19 per share, representing a 2.4% dividend yield. Finning has delivered 15 years of dividend growth.

Shaw Communications Inc. (TSX: SJR.B)(NYSE: SJR) is a Calgary-based telecommunications company. Shares have increased 5.2% in 2017 and 8% year over year. The company released its fourth-quarter results on October 26. It reported a consumer net gain of 25,000 compared to a 170,000 loss in Q4 2016, led by growth in internet and turnaround video subscribers. Wireless growth has powered many Canadian telecommunications companies, a much-needed boon with many consumers beginning to cut cable. The stock offers a dividend of $0.10 per share with a 4.1% dividend yield. Shaw boasts 14 years of dividend growth.

Exco Technologies Limited (TSX: XTC) is an Ontario-based designer, developer, and manufacturer of dies, moulds, components and assemblies, and consumable equipment for the die-cast, extrusion, and automotive industries. Shares have fallen 5% in 2017 and 1.5% year over year. The company released its third-quarter results on August 3. It reported sales of $145.9 million compared to $161.6 million in the third quarter of 2016. EBITDA also dropped from $23.2 million to $20.6 million. Retail sales of automotive parts have seen a marked increase year over year, even in the slow months of July and August this year.

Exco expects to release its fourth-quarter results on November 29. The stock offers a dividend of $0.08 per share, representing a 3.1% dividend yield. The company has delivered 11 consecutive years of dividend growth.