One of the most successful investment strategies is to buy and hold stocks with track records of dividend growth; this is because a rising dividend is a sign of a very strong business with excellent cash flows and earnings to support increased payouts, and the dividends themselves really add up over time when reinvested. With this in mind, let’s take a look at two stocks that raised their dividends in the last three weeks and have track records of doing so, so you can determine if you should invest in one or both of them today.
Crius Energy Trust (TSX:KWH.UN)
Crius Energy Trust provides investors with a distribution-producing investment through its indirect 100% ownership interest in Crius Energy, LLC. Crius Energy, LLC provides innovative electricity, natural gas, and solar products to more than 1.4 million residential and commercial customers in 19 U.S. states and the District of Columbia.
In a press release on January 12, Crius announced a 2% increase to its monthly distribution to $0.0697 per unit, equating to $0.8368 per unit annually, which brings its yield up to about 9%.
It’s important to also make the following three notes.
First, the first payment at the increased rate is payable on February 15 to shareholders of record at the close of business on January 31.
Second, this is the second time Crius has raised its distribution in the last four months, and these hikes have it positioned for 2018 to mark the third consecutive year in which it has raised its annual distribution.
Third, I think the Trust’s very strong growth of distributable cash, including its 12.1% year-over-year increase to $38.9 million in fiscal 2017, will allow it to continue to grow its distribution for many years to come.
Canadian National Railway Company is Canada’s largest rail network operator with approximately 20,000 route-miles of track.
On the day of its fourth-quarter earnings release, January 23, Canadian National announced a 10.3% increase to its quarterly dividend to $0.455 per share, equating to $1.82 per share annually, and this brings its yield up to about 1.9%.
Foolish investors should also make the following three notes.
First, the first installment at the increased rate is payable on March 29 to shareholders of record on March 8.
Second, 2017 marked the 21st consecutive year in which the rail giant had raised its annual dividend payment, and the hike it just announced has it on track for 2018 to mark the 22nd consecutive year with an increase.
Third, Canadian National has a dividend-payout target of 35% of its net income, so I think its consistently strong growth, including its 8.7% year-over-year increase to an adjusted $4.99 per share in fiscal 2017, will allow its streak of annual dividend increases to continue for the foreseeable future.
Fool contributor Joseph Solitro has no position in the companies mentioned. David Gardner owns shares of Canadian National Railway. The Motley Fool owns shares of Canadian National Railway. Canadian National Railway is a recommendation of Stock Advisor Canada.