Earnings season is the most popular time for companies to raise their dividends, and this season has been another highly active time. Let’s take a closer look at two companies that raised their dividends last week, so you can determine if you should invest in one of them today.
CCL Industries Inc. (TSX: CCL.B)
CCL Industries is the world’s largest label company, and one of its leading providers of sustainable aluminum aerosol containers, software-driven digital printing solutions, and technology-driven loss prevention, inventory management, and labeling solutions.
In its fiscal 2017 fourth-quarter and full-year earnings release on February 22, CCL announced a 13% increase to its quarterly dividend to $0.13 per share, equating to $0.52 per share on an annualized basis, which brings its yield up to about 0.8%.
Foolish investors must make three notes about the new dividend.
First, the first quarterly installment at the increased rate is payable on March 30 to shareholders of record on March 16.
Second, this dividend hike puts the company on pace for 2018 to mark the 16th straight year in which it has raised its annual dividend payment.
Third, CCL has a dividend-payout target of 25% of its adjusted net earnings, so I think its continued double-digit percentage growth, including its 18% year-over-year increase to $2.69 per share in 2017, will allow it to deliver dividend growth to its shareholders for the foreseeable future.
Stantec Inc. (TSX: STN)(NYSE: STN)
Stantec is one of the world’s leading providers of comprehensive professional services, including engineering, architecture, environmental, construction, and project-management services.
In its fiscal 2017 fourth-quarter and full-year earnings release on February 21, Stantec announced a 10% increase to its quarterly dividend to $0.1375 per share, equating to $0.55 per share on an annualized basis, which brings its yield up to about 1.7%.
Investors must also make the following three notes.
First, the first payment at the increased rate will come on April 12 to shareholders of record on March 29.
Second, this dividend hike puts Stantec on track for 2018 to mark the sixth straight year in which it has raised its annual dividend payment.
Third, I think the company’s consistently strong earnings growth, including its 4.7% year-over-year increase to an adjusted $1.77 per share in 2017, will allow it to continue to grow its dividend in 2019 and beyond.
