Stacks of gold coins, flag of Canada and dice cube
By investing in stocks that are raising their dividends regularly, you benefit from a solid growing income stream and potentially from share price appreciation. A growing dividend is a sign of financial health as dividends come from earnings.
I present below five stocks in different sectors that have five- and 10-year dividend-growth rates of at least 10% and have raised their dividends recently.
Onex Corporation (TSX: ONEX)
Founded in 1984, Onex is a Toronto-based private equity investment firm and holding company that has over $32 billion of assets under management.
The company has been a paying dividend since 1987 and has raised it every year since 2014. Onex has five- and 10-year dividend-growth rates of 18.5% and 12.3%, respectively.
On May 10, the investment firm announced a hike of 17% of its quarterly dividend to $0.0875 per share. The current dividend yield is 0.3%.
The stock has a five-year compound annual growth rate of return (CAGR) of 16% and is up 6% year to date.
Lassonde Industries Inc. (TSX: LAS.A)
Founded in 1918, Lassonde is a juice and beverage producer based in Rougemont, Quebec.
The company has been paying a dividend since 1996 and has raised it every year since 2008. Lassonde has five- and 10-year dividend-growth rates of 15.7% and 17.2%, respectively.
On April 20, the juice producer declared a hike of its quarterly dividend of 32.8% to $0.81 per share. The current dividend yield is 0.9%.
The stock has a five-year CAGR of 26% and is up almost 10% year to date.
Equitable Group Inc. (TSX: EQB)
Equitable Group is a financial services company that operates business through Equitable Bank, the company’s subsidiary.
The company has been paying a dividend since 2004 and has raised it twice a year since 2013. Equitable Group has five- and 10-year dividend-growth rates of 12.5% and 10.4%, respectively.
On May 11, the financial services company declared a hike of 3.8% of its quarterly dividend to $0.27 per share. The current dividend yield is 1.7%.
The stock has a five-year CAGR of 12% and is down 15% year to date.
Franco Nevada Corp. (TSX: FNV)(NYSE: FNV)
Franco Nevada is a Toronto-based company that owns royalties and streams in gold mining as well as in other commodity and natural resource investments.
The company has been paying a dividend since its IPO in 2007 and has raised it every year since then. Franco Nevada has five- and 10-year dividend-growth rates of 32% and 10%, respectively.
On May 9, the company declared a hike of 4.3% of its quarterly dividend to US$0.24 per share. The current dividend yield is 1.2%.
The stock has a five-year CAGR of 22% and is down 2% year to date.
Dollarama Inc. (TSX: DOL)
Founded in 1992 by Larry Rossy, Dollarama is Canada’s largest dollar store chain. There are over 1,000 Dollarama stores across the country.
The company has been paying a dividend since 2011 and has raised it every year since 2012. Dollarama has a five-year dividend-growth rate of 16.9%. We cannot calculate a 10-year dividend-growth rate since Dollarama began paying a dividend only seven years ago. The retailer has a seven-year annual growth rate of 15%.
On June 7, the company declared a hike of its quarterly dividend of 9.1% to $0.12 per share. The current dividend yield is 0.3%.
The stock has a five-year CAGR of 33% and is down 3% year to date.
