3 Stocks That Boast +10 Years of Dividend Growth

Investors can thrive in the long term by targeting companies that post consistent dividend growth like CAE Inc. (TSX:CAE)(NYSE:CAE) and Cogeco Inc. (TSX:CGO).

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In a recent article, I’d discussed three stocks that boast over two decades of dividend growth. Income-yielding stocks have become increasingly appealing in what has been a poor year on the TSX and many other indexes in the developed world.

Today we are going to look at three stocks that have posted at least a decade of dividend growth. Should investors look to add these equities today? Let’s dive in.


On December 20, I’d recommended CAE stock for investors as global military spending is set to rise for the sixth consecutive year in 2019. Defence is a big part of CAE’s business, but also provides training technology for civil aviation, healthcare, and other key sectors. CAE stock was up 8.9% in 2018 as of close on December 20.

CAE stock comes at a neutral pricing in late December. Shares have been resilient during the global stock market sell-off. CAE will pay out a quarterly dividend of $0.10 per share effective December 31, 2018. This represents a modest 1.5% yield. The company has delivered dividend growth for 10 consecutive years.

Investors on the hunt for growth should consider CAE, as it also offers a modest quarterly dividend. CAE’s core business is positioned to thrive, even in the face of broader economic headwinds.

Exco Technologies (TSX:XTC)

Exco Technologies is a Markham-based company that manufactures components and consumable equipment for the automotive industry. Shares had dropped 9.8% month over month as of close on December 20. The stock has been in a steady decline since posting all-time highs in the latter half of 2015.

Exco recently posted a very positive fourth quarter. Sales rose 6% year over year to $139.5 million and earnings per share hit a record $0.27 compared to $0.18 in the prior year. The Casting and Extrusion segment revenue rose 14% year over year to $50.5 million. The trade spat that preceded the USMCA did minimal damage to Exco’s business, but clarity on the trade front is a positive going forward especially in the vulnerable North American automotive industry.

In Q4 Exco announced a quarterly dividend of $0.085 per share, which represents a 3.9% yield. The company has delivered dividend growth for 12 consecutive years.

Cogeco (TSX:CGO)

Cogeco stock has dropped 36% in 2018 as of close on December 20. This stock represents Cogeco’s Communications and “Other” segment. The bulk of its revenues come from the Communications segment.

In the fourth quarter, Cogeco saw revenues increase 14.1% year over year to $660 million. Cogeco reported that adjusted EBITDA rose 14.8% to $288.6 million on the back of strength in its Communications segment and the acquisition of MetroCast. For the full year, revenues climbed 8.1% to $2.54 billion.

Cogeco stock last had an RSI of 37, just outside oversold territory. The company announced a quarterly dividend of $0.39 per share in the fourth quarter, which was up 14.7% from the prior year. Cogeco has delivered 13 consecutive years of dividend growth. Shares have fallen steeply from all-time highs in late 2017, it is now hovering around 52-week lows.

Telecoms should gather momentum in 2019, as central banks are expected to ease up on rate hikes. Declining bond yields and economic turbulence will drive investors back to income vehicles like telecoms, which became a favourite after the financial crisis.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

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

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