The first two months of 2019 have seen the S&P/TSX Composite Index put together an impressive rally. The TSX Index was up 11.7% in 2019 as of close on February 21. It fell 30 points on February 21 largely due to weakness in the mining sector. Many stocks on the TSX have entered technical levels that suggest dangerously high valuations. Investors can opt to ride the wave into March or take profits in some equities and either stay in cash or reinvest.
Today we are going to look at two equities for those who want to explore the second option. Markets have responded very well to a dovish turn from central banks, but recent economic indicators suggest that more turbulence will be on the way. Investors should be actively preparing for a low-growth environment. One way to do that is to guarantee high and steady income in your portfolio.
The two stocks that we’ll cover today have both achieved several consecutive years of dividend growth. Both also boast a dividend yield that exceeds 4%.
Innergex Renewable (TSX: INE)
Innergex Renewable stock had climbed 14.7% in 2019 as of close on February 21 and shares were up 8.2% year over year. Back in November 2018 I’d explained why Innergex was one of the most attractive targets for those looking for seeking exposure to the renewable energy sector.
As of late 2016 Canada ranked seventh in the world when it came to renewable energy production. Its share of energy supply from renewable resources stood at 17.4%, which is a good deal greater than the OECD and world average. Innergex will continue to benefit from Canada’s commitment to growing its renewable energy sector going forward.
The company is set to release its fourth-quarter and full-year results for 2018 on February 27. Innergex last paid out a quarterly dividend of $0.17 per share, which represents a 4.7% yield. The company has achieved dividend growth for five consecutive years.
Inter Pipeline (TSX:IPL)
Inter Pipeline is a Calgary-based company that operates crude oil pipelines, natural gas liquids extraction, and bulk liquid storage businesses in Canada and Europe. Shares of Inter Pipeline had climbed 9.3% in 2019 as of close on February 21. The stock was still down 5.9% year over year.
Inter Pipeline released its fourth-quarter and full-year results on February 14. Annual funds from operations rose 10% year-over-year in 2018 to $1.1 billion and net income climbed 12% to a record $593 million. The company reported that total pipeline throughput volumes averaged a record 1,426,900 barrels per day.
Last year Inter Pipeline increased its monthly dividend pay out to $0.1425 per share, thereby representing a strong 7.9% yield. With its 2018 increase, Inter Pipeline hit the decade mark for achieving dividend growth. Inter Pipeline boasts a low-risk dividend, but the share price has suffered due to negative sentiment in the energy sector overall.
