The importance of selecting the right mix of dividend-paying stocks cannot be understated, particularly for those investors with longer-term objectives. For those investors, selecting one or more Dividend Aristocrats — stocks that have provided annual, consecutive dividend growth spanning at least 25 years is paramount.
Here are several compelling Aristocrat options to consider adding to your portfolio today.
Cineplex (TSX: CGX) is Canada’s largest entertainment company, known for owning the largest network of theatres across the country as well as the popular Rec Room entertainment venues.
Critics of Cineplex often point to the fact that revenue from the movie-and-popcorn business is on a steady decline, particularly as a growing number of streaming options on an increasing number of devices expand our viewing options. Adding to those woes is the fact that Cineplex is still very much reliant on Hollywood to churn out popular movies that patrons will want to pay to watch.
Fortunately, 2019 is likely to be the year where box office records are going to be shattered and potential Cineplex investors should take heed. In addition to the latest highly anticipated installments from the Avengers, X-Men, and Star Wars universes, movie goers can expect follow-ups and remakes from classic movies such as Toy Story, Frozen, the Lion King, and Aladdin.
In short, it’s going to be a very good year at the box office, which will mean a very good year for Cineplex. Cineplex currently offers investors a monthly dividend with an appetizing yield of 7.10.
Telus (TSX: T)(NYSE: TU) is a great option for income-seeking investors that are also looking for a more defensive option. Unlike some of its larger peers that have expanded into the media segment, Telus remains a pure-play telecom, with an enviable wireless network that has witnessed substantial growth over the past few years while maintaining what is arguably the best churn rate on the market.
In the most recent quarter, Telus reported the best quarterly growth numbers in five years, with the company adding 112,000 new wireless subscribers and 52,000 new subscribers to Telus’s internet and TV segment. Revenue during the quarter came in over 6% higher than in the same period last year, while adjusted net income topped $409 million, representing a 3.3% gain over the prior period.
In terms of a dividend, Telus offers a quarterly distribution of 4.57%. While this falls short of 5%, I’ve included it because of its stellar growth.
Telus has averaged between 7% to 10% annual growth to its dividend going back well over a decade. To put that level of growth into perspective, the quarterly payout 10 years ago was half of what it is today, making the stock an excellent long-term buy-and-forget candidate.
TransAtla Renewables (TSX: RNW) remains one of the most incredible opportunities on the market today for long-term investors. Part of the reason I say that is due to the colossal shift in the market away from fossil fuels, while the other reason has to do with TransAlta’s well-organized and lucrative business.
Both factors come together to make a compelling growth and income play that should be part of nearly every portfolio.
From a market standpoint, we are seeing an increasing shift away from fossil fuels to renewable energy sources. This is not only the responsible thing to do for the planet but also from the perspective that renewable energy sources are no longer the expensive and inefficient options they’ve been stereotyped as.
TransAlta’s well-diversified portfolio of facilities located across the U.S., Canada, and Australia collectively provide a generating capacity of over 2,400 MW, which is subject to long-term contracts that can span decades.
In short, TransAlta’s regulated business of providing clean, renewable energy is backed up by a recurring source of revenue that is only going to grow over the next few years.
In terms of a dividend, TransAlta offers an appetizing 7.26% yield.
