The Motley Fool

Income Investors: 3 Stocks That Boast Over 20 Years of Dividend Growth

Image source: Getty Images

The S&P/TSX Composite Index rose 92 points on April 23. Growth investors have been richly rewarded in 2019, but investors still need to be cautious as economic headwinds build up. Those who wish to tilt their portfolio more towards income in the second half of 2019 should consider the stocks we will cover below.

When seeking out income-yielding equities, investors should not focus solely on high yields. The best stocks offer a combination of attractive income and a long history of dividend growth. The three stocks we will look at today have all achieved at least 20 consecutive years of dividend growth.

Imperial Oil (TSX:IMO)(NYSE:IMO)

Imperial Oil is a Calgary-based integrated oil and gas company. Shares of Imperial Oil have climbed 16.8% in 2019 as of close on April 23. The stock is up 5.9% from the prior year.

The company is set to release its first-quarter results for 2019 this Friday, April 26. Oil prices have rallied nicely in early 2019, and Western Canadian Select (WCS) prices have closed the enormous differential that sparked a panic for the oil patch in late 2018. This was in large part due to production cuts imposed by the Alberta government, which Imperial Oil opposed.

Imperial Oil last paid out a quarterly dividend of $0.19 per share. This represents a modest 1.8% yield. Last year, Imperial Oil achieved its 24th consecutive year of dividend growth, putting it in elite company on the TSX.

Thomson Reuters (TSX:TRI)(NYSE:TRI)

Thomson Reuters is a Toronto-based company which operates through three segments; financial and risk, legal, and tax and accounting. Shares of Thomson Reuters have climbed 21.9% in 2019 so far. The stock is up 43% year over year.

The company released its fourth-quarter and full-year results for 2018 on February 26. Revenues rose 7% from the prior year to $1.52 billion and diluted earnings per share soared over 660% before adjustments. On October 1, 2018, Thomson Reuters sold approximately 55% of its financial and risk business to private equity funds managed by Blackstone for roughly $17 billion in gross cash proceeds. Thomson Reuters returned $10 billion of the proceeds to shareholders, $1.2 billion of which was poured into share buybacks.

Thomson Reuters approved a $0.04 per share annualized increase in its dividend to $1.44 per common share. This represents a 2.4% yield. The dividend is paid out quarterly. Thomson Reuters has now achieved dividend growth for 26 consecutive years.

Canadian Western Bank (TSX:CWB)

Canadian Western Bank is an Edmonton-based regional bank. The stock has climbed 14.4% in 2019 as of close on April 23. Shares are still down 10.9% from the prior year.

The bank released its first-quarter results for 2019 on March 7. Net income rose 7% year over year to $66.5 million and diluted earnings per share increased 9% to $0.75. Total revenue climbed 10% to $212.4 million. Canadian Western reported 10% loan growth and 15% annual growth of general commercial loans, both of which represented progress as part of its balanced growth strategy. It reported 13% growth in term deposits.

Canadian Western bumped up its quarterly dividend by 8% year over year to $0.27 per share. This represents a solid 3.4% yield. The bank has achieved dividend growth for 27 consecutive years.

Just Released! 5 Stocks Under $49 (FREE REPORT)

Motley Fool Canada's market-beating team has just released a brand-new FREE report revealing 5 "dirt cheap" stocks that you can buy today for under $49 a share.
Our team thinks these 5 stocks are critically undervalued, but more importantly, could potentially make Canadian investors who act quickly a fortune.
Don't miss out! Simply click the link below to grab your free copy and discover all 5 of these stocks now.

Claim your FREE 5-stock report now!

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

Two New Stock Picks Every Month!

Not to alarm you, but you’re about to miss an important event.

Iain Butler and the Stock Advisor Canada team only publish their new “buy alerts” twice a month, and only to an exclusively small group.

This is your chance to get in early on what could prove to be very special investment advice.

Enter your email address below to get started now, and join the other thousands of Canadians who have already signed up for their chance to get the market-beating advice from Stock Advisor Canada.

I consent to receiving information from The Motley Fool via email, direct mail, and occasional special offer phone calls. I understand I can unsubscribe from these updates at any time. Please read the Privacy Statement and Terms of Service for more information.