The TSX has put together a fantastic five-month stretch, climbing 13.3% in 2019 as of close on May 24. Investors who bought into the late December 2018 dip have been richly rewarded. Those who bought low on some of the top dividend stocks can carry on with those gains while soaking up income at a discount.
In the past we have discussed why it’s important for investors to identify equities that are set up for the long term. This can come in the form of a fast-growing industry or a company with a wide economic moat. Today we’ll look at two stocks that have thrived in 2019. Both offer income to shareholders and both are riding trends that promise growth for years to come.
Brookfield Renewable Partners (TSX: BEP.UN)(NYSE: BEP)
Brookfield Renewable Partners owns a portfolio of renewable power generating facilities across the globe. Investment in renewables has flattened globally over the past three years, but it’s still trending upward as we head into the next decade. Growing adoption of renewables in the private and public sphere will power the sector going forward.
Shares of Brookfield Renewable have climbed 24% in 2019 as of close on May 24. The stock has increased 6.9% year over year. The company released its first-quarter 2019 results on May 2. Funds from operations (FFO) rose to $227 million or $0.73 per share compared to $193 million or $0.62 per share in the prior year. Its liquidity position improved to $2.3 billion as the company plots aggressive investment moving forward. In Q1 2019, the company raised $400 million through asset sales and issuance of preferred units.
Brookfield Renewable continues to be an attractive target for income investors. The stock offers a quarterly dividend of $0.515 per share, which represents a 4.6% yield. It targets dividend growth on average at 5% to 9% annually.
Park Lawn (TSX: PLC)
Park Lawn is a Toronto-based company that provides goods and services associated with the disposition and memorialization of remains in Canada and the United States. An aging North American population means that these services will see rising demand in the years to come. Shares of Park Lawn have climbed 24.9% in 2019 as of close on May 24.
The company released its first=quarter 2019 results on May 14. Revenue surged 84.3% year-over-year to $50.1 million and net earnings increased to $3.3 million compared to $1.6 million in Q1 2018. Adjusted net earnings soared 83% to $5.16 million and on a fully diluted per share basis rose 20.3% to $0.219. In the quarter. Park Lawn completed several key acquisitions in the United States, including an eight-location funeral business in Wisconsin.
On May 21, Park Lawn announced a May 2019 dividend of $0.038 per share. This dividend is paid out monthly to shareholders and represents a modest 1.5% yield. Park Lawn is more attractive as a growth vehicle, but value investors may want to await a pullback before jumping in at all-time highs.
