2 Dividend Stocks That Are Killing It in 2019

Brookfield Renewable Partners LP (TSX:BEP.UN)(NYSE:BEP) and Park Lawn Corporation (TSX:PLC) have surged in 2019 and are well-positioned to thrive going forward.

| More on:
Growing plant shoots on coins

Image source: Getty Images

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.

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. Brookfield Renewable Partners is a recommendation of Stock Advisor Canada.

More on Energy Stocks

Solar panels and windmills
Energy Stocks

Buy 849 Shares of This Super Dividend Stock for $3,100/Year in Passive Income

Looking for a super dividend stock to buy now? Here's a discounted top pick that can provide an ample income…

Read more »

Oil pumps against sunset
Energy Stocks

Suncor Stock: A Millionaire Maker?

With a renewed focus on extracting value from its integrated business, we can expect tremendous value creation from Suncor stock.

Read more »

energy industry
Energy Stocks

Is Enerflex Stock a Good Buy Right Now?

Enerflex stock is down 65% from all-time highs and trades at a compelling valuation right now.

Read more »

oil and gas pipeline
Energy Stocks

3 Reasons to Buy TC Energy Stock Like There’s No Tomorrow

TC stock (TSX:TRP) jumped as the company announced strong earnings as well as a dividend increase, but more could be…

Read more »

Handwriting text writing Are You Ready For Tomorrow question. Concept meaning Preparation to the future Motivation Stand blackboard with white words behind blurry blue paper lobs woody floor.
Dividend Stocks

Millionaire Makers: 2 Stocks That Could Help Turn $100,000 Into $1 Million

Two TSX stocks with durable dividends can help turn $100,000 into $1 million over an extended period of time.

Read more »

value for money
Energy Stocks

Easing Oil Prices Reduce Cenovus Energy’s Q4 Earnings  

Cenovus Energy’s fourth-quarter earnings show the effect of easing oil prices. The stock is down 17% from its high. Is…

Read more »

energy industry
Energy Stocks

Suncor Stock Q4 Results Out Today: What to Expect

Suncor Energy's fourth quarter results will likely benefit from record production and continued efficiency gains.

Read more »

Oil pipes in an oil field
Energy Stocks

Got $1,000? 2 Canadian Energy Stocks to Buy and Hold Forever

These high-dividend-paying Canadian energy stocks can make your stock portfolio more stable.

Read more »