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3 Dividend Titans That Haven’t Missed a Payout in 25 Years

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Dividend titans are reliable sources of supplementary income for income investors. Further, a company earns the title if it has not missed a dividend payout in 25 years.

ATCO (TSX:ACO.X), Canadian Western (TSX:CWB), and Toromont (TSX:TIH) belong to the distinguished dividend “all-stars” list. You should consider the stocks if you’re after safety and security.

25-year streak

ATCO is a $5.58 billion company that offers various products and services across many sectors, including agriculture, energy, housing, real estate, transportation, and water. Its areas of operation are in Canada, Australia, and international locations.

ATCO has steadily grown in the last two decades. Today, it is known as a one-stop provider of housing, infrastructure, integrated energy, and transportation solutions. If you analyze these solutions, all are fundamental to global growth and prosperity.

The company has been operating for more than 70 years and has been paying dividends for the last 25 years. Its 3.33% dividend is not high but reasonably decent. ATCO’s payout ratio is only 34.5%. Average profit over the previous three years is $350 million. If profit is your measure of a quality company, ATCO meets the grade.

27-year streak

Canadian Western is not one of Canada’s Big Five banks but is undoubtedly a dividend all-star. This $2.89 billion bank is only 35 years old, but it has been paying dividends for the last 27 years. Canadian Western is the bank stock of choice by RRSP investors.

There is plenty of room for its 3.38% dividend to grow in the next 10 years or more. The bank can increase its current payout ratio of 35.45%. Analysts are looking at a growth rate of 5.6% this year and about 6.3% in 2020.

Canadian Western is a small regional bank, but it delivers stable profits just like the banking giants. The top and bottom lines have been increasing for the last three years. Hence, there is potential for dividend growth should earnings rise in the years ahead.

The bank stock pays 3.38% dividend and is maintaining a low payout ratio of 35.45%. should earnings rise. Analysts are looking at a growth rate of 5.6% this year and about 6.3% in 2020. Canadian Western is up 31% year to date, which is respectable given the low-interest environment.

29-year streak

Toromont, a provider of specialized capital equipment in Canada, the United States, and the rest of the world has a 29-year record of dividend payments. This almost six-decade-old company pays less than 2% dividend, but it’s a safety net for beginners in the stock market.

Analysts do not expect the price to stay within the $60 range for long. In the next 12 months, they see Toromont building momentum and likely surpass its 52-week high of $70.62.

Despite the sluggish market, they forecast Toromont to grow by 11.9% in 2019 and 13% next year. But the outlook for the next five years is exceedingly optimistic. Toromont is expected to grow by 21.9% annually. If you want a haven to park your money, Toromont is an outstanding choice.

Safety and security

ATCO, Canadian Western, and Toromont are not high-yield dividend stocks. However, the length of the dividend streaks is a sign of safety and security. There is no worry of dividend cuts, but the chance of dividend growth is ever present.

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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 Christopher Liew has no position in any of the stocks mentioned.

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