Income seekers with low-risk appetites can include three distinguished stocks that have proven their reliability in paying dividends for the last decade. You can increase the value of your portfolio while protecting your investment against adverse market conditions.
Hardly a market-share loss
Fortis (TSX:FTS)(NYSE:FTS) belongs to the top 15 utility companies in North America. This $25 billion St. Johns, Canada-based electric and gas utility company invests only in safe, clean, and reliable energy solutions.
Currently, it oversees 10 utility operations in Canada, the U.S., and the Caribbean. This utility stock is extremely enticing due to several reasons. Fortis boasts of a lengthy 45-year dividend-growth streak.
Likewise, there is limited competition because the sector in which it operates has high barriers for new competitors to enter. There’s no risk of a market-share loss whatsoever.
Fortis expects to grow its consolidated rate base to $32 billion and $35.5 billion by 2021 and 2023, respectively. This guidance translates into a 6.3% compounded annual growth rate (CAGR) within the next five years.
Over the last five years, the stock has gained over 53%. The current dividend is a respectable 3.54%, with a payout ratio of 49.6%.
Large-scale oil and gas company
Imperial Oil (TSX:IMO)(NYSE:IMO) has been operating since 1880. Today, this $26 billion oil and gas company is a top explorer for crude oil and natural gas, which it sells to customers. Its downstream, upstream, and chemical operations enable the company to produce, refine, and transport petrochemical products.
The company’s massive investments are mostly in big projects such as the Kearl Lake and Cold Lake facilities. The recent removal of oil curtailments should lead to the resumption of the construction of its Aspen project.
Imperial’s dividend track record is one of the strongest in Canada. The company has been raising dividends for 24 consecutive years. The 2.56% yield today is not as high and very safe, considering that it’s only about 23% of Imperial’s free cash flow.
The recent 18% dividend increase is a positive sign the gas industry is starting to pick up. Hence, higher increases are possible in the coming years.
Building wide global exposure
Brookfield Infrastructure (TSX:BIP.UN)(NYSE:BIP) is well known around the world for its investments in infrastructure projects. This $19 billion company is mainly responsible for providing transport (toll roads and railways), pipelines, port terminals, cell towers, data centres, and power transmission, among others.
The company has a penchant for acquiring distressed assets and turning them into profitable businesses. Also, Brookfield Infrastructure invests in counter-cyclical assets. Its acquisition of the Reliance Jio’s cell tower asset made the company a significant player in the infratel market of India.
Its extensive global exposure is the result of owning valuable assets in growing economies in the world. Brookfield’s purchase of railroad operator Genesse & Wyoming is an example of a fantastic infrastructure asset.
The inclusion of BIP.UN in the TSX60 index was in recognition of the stock’s potential to deliver both growth and income to would-be investors. It currently yields 4.12%.
Income producers in any market environment
You can build a dividend-producing portfolio in the next decade by owning shares of Fortis, Imperial Oil, and Brookfield Infrastructure. The companies are likely to hold up regardless of market scenarios.