Hello there, Fools. I’m back to highlight three attractive dividend-growth stocks. As a quick reminder, I do this because companies with consistently growing dividends
- can provide an ever-increasing income stream; and
- tend to outperform over the long haul.
So, if you’re looking to protect your portfolio from this recent market crash, this trio is a good place to start.
Let’s get to it.
Kicking things off is telecom giant Telus (TSX:T)(NYSE:TU), which has grown its dividend a whopping 134% over the past 10 years.
Despite pandemic concerns and increasing price competition, Telus’ dividend continues to be backed by impressive wireless growth, robust cash flow production, and a highly regulated operating environment. In the company’s recent Q1 results, for example, revenue improved 5% as wireless net additions clocked in at a solid 70,000.
Moreover, management is deferring its full-year 2020 guidance to the second quarter, while continuing to focus on cash flow and dividend growth.
“TELUS once again achieved strong financial and operational results in the first quarter, characterized by our hallmark of meaningful customer growth, together with enhanced profitability, despite the challenging circumstances we faced in the month of March,” said CEO Darren Entwistle.
Telus shares currently trade at a P/E of 15 and offer a dividend yield of 5.1%.
Fortis of strength
With dividend growth of 41% over the past five years, electricity giant Fortis (TSX:FTS)(NYSE:FTS) is next up on our list.
Fortis shares have held up very well during this pandemic, suggesting that they remain a highly effective recession-proof play. Specifically, the company’s high-quality portfolio and massive scale efficiencies continue support stable results.
For example, in the company’s Q1 results earlier this week, Fortis earnings came in at $312 million on revenue of $2.39 billion. More importantly, the company’s five-year capital spending plan and annual dividend growth target of 6% remain unchanged.
“The strength of our diversified business model was evident in the first quarter as our business performed well, reflecting modest impacts associated with the COVID-19 pandemic,” said CEO Barry Perry. “Given the critical infrastructure we operate and the need to keep the lights on and natural gas flowing, we are focused on the health and safety of our employees, customers and communities, and the continued reliability of our systems.”
Fortis offers a solid dividend yield of 3.5%.
Rounding out our list is midstream energy company Keyera (TSX:KEY), which has delivered steady dividend growth of 40% over the past five years.
After getting clobbered in March, Keyera shares have soared over the past month, suggesting that the worst is behind the stock. Over the long run, the company’s well-integrated assets, smart acquisitions, and robust cash flows should continue to support solid dividends.
In 2019, Keyera achieved record earnings of $444 million while distributable cash flow clocked in at an impressive $594 million. More important, the company ended the year with a rock-solid financial position.
“Keyera’s strong balance sheet and cash flow provide the capacity and flexibility to fund these organic growth opportunities,” wrote the company. “We are well positioned to fund the remaining portion of our current growth capital program without issuing common equity, apart from the dividend reinvestment program.”
Keyera shares currently boast a mouth-watering dividend yield of 9.6%.
The bottom line
There you have it, Fools: three attractive dividend-growth stocks worth checking out.
As always, they aren’t formal recommendations. They’re simply a starting point for more research. The snapping of a dividend-growth streak can be particularly painful, so plenty of due diligence is still required.