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, even if you have just $12,000 you’d like to put to work, spreading it out among the three stocks below could give you a perpetually growing income machine.
Let’s get to it.
Saved by the bell
Leading off our list is telecom gorilla BCE (TSX:BCE)(NYSE:BCE), which has grown its dividend by 27% over the past five years.
The stock has held up relatively well amid the pandemic crash, providing Fools with some much-needed comfort. Specifically, BCE’s massive scale efficiencies, stable cash flows, and highly regulated operating environment should continue to support solid long-term dividend growth.
In the most recent quarter, EPS of $0.80 topped expectations by $0.5, as revenue clocked in at $5.68 billion. While revenue slipped amid the pandemic, the company ended the quarter with liquidity of $3.2 billion and a remarkably strong balance sheet.
“While the crisis significantly impacted retail activity, media advertising revenue and many other parts of our business in Q1, our solid results underscore Bell’s ongoing leadership in network and service innovation, and consistently strong execution by the Bell team,” said President and CEO Mirko Bibic.
BCE shares offer a dividend yield of 3.0%.
With dividend growth of 64% over the past five years, packaged foods specialist Premium Brands Holdings (TSX:PBH) is next up on our list.
Premium Brands shares have also held steady in recent weeks, suggesting that it remains a tasty way to play defence. In particular, the company’s widely recognized brands, steady expansion the United States, and sound acquisition process should continue to underpin healthy dividends.
In the most recent quarter, EPS of $0.53 beat expectations by $0.10, as revenue popped 20% to $935 million. Moreover, the company ended the quarter with a strong balance sheet and $214 million of available credit capacity.
“Once some normalcy returns to our economy we will be well positioned to continue to execute on both our organic and acquisition growth strategies,” said President and CEO George Paleologou. “On a positive note, we are already starting to see some green shoots and are encouraged by the pick-up in demand from customers and channels that were initially severely impacted by the partial shutdown of our economy.”
Premium Brands offers a dividend yield of 2.7%.
With steady dividend growth of 54% over the past five years, property and casualty (P&C) insurance company Intact Financial (TSX:IFC) rounds out our list.
After falling sharply in March, Intact shares have recovered pretty well, suggesting that the worst might be behind it. As Canada’s largest P&C insurance company, Intact’s massive scale advantages, in-house claim expertise, and multi-channel distribution system should continue to back hefty dividend payments.
In the most recent quarter, operating income per share came in at $1.61, which included $83 million of direct COVID-19 related losses. More importantly, premiums grew a solid 14%, while the company maintained a strong capital position with $1.5 billion of total capital margin.
“Despite COVID-19 related losses, our financial performance remains on track, our capital position is solid and I’m confident in the resilience of our business,” said CEO Charles Brandamour.
Intact shares currently offer a dividend yield of 2.5%.
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.