The Motley Fool

4 TSX Stocks Raising Dividends for 20-Plus Years in a Row

Image source: Getty Images

Several TSX-listed stocks have consistently raised their dividends for a very long period. So if you are looking for a reliable dividend income, consider buying these four Dividend Aristocrats that have increased their dividends for 20-plus years in a row. Further, their resilient cash flows and high-quality earnings base suggest that these companies could continue to grow their dividends at a decent rate in the coming years. 

TC Energy

TC Energy (TSX:TRP)(NYSE:TRP) has raised its dividends for 21 consecutive years. Meanwhile, TC Energy’s dividends have grown at a compound annual growth rate (CAGR) of 7% during that period. Its high-quality regulated and contracted assets generate resilient cash flows that support higher dividend payments. Notably, the company generates nearly 95% of its adjusted EBITDA from low-risk assets, implying that its high yield 5.7%. 

I believe its strong development pipeline and the $20 billion secured capital program are likely to drive its earnings, in turn, its future dividend payments. Furthermore, its diversified assets and strong financial position suggest that its dividends could continue to increase at a healthy rate. TC Energy forecasts 5-7% annual growth in the dividends in the coming years. 

Enbridge

Enbridge (TSX:ENB)(NYSE:ENB) raised its dividends for 26 years in a row. Furthermore, its dividends increased by a CAGR of 10% during the same period. The energy infrastructure company offers a high yield of 7.1% and remains on track to increase its dividends in the coming years on the back of its highly diversified cash flow streams and contractual arrangements. 

The company expects its distributable cash flow per share to increase by 5-7% annually in the future years, suggesting that its dividends could grow in line with the DCF per share. Meanwhile, recovery in its mainline volumes, momentum in the core business, secured capital program, and expense management are expected to boost its high-quality earnings significantly and support higher dividend payments. 

Fortis

Fortis (TSX:FTS)(NYSE:FTS) is one of the top income stocks listed on the TSX. The company raised its dividends for 47 consecutive years and expects a 6% annual growth in its dividends over the next five years. Its regulated utility assets generate stellar cash flows that remain immune to the economic cycles and drive dividend payments. 

Fortis offers a decent yield of 3.7%, and its strong cash flow generating capabilities suggest that investors can rely on its dividends. Its low-risk business, diversified assets, growth opportunities in renewable power segments, and increasing rate base suggest that Fortis could consistently boost its shareholders’ returns through higher dividends over the next decade.

Canadian Utilities 

Canadian Utilities (TSX:CU) increased its dividends for 49 years in a row, the longest by any publicly listed Canadian company. The company’s robust dividends are backed by the continued growth in its high-quality earnings base. The utility company earns all of its earnings from the regulated and contracted assets that generate predictable cash flows. 

Canadian Utilities offers a solid yield of 5.1% and continues to invest in the regulated and contracted assets, which is likely to drive its high-quality earnings base. Further, cost efficiencies are likely to cushion its earnings, in turn, its dividends. 

But before you invest in Canadian Utilities, Take a look at this free list of UNDERVALUED stocks right now:

Just Released! 5 Stocks Under $49 (FREE REPORT)

Motley Fool Canada's market-beating team has just released a brand-new FREE report revealing 5 "dirt cheap" stocks that you can buy today for under $49 a share.
Our team thinks these 5 stocks are critically undervalued, but more importantly, could potentially make Canadian investors who act quickly a fortune.
Don't miss out! Simply click the link below to grab your free copy and discover all 5 of these stocks now.

Claim your FREE 5-stock report now!

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.

Two New Stock Picks Every Month!

Not to alarm you, but you’re about to miss an important event.

Iain Butler and the Stock Advisor Canada team only publish their new “buy alerts” twice a month, and only to an exclusively small group.

This is your chance to get in early on what could prove to be very special investment advice.

Enter your email address below to get started now, and join the other thousands of Canadians who have already signed up for their chance to get the market-beating advice from Stock Advisor Canada.