Investors who are looking at dividend stocks to buy in 2023, or any other year, for that matter, should always be on the lookout for indicators of long-term quality and consistency. Strong cash flow, robustness of their respective industry, and other factors contribute to the viability of an income-yielding equity. Typically, stocks that have achieved long stretches of dividend growth are dependable in these important categories.
Today, I want to look at four stocks that have achieved high dividend growth. Let’s jump in.
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This energy infrastructure giant has delivered a quarter-century of dividend growth
Enbridge (TSX: ENB) is a Calgary-based energy infrastructure company. Its shares have dropped 3.4% month over month as of late-morning trading on June 13. The stock is still down 5.6% so far in 2023.
This company released its first quarter fiscal 2023 results on May 5. It reaffirmed its solid 2023 full-year financial guidance for earnings before interest, taxes, depreciation, and amortization (EBITDA) and distributable cash flow (DCF). Enbridge is on track for strong earnings growth going forward.
Enbridge currently offers a quarterly dividend of $0.887 per share. That represents a very tasty 7% yield. This stock has delivered dividend growth for 27 consecutive years.
Don’t sleep on this undervalued dividend stock in the middle of June 2023
Exco Technologies (TSX: XTC) is a Toronto-based company that designs, develops, manufactures, and sells dies, moulds, components and assemblies, and consumable equipment for the die-cast, extrusion, and automotive industries. Shares of Exco Technologies have increased by half a percentage point over the past month. The stock is up 2.2% in the year-to-date period.
In the second quarter of fiscal 2023, the company delivered consolidated sales growth of 30% to $155 million. EBITDA rose 42% year over year to $17.8 million. Meanwhile, Exco reported net income of $6.28 million or $0.16 per share — up from $5.09 million, or $0.13 per share, in the previous year.
Shares of this top stock currently possess a favourable price-to-earnings ratio of 13. Moreover, Exco offers a quarterly dividend of $0.105 per share, which represents a strong 5.3% yield. Exco has posted 17 straight years of dividend growth.
Here is a top utility that is about to become a Dividend King
Fortis (TSX: FTS) is a St. John’s-based utility holding company. Its shares have dropped 7.3% month over month at the time of this writing. The stock is still up 2.7% in the year-to-date period.
In the first quarter of fiscal year 2023, Fortis reported net earnings of $437 million, or $0.90 per common share — up from $350 million, or $0.74 per common share, in the prior year. Meanwhile, adjusted earnings per share (EPS) rose to $0.91 compared to $0.78 in the first quarter of fiscal 2022. Fortis offers a quarterly dividend of $0.565 per share, representing a 3.9% yield. This stock has achieved 49 straight years of dividend growth, which means it is one year short of becoming the second Dividend King on the TSX.
One more stock that has achieved more than two decades of dividend growth
Finning International (TSX: FTT) is the fourth and final top stock offering elite dividend growth I want to zero in on today. This Vancouver-based company sells, services, and rents heavy equipment, engines, and related products in Canada and around the world. Its shares have climbed 16% so far in 2023.
This company delivered EPS growth of 51% to $0.89 in the first quarter of fiscal 2023. Meanwhile, total revenue rose 22% to $2.4 billion. Finning last paid out a quarterly dividend of $0.25 per share. That represents a 2.5% yield. It has delivered 21 consecutive years of dividend growth.
