If you’re an investor seeking out dividends on the TSX today, I have a stock for you. This week, Toromont Industries (TSX:TIH) came out with earnings that saw shares climb, with analysts reaffirming it as a buy. And yet, there is even more room to run — especially when considering the 12% increase in the company’s dividend.
What happened?
Shares of the Caterpillar construction dealership surged this week after the company reported strong earnings. The company’s recent earnings report for the fourth quarter passed earnings estimates by Wall Street. Revenue rose 9% to $1.23 billion for the fourth quarter, passing by $1.1 billion forecasted by analysts.
And, of course, the other important note was the increase in the company’s dividend. TIH stock reported that it would increase its dividend to reflect the company’s strong finances as well as its long-term outlook. It now offers a $1.92 annual dividend, up 11.6%. It’s now increased its dividend for 35 consecutive years.
What’s more, there was even more growth on an annual basis. Revenue hit $4.6 billion for the year, up 12% compared to 2023 levels. And despite operating income falling 3% in the quarter, it was still up by 14% year over year. Bookings increased by a solid 49% and 15% on a full-year basis. All this marks a strong quarter, with even more on the way.
Expensive? Valuable
Despite the company looking as though it remains expensive compared to peers, analysts still recommend considering the stock. TIH stock is justified when it comes to value, given the company has a more predictable demographic. In fact, it’s so predictable this could likely mean another double-digit increase in dividends for the next year.
Sure, shares jumped over 5% after earnings came out. But even more equipment is likely to be sold in the next year. Not just from TIH stock’s performance but also from lower interest rates and inflation bringing on more opportunities.
Moreover, the company continues to streamline its business operations, adding even more growth for investors. So, with macro and micro positivity for the stock, it looks like a solid choice for those seeking growth — and, of course, dividends.
Get it while it’s hot
If you’re looking for an efficient company with even more growth on the way, this could certainly be the dividend stock for you. TIH stock now offers a $1.96 dividend on an annual basis. And shares are up 11% in the last year alone. This could certainly happen again, all while bringing in solid dividends from the stock.
So, let’s say you’re an investor with $5,000 to put toward TIH stock on the TSX today. Here is what that could bring in for you within the next year.
| COMPANY | RECENT PRICE | NUMBER OF SHARES | DIVIDEND | TOTAL PAYOUT | FREQUENCY | PORTFOLIO TOTAL |
| TIH – now | $123 | 40 | $1.96 | $78.40 | quarterly | $5,000 |
| TIH – future | $136.53 | 40 | $1.96 | $78.40 | quarterly | $5,461.20 |
You would now have $461.20 in returns and $78.40 in dividends. That’s total passive income of $539.60 in just a year! So, consider TIH stock as a top dividend stock on the TSX today.
