As savvy investors know, dividend-paying stocks outperform non-dividend-paying stocks over the long term, and the highest returners are those that increase their payments as often as possible. With these two facts in mind, let’s take a look at three stocks that have hiked their dividends for 15 consecutive years or more that you should consider buying today.
1. Canadian Utilities Limited: 42 consecutive years of increases
Canadian Utilities Limited (TSX:CU) is one of the world’s largest utilities companies. It pays a quarterly dividend of $0.295 per share, or $1.18 per share annually, giving its stock a 3.2% yield at today’s levels. The company has also increased its annual dividend payment every year since it first began paying dividends in 1972, resulting in 42 consecutive years of increases, and its consistent free cash flow generation could allow this streak to continue for the foreseeable future.
2. Canadian National Railway Company: 19 consecutive years of increases
Canadian National Railway Company (TSX:CNR)(NYSE:CNI) is the largest rail network operator in Canada. It pays a quarterly dividend of $0.3125 per share, or $1.25 per share annually, which gives its stock a 1.7% yield at current levels. The company has also increased its annual dividend payment for 19 consecutive years, and its increased amount of free cash flow, including a 5.5% increase to $521 million in the first quarter, and its low payout ratio could allow this streak to continue for another decade at least.
3. Canadian Natural Resources Limited: 15 consecutive years of increases
Canadian Natural Resources Limited (TSX:CNQ)(NYSE:CNQ) is one of the largest independent producers of crude oil and natural gas in the world. It pays a quarterly dividend of $0.23 per share, or $0.92 per share annually, giving its stock a 2.7% yield at today’s levels. The company has also increased its annual dividend payment for 15 consecutive years, and as long as commodity prices recover over the next 12 months, I think this streak could continue for the next several years.
Which of these dividend aristocrats should you buy?
Canadian Utilities, Canadian National Railway, and Canadian Natural Resources are three of the most reliable dividend-growth stocks in the market. Foolish investors should strongly consider making at least one of them a core holding today.
