3 Industrial Stocks With 12+ Consecutive Years of Dividend Hikes

Toromont Industries Inc. (TSX:TIH), Finning International Inc. (TSX:FTT), and Ritchie Bros. Auctioneers (TSX:RBA)(NYSE:RBA) are the top dividend-growth stocks in the industrial industry. Which should you buy?

| More on:
The Motley Fool

As Foolish investors know, dividend-paying stocks outperform non-dividend-paying stocks over the long term, and the top performers are those that increase their rates every year. With these facts in mind, let’s take a look at three industrial stocks that have raised their annual dividend payments for 12 consecutive years or more, so you can determine which would be the best fit for your portfolio.

1. Toromont Industries Inc.

Toromont Industries Inc. (TSX:TIH) is one of the largest dealers of Caterpillar equipment and one of the leading designers of industrial and recreational refrigeration systems in Canada and the United States. It currently pays a dividend of $0.17 per share quarterly, or $0.68 per share annually, which gives its stock a yield of about 2.3% at today’s levels.

Investors must also make two important notes.

First, Toromont Industries has raised its annual dividend payment for 26 consecutive years, and its 13.3% increase in February 2015 has it on pace for 2016 to mark the 27th consecutive year with an increase.

Second, the company has a target dividend-payout range of 30-40% of its trailing earnings from continuing operations, so I think its very strong growth, including 15.8% year-over-year growth to $101.3 million in the first nine months of fiscal 2015, could allow it to announce another increase when it reports fourth-quarter earnings on February 9.

2. Finning International Inc.

Finning International Inc. (TSX:FTT) is the world’s largest dealer of Caterpillar equipment with operations in Canada, South America, the U.K., and Ireland. It currently pays a dividend of $0.1825 per share quarterly, or $0.73 per share annually, which gives its stock a yield of about 4.1% at today’s levels.

It is also important for investors to note that Finning International has raised its annual dividend payment for 14 consecutive years, and its 2.8% increase in May 2015 has it on pace for 2016 to mark the 15th consecutive year with an increase.

3. Ritchie Bros. Auctioneers

Ritchie Bros. Auctioneers (TSX:RBA)(NYSE:RBA) is the largest industrial auctioneer in the world. It currently pays a dividend of US$0.16 per share quarterly, or US$0.64 per share annually, which gives its stock a yield of about 2.8% at today’s levels.

It is also very important for investors to make two notes.

First, Ritchie Bros. has raised its annual dividend payment for 12 consecutive years, and its 14.3% increase in August 2015 has it on pace for 2016 to mark the 13th consecutive year with an increase.

Second, the company has a target dividend-payout range of 55-60% of its adjusted net earnings, so I think its very strong growth, including 34.2% year-over-year growth to a record US$90.4 million in the first nine months of fiscal 2015, could allow it to announce another increase when it reports fourth-quarter earnings on February 25.

Which of these dividend aristocrats belong in your portfolio?

Toromont Industries, Finning International, and Ritchie Bros. Auctioneers are the top dividend-growth stocks in the industrial industry. All Foolish investors should take a closer look at each and strongly consider initiating positions in one of them today.

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.

Fool contributor Joseph Solitro has no position in any stocks mentioned. Finning International is a recommendation of Stock Advisor Canada.

More on Dividend Stocks

Train cars pass over trestle bridge in the mountains
Dividend Stocks

Is CNR Stock a Buy, Sell, or Hold for 2025?

Can CNR stock continue its long-term outperformance into 2025 and beyond? Let's explore whether now is a good time to…

Read more »

coins jump into piggy bank
Dividend Stocks

The Smartest Dividend Stocks to Buy With $500 Right Now

These top dividend stocks both offer attractive yields and trade off their highs, making them two of the best to…

Read more »

Middle aged man drinks coffee
Dividend Stocks

Here’s the Average TFSA Balance at Age 35 in Canada

At age 35, it might not seem like you need to be thinking about your future cash flow. But ideally,…

Read more »

ETF stands for Exchange Traded Fund
Dividend Stocks

How to Invest Your $7,000 TFSA Contribution in 2024

Here's how I would prioritize a $7,000 TFSA contribution for growth and income.

Read more »

a man relaxes with his feet on a pile of books
Dividend Stocks

CPP Pensioners: Watch for These Important Updates

The CPP is an excellent tool for retirees, but be sure to stay on top of important updates like these.

Read more »

Technology
Dividend Stocks

TFSA Investors: 3 Dividend Stocks I’d Buy and Hold Forever

These TSX dividend stocks are likely to help TFSA investors earn steady and growing passive income for decades.

Read more »

four people hold happy emoji masks
Dividend Stocks

Love Dividend Growth? Check Out These 2 Income-Boosting Stocks

National Bank of Canada (TSX:NA) and another Canadian dividend-growth stock are looking like a bargain going into December 2024.

Read more »

An investor uses a tablet
Dividend Stocks

A Dividend Giant I’d Buy Over Enbridge Stock Right Now

Enbridge stock may seem like the best of the best in terms of dividends, but honestly this one is far…

Read more »