As savvy investors know, dividend-paying stocks outperform non-dividend-paying stocks over the long term, and the top returners are those that increase their dividends every year. With these facts in mind, let’s take a look at three dividend-growth stocks from different industries that you could add to your portfolio today.
1. Gluskin Sheff + Associates Inc.
Gluskin Sheff + Associates Inc. (TSX:GS) is one of Canada’s largest independent wealth management firms with over $8.3 billion under management. It currently pays a quarterly dividend of $0.25 per share, or $1.00 per share annually, which gives its stock a yield of about 5.5% at today’s levels.
Investors must also make two notes.
First, Gluskin Sheff has raised its annual dividend payment every year since it became a public corporation in 2006, resulting in nine consecutive years of increases, and its 11.1% hike in November 2015 has it on pace for 2016 to mark the 10th consecutive year with an increase.
Second, the company has paid out 14 special dividends totaling $8.12 per share since going public, and I think its strong operational performance will allow it to continue declaring special dividends going forward.
2. Alimentation Couche-Tard Inc.
Alimentation Couche-Tard Inc. (TSX:ATD.B) is one of world’s largest owners, operators, and franchisors of convenience stores and gas stations. It currently pays a quarterly dividend of $0.0675 per share, or $0.27 per share annually, which gives its stock a yield of about 0.4% at today’s levels.
A 0.4% yield is far from impressive, but investors must note that Alimentation Couche-Tard has raised its annual dividend payment for six consecutive years, and its recent increases, including its 22.2% hike in July 2015 and its 22.7% hike in November 2015, has it on pace for 2016 to mark the seventh consecutive year with an increase.
3. Brookfield Renewable Energy Partners LP
Brookfield Renewable Energy Partners LP (TSX:BEP.UN)(NYSE:BEP) operates one of the largest publicly traded, pure-play renewable energy platforms in the world. It currently pays a quarterly dividend of US$0.445 per share, or US$1.78 per share annually, which gives its stock a yield of about 6.8% at today’s levels.
Investors must also make two notes.
First, Brookfield has raised its annual dividend payment for five consecutive years, and its 7.2% hike on February 4 has it on pace for 2016 to mark the sixth consecutive year with an increase.
Second, the company has a target payout ratio of 70% of its funds from operations and an annual dividend-growth target of 5-9%.
Which of these stocks belongs in your portfolio?
Gluskin Sheff + Associates, Alimentation Couche-Tard, and Brookfield Renewable Energy Partners are three of the most attractive dividend-growth stocks in their respective industries. All Foolish investors should strongly consider initiating positions in one or more of them today.
