2 Stocks With Over 15 Years of Dividend Growth

Are you interested in buying a dividend-growth stock? If so, Finning International Inc. (TSX:FTT) and Transcontinental Inc. (TSX:TCL.A) should be on your radar.

| More on:

Investing in dividend-growth stocks is one of the most powerful and time-proven strategies to build wealth. This means that investors should favour stocks with modest yields that have the ability to grow their dividends over time over ones with very high yields that have little to no growth potential. With this in mind, let’s take a look at two dividend-growth stocks that you could buy right now.

Finning International Inc.

Finning International Inc. (TSX:FTT) is the world’s largest Caterpillar dealer with operations across western Canada, Chile, Argentina, Bolivia, the United Kingdom, and Ireland. It sells, rents, and provides parts and services for equipment and engines to help its customers maximize their productivity.

Finning currently pays a quarterly dividend of $0.19 per share, equal to $0.76 per share annually, which gives its stock a yield of about 2.7% at the time of this writing.

A 2.7% yield may not impress you at first, so it’s very important to make the following two notes.

First, Finning has raised its annual dividend payment for 15 straight years, and its 4.1% hike last month has it on pace for 2017 to mark the 16th consecutive year with an increase.

Second, I think the company’s very strong financial performance, including its 6.4% year-over-year increase in revenue to $2.98 billion and its 59% year-over-year increase in net earnings to an adjusted $0.62 per share in the first half of 2017, will allow its streak of annual dividend increases to continue for the foreseeable future.

Transcontinental Inc.

Transcontinental Inc. (TSX:TCL.A) is the largest printer in Canada with operations in print, flexible packaging, publishing, and digital media. Its mission is “to create products and services that allow businesses to attract, reach, and retain their target customers.”

Transcontinental currently pays a quarterly dividend of $0.20 per share, equal to $0.80 per share on an annualized basis, which gives its stock a yield of about 3% at the time of this writing.

Investors must also make the following two notes about Transcontinental’s dividend.

First, it has raised its annual dividend payment for 15 straight years, and its recent hikes, including its 8.1% hike in March, have it on track for 2017 to mark the 16th consecutive year with an increase.

Second, I think Transcontinental’s consistently strong financial performance, including its 10.7% year-over-year increase in operating earnings to an adjusted $194.9 million, and its 12.3% year-over-year increase in net earnings to an adjusted $1.73 per share in the first half of 2017, will allow its streak of annual dividend increases to continue for the next decade.

Is now the time to buy?

I think Finning International and Transcontinental would make great additions to any Foolish portfolio, so take a closer look at each and consider adding one or both of them to yours 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 stock mentioned. Finning 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 »