2 Dividend Stocks That Are Killing It in 2019

Brookfield Renewable Partners LP (TSX:BEP.UN)(NYSE:BEP) and Park Lawn Corporation (TSX:PLC) have surged in 2019 and are well-positioned to thrive going forward.

| More on:

The TSX has put together a fantastic five-month stretch, climbing 13.3% in 2019 as of close on May 24. Investors who bought into the late December 2018 dip have been richly rewarded. Those who bought low on some of the top dividend stocks can carry on with those gains while soaking up income at a discount.

In the past we have discussed why it’s important for investors to identify equities that are set up for the long term. This can come in the form of a fast-growing industry or a company with a wide economic moat. Today we’ll look at two stocks that have thrived in 2019. Both offer income to shareholders and both are riding trends that promise growth for years to come.

Brookfield Renewable Partners (TSX:BEP.UN)(NYSE:BEP)

Brookfield Renewable Partners owns a portfolio of renewable power generating facilities across the globe. Investment in renewables has flattened globally over the past three years, but it’s still trending upward as we head into the next decade. Growing adoption of renewables in the private and public sphere will power the sector going forward.

Shares of Brookfield Renewable have climbed 24% in 2019 as of close on May 24. The stock has increased 6.9% year over year. The company released its first-quarter 2019 results on May 2. Funds from operations (FFO) rose to $227 million or $0.73 per share compared to $193 million or $0.62 per share in the prior year. Its liquidity position improved to $2.3 billion as the company plots aggressive investment moving forward. In Q1 2019, the company raised $400 million through asset sales and issuance of preferred units.

Brookfield Renewable continues to be an attractive target for income investors. The stock offers a quarterly dividend of $0.515 per share, which represents a 4.6% yield. It targets dividend growth on average at 5% to 9% annually.

Park Lawn (TSX:PLC)

Park Lawn is a Toronto-based company that provides goods and services associated with the disposition and memorialization of remains in Canada and the United States. An aging North American population means that these services will see rising demand in the years to come. Shares of Park Lawn have climbed 24.9% in 2019 as of close on May 24.

The company released its first=quarter 2019 results on May 14. Revenue surged 84.3% year-over-year to $50.1 million and net earnings increased to $3.3 million compared to $1.6 million in Q1 2018. Adjusted net earnings soared 83% to $5.16 million and on a fully diluted per share basis rose 20.3% to $0.219. In the quarter. Park Lawn completed several key acquisitions in the United States, including an eight-location funeral business in Wisconsin.

On May 21, Park Lawn announced a May 2019 dividend of $0.038 per share. This dividend is paid out monthly to shareholders and represents a modest 1.5% yield. Park Lawn is more attractive as a growth vehicle, but value investors may want to await a pullback before jumping in at all-time highs.

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 Ambrose O'Callaghan has no position in any of the stocks mentioned. Brookfield Renewable Partners is a recommendation of Stock Advisor Canada.

More on Energy Stocks

man touches brain to show a good idea
Energy Stocks

1 No-Brainer Energy Stock to Buy With $500 Right Now

Should you buy a cyclical energy stock at its decade-high? Probably not. But read this before you make a decision.

Read more »

A solar cell panel generates power in a country mountain landscape.
Energy Stocks

Top Canadian Renewable Energy Stocks to Buy Now

Here are two top renewable energy stocks long-term investors can put in their portfolios and forget about for a decade…

Read more »

oil and gas pipeline
Energy Stocks

Where Will Enbridge Stock Be in 3 Years?

After 29 straight years of increasing its dividend and a current yield of 6%, here's why Enbridge is one of…

Read more »

Pumpjack in Alberta Canada
Energy Stocks

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

Enbridge stock just hit a multi-year high.

Read more »

oil pump jack under night sky
Energy Stocks

Where Will CNQ Stock Be in 3 Years?

Here’s why CNQ stock could continue to outperform the broader market by a huge margin over the next three years.

Read more »

engineer at wind farm
Energy Stocks

Invest $20,000 in This Dividend Stock for $100 in Monthly Passive Income

This dividend stock has it all – a strong outlook, monthly income, and even more to consider buying today.

Read more »

A worker overlooks an oil refinery plant.
Energy Stocks

Is Imperial Oil Stock a Buy, Sell, or Hold for 2025?

Valued at a market cap of $55 billion, Imperial Oil pays shareholders a growing dividend yield of 2.4%. Is the…

Read more »

Pumpjack in Alberta Canada
Energy Stocks

Where Will Imperial Oil Stock Be in 1 Year?

Imperial Oil is a TSX energy stock that has delivered market-thumping returns to shareholders over the last two decades.

Read more »