Dividend Stocks: More than Just Household Names

Dividend stocks with a record of growth. We like dividends but we’re even fonder of stocks that show the ability to keep increasing their dividends without breaking the bank to do so. We used our Bloomberg terminal to shop for stocks listed on the Toronto Stock Exchange that met three criteria: They have dividend yields of 1.5 per cent or more. They have grown their dividends over the past five years by a net 20 per cent or more. Their payout ratio – the amount of their earnings they’re paying out as dividends – is 50 per cent or less.

Only 10 stocks met our criteria. Many – no surprise – are high-profile household names that benefit from steady, recurring sales to customers. Tim Hortons Inc., for instance, is exactly the type of company we would expect to show steady dividend growth as it pours ever-increasing amounts of coffee and Timbits into the maws of a seemingly insatiable crowd of customers. Cable companies also do well on our list, with both Rogers Communications Inc. and Cogeco’s various corporate entities featuring prominently. And, of course, there’s also Potash Corp. of Saskatchewan Inc., purveyor of fertilizer to the world.

Source: Globe and Mail

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