Dividend growth is a sign of a very strong business with excellent cash flows and earnings
One of the most successful investment strategies is to buy and hold stocks with track records of dividend growth.
This is because a rising dividend is a sign of a very strong business with excellent cash flows and earnings to support increased payouts, and the dividends themselves really add up over time when reinvested.
Inter Pipeline Ltd. (TSE:IPL) and Pattern Energy Group Inc. (TSE:PEG) raised their dividends in the last week and have active streaks of annual increases, so let’s take a closer look at each to determine if you should invest in one of them today.
Inter Pipeline Ltd.
Inter Pipeline is one of the largest owners and operators of energy infrastructure in western Canada and Europe. Its portfolio includes pipelines, petroleum and petrochemical storage facilities, and natural gas liquids extraction plants.
On the day of its third-quarter earnings release, November 3, Inter Pipeline announced a 3.8% increase to its monthly dividend to $0.135 per share, representing $1.62 per share on an annualized basis, which brings its yield to about 6% at today’s levels. The first payment at this increased rate will come on December 15 to shareholders of record at the close of business on November 22.
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