Go to the Globe and Mail homepage

Jump to main navigationJump to main content

(AUDINDesign/Getty Images/iStockphoto)
(AUDINDesign/Getty Images/iStockphoto)

NUMBER CRUNCHER

20 dividend growers with rising total returns Add to ...

What are we looking for?

Steady dividend growers with a dash of momentum.

These two criteria were selected to reflect a couple of investing styles that are very popular right now.

To satisfy the current fascination with dividends, I went looking for companies that have increased their payouts every year for the past five years.

More Related to this Story

To appease the momentum followers, I selected companies that have enjoyed strong recent returns.

How we did it

Bloomberg provided a screen of U.S. and Canadian companies that have increased their dividends each year for at least five years.

I then sorted the table by each stock’s total return in the year to date. The top 20 are shown in the accompanying table.

What we found

Three Canadian companies made the list: SNC-Lavalin, AGF Management and Ensign Energy Services. SNC, of course, has recently been in the news as a result of allegedly making illegal payments to win contracts. AGF is in the highly competitive mutual fund business, and must compete for customers with the big banks.

At the top of the U.S. list are firms such as Best Buy, the beleaguered electronics retailer, and Pitney Bowes, a maker of postage meters.

Are these companies actually tempting investments? I suspect that many of the big year-to-date gains listed here reflect a bounce back from pessimism about these firms, rather than outright enthusiasm about each company’s long-term prospects for beating the market.

More broadly, these stocks’ momentum may result from the current popularity of dividend investing. Many people are now eager to buy any stock that promises a regular dividend – and even more eager to buy one that has steadily increased its dividend.

Short-term traders will find intriguing possibilities in today’s screen. For the most part, though, readers should approach today’s list with caution. While dividend investing and momentum investing can each produce outstanding results, the combination of the two isn’t necessarily a winner.

 

Stocks that have hiked their dividend in each of the past five years

Company Ticker Market Cap
($-mil)
$ Price
(Feb. 19)
Best Buy BBY-N 5,740.7 17.33
Pitney Bowes PBI-N 2,696.1 13.58
H.J. Heinz HNZ-N 23,132.3 72.20
Assurant Inc. AIZ-N 3,338.4 42.21
Helmerich & Payne HP-N 7,059.5 67.94
Archer-Daniels ADM-N 21,462.7 33.08
Norfolk Southern NSC-N 22,953.4 73.20
SNC-Lavalin SNC-T 7,324.8 48.30
AGF Management AGF.B-T 998.9 11.44
Hormel Foods HRL-N 9,554.6 36.54

All figures in U.S. dollars. Source: Bloomberg

Print

Download table as a CSV file

View full table

  • BBY-N
  • PBI-NHNZ-NAIZ-N
  • HP-N
  • ADM-N
  • NSC-N
  • SNC-T
  • AGF.B-T
  • HRL-N
  • CSX-N
  • R-N
  • RHI-N
  • PH-N
  • MCHP-QCINF-Q
  • ESI-T
  • PG-N
  • CPB-N
  • BMY-N
Live Discussion of BBY on StockTwits
More Discussion on BBY-N
Live Discussion of PBI on StockTwits
More Discussion on PBI-NHNZ-NAIZ-N
Live Discussion of HP on StockTwits
More Discussion on HP-N
Live Discussion of ADM on StockTwits
More Discussion on ADM-N
Live Discussion of NSC on StockTwits
More Discussion on NSC-N
Live Discussion of SNC on StockTwits
More Discussion on SNC-T
Live Discussion of AGF.B on StockTwits
More Discussion on AGF.B-T
Live Discussion of HRL on StockTwits
More Discussion on HRL-N
Live Discussion of CSX on StockTwits
More Discussion on CSX-N
Live Discussion of R on StockTwits
More Discussion on R-N
Live Discussion of RHI on StockTwits
More Discussion on RHI-N
Live Discussion of PH on StockTwits
More Discussion on PH-N
Live Discussion of MCHP on StockTwits
More Discussion on MCHP-QCINF-Q
Live Discussion of ESI on StockTwits
More Discussion on ESI-T
Live Discussion of PG on StockTwits
More Discussion on PG-N
Live Discussion of CPB on StockTwits
More Discussion on CPB-N
Live Discussion of BMY on StockTwits
More Discussion on BMY-N

More Related to this Story

In the know

Most popular video »

Highlights

More from The Globe and Mail

Most Popular Stories