Over the last 20 years, Atco has increased its dividend at a compound annual growth rate of 11.5 per cent. It owns 53 per cent of Canadian Utilities, a pipeline, energy and electrical transmission company that also has a long record of dividend growth. Lastly, Atco shares have a beta of 0.49, meaning they are only about one-half as volatile as the market.
Charles Carlson, editor of DRIP Investor and author of The Little Book of Big Dividends
Pick: Exxon Mobil Corp. XOM-N
Exxon Mobil has a long history of paying dividends and has increased its dividend annually for more than 25 years. I like the company’s long-term earnings growth prospects, and I like its strong finances. I’m not convinced that alternative energies will be as big a force as people think going forward. Also, Exxon has made a strong move into natural gas, which I think has an interesting future given its price and availability.
Exxon is the classic “Steady Eddie” stock – a dominant player in its industry that rarely is at the top of the leaderboard but gives you fairly consistent performance, year in, year out. These are the types of stocks that you want to buy and hold for 100 years.
Anil Tahiliani, portfolio manager, North American equities, McLean & Partners Wealth Management Ltd.
Pick: SNC-Lavalin Group Inc. SNC-T
Looking over a 100-year time frame you need to look for megatrends, and one of the biggest trends is population growth. The United Nations predicts that the global population will hit seven billion this year and 10 billion by 2100. Infrastructure demand will grow significantly as the need for mass transit, roads, water treatment, hospitals, electricity, mining, petrochemicals and oil and gas increase.
One of the best ways to play infrastructure is through SNC-Lavalin, a global construction and engineering firm. It has a strong balance sheet, operates in 100 countries and has expertise working in difficult political and weather environments. It also has a track record of increasing dividends, a conservative management team and it trades at a discount to its global peers. The global trend of debt-burdened governments using private-public partnerships to build more infrastructure also bodes well for SNC-Lavalin.
Murray Leith, vice-president and director of research at Odlum Brown in Vancouver
Pick: Coca-Cola Co. KO-N
I’d pick a company with a very strong brand in an industry that is not likely to change much, like Coca-Cola. Apparently, even Osama Bin Laden was buying Coke by the caseload. When the biggest enemy of America buys its most iconic brand, I think that tells you something about the power of the brand.
Bill Bouchard, founder of dividendinvestor.com and dividendinvestor.ca
Pick: Colgate-Palmolive CL-N
Colgate-Palmolive manufactures and markets household products including toothpaste, toothbrushes, mouth rinses, dental floss, liquid hand soap, shower gels, bar soaps, deodorants, antiperspirants, shampoos, conditioners, laundry detergents, dish washing liquids, household cleaners, oil soaps and fabric conditioners. Its total shareholder return over the last 25 years has been an incredible 3,369 per cent.
With over $15-billion (U.S.) in annual revenue, [a majority of which] comes from international operations, Colgate-Palmolive is truly a global company. Its track record of paying a dividend every year since 1895 is impressive by any standard.
__________
Join us for a live discussion Wednesday, May 25 at 12 noon ET with Steve Hansen, analyst with Raymond James Ltd.
Mr. Hansen was ranked No. 1 by StarMine in its 2011 awards for his accuracy in identifying winners and losers in the diversified industrials sector. He widely covers transportation and agriculture - and will answer your questions on selecting stocks within those arenas.
Readers using mobile phones should read the discussion by following this link.
