At the top of our list is a natural gas intermediary Enbridge (TSX: ENB) (NYSE: ENB), which has increased its dividend by 73% in the past five years.
After being crushed in March, Enbridge’s shares are still largely bruised, but this may be the right time to pounce on the company’s shares. Specifically, Enbridge’s stable cash flow generation, high quality customers (93% are high quality) and a diversified asset base are expected to maintain long term stability.
EPS of $ 0.83 for the past quarter exceeded estimates by $ 0.10, although revenues fell 6.6% to $ 12 billion. Most importantly, Enbridge generated $ 2.71 billion in distributable cash flow.
« [R]esiliency has always been a hallmark of how we run our business; our strategically located assets, our diversified cash flow, our solid commercial base and our solid balance sheet allow us to withstand economic downturns and remain well positioned for the future, ”said the CEO of Al Monaco.
Enbridge currently offers a particularly juicy dividend yield of 8.0%.
With dividend growth of 796% over the past five years, Montreal telecommunications Quebecor (TSX: QBR.B) is next on our list.
Quebecor’s shares have remained relatively stable over the past few months, suggesting that this remains a solid defense. Specifically, the company’s large telecommunications subsidiary, Videotron, is expected to continue to flourish during a recession.
EPS increased to $ 0.44 in the last quarter, as revenues improved 3% to $ 1.06 billion. More importantly, cash flow from operations increased 6.8% to $ 295 million.
“At a time when the world is facing an unprecedented situation due to the COVID 19 pandemic, Quebecor has adapted quickly and continues to provide Quebecers with essential telecommunications and press services,” said CEO Pierre Karl Péladeau. “We have taken a series of measures to help our customers stay connected, while protecting the health and safety of our employees, our customers and the public.”
Quebecor currently offers a dividend yield of 2.8%.
With dividend growth of 38% over the past five years, the electricity giant Fortis (TSX: FTS) (NYSE: FTS) completes our list this week.
Fortis stocks held up well in 2020, providing Fools with a lot of comfort. In the long term, the massive size of the company ($ 53 billion in total assets), a highly regulated operating environment and stable cash flows should continue to support strong growth in payments.
In the last quarter, EPS of $ 0.68 exceeded expectations by $ 0.16, as revenues slipped 2% to $ 2.4 billion. In particular, the company’s $ 18.8 billion five-year investment plan and dividend growth forecasts remain unchanged.
“Fortis continues to be well positioned to increase shareholder value through the execution of its investment plan, the balance and strength of its diversified portfolio of public services and the opportunities for growth in the inside and near its service territories, ”wrote management.
Fortis currently offers a healthy dividend yield of 3.7%.
There you go, Fools: three attractive dividend growth stocks that are worth seeing.
As always, these are not formal recommendations. They are simply a starting point for further research. Breaking a dividend growth sequence can be particularly painful, so great due diligence is always required.
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Crazy contributor Brian Pacampara does not hold a position in any of the companies mentioned. The Motley Fool owns shares and recommends Enbridge. Motley Fool recommends FORTIS INC.