With the S&P 500 yielding a measly 2.1%, where's an income investor supposed to look these days? I'll tell you where. A place where the dividends flow like maple syrup, and the companies raise their payouts not once, but twice a year. I'm talking about a little place called Canada. Investors loved the looney and everything else Canadian when crude oil was trading hands for triple digits. It wasn't too long ago (January 2013) that the Canadian dollar was more valuable than its U.S. counterpart. It's shed 25% against the greenback since.
Royal Bank of Canada (NYSE:RY) pays 4.4% today. Management has increased the dividend twice per year since 2012 (including this year). It's grown the dividend 10.9% annualized over the past decade, and the company has room for more double-raises in 2016 with a sub-50% payout ratio. Toronto-Dominion (NYSE:TD) is a 4.1% payer that's given investors two raises a year since 2011. It does need a December boost to follow its 8.5% bump in April to keep the streak alive, but that's a possibility given that TD also has a sub-50% payout ratio. The bank increased earnings by 6% year over year in its most recent quarter, driven by large growth in its U.S. retail banking business.
Source: Seeking Alpha
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