If you are looking for a top dividend stock to own, it’s important to consider one with a good track record for growing its payout. That signals to investors that management takes the payout seriously and is committed to rewarding its shareholders. While that doesn’t mean a dividend hike is guaranteed every year, it can be a possibility for a solid, growing business.
One company that may fit that profile is energy giant TC Energy (TSX:TRP)(NYSE:TRP), which announced on Feb. 14 that its Board of Directors approved a dividend increase of 3.3% — this marks the 25th straight year that the company has boosted its payout. The new annualized dividend of $3.40 means that investors who buy the stock today will collect a yield of 5.4%.
Last year, the company spun off its liquid pipelines business as it focuses on complementary segments of its operations (natural gas, natural gas storage, and power and energy). By becoming a leaner and more efficient business, that can enable TC Energy to be in a better position to achieve more growth in the years ahead, which can ensure the dividend continues to rise.
As a result, TC Energy can make for a good stock to hold for years to come. As a top player in the energy market, this is a stock that can be a fairly safe investment to hold onto for the long haul. And in the past 12 months, the stock has risen by around 30% and it still trades at a fairly modest 16 times its trailing earnings.
