Canadian oil and gas giant Imperial Oil Limited (TSX:IMO) released its fourth-quarter earnings last week, and it also announced that it would be raising its dividend. Although the company's adjusted per-share profit of $1.97 for Q4 was down from $2.37 a year ago as lower oil prices have weighed on its financials, the company still felt confident in raising its dividend generously, by a rate of around 21%.
Going forward, investors will collect 87 cents per share in quarterly dividends, up from the previous rate of 72 cents. This is effective for the upcoming dividend, which is payable on April 1.
With the increase, Imperial Oil is now paying investors $3.48 per share over the course of a full year, which is a yield of about 2.6% based on where the stock currently trades at today. That's a fairly high dividend from one of the country's leading oil and gas stocks. By comparison, the S&P 500 averages a yield of only 1.1%.
Plus, Imperial Oil has an impressive track record of paying dividends for more than a century, and it has raised its payout for 31 straight years. Odds are, you'll see your dividend income rise over time simply by hanging onto the stock.
Overall, Imperial Oil has made for a solid investment over the years as it's up around 450% over a five-year stretch. Whether you want to collect a good dividend or just want a stable investment to hang on to for the long haul, Imperial Oil can make for an excellent option for your portfolio.
