Investing in a company which grows its dividend can be a great way for investors to grow their portfolios. And one company that has aggressively increased its dividend recently is construction services company Bird Construction (TSX:BDT).
On Oct. 9, Bird announced that it would be increasing its dividend by around 50%. The company pays a monthly dividend, which will go up by $0.0233 to $0.07. On an annual basis, that totals $0.84 per share. With a share price of around $32, that equates to a dividend yield of 2.6%. If you want to collect $1,000 in dividends from the stock, that means you would need to invest approximately $38,500 into the business today.
What’s encouraging is that even despite such a big increase in the dividend, Bird is targeting a payout ratio based on earnings of just 33%, which leaves plenty of room for more dividend hikes in the future. And the company is expecting to generate organic revenue growth of around 10% over the next few years as it invests in its operations.
The business has been generating strong, stable growth over the years with revenue in 2023 totaling $2.8 billion, which is nearly 90% higher than the $1.5 billion it posted three years earlier back in 2020. And with more growth still on the horizon as interest rates come down, the future looks bright for Bird.
Today, the stock is trading at 21 times its trailing earnings, which makes it an attractively valued dividend stock to load up on right now.
