EQB: A Dividend Aristocrat In The Making

Summary

• EQB Inc. has delivered a 53% return since June 2023, significantly outperforming the S&P 500 by 20%, driven by robust growth strategies.
• With 20 years of consistent dividend payments and a 4.1% recent increase, EQB is on track to become a dividend aristocrat.
• EQB's low payout ratio and strong EPS growth provide substantial room for future dividend increases, targeting 15% annual growth over the medium term.
• This commitment to grow its dividend 15% annually over the medium term positions EQB to double its current dividend by 2030.
• Innovative product offerings and strategic customer engagement have fueled impressive deposit and customer growth, enhancing EQB's competitive position in the Canadian banking sector.

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Author's Note: All funds in Canadian currency unless otherwise noted.

Investment Thesis

Since first recommending EQB Inc. (TSX:EQB:CA) in June 2023, the bank has returned 53% for investors, outpacing the return of the S&P 500 by 20% over the period. The bank

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.