3 Top Stocks With High Dividend Growth to Buy in 2023 and Hold Forever The Motley Fool Canada

You should take Telus’s capital appreciation potential into account when considering this dividend stock since it inflates the collective return potential of the company (especially in the long term). It has been growing its payouts for the last eight years, so even though it’s relatively new to the list, it is a dividend aristocrat. The bank has been growing its payouts for over 12 years, making it an established aristocrat. Its dividend growth is among the best in the banking sector – 43% between 2019 and 2023 (over 8% annualized). Canadian bank stocks also have a “reserved” space in most comprehensive Canadian dividend stock lists, and while it’s not the top bank stock by yield, Toronto Dominion is a solid pick.

The Dallas-headquartered firm serves more than 3 million distribution customers in more than 1,400 communities across nine states, with a large presence in Texas and Louisiana. Strong performance from actively managed funds and the firm’s focus on the growing retirement market are just two factors boosting AUM, analysts note. International Business Machines (IBM), a component of the Dow Jones Industrial Average, isn’t quite as illustrious as it once was. C.H. Robinson Worldwide (CHRW) provides freight transportation and logistics services to industries around the globe. It also delivers reliable increases to its dividend each and every year. Enbridge purchased an oil export terminal in 2021 and secured a stake last year in a new liquified natural gas (LNG) export facility being built on the coast of British Columbia.

  • Payout ratios are also an imperfect measurement because while a higher number is generally better, the more of a company’s earnings that go towards a dividend is less money that can go towards growth.
  • That said, the stock, which is still down about 16% from a year ago, still trades at a good valuation.
  • Prior to the merger, Linde, now headquartered in Dublin, raised its dividend every year since 2014.

It is the strongest performing stock on the list, outperforming the S&P 500 by an average of 13.1 percentage points per year over the last 10 years. MCHP has a “B” financial health rating and the highest EPS growth rate on this list. Our editors are committed to bringing you unbiased ratings and information.

Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people around the world achieve their financial goals through our investing services and financial advice. Our goal is to help every Canadian achieve financial freedom and make all levels of investors smarter, happier, and richer. BCE, Bank of Nova Scotia, and Enbridge all pay attractive dividends that should continue to grow. If you have some cash to put to work in a TFSA or RRSP, these stocks look cheap today and deserve to be on your radar. Enbridge has increased the dividend annually for nearly three decades.

McKesson Corporation (NYSE:MCK)

Even better, 3M has been delivering annual dividend increases to investors for 65 years. The most recent hike came in early February 2023 when the company bumped the quarterly payout by a penny to https://forex-review.net/ $1.50 per share. Although the yield on the payout might not wow investors, Nordson’s epic streak of dividend increases certainly proves the company’s commitment to returning cash to shareholders.

  • You could choose to reinvest your dividend into the company, expanding your shareholding, or you could buy stock of another company.
  • To help you pick the right dividend stocks for your portfolio, here’s a crash course in dividend stock investing.
  • As such, it’s seen by some investors as a bet on jobs growth, and tends to move ahead of any pick-up in hiring during and economic recovery.
  • Founded in 1928, Genuine Parts has long made returning cash to shareholders a priority.
  • I go into how to select the right dividend stock in more detail after the list.

This outperformance can be attributed to the competitive edge, cautious management, and dependable dividend payments of these companies. MCD last raised its dividend in October 2023, when it lifted the quarterly payout https://forex-reviews.org/ by 10% to $1.67 a share. The company’s 10-year compound annual dividend growth rate stands at 7%. The firm last raised the dividend in October 2023 – a 5.3% increase in the quarterly payout to 20 cents per share.

Automatic Data Processing

Founded in 1823, it provides electric, gas or steam services to roughly 3.5 million customers in New York City and Westchester County. ConEd also happens to be North America’s second-largest solar power provider, and is investing in electric vehicle charging programs and other green energy endeavors. The name Franklin Resources (BEN) might not be well-known among investors; however, along with its subsidiaries, it’s called the more familiar Franklin Templeton investments.

Automatic Data Processing (ADP)

For dividend stock, one important thing you should look for is how high or low the payout ratios have been throughout its history. As a dividend stock, the REIT stands out for its consistent and considerable dividend growth history (for a REIT) – 12 consecutive years of growth. The payout history has been quite stable, though the current payout ratio does not inspire a lot of confidence. If you are investing in the stock market and want to increase your returns, a great option to consider is dividend-paying stocks. Not only do you benefit from any share appreciation, but you also earn a return based on the dividends you receive.

Lowe’s Companies, Inc. (NYSE:LOW)

Consumer-staples company Church & Dwight (CHD) might not ring a bell with many retail investors, but they’re certainly familiar with many of its wares. Arm & Hammer, OxiClean and Waterpik are just a few examples among dozens of its household brands. J.M. Smucker (SJM) is a well-known consumer staples stock thanks to the company’s wide range of popular brands. Folgers and Dunkin’ coffee, Jif peanut butter and Smucker’s eponymous jams and jellies represent just a few of its offerings. Here’s why quality TSX stocks such as Jamieson Wellness should be part of your shopping list in December 2023.

Another reason to consider Telus is it’s the only major telecom company that’s venturing far out of its core businesses and expanding in other markets. A major segment comes from its US banking sector, and about a quarter from other business activities. As a pipeline company, its financials are relatively safe from energy price fluctuations. For example, you might identify three companies with different payment dates, allowing you to collect a dividend each month of the year. Here is how to build your portfolio to achieve monthly dividend income all year.

Investors will be thankful to have 2022 behind us, as the markets endured a rough year. 2023 is expected to be much of the same, at least in the first half, which is why it is important https://forexbroker-listing.com/ to align your portfolio with high-quality blue-chip dividend stocks. IBM is an information technology company that has been around since 1911 and has a solid income stream.

The company has also grown its payouts for the last five years, and the growth is quite decent. The dividends are attractive for both a generous yield and growth (11 consecutive years). Special dividends in especially productive markets can augment its default dividend-based return potential. You shouldn’t ignore the risk that the company slashed its payouts and keep a watchful eye on its organic growth and financials. But it’s unlikely that the company will risk alienating even more investors by slashing dividends again soon. As a dividend stock, the best arguments for Telus include its stellar dividend history and pace of growth.

The Bank of Montreal has over 12 million customers globally and you can almost expect its dividend payouts to continue without interruption. It has a massive dividend yield of 7.71% and an average dividend yield of 5.44% over the last 5 years. Canadian National Resources is one of the largest crude oil and natural gas producers in the world. Suncor Energy is a Canadian energy company that primarily produces oil from oil sands and refines crude oil. It also operates in renewable energy infrastructure and even owns Petro-Canada gas stations nationwide.