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Fool Canada’s first 1,000%+ winner?

Our Chief Investment Advisor, Iain Butler, and a team of The Motley Fool’s most talented investors from across the globe recently embarked on an unprecedented mission:

To identify the 20 Canadian small-cap companies they believe have the best shot at earning investors like you gains of 1,000%+ over the coming years.

For the next few days only, you can get the names and full details on these 20 potential “10-baggers” when you join Iain and his team in a first-of-its-kind project they have dubbed Discovery Canada 2017.

3 Top Dividend-Growth Stocks for Long-Term Investors

As history has shown, owning a portfolio of dividend-paying stocks is the best way to build wealth over the long term, and this investment strategy is most successful when you own stocks that raise their payouts every year. With this in mind, let’s take a look at three of the best dividend-growth stocks from different industries, so you can determine if you should buy one of them today.

1. BCE Inc.

BCE Inc. (TSX:BCE)(NYSE:BCE) is Canada’s largest communications company. It pays a quarterly dividend of $0.6825 per share, or $2.73 per share annually, which gives its stock a yield of about 4.6% at today’s levels.

It is also very important to make the following two notes.

First, BCE’s 4% dividend hike in February has it on pace for fiscal 2016 to mark the eighth consecutive year in which it has raised its annual dividend payment.

Second, the company has a target dividend-payout range of 65-75% of its free cash flow, so I think its consistent growth, including its 77.8% year-over-year increase to $0.48 per share in the first quarter of fiscal 2016, will allow its streak of annual dividend increases to continue for the foreseeable future.

2. Methanex Corporation

Methanex Corporation (TSX:MX)(NASDAQ:MEOH) is the world’s largest producer of methanol. It pays a quarterly dividend of US$0.275 per share, or US$1.10 per share annually, which gives its stock a yield of about 3.5% at today’s levels.

It is also very important to make the following two notes.

First, Methanex’s 10% dividend hike in April 2015 has it on pace for fiscal 2016 to mark the sixth consecutive year in which it has raised its annual dividend payment.

Second, I think the company’s increased amount of cash flows from operating activities, including its 89.2% year-over-year increase to US$70 million in the first quarter of fiscal 2016, and its low payout ratio, including 35.7% of its cash flows in the first quarter, will allow its streak of annual dividend increases to continue going forward.

3. Jean Coutu Group PJC Inc.

Jean Coutu Group PJC Inc. (TSX:PJC.A) is one of Canada’s largest franchisers of pharmacies, and it’s one of the country’s leading manufacturers of generic drugs. It pays a quarterly dividend of $0.12 per share, or $0.48 per share annually, which gives its stock a yield of about 2.5% at today’s levels.

It is also very important to make the following two notes.

First, Jean Coutu’s 9.1% dividend hike last month has it on pace for fiscal 2017 to mark the 10th consecutive year in which it has raised its annual dividend payment.

Second, I think the company’s ample amount of cash flows from operating activities, including the $225.7 million it generated in fiscal 2016, and its modest payout ratio, including 36.4% of its cash flows in fiscal 2016, will allow its streak of annual dividend increases to continue for the next several years.

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Fool contributor Joseph Solitro has no position in any stocks mentioned.

NEW! This Stock Could Be Like Buying Amazon In 1997

For only the 5th time in over 14 years, Motley Fool co-founder David Gardner just issued a Buy Recommendation on this recent Canadian IPO.

Stock Advisor Canada’s Chief Investment Adviser, Iain Butler, also recommended this company back in March – and it’s already up a whopping 57%!

Enter your email address below to find out how you can claim your copy of this brand new report, “Breakthrough IPO Receives Rare Endorsement.”

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