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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 Dividend-Growth Stars With Yields Over 3% to Consider Today

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 generates the highest returns when you invest in stocks with high yields that raise their payouts every year. With these criteria in mind, let’s take a look at three stocks with high and safe yields of 3-5% and active streaks of annual dividend increases, so you can determine if you should buy one or more of them today.

1. TransCanada Corporation

TransCanada Corporation (TSX:TRP)(NYSE:TRP) is one of North America’s largest owners and operators of energy infrastructure assets, including natural gas and crude oil pipelines, natural gas storage facilities, and power generation facilities.

It pays a quarterly dividend of $0.565 per share, or $2.26 per share annually, which gives its stock a yield of about 4.1% at today’s levels.

It’s also important to make two notes regarding its dividend.

First, TransCanada has raised its annual dividend payment for 15 consecutive years, and its 8.7% hike in February has it on pace for 2016 to mark the 16th consecutive year with an increase.

Second, the company has an annual dividend-per-common-share growth target of 8-10% through 2020, making it one of the top dividend-growth plays in the energy sector.

2. Transcontinental Inc.

Transcontinental Inc. (TSX:TCL.A) is Canada’s largest printer with operations in print, flexible packaging, publishing, and digital media, and it’s the country’s leading provider of proximity media solutions.

It pays a quarterly dividend of $0.185 per share, or $0.74 per share annually, which gives its stock a yield of about 3.8% at today’s levels.

It’s also important to make two notes regarding its dividend.

First, Transcontinental has raised its annual dividend payment for 14 consecutive years, and its two hikes since the start of 2015, including its 6.3% hike in March 2015 and its 8.8% hike in March of this year, have it on pace for 2016 to mark the 15th consecutive year with an increase.

Second, I think the company’s strong growth of operating cash flow, including its 37.8% year-over-year increase to $34.3 million in the first quarter of 2016, will allow its streak of annual dividend increases to continue for the next several years.

3. Bank of Nova Scotia

Bank of Nova Scotia (TSX:BNS)(NYSE:BNS) is Canada’s third-largest bank with over $919 billion in total assets.

It pays a quarterly dividend of $0.72 per share, or $2.88 per share annually, which gives its stock a yield of about 4.4% at today’s levels.

It’s also important to make two notes regarding its dividend.

First, Bank of Nova Scotia has raised its annual dividend payment for five consecutive years, and its three hikes since the start of 2015, including its 3% hike in March 2015, its 2.9% hike in August 2015, and its 2.9% hike in March of this year, have it on pace for 2016 to mark the sixth consecutive year with an increase.

Second, the company has a target dividend-payout range of 40-50% of its net earnings, so I think its consistent growth, including its 5.9% year-over-year increase to $1.43 per share in the first quarter of 2016, will allow its streak of annual dividend increases to continue for decades.

Urgent update: Motley Fool issues rare "double down" stock alert

Not to alarm you but you recently missed an important and rare event. Stock Advisor Canada issued a "double down"... and history suggests it pays to listen. Because 10 of the most lucrative "double downs" in one of the Motley Fool's premier services skyrocketed an average of 434%! So, simply click here to discover why Motley Fool "double downs" have some investors rocking with excitement. Five years from now, you'll wish you'd grabbed this stock. Click here to learn more.

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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