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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.

5 Under-the-Radar Dividend-Growth Stocks

Investing in dividend-growth stocks is one of the most powerful and time-proven strategies to build wealth. This means that investors should favour stocks with modest yields that have the ability to grow their dividends over time over ones with high yields that have little to no growth potential. With all of this in mind, let’s take a quick look at five under-the-radar dividend-growth stocks that you could buy right now.

1. Toromont Industries Inc.

Toromont Industries Inc. (TSX:TIH) is one of North America’s largest owners and operators of Caterpillar and Agco dealerships, one of its leading providers of commercial and industrial equipment rentals, and one of its leading designers of industrial and recreational refrigeration systems.

It pays a quarterly dividend of $0.18 per share, or $0.72 per share annually, which gives its stock a yield of approximately 1.9% at today’s levels. Investors must also note that the company’s 5.9% dividend hike in February has it on pace for 2016 to mark the 27th consecutive year in which it has raised its annual dividend payment.

2. Ritchie Bros. Auctioneers

Ritchie Bros. Auctioneers (TSX:RBA)(NYSE:RBA) is the world’s largest industrial equipment auctioneer with 44 permanent auction sites across 15 countries in North America, Europe, the Middle East, Asia, and Australia.

It pays a quarterly dividend of US$0.16 per share, or US$0.64 per share annually, which gives its stock a yield of approximately 1.9% at today’s levels. Investors must also note that the company’s 14.3% dividend hike in August 2015 has it on pace for 2016 to mark the 13th consecutive year in which it has raised its annual dividend payment.

3. Richelieu Hardware Ltd.

Richelieu Hardware Ltd. (TSX:RCH) is one of North America’s largest importers, manufacturers, and distributors of specialty hardware and complementary products with operations across Canada and the United States.

It pays a quarterly dividend of $0.0533 per share, or $0.2132 per share annually, which gives its stock a yield of approximately 0.9% at today’s levels. Investors must also note that the company’s 6.7% dividend hike in January has it on pace for 2016 to mark the seventh consecutive year in which it has raised its annual dividend payment.

4. MTY Food Group Inc.

MTY Food Group Inc. (TSX:MTY) is one of North America’s largest franchisors and operators of restaurants with 2,724 locations across Canada and the United States, including 2,680 franchises and 44 company-owned locations.

It pays a quarterly dividend of $0.115 per share, or $0.46 per share annually, which gives its stock a yield of approximately 1% at today’s levels. Investors must also note that the company’s 15% dividend hike in January has it on pace for 2016 to mark the sixth consecutive year in which it has raised its annual dividend payment.

5. Equitable Group Inc.

Equitable Group Inc. (TSX:EQB) is Canada’s ninth-largest independent Schedule I bank with over $18.6 billion in assets under management and operations from coast to coast.

It pays a quarterly dividend of $0.21 per share, or $0.84 per share annually, which gives its stock a yield of approximately 1.3% at today’s levels. Investors must also note that the company’s three dividend hikes since the start of 2015, including its 5% hike last month, have it on pace for 2016 to mark the sixth consecutive year in which it has raised its annual dividend payment.

Stock buy alert hits astounding 96% success rate!

The hand-picked investing team inside Stock Advisor Canada, recently issued a buy alert for one special type of "bread-and-butter" stock where The Motley Fool U.S. has banked profits on 23 out of 24 recommendations. Frankly, with an astounding 96% success rate that has delivered average returns of 260%, chances are this new pick could deliver life-changing returns as well. Because the team at Stock Advisor Canada fully embraces the same time-tested investing philosophies that have led to countless Motley Fool winners globally. So simply  click here to unlock the full details behind this new recommendation and join Stock Advisor Canada.

*96% accuracy includes restaurant stock recommendations from Motley Fool U.S. services Stock Advisor, Rule Breakers, Hidden Gems, Income Investor and Inside Value since each services inception. Returns as of 5/27/16.

Fool contributor Joseph Solitro has no position in any stocks mentioned. The Motley Fool owns shares of MTY Food Group. MTY Food Group is a recommendation of Stock Advisor Canada.

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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