3 Top Dividend Growth Stocks Yielding Up to 4.7%

BCE Inc (TSX:BCE)(NYSE:BCE), Emera Inc (TSX:EMA), and the Bank of Montreal (TSX:BMO)(NYSE:BMO) all deserve a spot in your portfolio.

| More on:

Some people feel like they have to choose between yield and growth. But I say, why not have both?

If you look carefully, you can find stocks that offer the best of both worlds: an above-average yield and a growing dividend.

That’s where today’s article comes in. I’ve identified three stocks that yield up to 4.7%. Better yet, all three have long track records of raising their payouts.

Now, this list isn’t meant to be exhaustive. Consider it as a starting point for further research. And remember that all investments come with risks, so be sure to do your own due diligence before buying any stock.

1. Bank of Montreal

With a big chunk of profits coming from south of the border, the Bank of Montreal (TSX:BMO)(NYSE:BMO) now has a beachhead in the United States.

Every business indicator — including jobs, auto sales, and consumer spending — is on the upswing. That means more mortgages, more credit cards, and more car loans for BMO.

For shareholders, this should translate into a growing stream of income. That’s why BMO will likely hike its dividend again this year.

2. BCE Inc

When Warren Buffett is evaluating a business, he asks, “If I had a billion dollars, how much could I hurt this guy?”

In the case of BCE Inc (TSX:BCE)(NYSE:BCE), not all that much. Even if you and I could scrape together $1 billion… $2 billion… even $3 billion, chances are we couldn’t compete. The sheer cost to acquire our own wireless spectrum and build out a telecom network would be enormous.

Is there any question as to how this company has been able to pay a dividend every year since 1881? Given that it’s almost impossible to build a competing business, investors can expect BCE to continue cranking out oversized profits (and dividends) for decades to come.

3. Emera Inc

Last week, Emera Inc (TSX:EMA) tacked on an additional five cents to its dividend, bringing the company’s annual payout to $1.60 per share.

That was great, but it was the commitment to hiking the payout going forward that really impressed me. During the conference call, executives renewed their promise to boost the dividend 6% annually over the next five years. That’s a strong vote of confidence in the company’s future.

Of course, you can’t cash these payout increases just yet. They will depend on Emera’s future earnings and still have to be approved by the board. But management would not have raised investors’ hopes unless they were sure they could deliver.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Robert Baillieul has no position in any stocks mentioned.

More on Investing

Oil pumps against sunset

Oil or Tech? Why Choose When You Can Get Both in a Single Stock?

Tech stock Pason Systems (TSX:PSI) is exposed to the energy market boom.

Read more »

A red umbrella stands higher than a crowd of black umbrellas.

Protect Against Inflation With 2 Top TSX Stocks

Here are two top TSX stocks that long-term investors concerned about inflation may want to consider in this time of…

Read more »

Woman has an idea
Tech Stocks

The Smartest Stocks to Buy With $20 Right Now and Hold Forever

These under-$20 stocks have the potential to grow further with time and deliver solid capital gains.

Read more »

A close up image of Canadian $20 Dollar bills
Dividend Stocks

TFSA Investors: Put $45,000 in These Top TSX Stocks and Watch Your Passive Income Roll In

Are you looking to retire early? Here are a few ideas about how your TFSA could earn a passive-income stream…

Read more »

Human Hand Placing A Coin On Increasing Coin Stacks In Front Of House
Dividend Stocks

Love Passive Income? Here’s How to Make Plenty of it as a Real Estate Investor

You could definitely create passive income by investing in pure real estate, but you could make just as much, if…

Read more »

Make a choice, path to success, sign
Dividend Stocks

2 High-Yielding Dividend Stocks You Can Buy and Hold for Years

These two high-yielding dividend stocks can be the perfect addition to your portfolio, as the bear market causes payout yields…

Read more »

A worker uses a laptop inside a restaurant.
Tech Stocks

Why Investors Shouldn’t Give Up on Shopify Just Yet

Here's why long-term investors may not want to throw in the towel just yet on e-commerce juggernaut Shopify (TSX:SHOP).

Read more »

Retirees sip their morning coffee outside.
Dividend Stocks

TFSA Wealth: How to Turn $88,000 Into $1 Million for Retirement

Canadians can use the TFSA to hold a basket of diversified equity investments, allowing you to turn a $88,000 investment…

Read more »