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The Instant 3-Stock Portfolio for Dividend Growth

As savvy investors know, dividend-paying stocks outperform non-dividend-paying stocks over the long term, and the top returners are those that increase their rates every year. With these facts in mind, let’s take a look at three stocks from different industries that you could buy to form your instant three-stock portfolio for dividend growth.

1. Enbridge Inc.

Enbridge Inc. (TSX:ENB)(NYSE:ENB) operates the world’s longest crude oil and liquids transportation system, and it is the largest natural gas distribution company in Canada. It currently pays a quarterly dividend of $0.53 per share, or $2.12 per share annually, which gives its stock a 4.9% yield at today’s levels.

Investors must also make two notes.

First, Enbridge has raised its annual dividend payment for 20 consecutive years, and its recent increases, including its 14% increase in December 2015, puts it on pace for 2016 to mark the 21st consecutive year with an increase.

Second, the company has a goal of increasing its dividend by 14-16% annually through 2019.

2. Shaw Communications Inc.

Shaw Communications Inc. (TSX:SJR.B)(NYSE:SJR) is one of the largest diversified communications and media companies in Canada. It currently pays a monthly dividend of $0.09875, or $1.185 per share annually, which gives its stock a 5% yield at today’s levels.

It is also very important for investors to note that Shaw Communications has raised its annual dividend payment for 12 consecutive years, and its recent increases, including its 7.7% increase in March 2015, puts it on pace for 2016 to mark the 13th consecutive year with an increase.

3. Intact Financial Corporation

Intact Financial Corporation (TSX:IFC) is the leading provider of property and casualty insurance in Canada. It currently pays a quarterly dividend of $0.53 per share, or $2.12 per share annually, which gives its stock a 2.5% yield at today’s levels.

Investors must also make two notes.

First, Intact Financial has raised its annual dividend payment for 10 consecutive years.

Second, the company traditionally announces its dividend increases in its fourth-quarter earnings release, so investors should look for its next increase when it reports on February 10.

Which of these dividend aristocrats should you buy?

Enbridge, Shaw Communications, and Intact Financial could form your instant three-stock portfolio for dividend growth. All Foolish investors should strongly consider initiating positions in at least one of them today.

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Fool contributor Joseph Solitro has no position in any stocks mentioned. Intact Financial is a recommendation of Stock Advisor Canada.

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