5 Top Dividend-Growth Stocks for Income Investors

Plaza Retail REIT (TSX:PLZ.UN), CI Financial Corp. (TSX:CIX), Altagas Ltd. (TSX:ALA), Pizza Pizza Royalty Corp. (TSX:PZA), and Pembina Pipeline Corp. (TSX:PPL)(NYSE:PBA) are five of my top picks for income investors. Which should you buy today?

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As income investors, we want to own stocks with high and safe dividend yields, but the best stocks to buy are those that can also grow their payouts over time. With this in mind, I’ve scoured the market and compiled a list of five stocks with yields of 4-7%, active streaks of annual increases, and the ability to continue growing their payouts going forward, so let’s take a quick look at each to determine if you should buy one or more of them today.

1. Plaza Retail REIT

Plaza Retail REIT (TSX:PLZ.UN) is one of Canada’s largest owners, operators, and developers of commercial real estate with ownership interests in 298 retail properties across eight provinces that total approximately 7.1 million square feet.

It pays a monthly distribution of $0.02167 per share, or $0.26 per share annually, which gives its stock a yield of about 5.4% at today’s levels. Investors must also note that the company has raised its annual distribution for 12 consecutive years, and the 4% hike it announced in November 2015, which was effective for its January 2016 payment, has it on pace for 2016 to mark the 13th consecutive year with an increase.

2. CI Financial Corp.

CI Financial Corp. (TSX:CIX) is one of Canada’s largest wealth management firms and investment fund companies with over $146 billion in assets under management and advisement.

It pays a monthly dividend of $0.115 per share, or $1.38 per share annually, which gives its stock a yield of about 5% at today’s levels. Investors must also note that the company has raised its annual dividend payment for six consecutive years, and its two hikes since the start of 2015, including its 4.5% hike last month, have it on pace for 2016 to mark the seventh consecutive year with an increase.

3. Altagas Ltd.

Altagas Ltd. (TSX:ALA) is one of North America’s largest owners and operators of energy infrastructure. Its assets include natural gas pipelines, processing plants, and storage terminals, and hydro, gas-fired, biomass, and wind power facilities.

It pays a monthly dividend of $0.165 per share, or $1.98 per share annually, which gives its stock a yield of about 6.5% at today’s levels. Investors must also note that the company has raised its annual dividend payment for five consecutive years, and its two hikes since the start of 2015, including its 3.1% hike in October, have it on pace for 2016 to mark the sixth consecutive year with an increase.

4. Pizza Pizza Royalty Corp.

Pizza Pizza Royalty Corp. (TSX:PZA) owns the trademarks and other intellectual property associated with the Pizza Pizza and Pizza 73 brands in Canada, and it licenses these properties for use in operating and franchising quick-service restaurants.

It pays a monthly dividend of $0.0713 per share, or $0.856 per share annually, which gives its stock a yield of about 6.1% at today’s levels. Investors must also note that the company has raised its annual dividend payment for four consecutive years, and its three hikes since the start of 2015, including its 2.4% hike earlier this month, have it on pace for 2016 to mark the fifth consecutive year with an increase.

5. Pembina Pipeline Corp.

Pembina Pipeline Corp. (TSX:PPL)(NYSE:PBA) is a pure-play energy infrastructure company serving the oil and natural gas industries across Canada and North Dakota. Its assets include oil and natural gas pipelines, processing plants, fractionation plants, and storage terminals.

It pays a monthly dividend of $0.16 per share, or $1.92 per share annually, which gives its stock a yield of about 4.9% at today’s levels. Investors must also note that the company has raised its annual dividend payment for four consecutive years, and its two hikes since the start of 2015, including its 4.9% hike in March of this year, have it on pace for 2016 to mark the fifth consecutive year with an increase.

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 Joseph Solitro has no position in any stocks mentioned. Altagas is a recommendation of Stock Advisor Canada.

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