The Motley Fool

5 Low-Yield Dividend-Growth Stars to Consider Today

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 this in mind, let’s take a look at five that you could buy right now.

1. Canadian National Railway Company

Canadian National Railway Company (TSX:CNR)(NYSE:CNI) is the largest rail network operator in Canada and one of the five largest in North America with about 21,000 miles of track. It’s also one of Canada’s largest full-load trucking companies with over 1,050 owner-operators, plus a fleet of 8,000 chassis and 8,000 containers.

It pays a quarterly dividend of $0.375 per share, or $1.50 per share annually, which gives its stock a yield of about 2% at today’s levels. It’s also very important to note that the company’s 20% hike in January has it on pace for 2016 to mark the 20th consecutive year in which it has raised its annual dividend payment.

2. CCL Industries Inc.

CCL Industries Inc. (TSX:CCL.B) is the world’s largest label company, and it’s one of its leading providers of aluminum aerosol containers and bottles, digital printing solutions, and inventory management solutions.

It pays a quarterly dividend of $0.50 per share, or $2.00 per share annually, which gives its stock a yield of about 0.9% at today’s levels. It’s also very important to note that the company’s 33.3% dividend hike in February has it on pace for 2016 to mark the 15th consecutive year in which it has raised its annual dividend payment.

3. Stella-Jones Inc.

Stella-Jones Inc. (TSX:SJ) is one of North America’s leading producers and marketers of pressure-treated wood products, including railway ties, utility poles, construction timbers, highway guardrail posts, and residential lumber.

It pays a quarterly dividend of $0.10 per share, or $0.40 per share annually, which gives its stock a yield of about 0.8% at today’s levels. It’s also very important to note that the company’s 25% dividend hike in March has it on pace for 2016 to mark the 12th consecutive year in which it has raised its annual dividend payment.

4. Lassonde Industries Inc.

Lassonde Industries Inc. (TSX:LAS.A) is one of the world’s leading developers, manufacturers, and marketers of beverages and food products, including fruit and vegetable juices and drinks, wines, soups, sauces, and broths. Its brands include OASIS, Fruite, Antonella’s, Madeleine, and Bistro Mundo.

It pays a quarterly dividend of $0.51 per share, or $2.04 per share annually, which gives its stock a yield of about 1.1% at today’s levels. It’s also very important to note that the company’s two dividend hikes since the start of 2015, including its 24.4% hike last month, have it on pace for 2016 to mark the ninth consecutive year in which it has raised its annual dividend payment.

5. Boyd Group Income Fund

Boyd Group Income Fund (TSX:BYD.UN) is a trust that was created for the purpose of acquiring and holding certain investments, including a majority interest in The Boyd Group Inc. and its subsidiaries. The Boyd Group Inc., together with its subsidiaries, is North America’s largest operator of non-franchised collision repair centres with 360 total locations, including 319 centres across 19 U.S. states and 41 centres across five Canadian provinces.

It pays a monthly distribution of $0.042 per share, or $0.504 per share annually, which gives its stock a yield of about 0.7% at today’s levels. It’s also very important to note that the company’s 2.4% distribution hike in November has it on pace for 2016 to mark the ninth consecutive year in which it has raised its annual distribution.

5 Canadian Growth Stocks Under $5

We are giving away a FREE copy of our "5 Small-Cap Canadian Growth Stocks Under $5" report. These are 5 Canadian stocks that we think are screaming buys today.

Get Your Free Report Today

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. David Gardner owns shares of Canadian National Railway. The Motley Fool owns shares of Canadian National Railway. Canadian National Railway is a recommendation of Stock Advisor Canada.

Two New Stock Picks Every Month!

Not to alarm you, but you’re about to miss an important event.

Iain Butler and the Stock Advisor Canada team only publish their new “buy alerts” twice a month, and only to an exclusively small group.

This is your chance to get in early on what could prove to be very special investment advice.

Enter your email address below to get started now, and join the other thousands of Canadians who have already signed up for their chance to get the market-beating advice from Stock Advisor Canada.