If youâre interested in building a portfolio of dividend-growth stocks, then youâve come to the right place. Iâve scoured the market and selected four high-quality stocks with yields up to 5% and active streaks of annual increases. These stocks are well positioned to continue their streaks going forward, so letâs take a quick look at each to determine if you should buy one or all of them today.
1. Empire Company Limited
Empire Company Limited (TSX: EMP.A) is one of Canadaâs largest owners and operators of grocery stores with more than 1,500 locations across all 10 provinces under its numerous banners, including Sobeys, Safeway, Thrifty Foods, and Lawtonâs Drug Stores. It also has a 41.5% ownership interest in Crombie Real Estate Investment Trust, which is one of the countryâs largest owners of commercial real estate.
It pays a quarterly dividend of $0.1025 per share, or $0.41 per share annually, giving its stock a yield of about 2.1% at current levels. Investors must also note that it has raised its annual dividend payment for 21 consecutive fiscal years, and its 2.5% hike last month has it on pace for fiscal 2017 to mark the 22nd consecutive year with an increase.
2. Canadian Imperial Bank of Commerce
Canadian Imperial Bank of Commerce (TSX: CM)(NYSE: CM) is Canadaâs fifth-largest bank with over $478 billion in assets as of April 30, 2016. It provides a full range of financial products and services to 11 million clients in Canada and around the world.
It pays a quarterly dividend of $1.21 per share, or $4.84 per share annually, giving its stock a yield of about 5% at current levels. Investors must also note that it has raised its annual dividend payment for five consecutive years, and its six dividend hikes since the start of 2015, including its 2.5% hike in May of this year, have it on pace for 2016 to mark the sixth consecutive year with an increase.
3. Magna International Inc.
Magna International Inc. (TSX: MG)(NYSE: MGA) is one of the worldâs largest suppliers of automotive parts, accessories, and related services. It has 306 manufacturing facilities and 92 product development, engineering, and sales centres in 29 countries.
It pays a quarterly dividend of US$0.25 per share, or US$1.00 per share annually, giving its stock a yield of about 3% at current levels. Investors must also note that it has raised its annual dividend payment for six consecutive years, and its 13.6% hike in February has it on pace for 2016 to mark the seventh consecutive year with an increase.
4. Interrent Real Estate Investment Trust
Interrent Real Estate Investment Trust (TSX: IIP.UN) is one of the largest residential landlords in Ontario and Quebec. It owns and manages over 8,450 residential suites as of June 10, 2016.
It pays a monthly distribution of $0.01925 per share, or $0.231 per share annually, giving its stock a yield of about 2.9% at current levels. Investors must also note that it has raised its annual distribution for four consecutive years, and its 5% hike in November 2015 has it on pace for 2016 to mark the fifth consecutive year with an increase.
