3 Dividend-Growth Stocks Poised to Hike Their Payouts

Investing in dividend-growth stocks is a great way to grow your income. Let’s find out if TransCanada Corporation (TSX:TRP)(NYSE:TRP) is among the stocks that are going to raise their dividends.

Dividend-growth stocks are your best friends.

You can count on them no matter which direction the market is going. But the trick here is to find companies that have reliable track records of rewarding their investors through dividend payouts.

The best dividend payers not only generate regular income for their shareholders, but they also grow income over time.

Some companies are very transparent about their dividend policies, and it’s possible to know when the company will raise its dividend. Here, I’ve selected three top dividend companies that have plans to grow their payouts in the coming months.

TransCanada Corporation (TSX:TRP)(NYSE:TRP) has increased its dividend payout 17 consecutive years — a track record that’s tough to match.

A leader in North American energy infrastructure, TransCanada operates natural gas and liquids pipelines and power generation and gas storage facilities.

The company has informed its investors in advance that they should expect an annual dividend-growth rate of 8-10% through 2020 as the company advances a $24 billion near-term capital program that is expected to generate significant growth in earnings and cash flow.

With an annual dividend yield of 4%, TransCanada stock has also provided a massive capital gains, climbing ~50% over the past two years.

Enbridge Inc. (TSX:ENB)(NYSE:ENB) is a top dividend-growth stock. The company generates a lot of cash by serving millions of customers in Canada and the U.S. It also runs the largest oil and gas pipeline network in North America, making hefty margins to transport energy products. 

Offering 4.95% annual dividend yield based on its today’s price, Enbridge has over 20 years of history of increasing dividends. The company plans to continue with this practice, targeting 10-12% annualized growth in dividends through 2024.  

Canadian banks have very consistent approach when it comes to paying dividends. Having one or two Canadian banks in your dividend-growth portfolio is a great strategy for income investors.

The reason Canadian banks are so consistent in providing dividends is that they operate in a highly regulated and profitable environment, where it’s tough for new entrants to enter the market and challenge their dominance.

Bank of Nova Scotia (TSX:BNS)(NYSE:BNS) is my favourite pick in this segment because of its long history of dividend growth.

With its third-quarter earnings announcement last month, the lender hiked its quarterly dividend by 7% to $0.79 per share. That’s about 27% jump in the quarterly payout in the past four years.

With a 4.16% annualized dividend, Bank of Nova Scotia is well positioned to reward its investors with higher dividends in the coming years.

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 Haris Anwar has no position in any stocks mentioned. The Motley Fool owns shares of Enbridge. Enbridge is a recommendation of Stock Advisor Canada.

More on Dividend Stocks

young woman celebrating a victory while working with mobile phone in the office
Dividend Stocks

3 CRA Benefits Most Canadians Can Grab in 2024

You can save on taxes by claiming the dividend tax credit on Fortis Inc (TSX:FTS) shares.

Read more »

Two seniors float in a pool.
Dividend Stocks

TFSA: How to Earn $1,890 in Annual Tax-Free Income

Plunk these investments into your TFSA to earn passive income and avoid the taxman.

Read more »

Engineers walk through a facility.
Dividend Stocks

1 TSX Stock I Wouldn’t Touch With a 10-Foot Pole

AtkinsRéalis (TSX:ATRL) is one TSX stock I'd never invest in.

Read more »

edit Woman in skates works on laptop
Dividend Stocks

3 No-Brainer Stocks to Buy Under $30

These three stocks all offer a huge deal for investors looking for dividends, as well as growth that will last.

Read more »

You Should Know This
Dividend Stocks

How to Convert a $300 Monthly Investment Into $338 in Monthly Income

If you want a certain amount in monthly passive income, invest a similar amount today and leave the rest to…

Read more »

Increasing yield
Dividend Stocks

3 Income Stocks With Big Yields to Consider in April 2024

If you haven’t yet made your March investments, here are three income stocks to buy the dip and lock in…

Read more »

Senior Man Sitting On Sofa At Home With Pet Labrador Dog
Dividend Stocks

RRSP Investors: Don’t Miss Out on This Contribution Hack!

This hack has so many benefits for you -- not just when you put it in your RRSP but for…

Read more »

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

Passive Income: 2 Safe Dividend Stocks to Own for the Next 10 Years

Dividend stocks such as Manulife and Fortis can help you generate a stable and recurring passive-income stream.

Read more »