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5 Dividend-Growth Stocks That Can Help You Beat the Market

Investing in dividend-growth stocks is one of the most powerful and time-proven strategies to build wealth and beat the market over the long term, so let’s take a look at five that you could buy right now.

Great-West Lifeco Inc. (TSX:GWO)

Great-West Lifeco is an international financial services holding company with interests in life insurance, health insurance, retirement and investment services, asset management, and reinsurance businesses. Its subsidiaries include Great-West Life, London Life, Canada Life, and Irish Life.

Great-West Lifeco currently pays a quarterly dividend of $0.389 per share, representing $1.556 per share annually, which gives it a yield of about 4.7% at the time of this writing. The company’s 6% dividend hike in February has it on track for 2018 to mark the fourth consecutive year in which it has raised its annual dividend payment, and its consistent growth of operating cash flow, including its 8% growth to $6.76 billion in 2017, could allow this streak to continue in 2019 and beyond.

Brookfield Property Partners LP (TSX:BPY.UN)(NASDAQ:BPY)

Brookfield Property Partners is one of the world’s largest owners, operators, and developers of commercial real estate, including office, retail, multifamily, industrial, self-storage, and student housing properties.

Brookfield currently pays a quarterly distribution of US$0.315 per unit, equating to US$1.26 per unit annually, which gives it a yield of about 6.5% at the time of this writing. The real estate titan’s 6.8% distribution increase in February has it on track for 2018 to mark the fourth consecutive year in which it has raised its annual distribution, and it has a long-term distribution-growth target of 5-8% annually, which I think will be supported by its consistent growth of funds from operations, including its 5.9% increase to US$1.44 per share in 2017.

Canadian Imperial Bank of Commerce (TSX:CM)(NYSE:CM)

CIBC is the fifth-largest bank in Canada with approximately $586.93 billion in assets as of January 31, 2018. It serves more than 11 million individual, small business, commercial, corporate, and institutional clients in Canada, the United States, and around the globe.

CIBC currently pays a quarterly dividend of $1.33 per share, equating to $5.32 per share annually, which gives it a yield of about 4.6% at the time of this writing. The company’s 2.3% dividend hike in February has it on track for fiscal 2019 to mark the ninth straight year in which it has raised its annual dividend payment, and it has a dividend-payout target of approximately 50% of its adjusted net income, so its consistent growth, including its 10% increase to $3.18 per share in the first quarter of 2018, should allow for further increases in the quarters and years ahead.

Exchange Income Corporation (TSX:EIF)

EIC is an acquisition-oriented company focused on acquiring profitable companies in the aerospace, aviation, and manufacturing industries that have strong management teams and steady cash flows. Its subsidiaries include Perimeter Aviation, Calm Air International, Provincial Aerospace, Ben Machine Products, and Stainless Fabrication.

EIC currently pays a monthly dividend of $0.1825 per share, representing $2.19 per share annually, which gives it a yield of about 6.85% at the time of this writing. The company’s 4.3% dividend hike in February put it on pace for 2018 to mark the eighth straight year in which it has raised its annual dividend payment and also put in on pace for 2019 to mark the ninth straight year with an increase, and even though its payout ratio rose from 61.5% in 2016 to 70.8% in 2017, its management team is confident that it can continue to deliver dividend growth going forward.

TransCanada Corporation (TSX:TRP)(NYSE:TRP)

TransCanada is one of North America’s largest owners and operators of energy infrastructure. Its portfolio includes natural gas and liquids pipelines, natural gas storage facilities, and power-generation facilities, which are located across Canada, the United States, and Mexico.

TransCanada currently pays a quarterly dividend of $0.69 per share, representing $2.76 per share annually, which gives it a yield of about 5.3% at the time of this writing. The infrastructure giant’s 10.4% dividend hike in February has it on track for 2018 to mark the 18th straight year in which it has raised its annual dividend payment, and it has a dividend-growth program in place that calls for 8-10% growth annually through 2021, which will be supported by its $23 billion near-term capital program.

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Fool contributor Joseph Solitro has no position in any of the stocks mentioned.

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