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3 Dividend-Growth Stocks to Buy and Hold

Buying and holding dividend-growth stocks is one of the most effective ways to build wealth over the long term. With this in mind, let’s take a look at three with yields up to 6.9% that you could buy today.

Restaurant Brands International Inc. (TSX:QSR)(NYSE:QSR)

Restaurant Brands International (RBI) is one of the world’s largest quick-service restaurant companies with 24,407 locations in 100 countries under its Burger King, Tim Hortons, and Popeyes Louisiana Kitchen banners.

RBI currently pays a quarterly dividend of US$0.45 per share, representing US$1.80 per share on an annualized basis, which gives its NYSE-listed shares a yield of about 3.2% at the time of this writing. The restaurant giant has raised its annual dividend payment each of the last three years, and its 114.3% hike in February has it on track for 2018 to mark the fourth straight year with an increase.

I think RBI’s very strong earnings growth, including its 32.9% increase to an adjusted US$2.10 per diluted share in 2017, and its continued expansion that will drive future earnings growth, including its addition of 1,331 net new restaurants in 2017, will allow it to continue to deliver dividend growth to its shareholders for many years to come.

InterRent Real Estate Investment Trust (TSX:IIP.UN)

InterRent is one of the largest residential landlords in Ontario and Quebec with a portfolio of 8,660 residential suites in mid-sized population markets across the provinces.

InterRent currently pays a monthly distribution of $0.0225 per unit, representing $0.27 per unit annually, which gives it a yield of about 2.7% at the time of this writing. The REIT has raised its annual distribution for six consecutive years, and its 11.1% hike in November 2017 has it on track for 2018 to mark the seventh consecutive year with an increase.

I think InterRent’s consistently strong growth of adjusted funds from operations (AFFO), including its 11% increase to $0.374 per unit in 2017, its conservative payout ratio, including just 65.8% of its AFFO in 2017, and its growing portfolio, including its addition of 601 net new suites in 2017, will allow it to continue to provide its unitholders with a growing stream of monthly income going forward.

Capital Power Corp. (TSX:CPX)

Capital Power is one of North America’s largest independent power producers with approximately 4,500 megawatts of owned capacity at 24 facilities located across Canada and the United States.

Capital Power currently pays a quarterly dividend of $0.4175 per share, representing $1.67 per share annually, which gives it a yield of about 6.9% at the time of this writing. The power producer has raised its annual dividend payment each of the last four years, and its 7.1% hike in July 2017 has it on pace for 2018 to mark the fifth straight year with an increase.

Foolish investors must also note that Capital Power has a dividend-growth target of approximately 7% annually through 2020, and I think its consistently strong AFFO growth, including its 12.9% increase to $3.60 per share in 2017, will allow it to extend this target into the mid to late 2020s.

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Fool contributor Joseph Solitro has no position in any of the stocks mentioned. The Motley Fool owns shares of RESTAURANT BRANDS INTERNATIONAL INC.

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