3 Top Dividend-Growth Stocks Yielding up to 5.5% to Build Your Portfolio Around

TransCanada Corporation (TSX:TRP)(NYSE:TRP) and these two other dividend stocks are great options if you’re looking for growing payouts.

If you’re looking to pad your portfolio with some cash, dividend stocks are a great way to do so. Not only are these investments great for the long term, but in the short term, dividends can help pad your returns, especially when markets are bullish. For that reason, I’m going to focus on three great dividend stocks that are great buys and pay as much as 5.5% per year to shareholders.

TransCanada Corporation (TSX: TRP)(NYSE: TRP) is one stock that will benefit from rising oil prices, particularly as the industry continues its recovery. Year to date, TransCanada’s stock has declined 10%, and at a price-to-earnings multiple of just 16, and the shares trading at a little more than twice their book value, it’s an attractive valuation for one of the top stocks on the TSX.

With the go ahead for the Keystone XL in place, TransCanada could be very busy in the years to come, and that’s never a bad sign for investors.

Although it may be concerning that the stock hasn’t seen any momentum recently, the decline has pushed its dividend yield up to 5%, making it a very good dividend stock to own, especially since it has grown over the years. Since 2013, payouts have grown by 50%, averaging a compounded annual growth rate (CAGR) of 8.4% during that time.

Despite being significantly impacted by oil and gas, TransCanada is one of the best stocks that you can own on the TSX.

Telus Corporation (TSX: T)(NYSE: TU) is another well-known brand in Canada, and its strong position in the telecom industry makes it a very appealing long-term buy. Unless the CRTC were to open the industry to foreign competition, which at this point seems very unlikely given its focus on protecting Canadian companies and content, then Telus is going to remain very safe in its position as a market leader for many years.

The company has grown steadily over the years with sales rising 16% since 2013. And while that may not get growth investors very excited about those results, it’s a good sign for a company that’s in a very competitive and mature industry, where it’s becoming a challenge to find new ways to grow.

Currently, Telus pays investors a dividend of 4.6% per year, which has grown by 54% in five years, averaging a CAGR of just over 9%.

Emera Inc. (TSX: EMA) will provide your portfolio with a third industry to invest in, which also might be the safest. The utility stock may not be a high-profile one, but its results are nothing to ignore.

In just four years, the company’s sales have nearly tripled, growing from $2.2 billion to $6.2 billion. With a lot of diversification in its services and the geographical areas that it serves, there’s still a lot more growth that the company can achieve in the years to come.

Emera also pays investors an attractive yield of 5.5%, which is highest on this list. It too has grown its payouts, and with dividends increasing 61% and averaging a CAGR of 10%, it has hiked its payouts more than Telus and TransCanada have. Emera may be a lesser-known stock, but that certainly doesn’t make it any worse of an investment.

Fool contributor David Jagielski has no position in any of the stocks mentioned.

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