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5 Top Dividend-Growth Stocks to Buy in July

Stacks of gold coins, flag of Canada and dice cube

By investing in stocks that are raising their dividends regularly, you benefit from a solid growing income stream and potentially from share price appreciation. A growing dividend is a sign of financial health as dividends come from earnings.

I present below five stocks in different sectors that have five- and 10-year dividend-growth rates of at least 10% and have raised their dividends recently.

Onex Corporation (TSX:ONEX)

Founded in 1984, Onex is a Toronto-based private equity investment firm and holding company that has over $32 billion of assets under management.

The company has been a paying dividend since 1987 and has raised it every year since 2014. Onex has five- and 10-year dividend-growth rates of 18.5% and 12.3%, respectively.

On May 10, the investment firm announced a hike of 17% of its quarterly dividend to $0.0875 per share. The current dividend yield is 0.3%.

The stock has a five-year compound annual growth rate of return (CAGR) of 16% and is up 6% year to date.

Lassonde Industries Inc. (TSX:LAS.A)

Founded in 1918, Lassonde is a juice and beverage producer based in Rougemont, Quebec.

The company has been paying a dividend since 1996 and has raised it every year since 2008. Lassonde has five- and 10-year dividend-growth rates of 15.7% and 17.2%, respectively.

On April 20, the juice producer declared a hike of its quarterly dividend of 32.8% to $0.81 per share. The current dividend yield is 0.9%.

The stock has a five-year CAGR of 26% and is up almost 10% year to date.

Equitable Group Inc. (TSX:EQB)

Equitable Group is a financial services company that operates business through Equitable Bank, the company’s subsidiary.

The company has been paying a dividend since 2004 and has raised it twice a year since 2013. Equitable Group has five- and 10-year dividend-growth rates of 12.5% and 10.4%, respectively.

On May 11, the financial services company declared a hike of 3.8% of its quarterly dividend to $0.27 per share. The current dividend yield is 1.7%.

The stock has a five-year CAGR of 12% and is down 15% year to date.

Franco Nevada Corp. (TSX:FNV)(NYSE:FNV)

Franco Nevada is a Toronto-based company that owns royalties and streams in gold mining as well as in other commodity and natural resource investments.

The company has been paying a dividend since its IPO in 2007 and has raised it every year since then. Franco Nevada has five- and 10-year dividend-growth rates of 32% and 10%, respectively.

On May 9, the company declared a hike of 4.3% of its quarterly dividend to US$0.24 per share. The current dividend yield is 1.2%.

The stock has a five-year CAGR of 22% and is down 2% year to date.

Dollarama Inc. (TSX:DOL)

Founded in 1992 by Larry Rossy, Dollarama is Canada’s largest dollar store chain. There are over 1,000 Dollarama stores across the country.

The company has been paying a dividend since 2011 and has raised it every year since 2012. Dollarama has a five-year dividend-growth rate of 16.9%. We cannot calculate a 10-year dividend-growth rate since Dollarama began paying a dividend only seven years ago. The retailer has a seven-year annual growth rate of 15%.

On June 7, the company declared a hike of its quarterly dividend of 9.1% to $0.12 per share. The current dividend yield is 0.3%.

The stock has a five-year CAGR of 33% and is down 3% year to date.

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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 Stephanie Bedard-Chateauneuf owns shares of DOLLARAMA INC.

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