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2 Dividend-Growth Stocks for Your Retirement Plan

Whether you are years away from retirement or on the cusp of it, it always pays to have a good financial plan to get you there and to maintain your lifestyle once you are there.

Dividend-growth stocks are the perfect stocks for your retirement plan, especially those that have long track records of solid dividend growth and earnings predictability.

Here are two dividend-growth stocks to consider for your retirement plan today.

Brookfield Infrastructure Partners (TSX:BIP.UN)(NYSE:BIP)

From utilities to communications to energy, Brookfield owns and operates one of the largest portfolios of globally diversified infrastructure assets. Assets such as regulated utilities terminals, energy transmission and distribution, railroads, toll roads, as well as in newer, faster-growing industries such as communications infrastructure and water infrastructure.

High on visibility and predictability, these assets are long-life assets that provide essential services and predictable cash flows.

Since 2009, Brookfield has grown its funds from operations by a compound annual growth rate (CAGR) of 19% and its per-unit distribution by a CAGR of 11%.

Going forward, management is targeting 6-9% annual growth in distributions, and all indications point to them coming in at the top end of this range.

In 2019, we can expect to see stronger growth in funds from operations, as the recently announced $1.3 billion in transactions will favourably impact results.

In terms of future opportunities, the list is long and exciting.

From different geographies to different industries, much of the growth will come from new sources. Aging public infrastructure, economic growth in Asia, water scarcity, and unprecedented data usage are big drivers.

The exponential increases in data usage, for example, will necessitate massive investment in infrastructure such as telecom towers, fibre, and data centres. The company estimates this will potentially be a $3 trillion market by 2025.

The current dividend yield on Brookfield stock is 5.17%.

Metro (TSX:MRU)

These days, everything seems to be working for Metro, as earnings growth, dividend growth, and investor sentiment remain positive.

Metro stock has rallied 20% since October lows, as the market has shifted toward more defensive, value stocks.

This makes sense, as Metro’s business is an economically insensitive one, as the company has continued to post strong results, and as dividend increases have been typical of the company.

To illustrate my case, 2018 EPS was $0.63 versus $0.51 in the same period last year for an increase of 23.5%, buoyed by the Jean Coutu acquisition. The annual dividend was increased by 16% in 2017 to $0.65 per share and by 10.8% earlier this year to the current $0.72 per share.

With an $11 billion market capitalization and a 1.53% dividend yield, Metro will likely remain a story of consistency, stability, and shareholder wealth creation.

The current dividend yield on Metro stock is 1.54%.

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Fool contributor Karen Thomas has no position in any of the stocks mentioned. Brookfield Infrastructure Partners is a recommendation of Stock Advisor Canada.

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